(ET)
A threat by Indian Oil Corp (IOC) to stop jet fuel supplies to Air India at some airports was resolved after a late Monday evening intervention from the ministry. The state-run refiner threatened to stop supplies at six airports, including Pune, Vizag and Chandigarh, due to payment defaults by the airline, said a senior executive.
The issue was later sorted after a meeting with aviation ministry officials, said an Air India spokesman. The cash-strapped airline has been struggling to make payments. It had a debt of more than Rs 54,000 crore last year when the government tried to sell a 76% stake in the airline. The government then transferred about Rs 29,000 crore of working capital debt into a special purpose vehicle — Air India Asset Holdings (AIAHL).
