Government allows direct jet fuel import, Air India debt plan

February 7th, 2012 - 2:57 pm ICT by IANS  

Pranab Mukherjee New Delhi, Feb 7 (IANS) An empowered group of ministers (EGoM), led by Finance Minister Pranab Mukherjee, Tuesday allowed domestic airlines to directly import aviation turbine fuel and approved Air India’s debt restructuring plan.

“The EGoM has allowed the airlines to import jet fuel directly,” Civil Aviation Minister Ajit Singh told reporters here.

The move will help bring down operating costs of carriers significantly. Aviation turbine fuel now constitutes about 50 percent of the total operating cost of airlines in India.

As part of its debt restructuring plan, the national carrier will raise Rs.7,400 crore via bonds, backed by a sovereign guarantee.

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