Bengaluru Kingfisher Airlines said it is working to import jet fuel directly to help lower operating costs after being granted a permit from the Indian government.
Kingfisher is taking "active steps" to begin fuel imports, the Bengaluru-based carrier said.
The airline, controlled by billionaire Vijay Mallya, is seeking funds from banks and investors as it cut at least a third of its flights in six months and asked some employees to stay home after posting more than 10 straight quarterly losses.
Kingfisher has begun negotiations with oil marketing companies on fuel-import terms that will help save on local taxes.
Kingfisher fell 3.3 per cent to Rs19 in Mumbai trading after earlier gaining as much as 2.3 per cent. The stock has declined 9.7 per cent this year, compared with a 13 per cent climb for the benchmark Sensitive index. The carrier has been seeking new funds or loans since at least November when it shuttered low-cost services and deferred plane deliveries as part of a turnaround plan.
Jet fuel costs as much as 40 per cent more in India than in the international market because of taxes. Only government trading agencies were allowed to directly import fuel previously.
