Jet Airways crisis: Indian Oil stops fuel supply to airline in Mumbai, Delhi and Hyderabad airports for dues

This is the third time that the public sector oil marketing company has cut fuel supply to Jet Airways in the past eight days, which is struggling to keep afloat amid acute liquidity crisis.

Press Trust of India April 10, 2019 17:39:26 IST
Jet Airways crisis: Indian Oil stops fuel supply to airline in Mumbai, Delhi and Hyderabad airports for dues
  • This is the third time that IOC has cut fuel supply to the airline in the past eight days

  • IOC’s move builds pressure on Jet Airways as the airline is yet to receive a $218 million loan from its lenders

  • A European cargo agent seized one of the Boeing planes of Jet Airways at the Amsterdam airport

New Delhi: For the third time in a week, national oil marketer Indian Oil Corp (IOC) on Wednesday stopped fuel Supply to cash-starved Jet Airways for non-payment of dues.

The airline also faced the ignominy of losing one of its planes to a European cargo agent who seized one of its wide-body planes at the Amsterdam airport for payment related issues, a source said.

This is the third time that the public sector oil marketing company has cut fuel supply to the airline in the past eight days, which is struggling to keep afloat amid acute liquidity crisis.

Jet Airways crisis Indian Oil stops fuel supply to airline in Mumbai Delhi and Hyderabad airports for dues

Representational image. Reuters.

"Indian Oil has stopped fuel supplies to Jet Airways in Mumbai, New Delhi and Hyderabad airports for its failure to clear dues," the source said. Mumbai is the largest base for the airline and it operates maximum flights from the city.

On 4 and 5 March also the oil company had cut supplies to Jet Airways and restored only after getting an assurance from the
airline management.

Earlier in the day, a European cargo services provider seized one of its Boeing 777-300ER planes at the Amsterdam airport for non-payment of dues.

"The cargo agent seized Boeing 777-300 ER (VT-JEW) of Jet Airways at the Amsterdam airport as the airline could not clear his dues," the airline source told PTI.

The aircraft was to operate a flight (9W 321) to Mumbai from Amsterdam Wednesday on Wednesday.

Jet Airways, however, said the flight was delayed due to "operational reasons."

In a statement, the airline said flight 9W 231 from Amsterdam to Mumbai scheduled for April 10, has been delayed due to operational reasons.

Jet Airways has been operating around 100 flights only with 26 planes as most of the fleet is grounded due to non-payment of lessors' rentals.

Due to cash crunch, the airline has been paying only part salaries to its over 16,000 employees which forced a section of its pilots on Tuesday sending a legal notice to the management which is currently being headed by the lenders led by State Bank of India (SBI.

Updated Date:

also read

IOC head Thomas Bach in Brisbane for first time since city awarded Olympics
Sports

IOC head Thomas Bach in Brisbane for first time since city awarded Olympics

Brisbane was nominated as the host city for 2032 Olympic and Paralympic Games in July after the IOC rubber-stamped the Australian city as host.

SBI recruitment 2022: Registration for 35 SCO posts ends today, check details here
Education

SBI recruitment 2022: Registration for 35 SCO posts ends today, check details here

It is to be noted that the application fees for the candidates belonging to General/OBC/EWS candidates is Rs 750, whereas SC/ST/PWD candidates are exempted from payment of application fee

SBI fourth quarter net profit jumps 41% to Rs 9,114 crore
Business

SBI fourth quarter net profit jumps 41% to Rs 9,114 crore

The gross NPAs of the bank declined to 3.97 per cent of gross advances as on 31 March, 2022, as against 4.98 per cent by the same period of 2021