Government-led oil marketing companies (OMCs) have warned to reduce aviation turbine fuel (ATF) provisions to the Vijay Malaya-led Kingfisher Airlines from 4th February, last year if it falls short of paying remaining debts of nearly Rs.158 crore.
Reportedly, OMCs have already begun providing jet fuel to Jet Airways and Kingfisher on a cash and carry basis from 27th January. Nevertheless, reports add that Jet has paid Rs.97.87 crore.
The government had granted the 60-day acknowledgment to airlines by another 30 days in the month of October. Apart from this, the Centre permitted the airlines to clear ATF dues within six months in the form of installments by the end of March, 2009.