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Fuel supply to Air India stopped at six domestic airports: Indian Oil Corporation

File photo. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Aug 23, 2019, 06.24 PM (IST)

Jet fuel supply to state-run carrier Air India has been stopped at six domestic airports because of unpaid dues to fuel provider, Indian Oil Corporation said on Friday.

"The joint decision to stop fuel supply to Air India from six airports, Kochi, Mohali, Pune, Ranchi, Patna and Visakhapatnam, was taken by the Oil marketing companies in the wake of long-overdue payments to the tune of Rs. 5,000 crore," the company said in a statement.

Air India Spokesperson Dhananjay Kumar also confirmed the report and said oil marketing companies (OMCs) led by Indian Oil have stopped jet fuel supply at six airports including - Ranchi, Mohali, Patna, Vizag, Pune and Cochin.

India, for years, has propped up the debt-laden airline by infusing equity to keep it alive - the government injected 39.75 billion rupees ($553 million) into Air India in the fiscal year that ended on March 31. 

Country's aviation sector is facing turmoil with one of its biggest private carriers, Jet Airways in bankruptcy, while passenger growth in the market overall has slowed.

The government failed last year in its attempt to sell a 76 per cent stake in Air India due to a lack of interest from bidders who said they found some of the stake sale terms too onerous, making it a non-starter. 

It is now redrawing the stake sale plans and as part of the effort it has hived off some of the loss-making airline's debt of $8.5 billion.

India may now consider selling up to a 100 per cent stake in the airline, a government official told Reuters in July, adding that it expects to get 150 billion rupees ($2.1 billion) from selling the airline.

(With inputs from agencies)

Story highlights

Country's aviation sector is facing turmoil with one of its biggest private carriers, Jet Airways in bankruptcy, while passenger growth in the market overall has slowed.