Mumbai: Budget carrier SpiceJet has shelved its plan to directly import
Aviation Turbine Fuel (ATF) citing operational challenges.
“We did a proof of concept last year and then decided to put the idea on hold. Theoretically, importing ATF is a great opportunity to reduce fuel costs but we do not think that we are still ready for it yet,” a SpiceJet spokesperson told Business Line.
SpiceJet, which is promoted by billionaire Kalanithi Maran, had become the first Indian carrier to receive approval from the Director General of Foreign Trade (DGFT) to import ATF in 2012.
The intent then was to eventually import 15 per cent of the fuel requirement. Importing ATF would also help the airline save sales tax on jet fuel, which accounts for almost half of a carrier’s operating costs.
Read news in full 08/08/14 Adith Charlie/Business Line
“We did a proof of concept last year and then decided to put the idea on hold. Theoretically, importing ATF is a great opportunity to reduce fuel costs but we do not think that we are still ready for it yet,” a SpiceJet spokesperson told Business Line.
SpiceJet, which is promoted by billionaire Kalanithi Maran, had become the first Indian carrier to receive approval from the Director General of Foreign Trade (DGFT) to import ATF in 2012.
The intent then was to eventually import 15 per cent of the fuel requirement. Importing ATF would also help the airline save sales tax on jet fuel, which accounts for almost half of a carrier’s operating costs.
Read news in full 08/08/14 Adith Charlie/Business Line
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