Flights cancelled,fuel supply barred,Air India to shut down?

New Delhi, Aug 10: Several Air India flights have been cancelled on Wednesday, Aug 10 after the news flashed that oil companies barred fuel supply to the aviation company.

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.

OneIndia News