Indian Oil again stops fuel supply to Jet Airways for some time

Jet Airways, Suresh Prabhu, India, flights cancelled, DGCA, Civil Aviation, NewsMobile
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Indian Oil Corporation on Friday again stopped fuel supplies to Jet Airways across the country for some time due to non-clearance of outstanding bills.

On Thursday as well, the government-owned oil marketing company stopped supply of aviation turbine fuel to the cash-strapped airline for an hour at New Delhi’s IGI Airport.

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A resolution plan prepared by the lenders’ consortium led by State Bank of India has estimated an emergency fund of Rs 1,500 crore for the airline, which has a debt of more than Rs 8,500 crore besides unpaid dues to aircraft lessors, employees and suppliers.

On March 25, Jet Airways Chairman Naresh Goyal stepped down, paving way for lenders to bail out the financially troubled airline he set up 25 years ago.

The lenders have decided to ask for expressions of interest (EoIs) for a stake sale on April 6 but reports say there is no sign of any investor so far.

On April 3, Civil Aviation Secretary Pradeep Singh Kharola had said that Jet is operating less than 15 planes and its eligibility to fly on international routes needs to be examined.

The airline has been facing tough competition from low-cost carriers and unstable crude prices.

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