SpiceJet mulls to import aviation fuel

The Chennai-based low-cost airline SpiceJet today said it was seriously working towards importing aviation fuel on its own, following the recent government notification.

"We are very much interested in directly importing aviation fuel, as it can considerably bring down our operational cost. Our board which met today, discussed this. We have asked our legal department to study the government proposal in detail, after which we will take a final call," Chief Executive Niel Mills said.

Terming the recent government notification as a "very interesting proposal", Mills said, "the management is in principle very happy with going ahead with the ATF import proposal."

Asked whether the airline has discussed the logistics part for such a move with any of the oil marketing companies, as only they have storage facilities, Mills answered in the affirmative saying, "we have already held discussions with two such companies." But he did not name them.

On February  22, in a bid to help the debt-laden airlines to bring down their costs, the government allowed airlines to import jet fuel (ATF) directly under open-general licence. The move will enable airlines to avoid payment of sales tax which ranges from 4 to 32% in some states.