Sources said the oil industry had already started supplying aviation turbine fuel (ATF) to Kingfisher and Jet Airways on 'cash and carry basis' from January 27 as they had not paid their dues for October 22 to October 31 even though the 90-day credit was over.

Jet immediately responded and paid off Rs 97.87 crore today, the sources said. But there was no response from Kingfisher which owes Rs 73.08 crore to Hindustan Petroleum for the 10-day supplies and Rs 85 crore to Bharat Petroleum for old instalment.

Vijay Mallya's Kingfisher is the most troubled airline in India with the carrier chalking cumulative loss of Rs 2,500 crore in the first half of fiscal 200-09, largely due to sharp hike ATF prices.

The three major airlines, including National Aviation Company of India Ltd, owe Rs 3,735 crore to the OMCs as on January 27 for ATF supply but not all is immediately payable as the government extended the 60-day credit by another 30 days in October as reprieve to airlines on condition that they do not fire their employees.