Adding woes to the already indebted national carrier Air India, oil companies have decided to stop supplying fuel to the carrier due to non-payment of dues.
According to the reports, major oil companies in the country have decided to discontinue the fuel supply to the national carrier after it failed to pay dues for the ‘current supply’.
In recent times, Air India has gone through one of the worst economic crises with Civil Aviation Minister Vayalar Ravi admitting a week earlier that the national carrier was incurring a loss of `600 crore per month.
“There are several factors which are causing losses to Air India… abnormal increase in aviation fuel prices, competition from budget and other airlines, increase in wages and overheads…,” the minister had said in the Rajya Sabha.
The Civil Aviation Minister also informed that the Government was paying interest on working capital and procurement of aircrafts which was leading to Air India incurring `600 crore losses every month while the income is around `1,100 crore. The minister further informed that expenses were at `1,700 crore.
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