Airlines Receive 6 Months Relief Plan On Fuel Bills

Author: Anurag Bhullar

Airlines companies in India suffering from the financial crunch heaved a sigh of relief with the decision that they are allowed to clear off their fuel bill dues in equated monthly installments until March, 2009. It is worth mentioning that air carriers owe a sum of Rs 2,500-2,800 crore to the oil companies.

The decision of extension of the pay-off limit was taken at a meeting held today. Oil Minister Murli Deora has called this meeting to work out some measures with a view to help airlines and without hurting the interests of the oil companies.

It was decided at the meeting that the credit limit period for the payment of jet fuel purchase would be extended by the oil companies to 90 days from the prevailing 60 days period. This extension is only provided till March 2009 and airlines have been asked to make due payments in EMIs.

Civil Aviation Minister Praful Patel, Kingfisher Airlines Chairman and CEO Vijay Mallya, Executive Director of Jet Airways S.K. Dutta, Chairman of Air India Raghu Menon, representatives from state-run oil companies such as Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum, and various officials from Finance Ministry have attended the meeting.