Indian airlines combined losses could reach $1.9 billion this year: Report

Agencies
September 4, 2018

New Delhi, Sept 4: Indian airlines are expected to post combined losses of up to $1.9 billion this financial year led by full-service carriers like Air India and Jet Airways driven by rising costs and low air fares, aviation consulting firm CAPA India said.

The loss forecast for the 12 months ending March 31 is up from an estimated $430 million to $460 million sector-wide loss in January largely due to the depreciation of the rupee and a rise in oil prices, CAPA said in a report released on Monday evening.

Ticket prices have not risen to compensate for higher costs, and CAPA said with the exception of Interglobe Aviation Ltd`s IndiGo, none of the airlines have strong enough balance sheets to comfortably withstand higher costs and lower yields.

"Most carriers are ill-equipped to withstand cyclical downturns," CAPA said in the report. "Airlines have completely lost pricing power as a result of the rapid influx of capacity."

India is the fastest-growing domestic aviation market in the world and carriers have placed orders for hundreds of new Airbus SE and Boeing Co jets.

But airlines have struggled to stay profitable despite filling nearly 90 percent of seats and seeing a more than doubling of domestic passenger numbers over the last four years.

India is one of the cheapest domestic airline markets in the world and promotions such as $50 one-way tickets on the two-hour flight from Mumbai to Delhi are easy to find.

CAPA estimated Indian airlines, including money-losing state-owned Air India Ltd, need an additional $3 billion of capital in the near term to shore up their balance sheets.

The government in June said it had failed to attract bidders for a 76 percent stake in the national carrier, which is dependent on handouts to keep operating.

Jet Airways (India) Ltd last month reported a quarterly loss of 13.23 billion rupees ($185.79 million) and said it was seeking to cut costs, inject capital and monetise its frequent flyer programme.

Budget carrier IndiGo, the country`s largest airline, in July reported its lowest quarterly profit in three years, with earnings down 97 percent due to rising fuel costs and foreign exchange losses.

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News Network
November 18,2024

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Mangaluru: The Ullal police have arrested Manohar, the owner of Vazco Beach Resort, and its manager Bharath in connection with the drowning of three college girls from Mysuru at the resort’s swimming pool on November 17.

City Commissioner of Police Anupam Agrawal confirmed the arrests, stating that a case has been registered under Section 106 of BNS. The bodies of the victims, all in their twenties, have been handed over to their parents. The women had arrived at the resort for a weekend getaway on November 16.

Following the tragic incident, the resort was sealed by officials led by Mangaluru Assistant Commissioner Harshavardhan. The trade license of the resort, issued on June 13, 2024, has been suspended, and the tourism department has temporarily revoked the resort's registration. These actions prohibit the resort from engaging in any tourism-related activities until further notice.

Someshwara TMC Chief Officer stated that the suspension was due to the resort's failure to implement adequate safety measures, which resulted in the loss of three lives. Further investigations are underway.

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News Network
November 28,2024

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Mangaluru: The iconic Old DC office, a building steeped in 400 years of history, will be the centerpiece of the Heritage Week celebrations in the city. Once the administrative hub of the erstwhile Canara district during the British era, the building now serves as a symbol of Mangaluru’s rich heritage and cultural significance.

Historic Significance

Initially built during the rule of the Bangas under the Vijayanagara Empire, the structure was later converted into the collector’s office. Following an agreement between Tipu Sultan and the British in 1784, the building came under Tipu’s possession until his death. Subsequently, Major Sir Thomas Munro used it as the office for the first district collector.

The building has also seen historical milestones, including the participation of 88 individuals from the district in World War I (1914–1919), as recorded on a commemorative plaque on its exterior.

Heritage Festival: Echoes

To celebrate the city’s history and tourism potential, the Dakshina Kannada district administration is organizing "Echoes," a heritage festival on November 30 and December 1 at the Old DC office premises. The event will feature:

  • A heritage exhibition (open from 10 AM to 6 PM).
  • An art contest for school students.
  • Guided mini heritage walks open to all.
  • An urban sketching contest for college students.
  • A panel discussion on sustainability, followed by a prize distribution ceremony.
  • A musical evening featuring Sur Safar, a fusion band.

A Gateway to Tourism

The festival aims to draw attention to Mangaluru’s untapped tourism potential by blending art, history, and culture. It invites residents and visitors to rediscover the region’s legacy while fostering a sense of pride in its historical landmarks.

This initiative not only commemorates the past but also looks to inspire future efforts in heritage preservation and sustainable tourism.

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News Network
November 16,2024

Mangaluru: The Kavoor police in Mangaluru, Karnataka, have arrested three individuals from Kerala in connection with two separate cybercrime cases, including one involving extortion under the guise of a "digital arrest."

City Commissioner of Police Anupam Agrawal reported that one of the arrested individuals, Nisar, a resident of Ernakulam district, posed as a CBI officer. He allegedly threatened the complainant with arrest and extorted Rs 68 lakh. A case has been filed under sections 66 (C) and 66 (D) of the IT Act, and sections 308 (2) and 381 (4) of BNS.

In another case, the Kavoor police arrested two men, Sahil K P of Thiruvannur, Kozhikode, and Muhammad Nashath of Mappila Koyilandy, Kerala, in connection with a share trade fraud. The accused are alleged to have deceived the complainant by promising substantial profits from an investment in the stock market. Trusting the fraudsters, the complainant invested Rs 90 lakh, which was subsequently lost. A case has been registered under sections 66 (C) and 66 (D) of the IT Act, and sections 318 (4) and 3 (5) of BNS.

The accused were arrested in Koyilandi and presented before the court. The operation was carried out under the guidance of City Police Commissioner Anupam Agrawal, led by Mangaluru North Sub-Division ACP Srikanth K, Kavoor Inspector Raghavendra Byndoor, Kavoor PSI Mallikarjuna Biradara, and staff members Ramanna Shetty, Bhuvaneshwari, Rajappa Kashibai, Praveen N, and Malatesh. 

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