ATF prices 60% higher than global prices: Deccan Aviation

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ATF prices 60% higher than global prices: Deccan Aviation

There have been some moves by the aviation industry, where lots of players have got together and started discussing some of the problems plaguing the sector. Captain GR Gopinath, Managing Director of Deccan Aviation says there is lot of disconnect in the aviation sector in the way the various resources are shared or allocated.

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There have been some moves by the aviation industry, where lots of players have got together and started discussing some of the problems plaguing the sector.

Captain GR Gopinath, Managing Director of Deccan Aviation says there is lot of disconnect in the aviation sector in the way the various resources are shared or allocated.

He adds that Indian ATF prices are 60-70% higher than international prices. Gopinath further adds that if resources are shared, the cost can be brought down.

Excerpts from CNBC-TV18's exclusive interview with Captain GR Gopinath:

Q: What exactly are industry players trying to do now? Is it aimed at lobbying with the government on the ATF front or is there more to it?

A: Of course, there were concerns with the irrational kind of yield pressure that was there.

But what brought everybody together was basically now that airport privatisation has taken place, there are two separate airports in Delhi and Mumbai, we also have got international airports in Bangalore and Hyderabad. We have issues with the petroleum ministry, issues with the finance ministry, with civil aviation ministry, Airport Authority and the new airports.

There is lot of disconnect in the way the various resources are shared or allocated. So it suggested that if the industry gets together and forms an association on the lines of CII or Nasscom, where this will get enlarged and one will take action to protect the interest of the industry, which is not inimical to the interest of the nation or the consumer.

Lots of wastage is there. For example, if an aircraft is hovering over Delhi for one minute, it costs about Rs 2500 of fuel burn. Our ATF prices are 60-70% higher than international prices. When the price goes up they pass it on and when the price comes down, then they say that it has been subsidised.

Lots of resources are unnecessarily wasted in the airports. So the idea was to form a body, which will represent all parties rather than any one party or any one-stake holder.

The idea is very preliminary, which was discussed in the meeting that took place. Again we are meeting on November 16 to work with the government and work with various stakeholders and agencies to bring in efficiencies, to bring in cost control, so that this industry is integral to the growth of the economy in the country.

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