Jet and Kingfisher to run dry
03 / 02 / 2009
STATE-RUN Indian oil companies are threatening to cut off supply of fuel to Jet Airways and Kingfisher Airlines unless the two companies pay dues on interest payments.
Bharat Petroleum, Indian Oil and Hindustan Petroleum have said they would refuse to sell jet fuel on credit if the dues weren’t cleared.
There is apparently a commercial agreement between the oil companies and two airlines that requires interest to be paid on outstanding payment outside of the credit period.
However, a Kingfisher Airlines spokesperson said there was no such agreement while Ragini Chopra, a Jet Airways spokesperson, said: “We have already paid our dues. As per the directive of the ministry of civil aviation, we are supposed to meet oil companies to reach a mutual understanding on the issue of interest payment on the outstanding amount.”