On the heels of Air India and Kingfisher Airlines seeking permission from the Directorate General of Foreign Trade (DGFT) to
directly import aviation turbine fuel (ATF),
SpiceJet Ltd on Monday announced that it has filed a similar application.
"After discussing the proposal in detail, we decided to go ahead with import of aviation fuel from overseas market.
We have applied to the DGFT for permission to import aviation fuel," SpiceJet Ltd's CEO Neil Mills said.
Incidentally, on March 27, the Air India board approved direct import of ATF and the airline shortly plans to appoint a service provider to source the supply as well as provide the necessary infrastructure for storage and distribution.
Direct ATF import is likely to bring down operational costs of airlines by around 10 per cent to 15 per cent, according to various estimates.
It may be recalled that Kingfisher airlines chief Vijay Mallya had initiated the policy change in mid-February by asking the DGFT to allow his company to import ATF directly instead of canalising it through a state trading enterprise.
He had argued that airlines were paying huge local taxes that varied between states ranging from four per cent to 30 per cent.
Special 
