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PMO pushes for boost to tourism sector

An Inter-Ministerial Coordination Committee for Tourism Sector set up by the Government under the chairmanship the Principal Secretary to the Prime Minister, had its second meeting in the Prime Minister's Office on 13th August, 2012. Secretaries to the Government of India of important Ministries were present. The Principal Secretary emphasised the importance of tourism as a key sector for employment generation and economic development and stressed the need for all the Ministries concerned to work toward the development of this important sector.

Some of the important decisions taken in the meeting were:
A Sub-Committee consisting of Secretary (Tourism), Secretary (Labour & Employment) and Secretary (Rural Development) will identify employment potentialities of tourism and hospitality sector, particularly in rural areas. This Committee will make recommendations regarding specific training and skill development requirements and prepare an action plan.

The Ministry of Culture will expedite the development of essential facilities like tourist facilitation and information centres, souvenir shops, toilet facilities, etc., to begin with, at the 19 World Heritage Sites managed by the Archaeological Survey of India (ASI) through an appropriate agency. The Ministry will also take an early decision on the proposals received, in this connection, by the Archaeological Survey of India from the India Tourism Development Corporation (ITDC).

State Governments/ UT Administrations will be requested to partner the exercise for creation of tourist facilitation and infrastructure facilities in stages in all 116 ticketed ASI monuments. The committee noted that basic amenities and high standards of hygiene and cleanliness are essential for enhancing quality of experience that the country offers to the visitors.

The ASI will introduce computerized ticketing in 116 monuments and audio-visual guides in 36 monuments in phases over a period of six months.

The on-going exercise of rationalization of visa regime will be completed by the Ministry of Home Affairs within two weeks.

The Ministry of Tourism will work out an action plan for imparting training to the Immigration Staff within four weeks.

KFA shares rise despite wider 1Q loss

Shares of Kingfisher Airlines advanced to their daily upper price circuit despite reporting a loss in the 1Q as the troubled carrier says that it is in talks for funds with several investors.

Vijay’s Mallya’s Kingfisher Airlines posted net loss in the 1Q at Rs.6.5bn, wider than the Rs.2.6bn loss posted a year earlier, the company said. Sales declined 84% to Rs.3bn.

Kingfisher shut international operations and delayed Airbus SAS A380 deliveries beyond 2016 because of the losses. It was also shut out from International Air Transport Association’s billing systems after failing to pay required cash deposits.

According to reports, Kingfisher is in talks with IATA for regaining access.

The airline pledged its brand, office furniture and other assets against Rs. 64.2bn of debt. It has delayed salaries to employees and also failed to pay banks, airports, tax authorities and fuel suppliers.

Kingfisher has asked banks for additional loans as its market share declined and it struggled to pay salaries to its staff and interest on debt accumulated for leasing planes.

The debt-ridden airline is operating 20 planes as it cut services to about 120 flights a day, compared with 66 aircraft and about 340 daily flights in March 2011. As of June, Kingfisher’s market share, once second-biggest among Indian carriers, dropped to 4.2%.

Mallya has been pushing for Foreign Direct Investment by overseas carriers in Indian airlines to reduce Kingfisher’s debt burden.In India at present, foreign carriers are prohibited from making direct investments into the aviation sector, however, financial and non-airline investors can invest up to 49% in the sector.

In Focus Stories

CAM orders inspection into Kingfisher's accounts: reports

The Corporate Affairs Ministry has ordered an inspection of the account books of Kingfisher Airlines after receiving complaints from stakeholders alleging violation of company law like provisions on debt-equity ratio, according to reports.

Reports stated that Registrar of Companies has been asked to carry out inspection of the books of accounts of Kingfisher Airlines under section 234 of the Companies Act.

The RoC has sought information from the company about its debt-equity ratio, details of secured and unsecured loans of 2009-10 and 2010-11, daily operational expenses and administrative costs, says report.

Kingfisher Airlines reportedly said that it was a "technical issue" and would revert only after consulting the company secretary.

Domestic News

Cox & Kings Q1 cons net profit at Rs1.47bn

Cox & Kings Limited (“CNK”), the  leading Holidays and Education travel group having operations in 26 countries across continents, reported its financial results for the first quarter of fiscal year FY13, which is three months ending June 30, 2012.

Income from Operations increased by 239% y-o-y to Rs. 532 crores in Q1FY13 and EBITDA (excl. forex gain/loss) increased by 232% y-o-y to Rs. 2.40bn.

