Pay and tank up, state-run oil cos tell AI

NEW DELHI: State-owned oil marketing companies have put Air India on cash-and-carry mode as the national airline ran up dues of Rs 2,300 crore. Now, the AI-Indian Airlines combine will have shell out Rs 13 crore daily to oil companies to operate its 400-odd flights on a given day, both domestic and international. The payment for refueling weekend flights would have to be made on Friday.

Whether the denial of fuel credit—a first for the stateowned airline—affects AI’s flight schedules is something that will be known only in coming days. The oil ministry on Monday asked the three OMCs—Indian Oil, Bharat Petroleum and Hindustan Petroleum—to withdraw credit facility to AI. An AI spokesperson confirmed the move and said attempts are being made to ensure that flights don’t get affected. However , the aviation ministry and AI insiders say the airline does not have the resources to sustain itself for very long.

Kingfisher was put on for a while but now has credit facility again.