Kingfisher in talks with oil cos for ATF transportation

New Delhi: Vijay Mallya-led Kingfisher Airlines is in talks with state-run oil marketing companies for transportation of aviation turbine fuel, which it intends to import, from ports to various airports.
Besides, the UB Group Chairman is also seeking government's approval for direct purchase of the fuel from global oil majors. The airline plans to buy the jet fuel directly from global oil companies and take delivery of the product at one of the key ports in the country.
In a letter to Petroleum Minister Murli Deora seeking permission to buy jet fuel directly from the international market, Mallya said "We are also speaking to Indian oil companies to store and transport the product on our behalf from these ports to various airports where we routinely consume the product."
These companies have also agreed to Into-plane service at the airports, he added.Explaining the demand for allowing direct import of ATF, he said the Indian aviation industry is reporting significant losses largely due to the steep hike in oil prices and high tax imposed on the fuel by the various state governments.
"In this regard, we are actively exploring the possibility of directly importing ATF, which will obviate the need to pay any sales tax," Mallya said in the letter.
Mallya said Kingfisher had submitted the proposal of importing the fuel to the Director General of Foreign Trade. The proposal was referred to the Petroleum Ministry.
28/09/08 PTI/Deccan Herald

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Categories: Kingfisher Sep 2008