Mumbai: Air India will gain Rs 500 crore a year from higher discounts on jet fuel or Aviation Turbine Fuel (ATF) as the debt-laden carrier has agreed to the Ministry of Petroleum and Natural Gas’s demand of clearing bills of Rs 4,235 crore by April next year and buy 80 per cent of its fuel from Indian Oil Corporation Ltd (IOCL), as per an ET report.
At present, Air India gets a discount of a little over Rs 2,000/kilolitre on ATF, whereas Jet Airways, for instance gets double that amount at Rs 5,000/kilolitre. Lufthansa has a bigger discount at Rs 8,000/kilolitre, according to sources in the Ministry of Civil Aviation (MoCA).
08/01/13 TravelBizMonitor
