New Delhi: The rupee's fall could not have come at a worse time for the financially ailing Indian carriers.
The dollar's gravity-defying act has translated into an 8-10% hike in costs even as ticket prices in the ongoing lean season are down 25%.
This double whammy, say airline officials, is turning the July-September quarter into a nightmare for them. "Almost 75% of our operating costs are in dollar denomination, including expenses on fuel, aircraft leasing, maintenance, training, spare parts and expat salaries.
In the past two months, the rupee has slid from Rs 53.5 to Rs 61 now. At present, Brent crude is at $107 a barrel and the $ is at Rs 61. This is the worst time ever faced by us. On top of that, full service carriers are dumping fares," said a senior low cost carrier (LCC) official.
LCCs are the worst hit as full service carriers Jet and Air India earn more than half their revenue in forex. "Our 60% revenue is in dollar terms, so we are not as badly hit as others," said an AI official.
09/07/13 Times of India
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The dollar's gravity-defying act has translated into an 8-10% hike in costs even as ticket prices in the ongoing lean season are down 25%.
This double whammy, say airline officials, is turning the July-September quarter into a nightmare for them. "Almost 75% of our operating costs are in dollar denomination, including expenses on fuel, aircraft leasing, maintenance, training, spare parts and expat salaries.
In the past two months, the rupee has slid from Rs 53.5 to Rs 61 now. At present, Brent crude is at $107 a barrel and the $ is at Rs 61. This is the worst time ever faced by us. On top of that, full service carriers are dumping fares," said a senior low cost carrier (LCC) official.
LCCs are the worst hit as full service carriers Jet and Air India earn more than half their revenue in forex. "Our 60% revenue is in dollar terms, so we are not as badly hit as others," said an AI official.
09/07/13 Times of India
