The Airports Authority of India (AAI) has indicated that is planning to set up a joint venture firm involving both state-run and private sector oil firms in order to allow domestic carriers to directly import the aviation turbine fuel (ATF) for operations.

The new joint venture would set up fuelling stations and infrastructure at airports across various cities and it might involve Reliance Industries (RIL) and Essar Oil as well as other private as well as public sector oil firms. The AAI will hold a 13 per cent stake in the joint venture while stakes held by all firms is yet to be determined.

AAI chairman VP Agarwal said, "I have also written to the airlines to join the joint venture. The supply of jet fuel to carriers through such a joint venture can reduce fuel costs of local carriers by nearly 10%."

The joint venture will involve three public sector oil companies, private companies like RIL and Essar, according to Mr. Agarwal. The authority has also held talks with the petroleum secretary and the oil companies and the arrangements for the joint venture is yet to be finalised. The AAI wants to ensure that fuelling facilities are available at all airports across the country.