Friday, April 20, 2012

SpiceJet Approved to Import Jet Fuel Directly

SpiceJet became the first airline to get the approval of Indian government to import aviation turbine fuel (ATF) directly. The approval was received on Wednesday.

The airline is highly popular for offering cheap airfares. It operates 270 flights to 32 Indian and two international destinations – Colombo and Khatmandu and has considerable market presence with countless holiday makers booking domestic travel as well as cheap flights to India with the airline.

Importing jet fuel directly will help the airline in trimming down its operational costs considerably. Low operational costs for the airline would eventually spell benefit for the travellers in the form of cheap flight tickets on domestic flights as well as flights to India on two international routes.

As per the news reports, SpiceJet will likely get jet fuel from the private oil-marketing major, Reliance Industries Ltd (RIL) which reportedly maintains jet fuel infrastructure at 20 of the country’s airports.

India pays off the second highest fuel tax at 24 per cent in the world following Bangladesh, where it is at 27 per cent.

Fuel costs cover 50 per cent of the total operating expenses of the Indian airlines which have jumped from 40 per cent in the past six months. Direct import of fuel will help the airlines in saving up to Rs. 13,000 on every tonne of airline turbine fuel as indicated by experts.

Following the footsteps of SpiceJet, Kingfisher Airlines and Air India are also showing interest in importing jet fuel directly.


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