A-I picks three more parties for fuel hedging

Mumbai: India's flagship carrier Air-India (A-I) has chosen three additional counter parties to hedge jet fuel from the international market for its operations. These parties are Mitsui & Co, Societe Generale and a subsidiary of Goldman Sachs.
The decision comes after the government's approval to the carrier this month to extend its jet fuel-hedging limit from 10% earlier to 25%. Jet fuel cost constitutes almost 30% of the total operating costs for A-I. The airline currently has a fleet of 44 aircraft.
A-I extended its hedging limits from 10% to 25% from September 18. The airline started hedging in March this year for which Citibank was selected as the counter party.
This has, however, not made a significant difference to the fuel bill of A-I due to fluctuating fuel prices. So far, the carrier has been able to save only about Rs 1 crore on its fuel bill.
25/09/06 Sagar Malviya/Financial Express

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