Rupee, fuel cost apart, Air India will hit financial target, says Rohit Nandan
By ENS Economic Bureau | Published: 18th September 2013 08:22 AM |
State-run carrier Air India could be turning the corner as it is hoping to meet it financial target for the second quarter this fiscal despite an “unprecedented” hike in the aviation turbine fuel prices (ATF) prices and wild fluctuations in the value of rupee against the US dollar. The value of rupee has eroded nearly 25 per cent since August.
“Though we are facing unexpected increase in aviation turbine fuel cost and wild fluctuation in rupee value against the dollar, we are hopeful that we would be able to achieve our financial targets,” an optimistic Air India CMD Rohit Nandan told reporters on the sidelines of an a function to launch Air India-State Bank of India co-branded credit card on Tuesday.
He said the national carrier has managed to bring its losses down to about `11 crore per day from around `50 crore per day earlier.
“We were given some financial targets by the government as part of our turnaround plan, and we have met them and registered EBDITA positive for the first time in seven years, despite a strike last year,” he said.
The national carrier had managed to contain its losses, but depreciation of rupee hit it hard, as it was facing a loss of `100 crore every month for every rupee depreciated.