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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Agencies
May 28,2020

Kochi, May 28: In these pandemic times, when the businesses are gravely affected and the MSMEs are particularly feeling the heat, a Kerala institute has come up with an initiative to help the distressed industry. The Institute of Small Enterprises and Development (ISED) has come out with a unique platform -- 'business clinic' for extending advisory services to the COVID-19 affected MSMEs in the state.

The Kochi based ISED's multi-disciplinary team of experts will offer free guidance to entrepreneurs to make a self-evaluation for improving their performance.

It will serve the interests of the MSMEs, entrepreneurial aspirants, such as the returning migrants, start-ups, educated unemployed, and women entrepreneurs.

ISED director, PM Mathew said COVID-19 pandemic has shattered the budgets and operations of most SMEs, globally, as also in India.

"Post-lockdown, the operational problems are likely to get aggravated. Beyond the broad macro level projections and debates, it is now time to act at the grassroots level. Many entrepreneurs need appropriate clinical assessment, and moral and psychological support, said Mathew.

According to the work force participation data at the national level, Kerala is ranked 31 in terms of the number of self employed, and placed in second rank in relation to the size of casual labour.

The Kerala Enterprise Development Report, brought out by the ISED states while the number of the unregistered enterprises is sizeable, constituting 76.85 % of the total, the respective share of registered MSMEs is only 9.53 %.

The constraints to these enterprises today are, poor sales, large inventory, delayed payments, damage of stock, wage bill arrears, unreliable labour supplies, fund diversion due to exigencies, GST related problems, and NPA/poor credit score.

"For all businesses, unlike in a sporadic recession in the economy, the danger today is circular and cumulative. Both from the demand side, and the supply angle, there is a serious contraction of business activities, which essentially means a glut in the cash flow. Corporate businesses, obviously, will come out of the mess due to their relative advantages of high reserve funds, liberal credit offerings, and easier access to alternative sources of finance," said Mathew.

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News Network
January 3,2020

Dhaka, Jan 3: Bangladesh's paramilitary force chief said on Thursday that a total of 445 Bangladeshi nationals returned from India in last two months following the publication of the National Register of Citizens (NRC) by the Indian government.

Border Guard Bangladesh (BGB) Director General Maj Gen Md Shafeenul Islam disclosed the figure during a press briefing here.

"About 1,000 people were arrested in 2019 for illegal border crossings from India to Bangladesh, with 445 of them returning home in November and December," he said.

After verifying their identities through local representatives, BGB came to know that all the intruders are Bangladeshis, Islam said, adding that 253 cases were lodged against them for illegal trespass, while initial investigations found that at least three of them were human traffickers.

The BGB Director said the trespassing did not create any tension between the border forces of Bangladesh and India.

Last week, Islam visited India where he said that the creation of the NRC is completely an "internal affair" of India and the cooperation between the border guarding forces of the two countries is very good.

He said the BGB will continue to do its work of preventing illegal border crossings as per its mandate.

A BGB delegation, led by Islam, was on a bilateral visit to India to hold DG-level border talks with its counterparts, the Border Security Force (BSF).

The talks took place from December 26-29, during which a host of issues related to cross-border smuggling and activities of criminals and others along the 4,096-km-long front were discussed.

Responding to a question, Islam said, "No discussion was held at the conference over the (NRC) issue".

He said during the five-day talks held in New Delhi, the BGB demanded that the BSF should take effective steps to prevent killings of Bangladeshis on frontiers as casualty figures sharply rose in 2019.

"The number of border killings in 2019 was highest in the last four years. As per our calculation, the number of such unexpected deaths was 35," the BGB chief said.

However, the BSF estimate of the casualty figure is much lower than our calculation, he said.

Islam said the BSF is following the policy of maintaining maximum restraint and minimal use of force even after being attacked by "armed border offenders".

A statement issued by the BSF last month in New Delhi after the conclusion of the DG-level talks said, "On the concern of the BGB regarding the death of Bangladeshi nationals on borders, it was informed to them that a non-lethal weapon policy is strictly followed by BSF personnel on borders.

"Firing is resorted to only in self-defence, when BSF patrols are gheraoed and attacked by ‘dah’ (a sharp-edged weapon) etc. It was specified that the BSF does not discriminate between criminals based on nationality," it said.

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News Network
January 28,2020

Mumbai, Jan 28: Flag carrier Air India has kept one of its 423-seater jumbo planes ready in Mumbai for the evacuation of Indian citizens from Wuhan in China in the wake of the coronavirus outbreak in that country, an official source said on Tuesday.

The airline is awaiting necessary approvals from the ministries of external affairs and health to operate the special flight, the source said. The health ministry's nod is required because the operating crew has to fly in a virus outbreak territory.

"We have kept a Boeing 747-400 ready in Mumbai to operate an evacuation flight to China whenever we get a go ahead from the government," the source said.

Some 250 Indians are to be evacuated.

At a meeting of top secretaries called by the cabinet secretary on Monday, the government decided to be prepared for possible evacuation of Indian nationals in Wuhan.

Accordingly, Ministry of External Affairs will make a request to the Chinese authorities for evacuation of Indian nationals, mostly students, stuck in Wuhan city. The Ministry of Civil Aviation and Ministry of Health will make arrangements for transport and quarantine facilities respectively, an official release said on Monday.

Wuhan along 12 other cities have been completely sealed by the Chinese authorities to stop the virus from spreading. The death toll climbed to 80 with 2,744 confirmed cases.

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