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 IOC Resumes Fuel Supply To Jet After Assurances

 IOC Resumes Fuel Supply To Jet After Assurances

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  6 April 2019 12:06 PM GMT

New Delhi/Mumbai: The country’s largest oil marketing company (OMC) Indian Oil Corporation (IOC) resumed fuel supply to Jet Airways within hours of effecting a cut on it, thus preventing further disruption of services of the airline that is already running with a depleted fleet.

According to a senior IOC official, the OMC had stopped fuel supply to Jet Airways for some time on Friday but restarted the same after receiving assurances over payment of dues from the airline.

However, the details of the assurances have not been shared.

Jet Airways is already in the midst of a severe liquidity crisis that has affected its operations and resulted in the grounding of several of its aircraft. The airline is currently operating just 26 aircraft as several planes from its earlier fleet size of around 120 remain grounded for non-payment of lease rentals.

Industry insiders told IANS: “The two companies (IOC and Jet) have a very long standing business relationship and based on that, an understanding has been reached. Another factor here is that since a consortium of banks led by the State Bank of India (SBI) is involved in the resolution process, further disruptions are being avoided.” (IANS)

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