Indian airlines still owe $445 million to oil companies

The Minister for Petroleum and Natural Gas, Mr Murli Deora, informed the Lok Sabha (lower house of the Indian parliament) that Indian domestic airlines Kingfisher Airlines, Jet Airways, National Aviation Company of India Ltd (Air India), Paramount and SpiceJet, still owe a whopping Rs. 2,225.52 Crore ($445 million) to the stated owned oil marketing companies Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation. Rs. 5 Crore = US$ 1 million.

Bulk of the outstanding (Rs. 2,183.46 Crore) is from the three legacy airlines Air India, Jet Airways and Kingfisher. Paramount Airways had to pay Rs 25.82 crore and SpiceJet owed Rs 16.24 crore.

From the beginning of this calendar year, these three carriers have reduced their outstandings from Rs. 3,608.20 Crore to Rs. 2,183.46 Crore by the end of May. Air India has reduced it’s outstanding almost 64%, Jet by 40%. Financially strapped Kingfisher Airlines which was put on a “cash and carry” basis by Indian Oil has been lagging at a measly 7.73%.

Mr. Deora also informed the house

“This issue was also taken up with the Ministry of Civil Aviation, which advised the airlines to clear their outstanding dues promptly.”

About Devesh Agarwal

A electronics and automotive product management, marketing and branding expert, he was awarded a silver medal at the Lockheed Martin innovation competition 2010. He is ranked 6th on Mashable's list of aviation pros on Twitter and in addition to Bangalore Aviation, he has contributed to leading publications like Aviation Week, Conde Nast Traveller India, The Economic Times, and The Mint (a Wall Street Journal content partner). He remains a frequent flier and shares the good, the bad, and the ugly about the Indian aviation industry without fear or favour.

Check Also

In new strategy Etihad invests in Darwin Airlines, re-brands it Etihad Regional

by Devesh Agarwal Etihad Airways, the national carrier of the United Arab Emirates, today announced …