Airlines warn of steep hike in fares

July 1, 2013

GoAir_CEONew Delhi, Jul 1: The rupee's slide could well mean sky high domestic fares this festive season. Almost all airlines have warned that the dollar's gravity-defying act has added to their costs. Since the July-September quarter is low travel season when airlines lower charges to attract passengers, fares in the October to mid-January period would be 'adjusted' significantly upwards to make up for the falling rupee's impact.

Low-cost carrier GoAir, which is India's smallest schedule airline with 15 aircraft, estimates an additional expense of Rs 30 crore per annum for every rupee depreciation. The impact on the big boys—Air India, Jet and IndiGo that have almost 100 aircraft in their fleet— and SpiceJet can well be imagined. Besides fuel, other expenses on aircraft leasing, engine maintenance are also dollar denominated.

"The reduction in fares during the lean travel July-September season will not be as much as all airlines are bleeding. The fall will be limited to 10-15% instead of previous years when it was as high as 25%. The only solution for us is to have high fares in the October-December quarter to cut losses in this fiscal. People will do well to book as much in advance for travel in that period as spot fares then will be high," said the CEO of a leading airline.

GoAir CEO Giorgio De Roni recently told TOI that airlines will avoid "crazy pricing" in the lean travel months this time and not do what has been done in the past. "The costs have gone up (due to rupee's fall) but I do not expect fare hike in July-September season. However, I do not expect airlines to go in for crazy pricing either. I hope the rupee recovers soon."

Another airline's head said falling rupee had all but wiped out the entire positive impact of the crude cooling off. "Almost 70% of an airline's expenses is in dollar terms, be it expat salaries, leasing, aircraft and engine maintenance contracts. In the last month alone, our operating costs have risen by 10%. Now, an airline can offer low fares only if it wishes to end up like Kingfisher," the official said."

Prices of aviation turbine fuel or jet fuel have gone through the roof due to the combination of high base tariff by oil PSUs and sky high sales tax rates of state governments. As a result, ATF rates in India for domestic flights are among the highest globally.

"Neither the state governments have lowered sales tax, nor has the centre categorized ATF as a declared good that could have led to a uniform low tax rate across the country. ATF accounts for over

half of an airline's operating cost and they will pass on the increased cost burden to flyers through higher fares," said an official.

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Agencies
January 7,2020

New Delhi, Jan 7: Services at various bank branches and ATMs are likely to be affected as hundreds of employees will go on a bank strike across the country on Wednesday.

The bank strike is part of the Bharat Bandh call given by trade unions to protest against the labour reforms and economic policies of the Central government, according to reports.

The protestors' main demand during the Bharat Bandh is that the Centre should drop the proposed labour reforms.

A Bill in this regard was passed and proposes to merge 44 labour laws into four codes -- wages, industrial relations, social security, and safe working conditions.

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Agencies
July 6,2020

New Delhi, Jul 6: The Indian Academy of Sciences, a Bengaluru-based body of scientists, has said the Indian Council for Medical Research's (ICMR) target to launch a coronavirus vaccine by August 15 is "unfeasible" and "unrealistic".

The IASc said while there is an unquestioned urgent need, vaccine development for use in humans requires scientifically executed clinical trials in a phased manner.

While administrative approvals can be expedited, the "scientific processes of experimentation and data collection have a natural time span that cannot be hastened without compromising standards of scientific rigour", the IASc said in a statement.

In its statement, the IASc referred to the ICMR's letter which states that "it is envisaged to launch the vaccine for public health use latest by 15th August 2020 after completion of all clinical trials".

The ICMR and Bharat Biotech India Limited, a private pharmaceutical company, are jointly developing the vaccine against the novel coronavirus -- SARS-CoV-2.

The IASc welcomes the exciting development of a candidate vaccine and wishes that the vaccine is quickly made available for public use, the statement said.

"However, as a body of scientists including many who are engaged in vaccine development IASc strongly believes that the announced timeline is unfeasible. This timeline has raised unrealistic hope and expectations in the minds of our citizens," it said.

Aiming to launch an indigenous COVID-19 vaccine by August 15, the ICMR had written to select medical institutions and hospitals to fast-track clinical trial approvals for the vaccine candidate, COVAXIN.

