The Hindu Business Line : Indian Airlines fuel bill may go up Rs 200 cr

THE global rise in fuel prices is likely to impact Indian Airlines (IA), with the price of aviation turbine fuel (ATF) touching an all-time high of Rs 26,000 per kilolitre in June this year.

Official sources told Business Line that the northward movement of ATF prices was likely to add about Rs 200 crore to the ATF cost of IA and operations of its 100 per cent subsidiary, Alliance Air, over the budget estimates for the financial year 2004-05.

IA has estimated a fuel bill of Rs 1,445 crore during 2004-05, up from the revised estimate of Rs 1,297 crore during 2003-04.

While the airline paid Rs 866 crore during 1999-2000 to meet its fuel bill, the amount rose to Rs 1,164 crore during 2002-03.

The airline's fuel bill has been steadily moving northwards in the past few years, largely on account of global upward movement in oil prices. As in the past, the price of ATF has been fluctuating during this year also.

While IA was paying Rs 21,900 per kilolitre of ATF in January this year, the price touched Rs 23,130 the following month, only to move down to Rs 21,530 in March. However, in May, the price of ATF again headed northwards and touched Rs 22,900, before hitting an all-time high of Rs 26,000 per kilolitre this month.

ATF is one of the major cost components for IA and accounts for about 30 per cent of the airline's operating cost in the domestic sectors. The airline has estimated that a one percentage point increase in the prices of ATF adds over Rs 14 crore per annum to its operating cost.

More Stories on : Airlines | Airlines | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Indian Airlines fuel bill may go up Rs 200 cr

News channels scene hotting up in South

Infosys shareholders give their nod

Buying absorbs heavy selling — Trading volumes robust in choppy times

Investing in Indian equity market — CalPERS to be guided by corporate governance

`IPO gradings help investors take appropriate decision'

Montek may be in PMO soon