The state-run Indian oil marketing companies (OMCs) have extended Air India’s credit limit by two to three months. The government has guaranteed the limit. Previous Air India was on a cash and carry basis with the OMCs, which meant that the airline would have to pay every time it bought fuel from these companies. The airline owes Rs.2,300 crore to the OMCs and was forced to cut fuel supply to the airline in May that resulted in Air India and low-cost subsidiary Air India Express cancelling flights incurring further losses of Rs.10 crore. The government is in the process of
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