Chocks-on….The
Dollar…HOLLER !! (
07 SEPT.,2013 ) ISSUE – XII
The Dollar yo-yo’s…Increases Airlines woes…
Mounting
operating costs push up air fares ( Business Standard )……
… With
the rupee falling 20 per cent against the dollar and fuel prices touching a record high of Rs
75,000 a kilolitre in Delhi, airlines had little room to manage costs….Domestic airlines raised fares… by an average 20-30 per cent for
the economy class ….
New
headwinds for aviation. ( Live Mint )…….
….Executives of
Jet Airways have forecast a $60 million hit on earnings because of the rupee’s
fall in the September quarter…..
Spice
Jet – Spokesmen…….
…. The rise in our operating costs has been abrupt, serious and
largely driven by the rapidly weakening rupee. About 75 % of the total spending
is either directly or indirectly influenced by the dollar, which has
appreciated 25% this year alone…. we are compelled to put through the fare
hikes…..”
Jet
Airways…..Spokesmen….
…. "The
airline has hiked its fares by 25 per cent with immediate effect,… the hike is in total fares.". has started raising airfares
from Tuesday. According to PTI, the airline has effected a steep 25% fare
hike….
Air
India official…….on fare hike…..
….. “"We
have hiked fares by 23-25 percent on all domestic routes. This has been done to
off-set the recent increase in ATF price," an Air India official said on
Thursday 06 Sep, 2013. "Going forward, there might be an upward revision
in fares for international routes…..”,
Air
Asia’s Shri Mittu Chandilya……
…… “I have seen the fares jump. Eager for us to get started as I
believe we would shake up the fares. It is more of a pressure to get your cost
structures right,”…..
Indigo….Spokesperson…
"IndiGo
has revised upwards its fares, which are now 25 per cent higher than
earlier," a source in the budget carrier said here on 6 Sep. 2013…
Indigo…..CAPA’s
comment….
…. all airlines, including the profitable low-cost carrier IndiGo,
may post a loss this quarter…
Fares
may go up further by 25 %......
Sabina Chopra,
Co-Founder and EVP of travel portal yatra.com said… “We expect another
increase, up to 25% in October, as airlines look to cash in on festival
demand.”
Industry News…..India !!!
At
Last…..Boeing's Nagpur MRO to open by December 2013…..(Indian Express )
….: The much-delayed $100 million MRO (maintenance, overhaul and
repair) facility, which is being jointly set up by Air India and US aircraft
major Boeing at the Mihan SEZ in Nagpur is likely to be functional by the year
end, a source at Maharashtra Airport Development Company said.
(
With this an important component, of the Boeing aircraft purchase deal by Air
India is accomplished. This will be a REAL boost to AI’s newly set up Engineering
subsidiary )
A
Global Jet Card….for the High Networth IndividuaL ( HNI’s )
…"By
launching India's first global jet card, we aim to redefine ownership of a
private aircraft. With the dollar value touching all-time high, the card
provides an ideal choice for customers to avail all the benefits of owning an
aircraft at a fraction of ownership cost," Baron Luxury and Lifestyles
chairman and chief executive Rajeev Wadhwa said after the launch.
Air
Asia India’s - Slow….Steady…and Sure…..PROWL !!
Watch Out…
…..Air Asia
scouts around for a foot print in Central India, to provide air connectivity to
major cities across the country. Shri
Mittu Chandilya, CEO, Air Asia India met the Chief Minister of Madhya
Pradesh, for setting up a hub in Indore or Bhopal….
(
An extremely smart move and strategy. MP is one of the 3 states in India, that
have lowered the sales tax on ATF to 4%, compared to some states that levy a
sales tax of 30% on ATF. Good Luck- Air Asia…..we are waiting for the
experience called…’ AIR ASIA’ !! )
Air
India to acquire a dozen 70 to 90 seater planes for Alliance air….
....Air India’s
soaring Regional aspirations under the Alliance Air Brand, to link Tier II and
Tier III cities. The airline proposes to shortly float a global tender for the
same…
( Why this sudden urgency to revive / resurrect Alliance
Air NOW ?.....For a loss making airline Alliance Air plans could have been
deferred to a later date….)
Vow !! Etihad
offers flying Nanny Service on Long Haul Flights…..
Etihad Airways
has introduced 'Flying Nanny' service on its long-haul flights. It is an
in-flight childcare assistance programme for families. providing a 'helping
hand' to families and unaccompanied minors. 300 cabin crew members of Etihad
Airways have completed enhanced training for the role.
..The Chatterrati….
QANTAS – All set to
upgrade its 30 Airbus330 Executive Class Cabins, where seats can be left in
recline position during Landing and Take-offs….
AIR
ASIA INDIA- May miss its
deadline of a December 2013 launch….
WARREN
BUFFET – about airline
industry…..’ “a death trap for investors.”
LUFTHANSA – CEO- Carston Spohr… “Five per cent of the global caviar production
goes to Lufthansa first class. We are
the biggest caviar customers in the world.”
EMIRATES- launches daily
non stop service to Sweden- making it the 135th destination in its
77 countries network….
Wrap – Up…!!! Is it Good
or Bad ???
All is not well with the Indian Airline industry.
Hard times, it seems , are hitting
Airlines in India. Fuel Prices have escalated. US Dollar continues to play
spoil sport. It’s the lean season for travel. Fares have already ( domestic)
seen an increase of 20-25%- while the peak season is still to set in. The
Government of India and the regulatory authorities are concerned at the negative indicators all around. The
Government has called for a meeting on 10 Sep., to request states to review
taxes on ATF. Understandably, the government
is concerned at the recent spike in fares, to tame them, before they hit
the ceiling.
Callibrated,
measures are the need of the hour. Though, government should not meddle with
market forces and allow the market to find its levels, nonetheless, the
government cannot allow a free-for-all scenario to take hold. We wish, the
Syria crisis gets resolved and Fuel Prices stabilize at the sub $100 per
barrel. The dollar havoc can be mitigated to an extent through reduction in
taxes on ATF.
Flying
has to be AFFORDABLE and SUSTAINABLE.
With this we sign off for the Week.
Wishing You and your families a Wonderful weekend.
Our Credo….”Network
& Be Informed “
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