ATF supply at airports likely through common-user terminals

New Delhi: The civil aviation ministry may be mulling the introduction of a new concept called common-user terminals for the supply of aviation turbine fuel across the country's airports. According to market speculation such a move may likely affect the monopoly of public sector oil companies over the supply of aviation turbine fuel across the nation's airports.

The concept has already been initiated in the country through GMR Infrastructure, a company that is currently engaged in building a new international airport at Hyderabad and is also modernising the international airport at Delhi.

Under the scheme, airport operators will own hydrant infrastructure at airports and allow airlines to tie up with oil companies. In turn, the oil companies will have to pay throughput charges to the airport operators for using the hydrant facilities.

So far, oil PSUs have mostly owned hydrant supply rights at airports, which allow them to maintain a stranglehold over the supply of ATF to airlines. This alternative, common-user terminal model, would help ease their grip on the business and help bring down the prices of ATF, so expect ministry officials.