NEW DELHI (Reuters) - Indian airlines, state-run refiners and the government will meet on on Wednesday to try to find a solution to how the oil firms can recover overdue jet fuel bills of more than $400 million.
"We are meeting tomorrow ... I hope we will find a solution. Our oil companies are doing their best to help them," oil minister Murli Deora told reporters on Tuesday, putting the outstanding payments at 20 billion rupees.
"Almost all the airlines haven't paid their dues. If you make a commitment, you must pay, but it doesn't mean that we shouldn't help the airlines."
Last week, Deora had said Jet Airways, Kingfisher Airlines Ltd and National Aviation Company of India Ltd (NACIL), which runs flag carries Air India, had defaulted on payment of their jet fuel bills to state refiners.
Kingfisher and Jet will be among the carriers meeting with Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp on Wednesday, Deora said. Civil aviation minister Praful Patel will also attend.
A senior official of UB Group, which holds a controlling stake in the Kingfisher, said last week the firm was in talks to repay its outstanding dues in phased manner.
Jet and Kingfisher, India's leading private-sector airlines, last week formed an alliance to cut costs through code-sharing and combining ticketing and ground services.
ATF, or aviation turbine fuel, makes up 30 to 45 percent of an Indian airline's operating cost. In August, a kilo-litre of ATF cost 73,600 rupees in Mumbai, compared with 46,500 rupees equivalent in Singapore.
BPCL : Bharat Petroleum Corporation (BPCL) swung to loss for the quarter ended September 2008. During the quarter, the company reported loss of Rs 26,252.70 million compared with a profit of Rs 10,382.00 million in the same quarter last year. Net sales for the quarter surged 50.38% to Rs 378,506.90 million, while total income for the quarter jumped 49.39% to Rs 381,487.30 million, when compared with the prior year period. The company posted loss of Rs 72.61 a share during the quarter compared with earnings of Rs 28.72 a share in previous year period. During the quarter, the operating margin of the company dropped to 5.66% compared with 6.22% in the previous year period. Interest cost increased 4.35 times to Rs 5,338.10 million while depreciation cost rose 4.19% to Rs 2,419.40 million over previous year period. Bharat Petroleum Corporation, a public sector undertaking, is a Fortune 500 company involved in the business of refining, storing, marketing and distributing petroleum products. It was incorporated on Nov. 03, 1952 as a private limited company and got its current name in 1977.
