The hardening of jet fuel prices has prompted the Board of Air India to allow direct import of the fuel,saving it the additional costs by way of state taxes. The Board also decided to take a $195 million bridge loan towards meeting payment obligations for two of the 27 Dreamliner aircraft it had ordered earlier.
The Air India Board,which met here today has decided to import aviation fuel directly. It has been decided to shortly appoint a service provider to source fuel supply as well as provide the necessary infrastructure for storage and distribution of fuel for in-plane fuelling, the company said in a statement on Tuesday.
The Board also approved hedging of jet fuel up to 20 per cent of its international intake and also allotted a specific amount for this in its budget. The airline said a risk management team of senior officials has been set up to monitor and take positions in fuel hedging.