For aviation fuel handling in India, in the wake of government’s decision to allow direct import of aviation fuel by Indian carriers, Airports Authority of India (AAI) will explore setting up of a Joint Venture (JV) company. Apart from AAI, stakeholders in the proposed JV company will be the three public sector oil companies, private oil companies like Reliance Industries, Essar Oil, and airline companies in the country.
Disclosing this on the sidelines of the recently held Aviation Day conference in Delhi, VP Aggarwal, Chairman, AAI, said that the move is intended to create infrastructure for fuelling in the remotest airports in the country as well as share common infrastructure by all players.
AAI will have 13 per cent stake in the proposed JV company, he added. The JV will create sufficient capacities so that everybody can put their products into it. The pricing will be market-driven, Aggarwal said. One of the objectives of the JV company is creation of a level playing field for all players, both public and private sector oil companies, in the aviation fuel business, Aggarwal added.
The proposed system is expected to drive a saving of ten per cent in terms of fuel expenses for airline companies, he said.