Deadline for AirIndia to repay their oil dues-March29,2011

India’s one of the Airlines Air India has been asked to repay their oil dues Rs 2400 cr on or before March 29. A Committee of Secretaries headed by the Cabinet Secretary, Mr K.M. Chandrasekhar, decided to defer the March 29 deadline by another month, at a meeting held on Saturday. Now, the cash-strapped national carrier pays Rs 13.5 cr a day for the jet fuel it buys from the oil companies. But as a result of the rising crude oil prices, oil marketing companies have asked for a hike of Rs 5 cr a day, taking the cost up to Rs 18.5 cr a day.
Air India Chairman and Managing Director, Mr Arvind Jadhav, who made a presentation at the meeting, made a case for getting discounts for paying cash upfront. The Committee of Secretaries is understood to have asked the oil companies to work out financial impact of such a discount. They have also discussed the issue of payment of dues of about Rs 450 cr by arms of the Government to Air India. The Civil Aviation Secretary, Mr Nasim Zaidi, Air India Chairman and Managing Director, Mr Arvind Jadhav, and officials from the Ministries of Petroleum, Defence and External Affairs were also present at the meeting.
Air India has a debt burden of Rs 40,000 cr. It has incurred a cumulative loss of over Rs 13,326.86 cr, since its merger with Indian Airlines in 2007, at the close of financial year 2009-2010.