As it looks to turnaround, Air India plans to hike the limit for hedging fuel costs to 25 per cent amid oil prices hovering at low levels. The national carrier's proposal also comes at a time when the government has decided to hike the excise duty on Aviation Turbine Fuel (ATF) to 14 per cent from 8 per cent.
ATF prices make up for a substantial portion of operating costs and steep fall in global oil prices in recent months has boosted the overall financial performance of airlines.
A senior official said Air India is looking to increase the hedging limit with respect to fuel costs as it can benefit from current fall in crude oil prices.
"We plan to hike the hedging limit to 25 per cent from current level of 17 per cent... This is to be utilised in the next two financial years," the official noted.Currently, Air India is not fully utilising the legroom available for hedging with respect to fuel costs.
07/03/16 PTI/The Hans India
To Read the News in full at Source, Click the Headline
ATF prices make up for a substantial portion of operating costs and steep fall in global oil prices in recent months has boosted the overall financial performance of airlines.
A senior official said Air India is looking to increase the hedging limit with respect to fuel costs as it can benefit from current fall in crude oil prices.
"We plan to hike the hedging limit to 25 per cent from current level of 17 per cent... This is to be utilised in the next two financial years," the official noted.Currently, Air India is not fully utilising the legroom available for hedging with respect to fuel costs.
07/03/16 PTI/The Hans India
