Coronavirus scare not to dent IOCL sale of ATF

Sarkaritel
By Sarkaritel January 30, 2020 19:22


By TN Ashok

New Delhi, Jan 30 : The plummeting prices of aviation turbine fuel ( ATF) globally due to low passenger traffic between countries globally due to worldwide recession and now topped by the spread of the caronavirus from wuhan in China will not dent IOCL’s sales of the air fuel, Mr Sanjiv Singh, chairman and managing director of state run refiner IndianOil asserted  today.

“IndianOil’s sale of ATF have largely been to domestic airlines and there’s no fall in passenger traffic and hence no lower offtake by the domestic airlines “, he said however adding, globally it could make an impact. But its not going to be significantly large but only minor, he said.

ATF is essentially a B2B business , he said adding he did not see it affecting IOCL profit line on ATF sales.

On the numaligarh refinery in assam being put on the table by the state government , Mr Singh said Let it come up . Lets see what the package is . we have already three refineries in assam up and running. Lets look at the positives, he said referring to the meeting with the assam cm in delhi recently in this regard.

On the dues from loss making Air India to IOCL in terms of ATF sales revenues recoveries, Mr Singh said Air India owes about Rs 2500 crore in this fiscal ending march 31 2019-20. Previously they owed us about Rs 2700 crore which included interest on that amount.

Asked if he was confident he would recover the amount from AirIndia before it was privatized, Mr Singh said “I hope we are able to do it.” Air India was first offered for sale with part of its equity being divested. Following negative response, the civil aviation minister Hardip Puri has now offered on the chopping block 100% equity in air india plus its subsidiaries airexpress and other infrastructure associated with it.

Buying of air india means, taking on liabilities worth Rs 42,000 crore for any domestic or international carrier , but it also means being part of star alliance and sharing of many international routes. As global passenger traffic has been down, not many takers have come forward. But AirIndia’s founder the TATAs had initially showed reluctance, but now seem to reviving the offer to club it with their Vistara airline jointly owned by the Singapore airlines . As yet there is no clarity in any offer.

Sarkaritel
By Sarkaritel January 30, 2020 19:22