SpiceJet gets govt nod for jet fuel import
19 April 2012 7:18 PM GMT
Budget carrier SpiceJet on Wednesday said it has received the government approval for directly importing jet fuel, a development that will enable it to substantially lower costs.
SpiceJet is the first airline in the country to have received the Director General of Foreign Trade (DGFT) nod for the direct import of aviation turbine fuel, the company said in a statement.
The airline is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course, it said.
‘The Airline sector will benefit from direct imports of fuel due to high ATF prices in India and we are hopeful to commence the import of fuel in due course,’ SpiceJet Airline’s chief executive Neil Mills said.
The direct import of jet fuel at comparatively lower price would help the airline to considerably bring down its operational cost, Mills said.
The airline’s fuel bill had jumped by 90 per cent in the quarter ending December 2011 over the same period of fiscal 2011.
‘Aircraft fuel expenses were 90 per cent higher than the same period last year and fuel cost as a
proportion constituted 50 per cent of the total revenue in October - December 2011 quarter as compared to 37 per cent in the comparable quarter for the fiscal 2011,’ the airline had said in its third quarter financial statement.
SpiceJet is the first airline in the country to have received the Director General of Foreign Trade (DGFT) nod for the direct import of aviation turbine fuel, the company said in a statement.
The airline is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course, it said.
‘The Airline sector will benefit from direct imports of fuel due to high ATF prices in India and we are hopeful to commence the import of fuel in due course,’ SpiceJet Airline’s chief executive Neil Mills said.
The direct import of jet fuel at comparatively lower price would help the airline to considerably bring down its operational cost, Mills said.
The airline’s fuel bill had jumped by 90 per cent in the quarter ending December 2011 over the same period of fiscal 2011.
‘Aircraft fuel expenses were 90 per cent higher than the same period last year and fuel cost as a
proportion constituted 50 per cent of the total revenue in October - December 2011 quarter as compared to 37 per cent in the comparable quarter for the fiscal 2011,’ the airline had said in its third quarter financial statement.
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