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Why Jet Air, KFA are not so happy with direct ATF import
Despite the Empowered Group of Ministers (EGoM) okaying the import of aviation turbine fuel (ATF), Jet Airways and Kingfisher Airlines do no see it as a relief as high handling costs and storage issues will have to be dealt with, they say.
Despite the Empowered Group of Ministers (EGoM) okaying the import of aviation turbine fuel (ATF), Jet Airways and Kingfisher Airlines do no see it as a relief as high handling costs and storage issues will have to be dealt with, they say.
Why are Jet and Kingfisher not so happy about directly importing ATF?
If ATF is directly imported by airline operators, they will have to build their own storage at various ports. They will then have to make arrangement for transporting jet fuel to various airports in trucks, which would bring in additional cost burden for them.
Even after this tedious process, airlines can dispense fuel into their aircraft only at few airports like Delhi, Hyderabad and Bangalore which allows refueling infrastructure to be shared on an 'open access' basis.
In other airports like Mumbai, Kolkatta, Chennai, oil companies have their monopoly and airlines would need to enter into some agreement with fuel retailers for having an 'open access' facility there.
According to rough estimates, Jet and Kingfisher require 80,000 tonnes of ATF each month and sufficient storage would not be available for them immediately. They will have to built facility as mentioned above or will have to use storage tanks owned by oil marketing companies like Bharat Petroleum or Hindustan Petroleum by paying a fee. Along with this constrain, there could be some additional levy from state government as the latter's revenues would be impacted due to direct ATF import.
