Kingfisher Airlines, Vijay Mallya's cash-strapped airline, has received official approval to directly import jet fuel, a move that would
help the airline reduce its operating costs to a significant extent.
Mallya's airline is the second domestic carrier to have received Director General of Foreign Trade (DGFT) approval for aircraft turbine fuel (ATF) import. Budget carrier
SpiceJet got the nod on Wednesday.
"Kingfisher Airlines has received authorisation from the DGFT for the import of aviation turbine fuel on April 11 and we are taking active steps to initiate the process of ATF import," an airline spokesperson said.
Air India has also applied for permission to directly import jet fuel.
"The airline was negotiating with leading oil marketing companies and was hopeful to start importing fuel in due course," SpiceJet chief executive Neil Mills said, adding that the airline industry would benefit from direct imports of fuel due to high ATF prices in Mumbai.
A mix of taxes levied by state-run oil marketing companies and the state governments make
jet fuel prices in India among the highest in the world.
Currently, fuel costs account for almost half of an airlines total operating costs.
with PTI inputs 
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