New Delhi, March 27:
National
carrier Air India's board of directors has decided to import jet fuel
directly. The board also approved the hedging of fuel up to 20 per cent
of the total fuel uplifted abroad.
According
to a statement issued after the board meeting, Air India would shortly
appoint a service provider. It will source the supply as well as provide
the necessary infrastructure for storage and distribution of the same
for in-plane fuelling.
Meanwhile,
the company claimed its financial and operating performance up to
February had improved significantly. Passenger revenue in February went
up to Rs 949 crore from Rs 718 crore in February 2011, an increase of
32.2 per cent, the airline said in a statement.
The
total number of passengers who flew Air India also went up from 0.962
million in February 2011 to 1.091 million in February 2012, registering
an increase of 13.4 per cent. Air India expects to end the year with
higher than budgeted performance in revenues.
However,
the escalating fuel cost is likely to add Rs 2,200 crore to its fuel
bill, which is estimated to be around Rs 8,000 crore for 2011-12.
Additional interest cost of Rs 1,500 crore also eroded its
profitability, the airline said.
The
board also approved the capital budget for 2012-13, which was in line
with the annual plan outlay of the company involving a capital outlay of
over Rs 400 crore on non-aircraft projects.
The
bridge financing of the two 787 Dreamliner aircraft, which would be
raised from Standard Chartered Bank, of $195 million, was also approved
by the board. The bridge financing is expected to be closed soon.
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