Oil Marketing Companies (OMCs) have threatened to stop supply of aviation turbine fuel (ATF) to Kingfisher Airlines by midnight, in case, the carrier remains fail to clear its dues worth Rs 158 crore.

It should be recalled that oil marketing companies have already decided to supply ATF to private carriers Kingfisher and Jet Airways on 'cash and carry basis' from January 27. These carriers have been found defaulter of non-payment of oil dues for October 22 to October 31, even after crossing of 90-day credit period.

Meanwhile, Jet Airways released funds worth Rs 97.87 crore against oil dues today to ensure smooth supply of ATF. However, the most troubled airline in India, Kingfisher Airlines, has yet to respond.

Vijay Mallya owned Kingfisher Airlines posted cumulative loss of Rs 2,500 crore in the first half of fiscal 200-09, mainly due to high ATF prices and low traffic due to ongoing financial crisis. The carrier, in response to OMCs said, "(It is) in full compliance to payment schedule on ATF dues as agreed."

It should be recalled that government has extended the 60-day credit by another 30 days in October for the three major airlines, including National Aviation Company of India Ltd, on the conditions of no lay-offs of their employees.