SpiceJet strengthens on plan to commence importing jet fuel from July quarter

28 May 2013

Spicejet is currently trading at Rs. 36.10, up by 0.15 points or 0.42% from its previous closing of Rs. 35.95 on the BSE.

The scrip opened at Rs. 36.25 and has touched a high and low of Rs. 36.60 and Rs. 35.40 respectively. So far 1008230 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 50.90 on 07-Dec-2012 and a 52 week low of Rs. 24.50 on 27-Jul-2012.

Last one week high and low of the scrip stood at Rs. 40.20 and Rs. 35.30 respectively. The current market cap of the company is Rs. 1878.22 crore.

The promoters holding in the company stood at 52.14% while Institutions and Non-Institutions held 14.58% and 33.28% respectively.

In order to reduce cost, SpiceJet is set to commence importing jet fuel directly from the quarter starting July 1. Indian carriers currently buy jet fuel from oil-marketing companies (OMCs). However, the Government imposes high taxes on the fuel supplied through oil-marketing company’s, thereby increasing the cost of fuel by 30% to 40% above international rates for the domestic carriers.

In a move aimed at helping the debt-laden airlines bring down their costs, the Government on February 2012, formally allowed the local airlines to import jet fuel directly. The airlines were allowed to import aviation turbine fuel (ATF) under the so-called open-general license.

The discount carrier currently is accelerating its overseas push, while preparing to face competition from Asia’s biggest budget carrier AirAsia Bhd and Jet Airways (India). SpiceJet, India’s second-largest budget carrier by market share currently operates more than 350 daily flights to over 50 Indian cities and 8 international destinations.

Related Spicejet Ltd. Links:

Spice Jet Share Price

69.90 -1.95 (-2.71%) May 14, 18:01
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Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323