New Delhi:The unexpected steep rise in jet fuel prices coupled with devaluation of rupee are adding a burden of almost Rs 100 crore every month to the expenses of state-owned Air India.
However, the national carrier is hopeful that it will tide over the situation and meet the financial targets set by the government under the turnaround plan.
"We expect a burden of Rs 100 crore every month due to the devaluation of the rupee and wild fluctuation in its value and the unexpected increase in the ATF cost this year," Air India CMD Rohit Nandan said on the sidelines of a function to launch the new Air India-SBI co-branded credit card.
Airlines have to pay in dollars for spares for planes, apart from interest on aircraft loans, which have hit them hard due to the downturn in rupee value against the dollar.
But the Air India chief expressed hope that the airline would achieve its financial targets for this fiscal, despite the rising fuel cost and falling rupee and said "as we have a sort of hedge as we are operating to foreign destinations. So we are also earning in dollars."
Read News In Full 17/09/13 PTI/BUsiness Standard
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