Jet fuel supply to Air India cut off at 6 airports for non-payment of dues

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Oil companies have cut off supply of aviation turbine fuel to national carrier Air India at six airports on August 22, sources have told CNBC TV-18.

The six airports include Ranchi, Vishakhapatnam, Kochi, Mohali Patna and Pune.

Air India, which is reeling under a gargantuan debt, is in discussions with oil marketing companies to resolve the matter and has already paid Rs 60 crore as a lump sum, according to the The Economic Times.

In a statement, Air India said that in the absence of equity support from the government, the company is unable to service its debt obligations.

The carrier added that its financial performance this fiscal is very good, and that despite "legacy issues", the airline is moving towards a healthy operating profit.

The government, which attempted a failed bid to sell off Air India, has renewed its efforts and plans to conclude a sale this year. During the Union Budget, the government did not allocate any money towards support to Air India by way of capital infusion.