SpiceJet on Wednesday became the first airline to receive the government’s approval for directly importing aviation turbine fuel (ATF), a development that will enable it to lower fuel bill by seven per cent.
“SpiceJet is negotiating with leading oil marketing companies. We are hopeful of commencing the import of fuel in due course. Importing fuel from overseas markets at comparatively lower price would help us considerably bring down our operational cost,” said a release from the airline.
Reliance Industries Ltd (RIL) is likely to import jet fuel for SpiceJet. RIL is the only private oil marketing company that has infrastructure in 20 airports across the country.
The low-cost airline will start importing fuel at an airport in southern India on a pilot basis to check the economic viability of the process.
After requests from the industry, the government recently allowed airlines to import fuel directly. The relaxation was aimed at giving a respite to domestic carriers, which had to mandatorily buy ATF from public sector oil companies and pay sales tax of 22-24 per cent. making the fuel one of the most expensive in the world.
19/04/12 Business Standard
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