Moneycontrol Bureau
SpiceJet has received approval from the Director General of Foreign
Trade (DGFT) for importing aviation turbine fuel (ATF) directly from overseas market.
The airline is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course.
“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. Importing fuel from overseas market at comparatively lower price would help us to considerably bring down our operational cost,” said Neil Mills, SpiceJet’s CEO.
The government recently allowed airlines to import fuel directly for their own use, so they can save on state taxes that range from 4% to 28%. Jet fuel accounts for 45% of an airline’s operating costs.
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