Discounted airfares bring in new flyers

March 9, 2014

New_FlyersNew Delhi, Mar 9: Discounted fares have helped airlines bring in new flyers this lean travel season and get assured seat fills. There is a strong demand on the key leisure destinations like Goa and Kerala, say airline officials, and bookings have more than doubled in recent days.

"Such offers add to the abysmally small flyer base in the country. The lower the fares, wider is the flyer-base. When a person flies for the first time and observes the huge time-saving thereof, it often becomes difficult for him/her to take a long journey by train," Amber Dubey, partner and head, aerospace and defence, KPMG said.

"Families use these discounted tickets to shift from trains to flights and get more bang out of their three-four day vacation. Airlines get incremental traffic, better seat factors and advance cash. A typical win-win for all," Dubey added.

Since the start of the year, the Indian aviation sector has seen three promotional schemes offering 30-50 percent discount on fares.

"The recent discounts are to fill the 10 percent seats by giving an alternative to the AC1/2 train passenger," Rajiv Chib, associate director, aerospace and defence at PricewaterhouseCoopers said.

"No airlines can afford discounts unless they have a strategy in mind. Discount is based on the premise that all airlines, even in peak season, have approximately 10 percent of vacant seats. At times like now with the exam season, it is much more."

The new promotional scheme comes after the low cost carrier (LCC) SpiceJet launched two previous discount schemes that led to other airlines also offer the promotional fares.

"These advance purchase offers are a win-win for customers, for airlines, and for the travel industry and the economy overall, as it leads to significant demand stimulation, customers get to enjoy deeply discounted fares, airlines get to reduce wastage of seats," said airline's new chief operating officer Sanjiv Kapoor.

Other carriers have followed suit and tried to face the competition head on.

"In a highly competitive market with little differentiation between airlines, a discount by one has to be matched by all others. There's no option. Though it comes as a rude surprise to other carriers, they do plan for such scenarios in advance," said Dubey.

Passengers, travel agents and online booking websites have been quick to grab the new schemes.

"These flash sales are becoming a regular feature. Besides stimulating demand, these are also prompting Indians to plan their travel in advance, as these sales encourage travel planning in a particular timeframe and at least a month in advance from the date of the promotions," said Vikram Malhi, general manager, south and southeast Asia, Expedia.

"We are already seeing strong demand on the key leisure destinations like Goa and Kerala and bookings have more than doubled post the announcement. We expect other airlines to follow suit with similar discounts as these prices are sure to strike a chord with the leisure traveller," said Sharat Dhall, president, Yatra.com.

Some in the industry say the promotional airfares should be seen in the context of AirAsia India's entry into the market. If this is true, then an interesting fare war could be on the anvil in the summer of 2014.

But Dubey begs to differ. "The discount is more to stimulate buying and to generate cash quickly. It cannot be linked entirely to AirAsia's entry into India. International airlines come with a 10-15 year horizon and factor in aggressive reception from their competitors in the initial phases."

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News Network
July 20,2020

New Delhi, July 20: India's retail trade has suffered a business loss of about Rs 15.5 lakh crore in past 100 days due to the COVID-19 lockdown, traders' body CAIT said on Sunday. 

In a statement, the Confederation of All India Traders (CAIT) said traders across the country are depressed because of minimal of the consumers, considerable absence of employees, facing financial crunch and yet have to meet several financial obligations.

"No support policy from the central or state governments is yet another crucial factor which is haunting the traders," CAIT claimed. 

CAIT Secretary General Praveen Khandelwal said the domestic trade is passing through its worst period in the current century which reflects that if immediate steps are not taken about 20 per cent of the shops in India will have to close down their shutters.

The traders’ body has also urged the government to award a substantial package to traders to ensure their survival. Their demands include: Relaxation in payment of taxes, extension in repayment of bank loans and EMIs without any further interest or penalty as well as measures that would provide money directly in the hands of the traders.

