SpiceJet, India’s most preferred budget airline has submitted its application to the Directorate General of Foreign Trade (DGFT) for direct jet fuel import. It has become the first airline to apply for direct jet fuel import as this will considerably bring down the company's operational cost. Jet fuel constitutes up to 40% of the airline's total operating cost.
Recently, Centre allowed airlines to import aviation turbine fuel (ATF) or jet fuel. Airlines will now be able to save State sales tax, which ranges between 4% to 32%. Airlines have been complaining that the high State tax along with Central duties make the fuel very costly.
