The Hindu Business Line : Airline sector set to gain from new policy decision

Indian carriers with international operations can now look forward to picking up fuel at competitive rates from India for their outbound long-distance flights, thanks to the Annual Supplement to the Foreign Trade Policy (2004-09).

"The announcement made on Friday would also be applicable to Indian carriers in respect of their outbound operations, but not for domestic operations," Mr K.T. Chacko, Director-General of Foreign Trade (DGFT), told Business Line on the sidelines of an industry gathering.

This clarification should come as a boost to not only Air India and Indian Airlines but private sector airlines such as Jet Airways and Air Sahara as well, all of which operate international flights from India.

Doubts cleared

After the Commerce and Industry Minister, Mr Kamal Nath, announced the features of the annual supplement on Friday, a large section of domestic aviation industry was still not sure as to whether Indian carriers with international operations would get fuel in India at more competitive prices on account of this announcement.

It was felt that the benefit may not accrue to airlines from India for their international operations as the policy statement made by the Minister talked only about refuelling.

It was held that the policy announcement was only intended to offer competitive fuel prices to attract mid-route stops of the international flights.

"Technically speaking, flights operated by airlines from India will not be going in for refuelling. Therefore, one will have to look at the fine print before it becomes clear as to whether we also benefit," said a senior official of airline of India that has international flights.

Mr Kamal Nath had said that supplies of stores (food, beverages and other supplies) and refuelling of long-distance flights had emerged as a big business opportunity.

Currently, most airlines replenish supplies or refuel at Thailand, Malaysia, or Singapore.

The policy announcement is likely to benefit oil companies in terms of increased sales to more airlines.

Recently, the Government allowed private sector oil companies to market aviation turbine fuel at Indian airports.

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