In April, the losses stood at about Rs. 5 lakh crore whereas in May it was estimated to be about Rs. 4.5 lakh crore, followed by Rs. 4 lakh crore in June. Losses stood at about 2.5 lakh crore in the first fortnight of July offering a grim snapshot of the effect of the pandemic on consumer spending. 

“Even as the lockdown was relaxed, store footfall was only 10 per cent. Most of these traders do not have deep pockets to sustain this severe economic catastrophe and on the other hand have several financial obligations to meet. At this crucial time, handholding of these traders is all the more much required,” Khandelwal said.

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News Network
January 17,2020

New Delhi, Jan 17: Deputy Chief Minister Manish Sisodia does not have any car on his name, according to information shared in the poll affidavit filed by him for Delhi elections.

In the affidavit, it is also shown that while his self-acquired immovable property remained roughly the same as in 2015. His wife's self-acquired immovable property is worth roughly about Rs 65 lakh, as per his latest affidavit.

In the papers submitted during the nomination for 2015 Delhi polls, the senior AAP leader had declared that he owned a Maruti Swift car of make 2013.

However, in his 2020 affidavit, he has mentioned "nil" in the column for motor vehicles and other means of transport.

In the affidavit submitted on Thursday, his moveable assets were declared worth Rs 4,74,888 for 2018-19, as against Rs 4,92,624 for 2013-14.

In 2015, Sisodia had informed in his affidavit that he had bought a property in Vasundhara, Ghaziabad, worth Rs 5.07 lakh in April 2001. The approximate current market value of self-acquired property in 2015 was Rs 12 lakh.

In his current affidavit, the AAP leader has mentioned the same property. However, the approximate current market value of self-acquired property in 2020 has increased to Rs 21 lakh.

In his affidavit for the 2015 polls, Sisodia had also said that his wife had purchased a property in March 2008 costing Rs 8.70 lakh. At that time, the approximate value of her self-acquired property was Rs 20 lakh.

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News Network
January 15,2020

Kolkata, Jan 15: The arrows of Mahabharata's Arjuna had atomic power, claimed West Bengal Governor Jagdeep Dhankhar, drawing sharp criticism from academicians, even as he joined a long list of politicians who have in recent years given bizarre interpretations linking mythology with science.

Speaking at the 45th Eastern India Science Fair and 19th Science and Engineering Fair on Tuesday, Dhankhar also claimed that flying objects existed during the period of Ramayana.

"It is said that the plane was invented in 1910 or 1911, but if we delve into our old scriptures we will see in Ramayana, we had 'uran khatola' (aircraft)," he said.

"Sanjaya narrated the entire war of Mahabharata (to Dhitarasthra) not from TV. The arrows of Arjuna in Mahabharata had atomic power in it," Dhankhar said, asserting that the world can no longer afford to ignore India.

According to Sanskrit epic Mahabharata, Sanjay, even after staying away from the battlefield, had narrated what was happening there to Dhritarashtra, who was blind.

Dhankhar, who has been in news for clashes with the Mamata Banerjee government ever since he assumed office in July last year, joins politicians such as Tripura Chief Minister Biplab Deb and UP deputy chief minister Dinesh Sharma to give odd interpretations of mythology.

While Deb had claimed that the internet existed during Mahabharata, Sharma suggested that godess Sita was a test tube baby.

Recently, Puducherry Lt Governor Kiran Bedi was trolled online for sharing a doctored video that claimed, "NASA recorded sound of sun -- Sun chants Om".

Indologist Nrisingha Prasad Bhaduri said governors appointed by the BJP government at the Centre are delving into everything and behave "as if they are know-alls".

"They fail to understand one thing that great writers have very strong power of imagination," Bhaduri said.

Scientist Sandip Chakraborty said such comments only hurt the scientific progress in India at the global forum.

"The ancient writers described all these things based on their imagination. It is true that India made a lot of progress during the ancient period, but such comments only damages the progress made by our scientific community," he said.

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