SpiceJet, the country’s budget carrier is reportedly planning to start a pilot project to directly import aviation turbine fuel (ATF). In this regard, the company has signed an agreement with Reliance Industries for technical support, including fuel testing and quality and safety issues.
The airline expects to import 15% of its fuel requirement. This month, ATF prices rose seven per cent to an all-time high of Rs 75,000/kl, owing to rising crude oil prices and the rupee’s depreciation.
Fuel accounts for over 40% of airline’s operating costs and domestic ATF prices are higher because of 20-25% value added tax imposed by key states. To ease the airlines’ burden the government proposed that airlines import fuel directly which would enable them to save on VAT.
SpiceJet is the fourth largest airline and operates over 350 daily flights to over 47 domestic cities and eight international destinations. It has got 19.9% market share.
Company Name | CMP |
---|---|
Interglobe Aviation | 4155.00 |
SpiceJet | 57.01 |
Global Vectra Helico | 184.00 |
Jet Airways (I) | 46.30 |
Taneja Aerospace | 440.00 |
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