SpiceJet becomes first to import fuel

It came to me as a surprise! It was SpiceJet and not Kingfisher that got the nod first to import Aviation Turbine Fuel (ATF) among all the airlines in India. This will enable Spicejet to substantially lower its operational costs which is an estimated saving of approximately 10 per cent.

Another surprise was that it will be the Reliance Industries Ltd which is likely to import jet fuel for SpiceJet, being the only private oil marketing company that has presence in many airports across the country.

I am wondering what happened to Kingfisher. Given its dire situation it is in today, it should have been an ideal candidate for the nod. Am sure there is some logic to this situation but unclear to me.

SpiceJet will run a pilot to evaluate the whole process to check its economic viability.

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