Air fares soar this Diwali; Europe travel cheaper than domestic routes

November 13, 2012
Airplane-Take-Off

New Delhi, November 13: Dynamic pricing of air fares has led to tickets selling at crunch times, such as on eve of big festivals, for prices at which you could fly to Europe, and back. Check this out. On Diwali eve (Monday), a one-way ticket for that evening's flight from Delhi to Lucknow, barely an hour's journey, was going over Rs 30,000. A Delhi-Bangalore ticket for Tuesday was between Rs 9,500 and Rs 42,500.

That's not all. On Sunday, an economy class ticket from Mumbai to Kolkata was in the range of Rs 35,000 to Rs 43,000, and business class tickets above Rs 60,000. Similarly, flying from Delhi to Ahmedabad in economy class of full service airlines on Diwali would cost from Rs 6,500 to Rs 38,600.

With the grounding of Kingfisher accounting for a 19% reduction in domestic flights, there is suddenly a huge demand-supply gap and airlines are making the most of it. Leave aside festival eves, flying in general has become 100% costlier, and in crunch times, it could be literally touch the sky.

'Air fares within price bands'

Air fares have shot up this Diwali season. "If people haven't booked well in advance and are planning a last-minute purchase, they will have to pay through their nose. Almost all seats are sold out for Diwali travel and the remaining ones are going for the highest fares," said Anil Kalsi, a leading travel agent and senior advisor of Society of Foreign Travel Operators (India chapter).

"There has to be a rationality to market dynamics. This is plain exploitation of people's compulsion," said Rini Mukherjee, a university teacher who now explores the rail travel option before being compelled to fly. This trend isn't new. When airfares were sky-rocketing, industry regulator Directorate General of Civil Aviation (DGCA) had asked airlines to give a band of ticket prices within which it would have to sell. The airlines gave bands ranging from Rs 5,000 to Rs 50,000. The DGCA accepted it. A senior aviation official told TOI: "Airfares are very high but they are within the price bands that airlines submit for each route to the DGCA. So far we have not come across any case of the price band being breached."

While the price bands have now become a legal shield for airlines to charge as much as they want, the purpose for introducing them has obviously been defeated as there is hardly any correlation between actual cost and price.

"Diwali is being celebrated late this year, in mid-November. This is anyway the peak travel season and India has fewer domestic flights this time (due to Kingfisher's grounding). The net impact is fares defying gravity," said Rajji Rai, who till recently headed the Travel Agents' Association of India. Agents say fares can be expected to fall only after the December holidays. The reason: This winter is witnessing 10,935 weekly domestic flights, 19% less than the 13,541 flights last winter.

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News Network
February 1,2020

New Delhi, Feb 1: Air India's jumbo B747 plane, evacuating 324 Indian nationals from the novel coronavirus-hit Wuhan in China, landed here on Saturday morning, officials said.

The plane reached Delhi around 7.30 am, they said.

There were five doctors from Ram Manohar Lohia (RML) Hospital and one paramedical staff on board, said an Air India spokesperson.

The Indian Army has set up a quarantine facility in Manesar near Delhi to keep those evacuated from China's Hubei province.

Officials said they would be monitored for any signs of infection for a duration of two weeks by a qualified team of doctors and staff members.

"With 324 passengers, special flight has taken off for India from Wuhan. It may reach Delhi at 7.30am," said the Air India spokesperson at 1.19 am on Saturday.

The flight had departed from Delhi airport at 1.17 pm on Friday to evacuate Indian nationals from China, where more than 250 people - none of them Indian - have died due to novel coronavirus.

On Friday evening, the Air India spokesperson had stated that another special flight may take off from Delhi airport on Saturday to evacuate Indians from Wuhan.

The death toll from the novel coronavirus outbreak in China has risen to 259 with total confirmed cases surging to 11,791 amid stepped up efforts by a number of countries to evacuate their nationals from Hubei province, the epicentre of the virus, officials said on Saturday.

About Friday's flight, the spokesperson had said earlier during the day, "A team of five doctors from RML hospital, one paramedical staff from Air India, with prescribed medicines from doctors, masks, overcoats, packed food are in the aircraft. A team of engineers, security personnel are also there in this special aircraft. Whole rescue mission is being led by Captain Amitabh Singh, Director (Operations), Air India."

The spokesperson had added that there were five cockpit crew members and 15 cabin crew members on Friday's flight.

Before departure at Delhi airport, Air India Chairman and Managing Director Ashwani Lohani had said, "No service will take place in the plane. Whatever food is there will be kept in seat pockets. As there will be no service, there will be no interaction (between cabin crew and passengers)."

