Air India has already settled a "major portion" of its dues to state-run oil marketing companies and will settle the remainder on Friday, a spokesman of the ailing state carrier said.
"We are well within the credit limit of oil marketing companies," the spokesman, who declined to be named, told Reuters.
Earlier on Thursday, a source said state-run oil marketing companies will halt fuel supplies to Air India from Friday for non-payment of dues.
The airlines' operations were partially affected today with four flights, scheduled to depart from Delhi, delayed after oil firms stopped ATF supplies to the national carrier.
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