Air India faces fuel supply cut, flights to get hit


New Delhi, Sep 1 (IANS): Air India might end up cancelling several flights after September 6 as the state-owned fuel retailers have threatened to cut off supplies to the cash-strapped national carrier at Hyderabad and Raipur.

"Several flights are operated out of Hyderabad, which is one of our hubs. It will not be possible for us to sustain the entire operation if the fuel supply is stopped. We might have to cancel several flights," a senior Air India official told IANS.

Last week, state-owned oil marketing companies (OMCs), led by IndianOil, had stopped fuel supply to Air India at six -- Ranchi, Mohali, Patna, Vizag, Pune, and Cochin -- airports over non-payment of dues.

The airline could operate flights from these destinations as the aircraft were pre-loaded with fuel for a round-way trip.

But it might not be the case for larger destinations, like Hyderabad and Raipur, with Air India operating over 50 flights from there.

"At present, we are making daily payments for fuel, which comes to around Rs 18 crore. But in the absence of equity support, we can't handle the huge debt service liabilities as of now," the official said.

The three OMCs in a letter to Air India said, "It's once again requested to make lump sum payments towards outstandings, including interest, at the earliest, failing which OMCs will be constrained to extend the suspension of supplies to Hyderabad and Raipur with effect from 2 p.m. of September 6."

 

  

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Comment on this article

  • I wish I was There, Bahrain

    Sun, Sep 01 2019

    Modi and Amit Shah, are playing very dirty.

    Now again so many people are going to loose jobs, Parle Biscuits is also done.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Anilkumar, Mangalore

    Sun, Sep 01 2019

    This may be a deliberate move by interested politicians to speed up selling Air India to Private owners. Otherwise, I dont find reasons for not solving the financial crisis of Air India knowing fully well that it is going the wrong way. Govt is ready to give bank loans to private organisations but not to Air India.

    Already Airports, defense equipment supply, telecom licenses and many such vital items are being given to private organisations blindly. Soon you may find Reliance Airlines or Adani Airlines in the country.

    DisAgree [1] Agree [7] Reply Report Abuse


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