Archive for the ‘ATF’ Category

Cut in ATF prices dashes dreams of aviation firms

March 2, 2007

Major airline operators are not happy with the finance minister’s announcement to cut sales tax on aviation turbine fuel for only smaller aircraft with minimum takeoff mass of less than 40,000 kilograms operated by the scheduled airlines. The airline industry had earlier hoped that aviation fuel altogether should be given a declared goods status, which would attract a uniform 4% sales tax across India.

Major beneficiaries of the tax cut would be Air Sahara and Paramount Airways. Air Sahara has seven bombardier CRJ aircraft which fits the criteria, while Paramount Airways fleet includes one Brazilian Embraer aircraft. Also, corporate houses like Reliance and the Singhanias who own business jets would also be benefited from the announcement.

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IOC pumping up fuelling infrastructure at airports

February 26, 2007

Riding on the boom in the air traffic in the country, Indian Oil Corporation Ltd is upgrading its infrastructure facilities it has created at various airports. This is to provide better service aircraft in supplying aviation fuel as the company controls over 97 airports out of 117 in the country. Indian Oil, with a share of 65 per cent of the aviation fuel market, is the major player both in civil and defence airports thereby meeting the requirements of 21 domestic, 64 international and 250 private airlines.

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Govt may let airlines hedge fuel price risk

February 26, 2007

ATF prices for domestic operations include 10% Customs duty, 8% excise duty and sales tax.

Domestic airlines may soon be able to hedge their risk of jet fuel prices. The government is considering a proposal to allow Indian carriers to hedge the price risk of aviation turbine fuel (ATF) purchased from oil marketing companies in the country.

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Airline ind wants FM to rationalise tax on ATF

February 25, 2007

Ahead of the presentation of the Budget, the airline industry has urged the government to rationalise taxes on jet fuel, continue the exemption on withholding tax (WHT) on leased planes and remove service tax on First and Business class air travel.

Observing that aviation turbine fuel (ATF) accounted for about 40 per cent of the total operating costs for airlines in India, the industry has sought reduction in customs duty on ATF, slashing of excise duty to four per cent and making ATF a ‘declared good’ attracting a uniform four per cent tax across the country, sources said.

They said the annual fuel bill for the entire industry was estimated to be around 1.7 billion US dollars, based on the September 2006 rates.

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`IOC aiming at $60-b revenue by 2012′

February 25, 2007

IOC is aiming at revenues of $60 billion by the year 2012 with an investment plan of about $15.5 billion, according to Mr G.C. Daga, Director (Marketing).

Addressing the 15th International Aviation Conference on Wednesday, he said that venturing into new business across the hydrocarbon value chain would drive growth, bringing as much as a quarter of the revenue envisaged by 2012.

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Airlines want private cos to supply ATF

February 18, 2007

In a bid to lower costs of aviation turbine fuel, the aviation industry has urged the government to allow private oil companies to supply fuel using existing infrastructure at airports.

At present, three public sector oilcos — Indian Oil, Bharat Petroleum and Hindustan Petroleum — have ownership over infrastructure through which they supply ATF to airline companies. The aviation industry has suggested that existing ATF storage and supply facilities at Indian airports should be converted to common user facility, which could be owned by a neutral agency.

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Oilcos to cut aviation fuel prices by 6%

January 30, 2007

In A move that could improve airline companies’ bottomlines, oil firms has decided to cut aviation turbine fuel (ATF) prices by about 6% from February 1. The base price of the fuel is likely to be revised to Rs 2,091/KL, based on the average Arab Gulf price through January.

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Airlines stocks take off on lower ATF prices

January 18, 2007

After passing through a period of turbulence, airlines companies are showing promise of a comeback, with the stocks of the listed companies in the sector registering high levels of growth in the last one month.

During the one-month period between December 18, 2006 to January 16, 2007, stocks of the three listed airline companies—Deccan Aviation, Jet Airways and SpiceJet—posted an increase of 17.33%, 11.84% and 5.29% respectively on the BSE. Interestingly, the aviation stocks outperformed the benchmark BSE Sensex by a wide margin during the same period.

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Fliers spared as airlines bear ATF hike

January 6, 2007

Airline passengers braving the fog over the last few days may be spared of a fare hike with most Indian carriers opting to wait and watch despite the hike in aviation turbine fuel (ATF) prices by over 4% this month. The only exception, however, could be Air Deccan which is planning a hike in fuel surcharge by about Rs 50 to Rs 150.

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Surcharge cut may not benefit passengers soon

December 28, 2006

Following a reduction in the price of aviation turbine fuel (ATF), most airlines are adopting a wait-and-watch policy before taking a call on whether to pass on some quantum of the drop to passengers.

Though Delhi-based low-cost carrier SpiceJet announced a 50% reduction in fuel surcharge, legacy carriers such as Jet Airways, Indian Airlines and Air Sahara are unlikely to drop fares immediately to help cushion a part of the fog-related costs due to higher fuel burn, flight disruptions and cancellations over the next couple of months.

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