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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News Network
March 25,2020

New Delhi, Mar 25: The total number of confirmed coronavirus cases in India rose to 562, according to the Ministry of Health and Family Welfare on Wednesday.
This includes 512 active cases, while 40 infected people have already been cured or discharged.
The Union Health Ministry said that total deaths due to the disease now stand at 9, as the second death reported in Delhi is COVID-19 negative. One patient has also migrated due to the infection.
The Central government has taken several steps to contain the rapid spread of the virus including the screening 15,24,266 passengers at the airports.
Prime Minister Narendra Modi had on Tuesday announced a 21-day lockdown in the entire country effective from midnight to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.
In a televised address to the nation, Prime Minister Modi said that it is vital to break the chain of the disease and experts have said that at least 21 days are needed for it.
The Prime Minister, who had also addressed the nation last week, said the lockdown has drawn a "Lakshman Rekha" in every home and people should stay indoors for their own protection and for that of their families. 

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News Network
July 14,2020

Jaipur, Jul 14: In a show of strength, Deputy Chief Minister Sachin Pilot-led Rajasthan Congress camp on Monday released a video showing at least 16 MLAs sitting together.

This comes hours after the Congress held a legislature party meeting. Party leaders said 106 of 122 MLAs attended, a claim contested by the Pilot camp.

The 10-second video was shared late at night on Pilot's official WhatsApp group.

In the video, at least 16 MLAs are seen sitting together in a close circle. Pilot is not seen in the video.

Six other people can be seen in the video but they could not be identified.

Some of the MLAs seen in the video are Indraraj Gurjar, Mukesh Bhakar, Harish Meena.

Tourism Minister Vishvendra Singh tweeted the video with the caption "Family".

Ladnun MLA Mukesh Bhakar tweeted, "...Loyalty in Congress means Ashok Gehlot's slavery. That is not acceptable to us."

Pilot has been upset since he was denied the Rajasthan chief minister's post after the December 2018 assembly elections.

On Sunday, he claimed to have the backing of 30 Congress MLAs and "some independents".

Those close to him disputed Gehlot's claim that his government had a majority, and said this is proven in the assembly and not at the CM's house.

Sources close to him have also ruled out the possibility of Pilot joining the BJP.

In the 200-member Rajasthan Assembly, the Congress has 107 MLAs and the BJP 72. In the past, the ruling party has claimed the support of 13 independents, two MLAs each from the CPM and the Bharatiya Tribal Party, and one from the Rashtriya Lok Dal.

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News Network
February 19,2020

New Delhi, Feb 19: The UIDAI on Tuesday said its Hyderabad office has sent notices to 127 people for allegedly obtaining Aadhaar numbers on "false pretences" but asserted these have nothing to do with citizenship.

The notices were issued after reports from the police, the Unique Identification Authority of India (UIDAI) said.

"Aadhaar is not a document of citizenship and UIDAI has been mandated under the Aadhaar Act to ascertain residency of a person in India for 182 days prior to applying for Aadhaar," the nodal body, which issues the 12-digit biometric ID, said in a statement.

The Supreme Court, in its landmark decision, has directed the UIDAI not to issue Aadhaar to illegal immigrants, it said.

"It may be noted that the regional office Hyderabad received reports from the state police that 127 people have obtained Aadhaar on false pretences, as in their preliminary enquiry they were found illegal immigrants who were not qualified to obtain an Aadhaar number," the UIDAI said.

As per the Aadhaar Act, such Aadhaar numbers are liable to be cancelled.

"Therefore, the regional office Hyderabad has sent notices to them to appear in person and to substantiate their claims for getting an Aadhaar number," it said.

The UIDAI emphasised that these notices have "nothing to do with citizenship and cancellation of Aadhaar number is in no way related to the nationality of any resident".

In case it is found and proved that any of them obtained Aadhaar by submitting false documents or through false pretences, their Aadhaar is liable to be cancelled or suspended depending on the severity of the transgression, UIDAI said.

"Severe errors like forged documents, etc., will lead to appropriate actions, including suspending /cancelling the Aadhaar," it cautioned.

"Sometimes it becomes necessary to cancel the Aadhaar number when it is found that a resident has obtained it by submitting false biometrics or documents. It is a routine quality improvement process that the UIDAI takes up regularly," the authority said.

The 127 people have been asked to appear before the UIDAI deputy director in Hyderabad for a personal hearing on February 20.

Additional time has been given to allow them to collect the requisite documents, "Since it may take them some more time to collect the original documents that they had submitted for obtaining Aadhaar, as informed by the state police, the UIDAI has postponed the personal hearing to May 2020," it added.

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