Shares of SpiceJet over 5%, touching the monthly high of Rs34.80, after the company said it has received approval from the Director General of Foreign Trade ( DGFT) for importing aviation turbine fuel directly from overseas market.
SpiceJet is the first airline in the country to apply for approval for import of aviation turbine fuel ( ATF) and to get clearance for the same. SpiceJet said it is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course. ATF makes up for 50% of an airlines' operating cost. Importing the fuel would allow an airline to save on sales tax imposed by the government.
Commenting on the development, Mr Neil Mills, CEO, SpiceJet said, '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 costs'.
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SpiceJet is the first airline in the country to apply for approval for import of aviation turbine fuel ( ATF) and to get clearance for the same. SpiceJet said it is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course. ATF makes up for 50% of an airlines' operating cost. Importing the fuel would allow an airline to save on sales tax imposed by the government.
Commenting on the development, Mr Neil Mills, CEO, SpiceJet said, '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 costs'.
....more info