Indian Airlines plans to hedge fuel costs

Mumbai: Indian Airlines is planning to start hedging its international fuel purchase in the wake of spiralling aviation turbine fuel (ATF) cost that is eating into its profits. Currently, the annual fuel bill of the airline is around Rs 1,500 crore.
Sources close to the development said Citigroup has made a detailed presentation before Indian Airlines as a preliminary step towards hedging.
“International Air Transport Association (IATA) has also made a similar presentation as a prelude to the fuel hedging for this PSU airlines,” they said.
Indian Airlines Chairman and Managing Director Vishwapati Trivedi confirmed the development adding, “We are exploring the options of hedging our international fuel uplifts, but nothing has been finalised.”
Senior airline executives said the airline is also in the process of securing approval of the Reserve Bank of India (RBI) for hedging.
27/12/06 P R Sanjai/Business Standard

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