"Masks have been arranged for the crew and passengers. For our crew, we have also arranged a complete protective gear," he had added.

"Total five doctors from the Health Ministry are also going... The plane will be there (at Wuhan airport) for 2-3 hours," Lohani had said.

Air India has done such evacuations earlier also from countries such as Libya, Iraq, Yemen, Kuwait and Nepal.

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News Network
April 7,2020

Jammu, Apr 7: Old habits will just no longer do, a Jammu and Kashmir administration employee found to his dismay on Tuesday when he was sent to a quarantine centre for blowing his nose and spitting on the road.

The man, who works as an accountant in the civil secretariat here, had gone to meet a relative in Paloura on the outskirts of the city when he was nabbed, officials said.

The neighbours panicked when they saw him blowing his nose and immediately called the police, which rushed to the spot with a medical team and a magistrate, they said.

He was immediately taken to a quarantine facility set up at the IIT hostel in the Janipur area and his samples taken for a coronavirus test.

Given the high levels of anxiety over the spread of COVID-19, news of his being taken by police started circulating widely. There were also some WhatsApp messages that he was trying to deliberately spread the infection and was arrested by police.

However, police officials said they had not arrested him and merely put him in a quarantine centre. It was not clear how long he would be in the centre.

The employee told police officials he had an itch in his nose and nothing more.

"Be responsible citizens and stop spreading rumours or fake news," an official said, requesting people to be more responsible.

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News Network
January 9,2020

Mumbai, Jan 9: India's weddings are famously lavish -- lasting days and with hundreds if not thousands of guests -- but this season many families are cutting costs even if it risks their social standing.

It is symptomatic of a sharp slowdown in the world's fifth-largest economy, with Indians spending less on everything from daily essentials to once-in-a-lifetime celebrations.

Growth has hit a six-year low and unemployment a four-decade high under Prime Minister Narendra Modi. Prices are rising too, squeezing spending on everything from shampoo to mobile data.

Chartered accountant Palak Panchamiya, for example, has already slashed the budget on her upcoming Mumbai nuptials by a third, trimming spending on clothing and the guest list.

"Initially I chose a dress that cost 73,000 rupees ($1,000)," Panchamiya told news agency as she picked through outfits at a recent marriage trade fair.

"But my partner felt it was too expensive, and so now I am here reworking my options and looking for something cheaper."

India's massive wedding industry is worth an estimated $40-50 billion a year, according to research firm KPMG.

The celebrations can last a week and involve several functions, a dazzling variety of cuisines, music and dance performances, and lots of gifts.

Foreigners can even buy tickets to some events.

But these days, except for the super-rich -- a recent Ambani family wedding reportedly cost $100 million -- extravagance is out and frugality is in as families prioritise saving.

"Earlier Indian weddings were like huge concerts, but now things have changed," said Maninder Sethi, founder of Wedding Asia, which organises marriage fairs around the country.

Cracks emerged in 2016 when the Indian wedding season, which runs from September to mid-January, was hit by the government's shock withdrawal of vast amounts of banknotes from circulation in a bid to crack down on undeclared earnings.

Mumbai-based trousseau maker Sapna Designs Studio shut for months as the economy was turned on its head by Modi's move.

"No exhibitions were happening and there were no avenues for us to sell either," said Vishal Hariyani, owner of the clothing studio.

Hopes for a recovery proved short-lived when the cash ban was followed by a botched rollout of a nationwide goods and services tax (GST) in 2017 that saw many small-scale businesses close.

Since then, keeping his studio afloat has been a challenge, with consumers increasingly reluctant to spend too much, says Hariyani.

"We customise our clothes as per their budgets, and now week-long weddings have been converted to just a 36-hour ceremony," he told news agency.

"We have to pay GST, pay workers and even offer discounts to customers," he added.

"The whole economy has slowed down and reduced spending on weddings is a by-product of that. Everyone except the super-rich are affected," Pradip Shah from IndAsia Fund Advisors told news agency.

"It is reflective of how sombre the mood is," he said.

In a country where families traditionally spend heavily on weddings -- including taking on debt in some cases -- the downturn is also a source of sadness and shame, with elaborate celebrations often seen as a measure of social status.

"We haven't even invited our neighbours. It is embarrassing but the current situation doesn't offer us much respite," 52-year-old Tara Shetty said ahead of her son's wedding.

"In my era, we always spent a lot and had thousands of people attending the weddings," she explained.

"My wedding was supremely grand, and now my son's is the polar opposite."

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