Air India cancels 6 flights due to fuel shortage
At least six Air India flights were cancelled today as the airline prepared a contingency plan to meet a fuel shortage, after three state owned oil firms refused to supply jet fuel till it paid off its mounting dues.delhi Updated: May 27, 2011 16:30 IST
At least six Air India flights were cancelled on Friday as the airline prepared a contingency plan to meet a fuel shortage, after three state owned oil firms refused to supply jet fuel till it paid off its mounting dues.
Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation, which had put the ailing carrier on notice to get its daily fuel on cash-and-carry sales model in December last, sent a notice asking it to pay the debts which have risen due to the recent spate of increase in the price of Aviation Turbine Fuel (ATF).
At least six flights, mostly from Thiruvananthapuram, were cancelled due to fuel shortage, airline officials said.
They said crew on all international flights have been asked to buy extra fuel while returning home.
The airline operates nearly 320 flights on domestic and international sectors daily.
The oil firms had asked cash-strapped Air India to set up a roadmap to clear over Rs 2,400 crore in past fuel bills and make upfront payment for all future purchases of ATF.
Air India has already raised the matter with the civil aviation ministry and was expecting an early resolution, an airline official said.
The ministry has already held at least two rounds of discussion with officials of Air India and the oil PSUs since March. After the oil firms put the airline on cash-and-carry mode in December last year, Air India was paying an average daily amount of Rs 13.5 crore during the past few months.
This amount has now risen due to the fuel price hike and the oil firms are asking the airline to pay up the additional cost, he said.
First Published: May 27, 2011 16:08 IST