IOC Stops Fuel Supply to Cash-starved Jet Airways for Non-payment

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Mumbai: Indian Oil Corporation (IOC) on Friday stopped fuel supply to the struggling carrier Jet Airways for non-payment.

The public sector oil marketing firm stopped supplying fuel to the cash-starved carrier from 12 noon Friday, sources told PTI. Response to a query sent to Jet Airways on this issue was awaited.

Jet Airways, in which SBI-led consortium of lenders is set to take management control under a debt-recast plan, has drastically curtailed operations with a fleet of 26 planes. On March 25, Jet Airways board had approved a resolution plan formulated by SBI-led domestic lenders, under which had agreed to infuse an emergency funding of Rs 1,500 crore into the airline, and convert the same into equity worth 50.1 percent for a notional value of just Re 1 each share.

The airline, however, has not yet received the much-needed funds.