New Delhi: SpiceJet will import aviation turbine fuel (ATF) through a private oil marketing company at an airport in southern India on a pilot basis to check the economic viability of the process.
Reliance Industries Ltd is likely to import the ATF for the low-cost airline, which has applied for permission to import fuel directly before the Director General of Foreign Trade.
“A private oil marketing company has agreed to provide us the infrastructure at the airports and also import fuel for us. As a pilot project to assess the cost advantage of importing directly, we will start importing it directly at an airport in southern India. We expect to start the operation in six to eight weeks,” said Chief Executive Officer Neil Mills. This will mean SpiceJet will save up to seven per cent in its fuel bill.
Though Mills refused to share the name of the oil company, an industry executive confirmed Reliance Industries Ltd would import the fuel for them.
“We have storage facilities at 20 airports across the country and are likely to import fuel for them. Discussion are on with the airline,” the oil industry executive, on condition of anonymity, said.
Reliance Industries Ltd and Essar Oil are the two private oil marketers in the country, but Essar does not have any ATF tanking facility in any port or at airport.
03/04/12 Mihir Mishra/Business Standard
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