Jet Airway's unpaid fuel bills up 65% in first half of FY'12

Jet Airways, the nation's largest private airline, saw its unpaid jet fuel bills rise by over 65 per cent to Rs 849 crore (Rs 8.49 billion) in the first six months of the 2011-12 financial year, while the dues of Kingfisher Airlines grew by less than 4 per cent during the same period.

Jet Airways owed Rs 849.15 crore (Rs 8.49 billion) in unpaid jet fuel bills to state-owned oil firms as of September 30, a 65 per cent from increase from a Rs 514.68 crore (Rs 5.14 billion) outstanding as of March 31, 2011, Oil Minister S Jaipal Reddy told the Lok Sabha on Thurs in a written reply to a question.

In comparison, cash-strapped Kingfisher Airlines saw its outstanding rise by Rs 24.21 crore (Rs 242 million) to Rs 636.79 crore (Rs 6.36 million) in the first half of the current fiscal.

Kingfisher owes all of its outstanding dues to Hindustan Petroleum Corp Ltd (HPCL), while Jet owed Indian Oil Corp (IOC) Rs 695.90 crore (Rs 6.95 billion) and Rs 153.24 crore (Rs 1.53 billion) to Bharat Petroleum Corp Ltd (BPCL) as of September 30, 2011.

"The public sector oil marketing companies (OMCs) supply aviation turbine fuel (ATF) to private airlines as per mutually agreed commercial terms," he said.

"In case airlines fail to pay their dues, OMCs take action for recovery of dues in line with the mutually-agreed commercial terms," he added.

Defaulting airlines are also put on 'cash-and-carry' and interest is recovered on overdue payments, he said.

Kingfisher, which had an outstanding of Rs 783.82 crore (Rs 7.83 billion) as of March 31, 2010, is on cash-and-carry.

Reddy said the total outstanding dues of airlines to oil firms have risen by 28 per cent to Rs 1,639.38 crore (Rs 16.39 billion) as of September 30, 2011, from Rs 1,279.9 crore (Rs 12.79 billion) at the end of the 2010-11 fiscal.

The outstanding amount was Rs 1,851.81 crore (Rs 18.51 billion) on March 31, 2010.