Airlines have been asked to soon pay up or shut shop if they continue to default on their fuel payments. 

Under pressure from various state-owned oil companies, top sources within the Union government said they were in no mood to continue fuel supply to the airlines who are unable to pay on time.

"We also have to import oil and have a deadline to clear the dues. Any company, including airlines, should make the payment on time, or we will have to get harsh with them in future," said a senior official from the petroleum ministry.

Two major players in the Indian aviation sector, Kingfisher and Air India, jointly owe more than Rs 3,500 crore to oil companies.

While Kingfisher owes Rs 1,000 crore, AI owes Rs 2,500 crore to the oil companies. In several occasions in the past, the oil companies have even stopped fuel supply to these airlines owing to non-payment of dues, which led to suspension of flight operations.

Midday