Airlines In Talks With RIL For Fuel Supply
India, Feb. 08 -- Indian airline industry is in talks with Reliance Industries Ltd. (RIL) to seek additional storage infrastructure at ports, jet fuel facilities around the aircraft and transport services.
The talks have come just a day after government of India recommended direct import of Air Turbine Fuel (ATF) to ease the financial burden of the airline industry.
According to the reports, Reliance Industries Ltd. is in talks with Kingfisher Airlines, Jet Airways and Air India. By asking RIL, the struggling airlines are trying to avoid the costs associated with creating infrastructure and the transport of oil. The airlines are hoping to use RIL's existing infrastructure and logistics support to transport imported jet fuel from ports to airports and deliver it to the aircraft.
Earlier, the government's move of direct import of ATF was applauded by the industry as the airline fuel costs in India were prohibiting the Airlines to operate profitably. ATF cost in the country is 40-50 per cent higher than any other country in the world. The high costs are due to the sales tax that varies from 4 per cent to 33 per cent. Published by HT Syndication with permission from Dion Global Solutions Limited . For any query with respect to this article or any other content requirement, please contact Editor at [email protected]
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