Indian airlines struggling as most costs are paid in US dollars: Vistara

While signing contracts with aircraft leasing firms or aircraft maintenance firms, airlines generally have to agree to make payments in US dollars only

Indian airlines are struggling hard as most of their costs like the ones related to aircraft leasing, plane's maintenance and fuel have to be paid in US dollars, a Vistara official said on Friday, at a time when rupee has depreciated by approximately 6 per cent since January.

"The reason why the airlines are struggling this hard is because a lot of our costs are all in US dollar. And with continually depreciating rupee, and as most of us (airlines) predominantly operate in the domestic market, there is obviously going to be a mismatch," Vistara's Chief Commercial Officer Vinod Kannan said