Airlines want private cos to supply ATF

New Delhi: 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.
In their suggestions submitted to the finance, petroleum & natural gas and civil aviation ministries, the Federation of Indian Airlines (FIA) has argued that private oil companies should be allowed to use existing infrastructure at major airports as it could lead to increased competition and subsequent lowering of ATF prices. It said that competition could put pressure on the profit margins of public sector companies which presently range between 15%-20%.
FIA further urged the petroleum ministry to encourage competition to avoid monopolistic pricing of ATF or jet fuel.
17/02/07 Sunny Verma/Economic Times

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Categories: General Aviation feb 2007