The price of aviation turbine fuel, or jet fuel, in Delhi was hiked by Rs 1,039.1 per kilolitre, or 1.7 per cent, to Rs 62,208.18, according to Indian Oil Corp, the nation's largest oil firm.
The price of non-subsidised cooking gas (LPG) was on cut by Rs 21 per cylinder and that of jet fuel (ATF) by a steep 3 per cent on the back of falling international oil rates.
FIA is a body of four established domestic private airlines -- Jet Airways, IndiGo, SpiceJet and GoAir.
State-owned oil firms on Tuesday cut jet fuel, or ATF, prices by 4 per cent, the first reduction in rates since July, on softening of international oil prices.
The government has cut the windfall profit tax on crude oil produced in the country while the levy on exports of diesel and ATF has been hiked, an official notification said. The tax, levied in the form of special additional excise duty or SAED, on domestically produced crude oil was reduced to Rs 6,700 per tonne from Rs 7,100 a tonne. SAED on the export of diesel was increased to Rs 6 per litre from Rs 5.50 a litre and on jet fuel or ATF to Rs 4 per litre from Rs 2, the notification said.
Meeting on Tuesday to decide on letting foreign airlines buy into domestic ones.
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Observing that the prime reason for these losses was high fuel cost which constituted almost 40-50 per cent of an airline's total costs, Civil Aviation Minister Ajit Singh said the aviation turbine fuel (ATF) prices were high due to rising base price and "very high VAT imposed by state governments."
While jet fuel price was increased by Rs 2, subsidised LPG price has been hiked by Rs 4.50 per 14.2-kg cylinder. Non-subsidised LPG to cost Rs 93 more.
Analysts say this is a reflection of the high debt that most aviation companies have on their books. "Aviation companies are unable to pay their dues because they are into losses.
HPCL is Kingfisher Airline's largest aviation turbine fuel supplier.
The panel will be asked to give report by March-April next year.
Mallya's airline is the second domestic carrier to have received DGFT approval for ATF import after budget carrier SpiceJet.
President Droupadi Murmu conferred 26 Shaurya Chakras (seven posthumous) to personnel of the armed forces, Central Armed Police Forces and state/Union Territory Police during a defence investiture ceremony.
Indian carriers are expected to double their fleet size by 2020 to 1,000 aircraft by 2020, promising a huge opportunity for the maintenance, repair and overhaul business.
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 purchased from oil marketing companies in the country.
Reliance Industries Ltd is likely to import jet fuel for SpiceJet.
India must be prepared for a big, fat fuel import bill in FY23 - barring any further avatars of the Covid virus - as refiners crank up runs, or crude processing rates, to meet the growing demand for fuels, and crude prices soar. Capacity additions by an Indian state-run refiner will reinforce the need for foreign crude. Demand for all fuels is expected to increase by 3-8 per cent next fiscal from 2021-22, reaching pre-pandemic levels, according to analysts and industry experts.
Seeking permission for direct import of jet fuel, Kingfisher Airlines has informed the government that steps are being taken to improve cash flow of the debt-ridden carrier by procuring ATF through suppliers' credit on lower interest rates.
Pilots might soon be asked not to use perfume, mouthwash and tooth gel as that may result in positive breath analyser test. The Directorate General of Civil Aviation (DGCA) has sought comments on a draft Civil Aviation Requirements (CAR) wherein it has also proposed barring crew from using any "drug/formulation or use any substance such as mouthwash/tooth gel/perfume or any such product which has alcoholic content". Comments have been sought on the CAR, which pertains to procedure for medical examination of aircraft personnel for alcohol consumption, till October 5.
Jet fuel (ATF) rates were on slashed by a steep 12.5 per cent, the sixth straight reduction in prices since August, as international oil prices slumped to five-year low levels.
According to the formula being worked out, the company would raise the fuel charge by Rs 50 for every Rs 1,000-per-kilolitre increase in the rates of jet fuel. Inversely, there would be a slide in the fares by the same amount in case of a Rs 1,000-per-kl decrease.
The European Commission will propose scrapping tariffs on jet fuel imports starting January 1, an official said on Friday.
ATF price in Delhi has been raised to Rs 53,309.30 per kilolitre from Rs 47,048.86 per kilolitre, an Indian Oil Corporation, the nation's largest fuel retailer, said. In Mumbai, the price rose by Rs 6,536.35 a kilolitre to Rs 55,191.58 per kilolitre.
An airlines industry body has sought reduction in customs and excise duties on aviation turbine fuel and allowing private firms to supply it to bring down prices.
Domestic jet fuel prices are up 7%, but are still 14% lower on a y-o-y basis. While lower fuel prices have brought respite to airlines, their non-fuel costs are rising because of rupee depreciation
The decision came following the intervention of Civil Aviation Minister Vayalar Ravi who met Petroleum Minister S Jaipal Reddy to sort out the issue.
ATF price in Delhi was reduced by Rs 4,765.5 per kilolitre (kl), or 11.9 per cent.
Oil companies last week sent a notice for stopping aviation turbine fuel supplies to Air India at some airports like Calicut and Jaipur, officials said in New Delhi.
The disappointment of the year is government's failure in finalising the re-drafted aviation policy.
Aviation Turbine Fuel or jet fuel in Delhi, the city that houses the nation's second busiest airport, costs $1,291 per kilolitre while the same in Singapore is sold at $1,067 per kl. It costs $1,100 per kl in Hong Kong and $1,113 in Colombo.
In 2015, India's domestic aviation market clocked 81 million flights.
Govt to introduce new aviation policy on May 15.
Jet Airways said on Thursday it will increase fuel surcharge by Rs 150 on both Club Premiere and Economy Class tickets on domestic routes, with effect from May 4.
The increases have snapped a six fortnight trend of reduction in rates.
In the termination letters, RIL mentioned that the business has been impacted by the slowdown and the company was not in a position to continue with their employment. Employees who would resign will get one month's salary as compensation. When contacted, an RIL spokesperson declined to comment on the development.
In the next quarter, the country will also start gearing up for various Assembly elections could put the government as well as the OMCs under pressure
India's ailing aviation sector can finally hope to get some relief. The Union Minister of Civil Aviation, Praful Patel has announced that a Group of Ministers (GoM) has been formed to look into the issues faced by the aviation sector.
IOC, BPCL and HPCL on Thursday afternoon stopped ATF supplies to Air India at six airports - Kochi, Pune, Patna, Ranchi, Vizag and Mohali - over payment defaults. AI flights from these places were tanking up from other airports.
Air India had last year faced about two-month-long strike by its pilots.
From using bio-fuels to revamping in-flight food and drinks services, eschewing mass-produced chicken/eggs in favour of local, farm-raised options to offering eco-friendly toys for children, airlines try out inventive measures to encourage carbon-neutral practices.
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