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Jet Airways chairman Naresh Goyal pitches for reducing aviation fuel prices

Thursday, 6 August,New Delhi: Jet Airways chairman Naresh Goyal today pitched for reduction in aviation fuel prices in the new civil aviation policy being prepared by the government.

After meeting senior Civil Aviation Ministry officials, Goyal expressed satisfaction over the steps initiated by Prime Minister Narendra Modi-led government to boost the economy. “New aviation policy should work on bringing down (Aviation Turbine Fuel) prices,” he said, when asked about the issue.

ATF accounts for substantial expenses incurred by airlines. While it could not be immediately ascertained what issues were discussed, Goyal’s meeting comes at a time when the government is in the advanced stages of taking a decision on easing overseas flying norms for local carriers.

Airlines umbrella body, Federation of Indian Airlines ((FIA) is opposed to the idea of easing the 5/20 norms – which requires that domestic airlines should have been in operation for at least five years apart from having minimum of 20 planes, to fly overseas.

Jet Airways is a member of the FIA along with budget carriers IndiGo, GoAir and Spicejet.

When asked about IndiGo’s plans to get listed in the stock market, Goyal said the IPO would be good for the entire aviation sector as valuations would improve.

He also said that no talks are going on with strategic partner Etihad for hiking its stake in Jet Airways. Currently, Etihad has 24% stake in the local carrier. In recent times, there have been reports suggesting that Etihad was looking to increase its stake in Jet Airways.

Etihad currently holds 24% stake in Jet Airways, which it acquired in 2013, following the erstwhile UPA Government allowing international airlines to own up to 49% stake in domestic carriers.