Oil Ministry presents the data of ATF dues on India's airline

Posted By: Religare
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Oil Ministry presents the data of ATF dues on India's airlin
Regarding the outstanding dues of Public Sector Oil Marketing Companies (OMCs) from private airlines for the last three years and current year (April-September, 2011), the data released by the Minister of Petroleum & Natural Gas reported Jet Airways to have maximum amount of due worth Rs 849.24 crores as on 30.09.11.

The airline was followed by Kingfisher airlines which reported dues of Rs. 636.79 as on 30.09.11 for the fuel it borrowed from Hindustan Petroleum Corporation Ltd. (HPCL).

Meanwhile, supplying ATF to the India's airlines, despite their falling situation, the ministry said that OMCs would take action for recovery of dues in line with the mutually-agreed commercial terms. In some cases, OMCs may also resort to the legal route by filing suit against defaulting airlines in the court of law for recovery of dues.

“The defaulting airlines are also put on 'Cash and Carry' and interest is recovered on overdue payments. OMCs encash bank guarantee and post dated cheques for recovery of their outstanding dues, wherever applicable, as per commercial terms agreed between them and airlines," said Minister of Petroleum & Natural Gas S. Jaipal Reddy.

Meanwhile, OMCs supply Aviation Turbine Fuel to Private Airlines as per mutually agreed commercial terms. Credit supplies are extended to the airlines and the airlines make payments depending upon the agreed commercial terms. However, currently there is no proposal for reconsidering the credit facility for supply of fuel to private aviation companies, added the minister.

Dion Global Solutions Ltd

Story first published: Friday, November 25, 2011, 12:30 [IST]
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