Close to 50 per cent of IndiGo’s expenses is on buying aviation turbine fuel (ATF), the low-cost carrier has disclosed in a document submitted to the Securities and Exchange Board of India(Sebi).
The dip in international oil prices has had a marginal effect in the last fiscal as it dropped below 50 per cent for the first time after three consecutive years, during which, the fuel expenses were above the half-way mark.
IndiGo’s disclosure in the Draft Red Herring Prospectus seeking Sebi’s nod for its Initial Public Offer (IPO) is in tune with the airline operators’ claim. All airlines have been urging the Centre to take steps to bring down ATF prices as it amounts to almost half of their expenses. The Centre, on its part, has been urging states to reduce tax on ATF that would result in reduction in prices.
05/07/15 Shemin Joy/DH
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The dip in international oil prices has had a marginal effect in the last fiscal as it dropped below 50 per cent for the first time after three consecutive years, during which, the fuel expenses were above the half-way mark.
IndiGo’s disclosure in the Draft Red Herring Prospectus seeking Sebi’s nod for its Initial Public Offer (IPO) is in tune with the airline operators’ claim. All airlines have been urging the Centre to take steps to bring down ATF prices as it amounts to almost half of their expenses. The Centre, on its part, has been urging states to reduce tax on ATF that would result in reduction in prices.
05/07/15 Shemin Joy/DH
