Indian carriers permitted direct fuel imports India's aviation minister has said domestic airlines will be allowed to import jet fuel directly and bypass sales taxes in a move that could drastically cut costs for the country's cash-starved carriers. Ajit Singh also said a panel of ministers had approved a $1.5bn debt restructuring plan for the state-run carrier Air India, a decision that will keep it in business but that risks placing further stress on the government's finances. Analysts said the government's decision to allow private carriers to import fuel was a huge fillip to the ailing industry as it would eliminate hefty sales taxes that on average add up to approximately 24 per cent of the cost of jet fuel. "This cost savings on ATF [aviation turbine fuel] is a lifeline for aviation companies," said Deven Choksey, managing director at KR Choksey stockbrokers in Mumbai. Jet Airways, SpiceJet and Kingfisher, the country's three listed airlines, lost more than 60 per cent of their market value last year as they struggled to cope with rising fuel prices and a severe price war set in motion by state-run Air India. On Tuesday their stock jumped on the news: shares in Kingfisher Airlines, the most troubled carrier, touched a high of 20 per cent while SpiceJet rose 19 per cent and Jet Airways 16.8 per cent. They closed up 13.20, 14.48 and 10.98 per cent respectively, compared to a 0.48 per cent drop in the Bombay Stock Exchange's benchmark Sensex. "This is a game changer for the industry," said Sharan Lillaney, aviation sector analyst at Angel Broking. Although this might not have an immediate impact on their profitability, as they will have to get the infrastructure in place to import the fuel, in the long term it will make them more attractive to potential foreign buyers. Vijay Mallya, the liquor baron who controls Kingfisher, had long campaigned for the right of Indian airlines to import fuel directly. Shiv Kumar, senior vice-president of Jet Airways, India's largest carrier by passengers, told CNNC TV18, an Indian news channel, that directly importing fuel could throw up a series of logistical problems, including charges from oil companies for the use of their infrastructure, transport costs and customs duties. However, Mr Kumar added: "It's a good initiative from the government . . . it could give a good amount of savings of up to 13-13.5 per cent." This is the latest step taken by the new aviation minister to save the country's lossmaking airlines, which were on the brink of bankruptcy throughout 2011 owing to high operating costs. On Tuesday, Mr Singh said the cabinet would soon take a final decision on a recommendation made by a government-backed panel to allow foreign carriers such as British Airways and Singapore Airlines to take a stake of up to 49 per cent in local operators. The entry of foreign airlines could provide a lifeline for the cash-strapped groups, though analysts warned that none of the global carriers would be interested in picking up a stake in an Indian airline unless its financial conditions improved. Mr Lillaney said reducing costs linked to fuel taxes would increase Indian companies's chances of finding a foreign partner. The government is making the right move . . . international carriers don't want to buy a stake in a company that is about to go bankrupt.