Vijay Mallya's miseries end?Ind Airlines can import jet fuel

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Vijay Mallya
Mumbai, Feb 8: It might have brought a great relief for Vijay Mallya when a government panel on Tuesday, Feb 7 declared that cash-starved Indian Airlines can now import jet fuel directly under a plan approved by the government panel.

The latest move by Indian government may help Indian Airlines cut fuel costs up to 20 percent, though sources informed that Indian Airlines might have to increase their spending due to their requirements.

"Airlines have to look at where they can store this fuel. I think actual net savings will be 10 per cent because they will be paying for storage as well," said Executive Director at Asia Pacific Academy for Aviation and Hospitality, Rajan Mehra.

Meanwhile, many claimed that it would leave little impact on Indian Airlines if they import jet fuel. Aviation sector analyst at Angel Broking, Sharan Lillaney has been quoted as saying, "Also, when they don't have the money to pay local oil companies how will they buy in the international market."

"It will take very, very long time to materialise," added Mr Lillaney while giving his opinion on the decision taken by Indian government.

Here it can be recalled that Indian Airlines led by Kingfisher Airlines has been demanding permission to import jet fuel saying that it would reduce half of their operating costs.

Currently the airlines are buying fuel from oil marketing companies including government-controlled Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp. The airlines have to pay various federal and state taxes for buying fuel from the oil companies.

OneIndia News

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