Air India hedge fuel price exposure

Singapore: Expensive oil is leading savvy energy consumers such as airlines to use more complex tools to manage their fuel price risk, but Asian manufacturers are lagging and face spikes that could hit profits.
In a symbol of the region’s growing hedging business, Air India became the first airline in the country to hedge some of its fuel price exposure in the first quarter, using options and collars as well as jet fuel swaps, through US bank Citigroup.
Now major carriers such as Japan Airlines and Qantas Airways who already have substantial hedging programmes may be looking to take a more dynamic role.
09/04/06 Daily Times, Pakistan

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