After SpiceJet,cash-strapped Kingfisher Airlines on Thursday said it has received official approval to directly import jet fuel,a move that would help it reduce its operating costs to a significant extent.
Kingfisher Airlines has received authorisation from the Director General of Foreign Trade (DGFT) for the import of aviation turbine fuel on April 11 and we are taking active steps to initiate the process of ATF import, an airline spokesperson said.
Mallyas airline is the second domestic carrier to have received DGFT approval for ATF import. Air India has also applied for such approval.
Currently,fuel costs account for almost half of an airlines total operating costs. A mix of taxes levied by state-run oil firms and the state governments make jet fuel prices in India among the highest in the world.