New Delhi: Indian Oil Corporation (IOC) has decided to stop the ATF fuel supply to Air India starting October 18 after the national carrier failed to comply with Rs 100 Crore per month payment that was agreed upon
The decision comes days after public sector oil marketing companies (OMCs), including IOC, BPCL and HPCL had threatened to discontinue fuel supplies to the fiscally strapped national carrier at six major airports in the country.
Air India, however, insisted the move will not affect the schedules or movement of flights.
Trouble mounted for Air India on October 10 when the state-owned oil marketing companies sent it an ultimatum, asking it to make the pending payments by October 18, a failure of which would result in discontinuation of jet fuel supply at six major airports, including Mumbai and Delhi.
On October 13, the airline said the aviation jet fuel payment issues are being sorted out and will be resolved soon with the oil PSUs. It also ‘assured’ its customers of smooth operations, saying it has taken all the measures in the eventuality of the two sides failing to reach an understanding on the issue.