Experts have also cautioned against rushing the process for developing a COVID-19 vaccine and stressed that it is not in accordance with the globally accepted norms to fast-track vaccine development for diseases of pandemic potential.

The IASc said trials for a vaccine involve evaluation of safety (Phase 1 trial), efficacy and side effects at different dose levels (Phase 2 trial), and confirmation of safety and efficacy in thousands of healthy people (Phase 3 trial) before its release for public use.

Clinical trials for a candidate vaccine require participation of healthy human volunteers. Therefore, many ethical and regulatory approvals need to be obtained prior to the initiation of the trials, it added.

The IASc said the immune responses usually take several weeks to develop and relevant data should not be collected earlier.

"Moreover, data collected in one phase must be adequately analysed before the next phase can be initiated. If the data of any phase are unacceptable then the clinical trial is required to be immediately aborted," it said.

For example, if the data collected from Phase 1 of the clinical trial show that the vaccine is not adequately safe, then Phase 2 cannot be initiated and the candidate vaccine must be discarded.

For these reasons, the Indian Academy of Sciences believes that the announced timeline is "unreasonable and without precedent", the statement said.

"The Academy strongly believes that any hasty solution that may compromise rigorous scientific processes and standards will likely have long-term adverse impacts of unforeseen magnitude on citizens of India," it said.

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News Network
May 21,2020

United Nations, May 21: At least 19 million children in parts of Bangladesh and India are at "imminent risk" from flash flooding and heavy rain as Cyclone Amphan makes landfall and the state of West Bengal is expected to take a direct hit from the powerful storm, the UN's children agency has warned.

The extremely severe cyclonic storm Amphan made a landfall at Digha in West Bengal and Bangladesh on Wednesday, leaving a trail of destruction. At least three persons were killed in India and seven in Bangladesh.

The UNICEF said that at least 19 million children in parts of Bangladesh and India are at “imminent risk from flash flooding, storm surges and heavy rain as Cyclone Amphan makes landfall.”

West Bengal, “home to more than 50 million people, including over 16 million children, is expected to take a direct hit from the powerful storm,” the UN agency said in a statement on Wednesday.

The UNICEF said it is also very concerned that the COVID-19 could deepen the humanitarian consequences of Cyclone Amphan in both the countries. Evacuees who have moved to crowded temporary shelters would be especially vulnerable to the spread of respiratory diseases like COVID-19, as well as other infections.

“We continue to monitor the situation closely,” said UNICEF Regional Director for South Asia Jean Gough.

“The safety of children and their families in the areas that will be impacted is a priority and it is good to see that the authorities have planned their urgent response factoring in the on-going COVID-19 pandemic.”

Across the region, the UNICEF is “working closely with the governments of Bangladesh and India and stands ready to support humanitarian operations to reach children and families affected by Cyclone Amphan.”

Based on the storm’s current trajectory, Cox’s Bazar in Bangladesh – now sheltering over 850,000 Rohingya refugees – is likely to experience high winds and heavy rains which may cause damage to homes and shelters in the refugee camps and Bangladeshi communities. This population is already highly vulnerable and cases of COVID-19 have recently been confirmed in the camps and host communities.

The UNICEF said it is working with the Deputy Commissioner’s Office in Cox’s Bazar, the Office of the Refugee Relief and Repatriation Commissioner, and humanitarian partners to help ensure Bangladeshi and Rohingya children and families remain protected.

These efforts include raising awareness among Rohingya and Bangladeshi communities on cyclone preparedness and prepositioning emergency life-saving water, sanitation, hygiene and medical supplies to meet immediate humanitarian needs.

Meanwhile, UN Secretary-General Antonio Guterres’ spokesperson Stephane Dujarric said at the daily press briefing that UN teams on the ground continue to work with the Government of Bangladesh to prepare and support those in need in the wake of the cyclone.

“Given the current pandemic, this support includes distributing personal protective equipment, disinfectants and other materials to evacuation shelters. To reduce the person-to-person contact during the delivery of aid, e-cash distributions will be used,” he said adding that the UN along with its partners is mobilising more than 1,700 mobile health teams and preparing for emergency food deliveries.

“The Super Cyclone is taking a westerly trajectory towards India, but nearly 8 million people in Bangladesh remain at risk,” he said adding that the Bangladesh government has evacuated more than 2 million people in high-risk areas. 

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