Posts Tagged ‘jet fuel prices’


NEW DELHI: Three Indian carriers, which have been permitted to directly buy jet fuel from foreign sources, would together import almost 13 lakh kilo litres (kl) of the fuel at a cost of about Rs 5,780 crore for the present. 

The three carriers have been negotiating with leading oil marketing companies

The three carriers have been negotiating with leading oil marketing companies

The carriers which have recently received permission from the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry, to import aviation turbine fuel (ATF) are Kingfisher Airlines, SpiceJetand IndiGo.

Air India, which has also applied for such an approval, is yet to receive permission to import ATF. The move will help the airlines to significantly slash its operating costs.

“All the three airlines have been permitted to directly import ATF,” a senior Commerce Ministry official told a reporter.

While InterGlobe, owner of no-frill airline IndiGo, got approval to import 7.15 lakh kl worth Rs 3,200 crore of jet fuel, cash-strapped Kingfisher has been allowed to buy five lakh kl worth Rs 2,233 crore. SpiceJet would import only 50,000 kl worth Rs 235 crore, the official said.

The three carriers have been negotiating with leading oil marketing companies and were hopeful of beginning fuel imports in due course, a source said.

Industry experts have claimed that 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 about 40 per cent of an airline’s total operating costs.

Read the full story from India’s ‘The Economic Times’….


The Economic Times
22 APR, 2012


Advertisements

Chinese carriers reported a net loss of almost CNY200 million ($31.6 million) in March, reversed from a collective net profit of CNY1.71 billion in the year-ago month, due to high fuel prices and a decline in cargo traffic.

Chinese carriers at Beijing International. By Rob Finlayson

Chinese carriers at Beijing International. By Rob Finlayson

Passenger boardings increased 8.6% to 25.03 million, up 8.3% on domestic routes and 12.8% on international routes compared to the same month in 2011. Cargo traffic dipped 6.1%, up a slight 0.4% on domestic routes and plummeted 18.3% on international routes.

Industry analysts said market demand started to pick up in April with continuous domestic economic growth and slow global economic recovery but rising fuel expenses still remain a major challenge.

Fuel costs rose 16% in March, an increase of CNY1.64 billion over the same period last year. Analysts said that fuel surcharges revenue, which was CNY1.17 billion, was not enough to offset rising fuel expenses.

Earlier this month the Chinese government has raised domestic jet fuel prices to CNY8,061 ($1,275) per ton, up 4.35% from CNY7,725 per ton (ATW Daily News, April 6).

Read the original story here at Air Transport World….


By Katie Cantle
April 13, 2012