Air India has yet again defaulted on its promise to pay its dues to the oil companies. On October 5, Air India had received a warning that if they did not make the lump-sum payment of what they owe to the oil corporations, fuel supply for the airline will be stopped effective October 11, 2019, in six major airports of India. According to reports from PTI, to its reply, Air India requested for a little more time and asked the oil corporations not to stop the supply. But since there was no timeline for payments mentioned in the letter from Air India, the OMC’s replied that considering their request, they will extend the date from October 11 to October 18, 2019.
Air India Being Accused of Defaulting Payments Again
On Tuesday, Air India was accused of defaulting debt payment by the state-owned oil corporations. Earlier in June, Air India had promised the oil corporations that it will pay Rs 100 crore to each of them every month to clear out the dues which they again promised in September. But even after promising they have not paid the due amount to any of the oil corporations - Indian Oil Corporation (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL).
The Rs 5000 Crore Debt and the Threat Looming above Air India
Air India is in a huge debt of Rs 5,000 crore from the three oil corporations. It owes Rs 2700 crore to Indian Oil Corporation (IOC) for the fuel bills it has not paid yet and out of which Rs 450 crore is of interest owed. The threat of oil corporations stopping fuel supplies to six major airports is still on Air India. The name of the airports has not been disclosed.