Air India had failed to clarify its dues within its deadline which was till 5:30 pm of Tuesday. The oil companies derived with the decision to stop supplying fuel after its (Air India's) failure.
However, this was not the first time that the aviation company has been forced to confront with such situation when people start speculating that the company may be shut down.
Earlier, several oil companies like - Indian oil, BPCL, HPCL had refused to refuel Air India jets as Air India owes Rs 12,000 crore to the oil companies.
The company (Air India) also sought help from the Prime Minister to solve their financial problems. "Banks want government guarantee before further lending to Air India," authorities had written to the PM stating the pathetic financial condition.