SpiceJet

Civil Aviation Ministry May Reform Airline Ticket Cancellation Policy!

In May 2018, the Civil Aviation Ministry had submitted a passenger draft to change the rules regarding cancellation of airline tickets.

The rules say that passengers can cancel a ticket for free within 24 hours of booking a flight and travel agents/airlines cannot levy cancellation charges which are more than the base price plus fuel surcharge.

The airline fraternity has pointed out a few shortcomings in these rules and is asking the ministry to reconsider the passenger draft.

Mr. Biji Eapen, National President of IATA Agents Association Of India, has written to the ministry saying that fuel charges cannot be a part of the cancellation charges. Any attempt to include this cost in the basic price, without merging both base fare and fuel charges together, is illegal and a violation of the law.

In fact, according to the “Aircraft Rules 1937”, base fare is the price of the airline ticket before adding the tax, fees and surcharge.

This is why Mr. Eapen has asked the ministry to review and amend the draft to specify that, airline ticket cancellation charges, under any circumstances, shouldn’t be more than the base fare.

Aviation analysts say that charging a cancellation fee more than the basic fare is quite illogical. This is because, the aircraft is not burning any fuel on the account of the passenger who has cancelled their ticket and only the basic price of the ticket should be refunded.

Airlines in India started adding fuel surcharge to basic airfares in 2005 on account of volatile fuel prices. Most airlines in the world include fuel cost in the original price of a ticket and add a fuel surcharge during the booking process.

The new norms are expected to be notified by 15th July 2018, after the ministry analyses the public comments on the proposed charter.

Read more about the “Changes Proposed By Civil Aviation Ministry In New Passenger Charter

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Airlines In India Hike Excess Baggage Fees!

Make sure you double check the weight of your luggage the next time you fly!

Airlines in India announced on Saturday that they have hiked the fees for excess luggage.

IndiGo, SpiceJet and GoAir will now charge Rs 400 per kg extra for every kilo beyond 15 Kg, which was previously priced at Rs 300 per kg. These airlines have also increased their charges for pre-booked excess baggage by almost 33%.

Here are the details of the price hike for different airlines –

IndiGo/GoAir –  The 2 airlines will now charge Rs 1900 for extra 5kg , Rs 3800 for extra 10kg, Rs 5700 for extra 15Kg and Rs 11,400 for extra 30 kg ‘pre-booked’ luggage.

SpiceJet – The airline has increased the price to Rs 1600 for extra 5kg , Rs 3200 for extra 10kg, Rs 4800 for extra 15kg, Rs 6400 for extra 20 kg and Rs 9600 for extra 30 kg ‘pre-booked’ luggage.

Air India – The airline, which allows passengers to carry up to 25kg of free luggage, had earlier this month increased excess baggage charges from Rs 400 to Rs 500 per kg.

Jet Airways – The airline announced last week that they will be changing their baggage policy from the ‘Weight’ concept to ‘Piece’ concept for check-in luggage on all their domestic flights.

* Read More About The Revised Excess Baggage Rules For Jet Airways.

Aviation experts say that since airlines cannot increase the price on their tickets, they have to increase their ancillary revenue.

Ancillary revenue is the airline’s earning from non-ticketing resources such as excess baggage fees, onboard sale of food and beverages, cancellation fees etc.

Experts also suggest that the hike in excess baggage fee is a way of discouraging passengers from carrying more luggage, as a lighter load would mean less fuel burn for airplanes.

With the increase in jet fuel prices globally and the value of rupee going down, airlines are finding it difficult to maintain their profits. While airfares have largely remained the same, the price of jet fuel has risen by 22% and the rupee has depreciated by 6% since January 2018.

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Government Asks Air India To Submit A Plan To Fund Their Debt!

The government has asked Air India to submit a plan of funds needed to support the airline, after the sale of the national carrier failed last month.

A committee of airline directors has been set up within Air India to make this plan, which will be headed by Air India Chairman and Managing Director, Mr. Pradeep Singh Kharola.

This committee, will also take a call on the airline’s fleet requirement for the future. For now, all the existing orders have been fulfilled and the airline does not have any pending orders for airplanes.

The airline has recently received a short-term loan of Rs 2200 crores from the government to meet its working capital requirements after Air India failed to pay its employees for the 3rd month in a row in May.

Apart from this, Air India-Specific Alternate Mechanism(AISAM) has been set up by the government to review the airline’s operations and its disinvestment process. This committee will be headed by Finance Minister Mr. Arun Jaitley.

