Sunday, August 28, 2016

Aviation fuel demand rebounds

Mumbai: State-run oil marketing companies (OMCs) are seeing a rebound in demand for aviation turbine fuel (ATF), with airline companies flying high on improved operations and profitability.
Data on ATF consumption with the Petroleum Planning and Analysis Cell of the government show a jump of nine per cent in 2015-16 to 6.2 million tonnes. In the four years between FY12 and FY15, the consumption had an annual compound growth of only one per cent. Indian Oil Corporation (IOC) saw a six to seven per cent rise in FY16, said a company official. It is the largest ATF supplier. Consumption and sales volumes for oil companies might differ slightly, due to imported ATF volumes; also, the data for FY16 is provisional.
In recent years, airlines had scaled down operations. In October 2012, Kingfisher Airlines stopped plying. Financial woes also forced SpiceJet to scale down  between 2014 and 2015, before a new investor stepped in and improved both operations and performance.
“The improvement in FY16 was due to SpiceJet scaling up operations and the entry of new airlines AirAsia and Vistara,” the IOC official said.  “We expect the volumes to grow at six-seven per cent for the next two to three years.”
28/08/16 Amritha Pillay/Business Standard
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