Oil cos threaten to stop jet fuel supplies to Air India
at Friday, May 27, 2011
State-owned oil companies have threatened to stop jet fuel supplies to Air India after the cash-strapped national carrier repeatedly defaulted on payment of fuel bills.Air India was put on cash-and-carry from December, but the airline has not been able to pay for even its daily fuel purchases."Oil companies already incur huge losses on selling diesel, domestic LPG and kerosene way below their production cost and to expect them to sell ATF at subsidised rates is not acceptable," an official said.At a meeting called by Cabinet Secretary K M Chandrasekhar in March to resolve the payment impasse, Air India sought discounts similar to the ones given to private airlines.
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