New Delhi: Airlines’ plans to import jet fuel directly is now a step closer to realisation, with the Airports Authority of India (AAI) looking at providing common infrastructure for supplying aviation turbine fuel (ATF) across all major airports.
In a meeting with stakeholders last week, the authority mooted setting up a Special Purpose Vehicle (SPV) along with airlines and state-owned oil marketing companies (OMCs) to develop common infrastructure to import ATF, among others, at Chennai and Kolkata airports. While AAI and OMCs will hold 76 per cent in the proposed SPV, the airlines will participate in the remaining 24 per cent equity.
A senior official at AAI said, “We are looking at forming a three-way joint venture with OMCs and airlines to supply jet fuel. The purpose is to create common infrastructure, which will help in lowering user charges.” He declined to share the details of how much ATF costs are likely to reduce once such a common structure is put in place. Industry sources indicated that fuel expenses can drop by at least 10 per cent. The proposed SPV would have the mandate to set up fuel farms to be operated on the lines of an open access model across major airports.
07/06/13 Sharmistha Mukherjee/Business Standard
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In a meeting with stakeholders last week, the authority mooted setting up a Special Purpose Vehicle (SPV) along with airlines and state-owned oil marketing companies (OMCs) to develop common infrastructure to import ATF, among others, at Chennai and Kolkata airports. While AAI and OMCs will hold 76 per cent in the proposed SPV, the airlines will participate in the remaining 24 per cent equity.
A senior official at AAI said, “We are looking at forming a three-way joint venture with OMCs and airlines to supply jet fuel. The purpose is to create common infrastructure, which will help in lowering user charges.” He declined to share the details of how much ATF costs are likely to reduce once such a common structure is put in place. Industry sources indicated that fuel expenses can drop by at least 10 per cent. The proposed SPV would have the mandate to set up fuel farms to be operated on the lines of an open access model across major airports.
07/06/13 Sharmistha Mukherjee/Business Standard
