Spicejet to get first ATF shipment early July: CEO
Spicejet today said it hopes to take delivery of the first shipment of directly imported aviation fuel by early July.
Country's third largest carrier by market share, Spicejet today said it hopes to take delivery of the first shipment of directly imported aviation fuel by early July.
"We will be the first carrier to import ATF directly, as we hope to take the delivery of the first shipment early July," Spicejet Chief Executive Neil Mills said in a post-earnings concall today.On April 18, the director general of foreign trade, apex government authority on exports and imports, had allowed Spicejet to import aviation fuel directly, making it the first airline to get such an approval.Early February, the government had allowed airlines to import fuel directly as part of its steps to help the bleeding airlines, which are set to close FY12 with nearly USD 2 billion in losses.Mills further said the airline hopes to save considerably in fuel costs with this direct import. While Spicejet saw its fuel bills shooting up 55 per cent in the last quarter of the past fiscal, for the full fiscal of 2012, it was still higher
at 64 per cent for the Chennai-based carrier. On with whom the company has tied up for ATF transport, logistics and storage facilities, Mills refused to reveal the name, citing confidentiality with the partner but said they have tied up with a private company.While refusing to give guidance for the first quarter of the current fiscal, Mills said he was "hopeful of a strong recovery this quarter" as there has been a steep fall in crude prices, from USD 116 barrel in the Q1 of 2012 Brent crude is
trading at USD 106-107 to a barrel now."Coupled with fall in crude prices and direct import of ATF will help us save big time in fuel cost," he added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
