Stoppage of fuel supply due to shortage of funds: Air India chairman

ANI New Delhi, India Aug 25, 2019, 03.27 PM(IST)

File photo: Air India plane. Photograph:( Zee News Network )

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'It is because of an overall shortage of funds but doesn't reflect on the operational performance and recent efforts of the airline,' Ashwani Lohani said.

The Chairman and Managing Director of Air India, Ashwani Lohani on Sunday said that stoppage of fuel supplies at six airports from Oil Marketing Companies (OMCs) is because of an overall shortage of funds.

"It is because of an overall shortage of funds but doesn't reflect on the operational performance and recent efforts of the airline," Lohani said.

Earlier, on Friday state-owned oil marketing companies (OMCs) led by Indian Oil stopped jet fuel supply to Air India at six airports - Kochi, Pune, Patna, Ranchi, Vizag and Mohali - over payment defaults.

"Oil marketing companies (OMCs) led by Indian Oil have stopped jet fuel supply at six airports," Air India Spokesperson Dhananjay Kumar had earlier said in a statement.

Kumar said Air India cannot handle huge debt service liabilities in the absence of equity support.

"This fiscal our financial performance is very good and we are moving towards healthy operating profit. Airline despite legacy issues is performing very well," he had maintained.