Dubai: Morocco’s national carrier, Royal Air Maroc, has hedged half of its 2015 fuel bill over concerns record low oil prices will not last, Habiba Laklalech, the airline’s senior vice-president, said on Tuesday.

Global oil prices have fallen in recent months with benchmark brent crude down more than 31 per cent since June. As of Tuesday afternoon local time, it was trading at $79.47 a barrel, below the $80 psychological barrier.

The North African airline recently made the decision to hedge as part of a five-year plan that expects brent price to be $110 per barrel, Laklalech said in an interview in Dubai. “We want to minimise the volatility,” she said.

Citing commercial reasons, Laklalech declined to state the price bracket the airline has hedged.

In November, jet fuel prices are down 23.3 per cent in the Middle East and Africa compared to a year ago, according to aviation watchdog, International Air Transport Association (IATA).

The decline in oil prices is expected to buoy the airline’s second-half performance after it decided not to hedge in 2014, Laklalech said. Fuel accounts for roughly one-quarter to one-third of most airlines’ operating costs.

Laklalech further said that Royal Air Maroc is in bilateral codeshare talks with Qatar Airways and Saudi Arabian Airlines (Saudia).

PROSPECTIVE TIE-UPS

The North African carrier, which is currently deciding whether it should join one of the major global alliances, has an existing codeshare agreement with Etihad Airways.

“We’re speaking to all of them,” Laklalech said before singling out Saudia and Qatar Airways when asked about prospective tie-ups in the Gulf.

Laklalech did not state the breadth of the proposed agreements or when a deal could be signed. Qatar Airways did not respond to an emailed request for comment. And Saudia could not be reached.

The codeshare talks are taking place in a collective effort, which includes the alliance assessment, for the North African airline to gain greater access to the Middle East and Asia.

Royal Air Maroc, which flies to 32 destinations in Africa, all but one in the west of the continent, wants prospective codeshares and an alliance membership to drive traffic through its Casablanca hub.

Asked if the airline is looking at Etihad Airways Partners as part of its global alliance evaluation, Laklalech said the airline is “considering” all of its options.

Etihad Airways Partners, announced last month by the Abu Dhabi carrier, offers reciprocal loyalty programmes and joint procurement.