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Is Air India Suffering From Crisis?
By: Tupaki Desk | 11 Oct 2019 10:32 AM GMT
Will the aviation crisis hit India in one week? Reports are claiming the same. Oil companies have confirmed that they will be supplying the ATF( aviation turbine fuel) to the state-run airline from the 18th of this month. But Indian Oil Corp Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Limited have made it clear that until the old dues were paid they will not supply fuel to Air India. These companies were not paid for the fuel they supply from the last 8 months which worth 8,000 crores.
These companies took the same decision last August but with the intervention of the Central Civil Aviation department, they changed their decision. The oil companies have now given the ultimatum since the dues were not paid. However, Airindia is currently trading at Rs. 60,000 crores in debt. If ATF supplies are stopped, AI fleet services are likely to cease. If that happens, the crisis in the Indian Aviation Industry will begin. Experts in the industry believe that private companies are failing measurably to extend services that meet the demands of passengers.
These companies took the same decision last August but with the intervention of the Central Civil Aviation department, they changed their decision. The oil companies have now given the ultimatum since the dues were not paid. However, Airindia is currently trading at Rs. 60,000 crores in debt. If ATF supplies are stopped, AI fleet services are likely to cease. If that happens, the crisis in the Indian Aviation Industry will begin. Experts in the industry believe that private companies are failing measurably to extend services that meet the demands of passengers.
