Air India Cash Strapped!
The three oil companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum — collectively barred Jet Fuel supplies to Air India at Delhi, Mumbai, Kolkata, Chennai, Trivandrum and Kochi ,today 2nd February 2012, due to Air India failing its committment to pay for the previous purchases. Last year Government had asked the companies to give the airline 90 days of credit period and the companies had agreed to. Today the airline failed its deadline of the credit period resulting which the oil companies stopped ATF supplies to the airline.
Air India has to pay over Rs.4,170 crore to public sector oil companies for its jet fuel purchases.