Air India not paying monthly ATF dues: Oil Companies

State-owned oil companies on Tuesday accused Air India of not honouring its commitment to pay Rs 100 crore every month to clear overdue ATF outstanding of over Rs 5,000 crore and will be forced to snap supplies at major airports from Friday if no solution is offered.

“Air India had back in June and again in Sept agreed to pay the three oil marketing companies Rs 100 cr every month to clear past ATF dues. But it hasn’t met its commitment,” said Sandeep Kumar Gupta, Director (Finance), Indian Oil Corp (IOC).

IOC and two other oil marketing companies, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), have served a notice on Air India that they will be forced to stop jet fuel (ATF) supplies if payments are not made, he said.