Air fares to rise next month as ATF prices touch all-time high

September 3, 2013

Air_faresNew Delhi, Sep 3: Get set for skyhigh air fares from next month when the peak travel period kicks off with the festive season. Oil companies have hiked aviation turbine fuel (ATF) prices by 7%, taking the prices of jet fuel — which is the single largest component of an airline's operating cost — to an all-time high. Now ATF per kilo-litre costs Rs 75,031 in Delhi; Rs 77,632.4 in Mumbai and is the steepest in Kolkata at Rs 85,645.1.

"The July-September period is the leanest travel season of the year and at the moment, airlines are selling tickets at low fares to fill up planes. So hiking fares now may not be possible. Spot fares in the October-mid January season will be high. Expect a 25%-50% hike in spot fares in that period," said an airline official.

The only way to escape high fares in that period will be to book as early as possible. "Advance domestic fares are very reasonable as airlines want to fill planes and also generate some much-needed cash. People should book now," said Anil Kalsi, a leading Delhi-based travel agent.

ATF, whose price is high due to mix of high base price by oil companies and exorbitant sales tax rates by states, accounts for over half of an airline's operating cost. Oil PSUs revise jet fuel prices in the beginning of every month, depending on price of international crude and rupee's exchange rate with the dollar. The latest hike has now brought ATF at record high, surpassing the previous high set last September. A year back, ATF cost was Rs 73,710.0 in Delhi — which was the highest ever then and in exactly a year a new record level has been reached. The aviation ministry has called a meeting of state aviation ministers next week and the issue of reducing sales tax will be discussed there, with more focus on Delhi and Mumbai to lower their taxes on ATF.

Airline sources point out that ATF prices have risen 22% from July to September. The overall cost of operations has gone up by 20% due to jet fuel prices and rupee devaluation. "While costs are up 20%, fares are lower by 30%. In early July, spot fares of Delhi-Mumbai and Delhi-Bangalore were about Rs 9,000 and Rs 9,800 respectively. The current spot fares for these two routes are Rs 6,000 and Rs 6,500. This is recipe for disaster," said an airline official.

Domestic airlines have long complained of facing an extremely cost-hostile environment in India. The Centre for Asia Pacific Aviation (CAPA) estimates that airlines here have collectively lost Rs 53,650 crore from 2007 to 2013 and their debt on March 31, 2013, was close to Rs 1 lakh crore. "(While costs are significantly up), yields or fares are down by 30%. The industry has completely lost pricing focus....

Industry risk is at peak and I don't rule out any industry rationalization (hinting at another airline's closure) out of this crisis," CAPA India chief Kapil Kaul said.

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News Network
June 8,2020

New Delhi, Jun 8: Delhi Chief Minister Arvind Kejriwal has gone into self-quarantine after developing sore throat and fever, and will get himself tested for COVID-19 on Tuesday, officials said on Monday.

They said the chief minister, who is also a diabetic, was feeling unwell since Sunday afternoon.

"He has mild fever and sore throat since Sunday afternoon. As advised by doctors, the chief minister will undergo COVID-19 test on Tuesday morning," officials said.

Officials said the CM had attended a Cabinet meeting on Sunday morning and thereafter, he did not attend any meeting.

The chief minister has been holding most of his meetings via video conferencing from his official residence for past two days.

This come as the number of coronavirus cases in the national capital crossed the 28,000-mark with 1,282 fresh infections while the death toll climbed to 812 on Sunday, a health bulletin issued by the Delhi government said. According to the health bulletin, the total number of COVID-19 cases in Delhi rose to 28,936 with 1,282 fresh cases.

A total of 51 fatalities were reported on June 6, the bulletin said, adding that these lives were lost between May 8 and June 5. It, however, said the cumulative death figure refers to fatalities where the primary cause of death was found to be COVID-19, according to a report of the Death Audit Committee on the basis of the case-sheets received from various hospitals.

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News Network
June 11,2020

New Delhi, Jun 11: Petrol and diesel prices on Thursday were hiked by 60 paise per litre each - the fifth straight daily increase in rates since oil PSUs ended an 82-day hiatus in rate revision.

Petrol price in Delhi was hiked to Rs 74 per litre from Rs 73.40 while diesel rates were increased to Rs 72.22 a litre from Rs 71.62, according to a price notification of state oil marketing companies.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

This is the fifth daily increase in rates in a row since oil companies on Sunday restarted revising prices in line with costs, after ending an 82-day hiatus.

In five hikes, petrol price has gone up by Rs 2.74 per litre and diesel by Rs 2.83.

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Agencies
April 14,2020

Mumbai, Apr 14: The Shiv Sena and NCP said Prime Minister Narendra Modis address to the nation on Tuesday lacked substance as he did not suggest ways to strengthen the economy or a relief package for the poor and those worst hit by the lockdown.

Shiv Sena spokesperson Manisha Kayande also took a dig at the prime minister, saying he thankfully did not give any activity to people this time like clanging utensils or lighting lamps.

Modi on Tuesday announced that the lockdown across the country will be extended till May 3, saying the measure has produced a significant outcome in containing the infection.

He said implementation of the lockdown will be strictly ensured in its second phase and detailed guidelines will be brought out on Wednesday to ensure that outbreak does not spread to new areas.

Some relaxations may be allowed after April 20 in places where there are no hotspots, he said.

Kayande said Modi could have announced extension of the lockdown on Wednesday itself along with the new guidelines, instead of declaring it separately.

"He could have elaborated steps to be taken to tackle the coronavirus, relaxing restrictions on movements in different areas (depending upon threat posed by the disease)," she said.

"His speech normally is more of a rhetoric than substance. Thankfully, he did not give any other event to the people like lighting up lamps or clanging utensils. There was nothing substantial (in the address), the only takeaway was that the lockdown has been extended, she added.

Maharashtra Minister and NCP national spokesman Nawab Malik noted that Modi talked about helping the poor.

"But, he could have announced a package on behalf of the central government to help the poor, those working in the unorganised sector who are the worst hit due to the lockdown.

There was no mention of it anywhere," Malik said.

Another NCP spokesman Mahesh Tapase said it was expected that the prime minister would address the economic concerns being faced by the country.

"The least to expect was the announcement of a slew of measures to kick-start the economy in a phased manner as and when the restrictions are lifted, he added.

Tapase said the employers and employees wanted to know from the government how recession and unemployment will be tackled in the time to come.

"Access to capital for business, especially for MSMEs and agriculture, is a big concern. Supply and logistics is the cornerstone of economic activity which has come to a virtual standstill," he said.

The 2020-21 fiscal looks grim and hence, the right stimulus from the government coupled with a renewed zeal by the industry will only bring the economy back on track, he suggested.

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