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KFA Likely to Use Existing Tie-Up With Ril to Work Out Logistics

  • Cash-strapped private airline Kingfisher Airlines is in talks with Reliance Industries to use the oil and gas major's infrastructure to transport ATF.According to industry sources, Kingfisher will use the oil and gas major's infrastructure and logistics support to transport imported jet fuel from ports to airports and deliver it to the aircraft, industry.

EGoM on ATF:

  • The Empowered Group of Ministers (EGoM) meet on aviation sector, on Tuesday decided to allow airlines to import fuel directly for consumption. Direct fuel imports mean no sales tax have to be paid on air turbine fuel (ATF). However, direct fuel import by airlines needs Cabinet nod.Following the news, all the aviation stocks soared. Jet Airways gained 14.48% at the closing bell, while SpiceJet and Kingfisher Airlines ended up 10.98% and 13.20% respectively, on the BSE.

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