The Hindu Business Line : Ministry supports direct import of aviation fuel

Mumbai, Sept 19 In what could be seen as a positive sign for Indian airline industry, Civil Aviation Minister, Mr Praful Patel, said that the Ministry will be supporting direct import of aviation turbine fuel (ATF) by Indian carriers.

Speaking to newspersons on the sidelines of the silver jubilee global awards function organised by the Priyadarshini Academy, Mr Patel said, “The Ministry is supportive in allowing the airlines to import ATF.

“This move will not only benefit airline companies, but also passengers who have been paying high air fares on account of high fuel costs.”

Big component

Currently, fuel cost contributes around 40-50 per cent of the total operating cost of domestic carriers.

The Federation of Indian Airlines has been trying hard to get approval for direct import of ATF from the Government.

If this move comes through, it would be a big relief for the ailing airline industry.

Direct import will also free the carriers from the high sales tax paid on ATF.

Funds for AI

In another development, Mr Patel also said the Government plans to infuse Rs 1,000 crore into the national carrier Air India in the next few months. According to him, a fund proposal will be forwarded to the Government from the airline.

The proposal is expected to be reviewed in the “next few weeks,” he said.

More Stories on : Airlines | Policy | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Air Asia to link Tiruchi with Kuala Lumpur

Lufthansa, Brussels Air deal not to affect Jet or Air India

Ministry supports direct import of aviation fuel

Andaman and Nicobar may get a major port

Maytas Metro signs concession pact for Hyderabad rail project

SECR's e-procurement system