KFA owes BPCL Rs 220 crore or Rs 2.2 billion (after adjustment of interest).
The Reserve Bank of India's decision to allow airlines hedge jet fuel in global markets came in for praise from the industry and the civil aviation ministry, but end-users are unlikely to benefit in the form of lower airfares.
Private carriers Jet Airways and Kingfisher owed over Rs 1,050 crore (Rs 10.50 billion) to the public sector oil marketing companies (OMCs) like Indian Oil, HPCL and BPCL towards the payment of jet-fuel bills as on November 15.
India will require 1,740 planes over the next 20 years.
Air India has defaulted on payment of about Rs. 2,000 crore in jet fuel bills since last year.
Though the airline got an additional time to clear airport charges, it was reportedly denied fuel across major airports like Delhi, Mumbai and Hyderabad, leading to several flight cancellations and delays, said a Financial Express report.
Jet Air shares rally on expectations that continuing troubles at rival SpiceJet will help it gain market share.
State oil firms on Wednesday raised jet fuel (aviation turbine fuel) price by 5 per cent in line with the spike in international oil prices, which have touched a record $71 US a barrel.
Jet fuel prices are about 33% lower than the same period a year ago.
He still owes hundreds of crores to OMCs.
The government on Wednesday scrapped a week-old tax on the export of petrol and cut windfall taxes on overseas shipment of diesel and ATF as well as the one imposed on domestically produced crude oil after global oil prices fell. While the Rs 6 a litre export duty on petrol was scrapped, the tax on the export of diesel and jet fuel (ATF) was cut by Rs 2 per litre each to Rs 11 and Rs 4 respectively, government notifications showed. The tax on domestically produced crude was also cut to Rs 17,000 per tonne from Rs 23,250, a move that will benefit producers like ONGC and Vedanta Ltd.
Kardassis, who quit the airline in 2013, will advise Goyal and senior management on cost-saving and productivity improvement
No frills airlines SpiceJet and IndiGo have merged fuel surcharge with the base fares, saying it would simplify the prevailing fare structure.
Jet Airways on followed its smaller rival SpiceJet and hiked fares by a steep 25 per cent to mitigate the impact of the sharp fall in the rupee value and a near 15 per cent spike in oil prices of late.
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.
SpiceJet had bet its fortunes heavily on the new version of the 737 of which it has 13 planes in its fleet and another 193 aircraft on order
'The need for added safety has bolstered demand for charter flights in the last year and is expected to continue.'
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After all its flights remained grounded for most part of the day on Wednesday, cash-strapped SpiceJet resumed operations in the evening as oil companies, which had stopped fuel supplies to its aircraft, eased the restriction.
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Such direct import was formally allowed in February 2012 but the aviation companies lack the infrastructure to do so.
'It is typical of China's strategic deception of making virtue out of necessity,' observes Rup Narayan Das.
The government on Tuesday increased the windfall profit tax on crude oil produced in the country and reduced the levy on exports of diesel. The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil was increased to Rs 9,800 per tonne from Rs 9,050 a tonne, according to an official notification. SAED on the export of diesel was reduced to Rs 2 per litre from Rs 4 a litre and on jet fuel or ATF to nil from Rs 1, the notification said.
Benchmark BSE Sensex rallied nearly 630 points while Nifty closed above the 16,500 mark on Wednesday after sharp gains in IT and energy shares amid positive global market trends. Buying in index majors Reliance Industries, Infosys and Tata Consultancy Services and FII inflows bolstered the sentiment. Shares of firms related to oil exploration and refineries were in heavy demand, with Reliance Industries rallying 2.47 per cent and ONGC by 4 per cent, as the government slashed windfall tax on petrol, diesel, jet fuel and crude oil.
In a major relief to cash-strapped airlines, jet fuel (ATF) prices were today reduced by a massive 5 per cent, the steepest reduction in rates since February 2010.
State-owned oil companies on Tuesday slashed jet fuel prices by over 3 per cent as an appreciating rupee made imports cheaper.
An alternate aircraft of Indian budget carrier SpiceJet flew to Dubai from Karachi's Jinnah International Airport on Tuesday night, ending a wait of nearly 11 hours for 138 passengers who got stranded there after taking off from New Delhi in the morning.
Airports levy charges such as FTC, infrastructure charge, and into-plane charges on sale of jet fuel. The levy is passed through to airlines, pushing up costs.
Troubled carrier SpiceJet has paid employees' salaries for November and cleared dues of fuel companies as well.
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.
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.
Wing Commander Raveendran and flight steward Sargeant Iyer, though shaken and injured, managed to open the rear door of the aircraft and shouted for Prime Minister Morarji Desai and the passengers in the forward cabin to exit in haste since they suspected that fire would engulf the aircraft.
Air fares to go up as ATF price is hiked by 8.2%.
Jet Airways made a stand-alone profit of Rs 87.5 crore (Rs 875 million).
This is the second straight increase in jet fuel rates in as many months.
No immediate comment was available from airlines on the impact of the price hike on passenger fares.
Jet fuel prices on Wednesday were cut by 1.3 per cent -- the first reduction after 10 rounds of price hikes -- on softening international crude oil rates. Simultaneously, prices of commercial LPG - used by business establishments such as hotels and restaurants - were reduced by Rs 135 per 19-kg cylinder. The price of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- has been reduced by Rs 1,563.97 per kilolitre, or 1.27 per cent, to Rs 1,21,475.74 per kl (Rs 121 per litre) in the national capital, according to a price notification of state-owned fuel retailers.
SpiceJet will now be 'doubly careful' and strengthen inspection of aircraft before they leave to operate flights, airline's Chairman and Managing Director Ajay Singh said on Wednesday.
'I eagerly await the day when we can experience a truly great Bollywood movie rooted in pure historical facts, one that authentically showcases the essence of our armed forces for Indian audiences,' notes Air Commodore Nitin Sathe (retd).
If that happens, Jet Airways will be the first bankrupt airline which will be revived under the Insolvency process.
India, the world's fourth-biggest oil consumer, recently offered Saudi Aramco a stake in refineries and petrochemical projects.
Jet fuel or ATF prices were on Thursday were cut by a steep 4.5 per cent, the first reduction in rates in six months.
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