Kingfisher Airlines Ltd. operations returned to schedule Tuesday, a day after 12 flights were delayed because fuel supplies were disrupted due to a payment issue with a vendor.After office hours Monday, due to a misunderstanding with one of our vendors, 12 flights out of a daily network of more than 370 flights were delayed,said Kingfisher spokesman Prakash Mirpuri, adding that flights are back to normal.
Kingfisher, India’s second-biggest airline by marketshare, was forced to delay the flights as Hindustan Petroleum Corp. Ltd. refused to supply because bills weren’t paid, a person close to the development said separately.The person confirmed the issue has been resolved.There was some minor issue. It has now been resolved and supplies are back [to normal],a senior executive with Hindustan Petroleum, who declined to be named, said separately.
Mr. Mirpuri didn’t elaborate on how much the airline owes HPCL or its other suppliers Bharat Petroleum Corp Ltd. and Indian Oil Corp.Growing losses and depleting cash flows have forced airlines to defer payments to several suppliers, which has led to a huge pileup of unpaid bills.Last month, national carrier Air India had to cancel a chunk of its flights as oil companies refused to give it more fuel than it could pay for.Later, the country’s government had to intervene and direct the oil companies to supply fuel for all of Air India’s flights during the next three months, even without full payment.