Air India Ltd., the national carrier, said income earned in dollars from its overseas operations is acting as a hedge against the plunge in the rupee, Asia’s worst performing currency this year.
About 50 percent to 60 percent of the carrier’s business brings income in dollars, hedging against bills that aren’t rupee-denominated, Chairman Rohit Nandan said in a Bloomberg TV interview from Sydney today. The airline is getting new aircraft through a sale-and-lease back model, and therefore the carrier “won’t be very badly affected,” he said.
India’s rupee plummeted to record low this week and threatens to push the economy toward its biggest crisis since 1991. The currency’s plunge makes it costlier for local carriers to pay for aircraft they have ordered from Boeing Co. and Airbus SAS, which are in dollars.
Read News In Full 29/08/13 Susan Li/Bloomberg/Business Week
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