Kochi: Air India to fly despite bar on fuel

KOCHI: The decision of oil marketing companies (OMCs) comprising IOC, BPCL and HPCL to suspend aviation fuel to Air India and Alliance Air flights at six airports in India from Thursday is unlikely to hit the flight services from Kochi. The OMCs have decided to suspend jet fuel to Air India and Alliance Air due to outstanding dues mounting from the airlines and their ramifications on their working capital requirements, said a statement by Subodh Dakwale, IOC executive director said on Friday.

Kochi is among the six airports along with Mohali, Ranchi, Pune, Patna and Visakhapatanam the OMCs chose to suspend fuel supply to Air India. A top Air India official in Kochi said the flights from Kochi airports will not be affected as the airlines have a mechanism to overcome the situation. Declining to comment further the official said services will operate as scheduled.

According to Mr. Dakwale Air India has overdue payments to the tune of Rs 5,000 crore which includes interest accrued on outstanding dues.

As per the commercial terms Air India enjoys a 90-day credit period. The credit, according to the OMCs, has since crossed the limit and was 230 days in the past two years.

The OMCs have served a notice to the Air India on August 14 on the decision to stop jet fuel from with effect from Aug 22 in the six airports. Air India uplifts about 250 kilolitres of ATF at the six airports on a daily basis.