Oil PSUs, 2 airports slap notice on Air India

New Delhi, May 27 (PTI) Financial crisis facing already
cash-strapped Air India worsened on Friday with oil Public
Sector Undertakings (PSUs) restricting the supply of jet fuel
and operators of Delhi and Hyderabad airports asking it to pay
up the dues by June 1.
GMR-led Delhi International Airport Limited and Hyderabad
International Airport Limited said Air India would be allowed
to operate their flights "only on cash and carry basis" from
midnight of June 1.
Air India owes Rs 217.08 crore to Delhi airport and Rs
35.89 crore to Hyderabad airport on account on airport
handling charges, including aeronautical charges.
Two GMR-led joint ventures also put Kingfisher Airlines on
notice saying that the national carrier and the Vijay Mallya-
owned airlines had "significant amount of dues" and both of
them "will be allowed to operate their flights from and to
Delhi and Hyderabad, only on cash and carry basis."
Kingfisher Airlines owes Rs 67.98 crore and Rs 21.98 crore
respectively to DIAL and GHIAL.
"It is expected that these airline companies will clear
major outstanding payments owed by them to DIAL and GHIAL to
avoid inconvenience that might be caused to their passengers
with effect from June 1," a GMR spokesperson said.
The spokesperson said DIAL and GHIAL took the decision
"after continued deliberations with these airlines failed to
yield payments of outstanding dues."
Air India on Friday faced a crisis situation with oil PSUs
restricting the supply of jet fuel, forcing the carrier to
cancel six flights from Thiruvananthapuram and prepare a
contingency plan to combine flights from Saturday.
Three state-owned oil firms slashed the supply of aviation
turbine fuel (ATF) to the national carrier by 20 per cent at
all airports, leading to the cancellation of six services,
including some international ones, official sources said.
Air India's total fuel dues to Indian Oil Corporation,
Bharat Petroleum Corporation Limited and Hindustan Petroleum
Corporation amount to about Rs 2,400 crore.
As less fuel was supplied at Thiruvananthapuram early
today, only four of the ten scheduled flights, including
international ones, could take off, the sources said.
With the spectre of fuel restrictions looming, the airline
prepared a contingency to manage its schedules from major
metro airports from tomorrow, AI officials said.
The crew on all international flights have also been
asked to buy extra fuel while returning home. The airline
operates nearly 320 flights on domestic and international
sectors daily.
The move by the oil PSUs was described as "arbitrary and
unscientific" by airline officials but the two sides reached
an understanding during the day that curtailment in ATF supply
would not be imposed on all airports.
However, the cut in ATF supply could be restricted to some
metros to give Air India the leeway to combine flights and
adjust its loads and the daily schedule, the sources added