NEW DELHI, APRIL 2:
Chennai-based
SpiceJet has become the first airline to apply for direct jet fuel
import. It has submitted its application to the Directorate General of
Foreign Trade (DGFT).
Mr
Neil Mills, SpiceJet's Chief Executive Officer, said, "After discussing
the proposal in detail, we decided to go ahead with importing aviation
fuel from overseas. We have applied to the DGFT for permission to import
aviation fuel in India."
He
said the recent Government announcement was an interesting proposal,
and hoped that direct import of aviation fuel would considerably bring
down the company's operational cost. Jet fuel constitutes up to 40 per
cent of the airline's total operating cost.
The
Centre recently allowed airlines to import aviation turbine fuel (ATF)
or jet fuel. Airlines will now be able to save State sales tax, which
ranges between four and 32 per cent. Airlines have been complaining that
the high State tax along with Central duties make the fuel very costly.
No comments:
Post a Comment