The decision was taken at a high-level meeting between Civil Aviation Minister Vayalar Ravi, Petroleum Minister S. Jaipal Reddy, Air India CMD Arvind Jadhav and other top officials.
The national carrier was compelled to cancel or club around 60 flights in the last week of May and early June owing to refusal by oil companies to give fuel in view of unpaid bills.
There will be a moratorium for the next three months and Air India would be permitted to use additional aircraft turbine fuel of around 200 kilolitres, worth Rs.10 million, in the next three months, the official said.
In the meantime, the carrier would continue to pay the oil companies Rs.160 million per day as decided earlier.
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