Mr Jayant Sinha, Minister Of State For Civil Aviation, told the reporters on Wednesday, that they will not be selling the airline for now, however, the government is dedicated to the strategic disinvestment of the airline, which may happen in the future.

This was the first time since May 31st , that a minister had spoken in an open forum about the status of Air India disinvestment.

Both, Mr. Sinha and Union Civil Aviation Minister Mr. Suresh Prabhu, felt that the airline is suffering from legacy issues in terms of the huge debt burden that the airline has to cater to.

Pointing out that Air India is the national flag carrier and has an important role to play in the nation’s aviation sector, Mr. Prabhu said that the government will do everything to ensure its success and progress.

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Kingfisher Airlines Staff Raise Issue Of Unpaid Salaries In A Letter To PM Modi!

Former employees of the inoperative carrier, Kingfisher Airlines, have sent an ‘open’ letter to the Indian Prime Minister, Mr. Narendra Modi and External Affairs Minister Mrs. Sushma Swaraj, to compensate them for their unpaid salaries.

The letter also questions why dues owed by the owner of Kingfisher Airlines, Vijay Mallya, to banks were given preference over the unpaid salaries of the airline employees.

In the letter, they have written that Vijay Mallya hasn’t paid salaries, gratuity or compensation to his Indian employees but has compensated his employees based in London and other foreign countries.

Stating that the system has failed them, they have written that they still get notices from the Income Tax Department. They also said that they are unable to withdraw their Provident Funds (PF) due to the ongoing liquidation process of the airline.

Referring to the government’s attempt to bring back Mr.Mallya to India, the letter pointed out that non-payment of salaries is a crime in London. It also said that a Kingfisher employee’s wife had committed suicide over unpaid salaries, and that should be enough grounds for his extradition.

The letter was sent a day after the Enforcement Directorate (ED) had filed a charge sheet against Mr. Mallya in a special court in Mumbai.

The charge sheet has alleged that he used his Force India Formula 1 team and IPL team Royal Challengers Bangalore for laundering money. It is estimated that he laundered over Rs 3700 crores worth of bank loans.

With ED’s charge sheet, there is a huge possibility that the Indian government may declare Mr.Mallya a fugitive.

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Jet Airways To Revise Baggage Rules From July 2018!

India’s second largest airline, Jet Airways, announced on Friday that they will be revising their baggage rules from 15th July 2018.

The airline has said that they will be changing their baggage policy from the ‘Weight’ concept to ‘Piece’ concept for check-in luggage on all their domestic flights.

Here are the details of the revised baggage policy-

  • For economy class passengers, the airline will allow only one free check-in bag which does not exceed 15kg.
  • Business or ‘Premiere’ class passengers can carry 2 check-in bags for free which do not exceed 30 kgs (15kg per bag)
  • ‘Jet Platinum’ members who are travelling in the economy class can carry 2 bags, with a maximum weight of 15kg per bag.
  • ‘Jet Platinum’ members travelling in the ‘Premiere’ class have been allowed two bags not exceeding 25kg per bag.
  • The new rules won’t apply to those who have bought their tickets before 15th June 2018.

Currently, passengers flying on domestic routes have a restriction on the weight of the luggage and not on the number of bags they can carry. Jet Airways will be the first airline in India to implement this system.

The concept of free baggage allowance based on the number of bags is a popular concept in countries like the United States and most international airlines follow this. In fact, many airlines in India follow this rule when they fly internationally.

This move will benefit the airline because, with lesser bags to load, the flight will be able to take-off quickly. Also, it will free up space in the belly-hold of the aircraft, which can be utilized for carrying extra cargo and in the process, increase their revenue.

*Learn more about different ‘Airline Baggage Rules In India’

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Government Plans To Sell 100% Stake In Air India!

After an unsuccessful attempt to sell 76% stake in Air India last month, the government is reconsidering its terms and might sell the airline’s entire 100 % stake.

Government’s transaction advisors, Ernst & Young, conducted an analysis and found out that there were four reasons why no one bid for Air India –

  • The reluctance of the government to sell 100% shares of the airline.
  • The clause to retain over 27000 employees for a year.
  • The buyer taking over 61% (Rs 33,392 crore) of the total debt of the airline.
  • Keeping the operations of the airline independent of the buyer’s business for at least 3 years.

