Reliance in talks with airlines for fuel supply

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Reliance in talks with airlines for fuel supply

Reliance Industries is in talks with India's major airlines to provide jet fuel infrastructure and transport services, the company said on Wednesday, a day after a government panel approved direct fuel imports for carriers.

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Reliance Industries is in talks with India's major airlines to provide jet fuel infrastructure and transport services, the company said on Wednesday, a day after a government panel approved direct fuel imports for carriers.

Oil and gas major Reliance is negotiating with airlines including Kingfisher Airlines , Jet Airways and Air India to provide storage facilities at ports, transport services to airports and fuelling infrastructure around the aircraft, a spokesman said.

"We have been approached by a number of airlines to provide infrastructure and logistics for directly-imported jet fuel," a he said.

"The discussions are still ongoing, and any agreements will depend on what kind of services they need. We are ready and willing to provide all three."

A government panel on Tuesday approved allowing India's cash-starved airlines to import their own jet fuel, a move that could help them cut fuel costs -- which account for about half of their operation costs -- by up to 20 percent.

The decision, which needs cabinet approval, will allow airlines to avoid various federal and state taxes levied by state-run oil firms, but will require carriers to set up extensive infrastructure to store and transport the fuel.

Indian airlines are likely to lose up to USD 3 billion in the fiscal year ending March, according to the Centre for Asia Pacific Aviation, as carriers struggle due to high fuel costs, cutthroat competition and a slowdown in the economy.