Apr 03, 2012 06:07 PM IST | Source: Reuters

SpiceJet surges on direct fuel import hopes

Shares in SpiceJet surged 7.4% after the company said late on Monday it will seek permission from the Director General of Foreign Trade (DGFT) to directly import aviation turbine fuel (ATF).

SpiceJet surges on direct fuel import hopes

Shares in SpiceJet surged 7.4% after the company said late on Monday it will seek permission from the Director General of Foreign Trade (DGFT) to directly import aviation turbine fuel (ATF).

DGFT is the unit under the Commerce Ministry that this week approved direct gold imports for jewelry maker Titan Industries .

At present all Indian airlines are required to buy fuel from oil marketing companies including government-controlled Indian Oil Corp.

If approved, direct imports could help the sector cut its fuel costs by 18-20% and bring relief to airline companies battling low fares and high fuel costs, traders said.

Shares in rivals Jet Airways and Kingfisher Airlines were trading higher on bets the companies will soon follow with their own import requests.

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