Spicejet Limited, India's most preferred budget Airline received approval to import aviation turbine fuel (ATF) directly. According to reports the imports will reduce the cost of ATF.
Shares of the the company surged and was trading at Rs 35.15 higher 6.35% at 3.20 pm IST on BSE.
Aviation turbine fuel is the highest in India, which has affected the profitability of Airline companies, most of which are saddled with mounting debt and huge losses.
SpiceJet is the first airline in the country to have received the Director General of Foreign Trade (DGFT) nod for the direct import of aviation turbine fuel, the company said in a statement.
The airline is presently negotiating with leading oil marketing companies and is hopeful to start importing fuel in due course, it said.
"The Airline sector will benefit from direct imports of fuel due to high ATF prices in India and we are hopeful to commence the import of fuel in due course," SpiceJet Airline's chief executive Neil Mills said.