india

Updated: Sep 08, 2019 00:48 IST

New Delhi In a major relief for Air India, state-owned oil marketing companies have restored fuel supply at six airports. Officials in the know said Air India has assured to pay Rs100 crore per month to oil companies to clear its debt.

The supply at six airports was stopped on August 22 over Air India’s mounting dues. The fuel supply was restored following government- mediated talks earlier this week between the parties under which the airline has ‘’committed” to pay Rs 100 crore per month to clear the outstanding dues of Rs 4,300 crore.

Air India has also agreed to pay daily for the fuel it is taking for operations.

According to an Indian Oil Corporation official, the fuel supply resumed on Saturday evening.

Last month, IndianOil along with Bharat Petroleum and Hindustan Petroleum had stopped supplies to the state-run carrier in Pune, Vizag, Cochin, Patna, Ranchi and Mohali, citing mounting dues.

The oil companies had threatened to stop fuel supply at Hyderabad and Raipur from September 6.

Though Air India has been on a cash-and-carry mode since April, and has been paying Rs 18 crore daily towards fuel bills, OMCs sought clearance of all dues at the earliest.

“Oil marketing companies wanted Air India to clear all dues at the earliest. But the airline has agreed to pay them Rs 100 crore per month. This will be in addition to the amount it is paying to OMCs against the daily billing,” said an airline official.

Air India chairman and managing director Ashwani Lohani admitted last week that the flag carrier’s financials weren’t sound enough, but said it was hopeful of making an operational profit this year, and was looking to launch new flights, improving its service to first-class passengers and offering special packages to travellers .