Ministry supports direct import of aviation fuel

Mumbai: In what could be seen as a positive sign for Indian airline industry, Civil Aviation Minister, Mr Praful Patel, said that the Ministry will be supporting direct import of aviation turbine fuel (ATF) by Indian carriers. Speaking to newspersons on the sidelines of the silver jubilee global awards function organised by the Priyadarshini Academy, Mr Patel said, “The Ministry is supportive in allowing the airlines to import ATF.
“This move will not only benefit airline companies, but also passengers who have been paying high air fares on account of high fuel costs.”
Currently, fuel cost contributes around 40-50 per cent of the total operating cost of domestic carriers.
The Federation of Indian Airlines has been trying hard to get approval for direct import of ATF from the Government. If this move comes through, it would be a big relief for the ailing airline industry.
Direct import will also free the carriers from the high sales tax paid on ATF.
20/09/08 Business Line

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Categories: Indian Aviation- In General Sep 2008