An ultimatum was issued to debt-ridden Air India by Oil Marketing Companies to pay about Rs 100 crores by 4 pm on October 8 for the constant fuel supply and in turn, cause no hindrance to operations at various airports. The prices for jet fuel supply soared over the weekend and the difference had to be paid by Air India by Monday morning.
After not receiving the due payment, a letter was shot off to Air India management to stop the supply of fuel which would have adversely affected the operations at 8 busiest airports. Debt-ridden Air India somehow managed to pay the amount by 1 PM on October 8 and managed to escape from the impending doom.
The situation would have been adverse with Air India flights’ operation suspended at 8 airports namely Mohali, Patna, Pune, Trivandrum, Jaipur, Lucknow, Visakhapatnam, And Coimbatore. Indian oil corporation later assured that no stoppage in supply will take place and any form of operations with not be disrupted.
Air India officials too weary to comment on the crisis but only said that the crisis has been well managed and any form of disruption will not happen in the near future
Air India is grappling with a series of financial crisis, ranging from debt payment to loans from the government to payment of salaries to employees. Air India has come with ingenious solutions too to cut costs too but with the increase in jet fuel prices world over and the positioning of the rupee, the Maharaja's glory is near to decadence. Air India is still functioning on a very tight rope. More financial burdens can lead to a collapse at any time.
This situation also echoes the present fuel supply crisis in the aviation industry. AS Indigo, Jet Airways and Spicejet are also grappling with recurring losses. As they have to meet the requirements of low ticket prices for the Indian market but still pay up the increasing jet fuel price. This is a conundrum which has also been raised with the Ministry of Civil Aviation but no solution has been provided yet.