PBT (before share of profit of associates) increased by 194% y-o-y in Q1FY13 to Rs. 178 crores and PAT increased by 286% y-o-y to Rs. 1.47bn.

Earnings per share increased from Rs. 2.79 in Q1FY12 to Rs. 9.65 in Q1FY13.

Post Holidaybreak acquisition, Cox & Kings now operates across three major travel categories – Leisure Tours, Education Travel and Camping Holidays. FY13 would be the first full year of consolidating Holidaybreak Ltd.

Go Airlines and Lufthansa Technik sign 10-year component support contract

Go Airlines (GoAir), one of the leading domestic carriers in India, and Lufthansa Technik have signed a 10-year component support contract, effective from August, 2012, for the carrier’s present and future fleet of 20 A320 classic and 72 A320 neo aircraft.

The contract covers most of the spare parts required for the regular maintenance of A320 classic aircraft and will also cover the new A320neo fleet of GoAir which is expected to enter into service from 2016 onwards. The component support will be handled via the Lufthansa Technik Group network.
 
Spare parts shall be supplied to the airline's  bases at Mumbai and Delhi. The contract also provides GoAir access to Lufthansa Technik’s manage/m technical operations WebSuite, whereby both parties shall observe just-in-time inventory management. This will enable further efficiency gains for both parties.

SpiceJet announces life-time free tickets for Indian winners at London Olympics 2012

In its endeavor to encourage sports and to cheer the victory of Indian sportspersons in London Olympics 2012, SpiceJet Ltd has decided to provide free air tickets for life to all Indian medal winners at the London Olympics 2012.
 
SpiceJet Ltd, India’s most preferred budget airline, is proud to be associated with these winners who brought great moments of achievements for India at this gathering of sportspersons from across the globe.
 
It is an effort of SpiceJet to be part of sports that has impacts on national mood, affects wellness and contributes to the prestige and honour of the nation.

Lufthansa continues its “upgrade-program” in India

International News

Singapore Airlines to celebrate A380’s fifth anniversary 

Singapore Airlines has launched a contest for a once-in-a-lifetime chance to be on the delivery flight of SIA’s 19th Airbus A380 from Toulouse, France in early September.

The winner of the lucky draw and a guest of his or her choosing will be flown to Airbus’ headquarters in Toulouse from any point in the SIA network. In Toulouse, the pair will enjoy two nights’ accommodation, a half-day tour of the city, and dinners hosted by SIA and Airbus. They will also be treated to an exclusive tour of Airbus’ production centre, before boarding the superjumbo aircraft for its delivery flight to Singapore. (SIA will fly both the winner and guest back to their originating SIA destination after the delivery flight)

Being on a delivery flight is a unique experience usually restricted to a small number of cabin and technical crew, as well as a handful of other SIA staff involved in accepting the aircraft. The operational nature of the flight means service is limited, but its exclusive nature offers a sneak peek into the real workings of the airline industry.

To qualify for the draw, contestants are required to own a passport on SIAJourneys.com. Those who currently do not have an existing passport may create one on the microsite. The contest ends on 28 August 2012 and the winner will be chosen from those with valid passports. More details are available on SIAJourneys.com.

Virgin Atlantic offers attractive discounts for students traveling to UK & USA

Students flying to UK and US have more reasons to fly Virgin Atlantic this year. Apart from availing the airline’s generous baggage allowance of 46 kgs in Economy along with 23 kgs free baggage allowance for sports equipment, the benefits include 35% discount on travel insurance through Trawelltag, special value pre-paid SIM cards from Clay Telecom and discount on VIP travel gear. All this topped up with a discount deal for delicious Indian meals for those heading to London for further studies.
 
The airline’s baggage allowance has been tailored so that students can take all the belongings they cherish.  Students will get flat Rs 750/- and Rs 500 /- off on VIP’s range travel bags. To help students save, the airline has partnered with Trawelltag that prides a comprehensive travel insurance including Medical Expenses and Dental Cover, Personal Accident, Loss of Passport, Personal Liability etc. Students can avail 35% discount on the basic premium plus they can pay in Indian Rupees. Uniquely designed, the travel tag also enables students to trace their baggage if lost at the destination along with other premium benefits. Understanding that students need to connect with their families/friends immediately after landing, the airline is offering Clay Telecom’s pre-paid SIM cards at a special price of GBP 10 for UK and USD 10 for USA only.  Since Indian students definitely miss home cooked food, Virgin Atlantic has also tied up with Masala Zone, a famous Indian restaurant chain in London to get 25% discount on their first meal. Post which they can avail a regular student discount of 10% on every visit.