EY has said that the biggest reason for the failed disinvestment bid was the government’s clause to hold a minority stake in the airline after the sale.

The Government will review EY’s report and take a call. A group of secretaries will hold a meeting to discuss the terms of Air India’s disinvestment. Based on their decision the Air India Specific Alternative Mechanism (AISAM), a group of ministers headed by Mr. Arun Jaitley, will do what is necessary.

According to one of the officials, Air India sale will be decided on the political will of the government. He also said that there is no reason that the deal should be called off, however, it will all depend on AISAM’s decision.

Meanwhile, the government is planning to lend Rs 32 Billion to Air India as part of the bailout package that was announced in April 2012. Till now the airline has received Rs 260 Billion under this clause.

A few days back the airline had asked for short-term loans from banks to handle its day to day operations, but banks such as Dena Bank, Standard Chartered Bank & Allahabad Bank have already refused to extend their line of credit.

Aviation Experts have asked the government to take bold steps to sell Air India, citing that a massive debt burden might cause the airline to close down.

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Top Low-Cost Airlines That Fly Out Of India!

We all have, at some point, dreamt of travelling abroad, but expensive international airfares make us turn our heads to the beaches of Goa or the mountains in Himachal instead.

But, what if we told you that you can fly out of India at a price which costs less than your mobile phone?

Unbelievable right!

To help you plan your next holiday, we bring to you a list of airlines which offer international travel that suits your wallet!

1.AIR ASIA

Operates From: Delhi, Bengaluru, Chennai, Kolkata and Hyderabad

Popular Holiday Destinations It Flies To: Thailand, Singapore, Malaysia, Indonesia, Vietnam and Australia

Price: Starting at Rs 6990*

Started in 2001, this Southeast Asian airline has been named the best low-cost airline in the world by Skytrax for the last 9 years.

AirAsia offers you a very comfortable flying experience with exceptional service at an affordable rate.

They offer a wide selection of food & beverages onboard and have an amazing in-flight entertainment system which you can view on your personal tab.

2.MALINDO AIR

Operates From : Mumbai, Delhi, Kochi, Amritsar, Thiruvananthapuram and Tiruchirappalli

Popular Holiday Destinations It Flies To : Kuala Lumpur, Langkawi, Hong Kong, Singapore, Colombo, Bangkok, Ho Chi Minh City and Perth.

Price : Starting at Rs 10000*

Malindo Air flew its inaugural flight in 2013 and is headquartered in Petaling Jaya, Selangor, Malaysia.

The airline offers a personal TV with a wide selection of in-flight entertainment on every seat, free wi-fi, light snacks, free meal and a lot of leg room for passengers in economy as well as business class.

Another benefit of flying with Malindo is that you can avail discounts at Malindo Air’s partner outlets by showing them your boarding pass.

3.FLY DUBAI

Operates From : Mumbai, Ahmedabad, Delhi, Hyderabad, Chennai, Goa, Kochi and Lucknow

Popular Holiday Destinations It Flies To : Istanbul, Zanzibar, Moscow, Vienna, Prague, Amman, Doha and Beirut

Price : Starting from Rs 6500*

People don’t generally associate Dubai with anything that is low-cost, thanks to its reputation as a luxurious city.

But you will be surprised about the fact that it offers affordable travel to almost 90 destinations across Asia, Africa and Europe from India.

A full meal service is offered on long-haul flights with the option to purchase alcoholic beverages and additional snacks.

You will also be pampered with In-flight entertainment with a wide selection of movies and Tv shows which is available for pre-purchase.

4.SCOOT

Operates From : Jaipur, Amritsar, Lucknow, Kochi, Hyderabad and Chennai

Popular Holiday Destinations It Flies To : Bangkok, Phuket, Singapore, Bali, Kuala Lumpur, Tokyo, Hong Kong, Macau, Sydney, Melbourne, Perth and Gold Coast

Price: Starting from Rs 10000*

This award-winning budget carrier, is a subsidiary of Singapore Airlines, which has recently started operating in India.

Previously, Tigerair used to operate flights from India to more than 41 destinations in Asia and Australia till 2017, however now it flies as Scoot.

They have an In-flight entertainment system called “Scoot TV” which is the most unique service offered by the airline.

You get to choose from over 100 movies and Tv shows, which you can watch on your personal laptop, tablet or mobile using free wi-fi.

5.AIR ARABIA

Operates From : Mumbai, Delhi, Goa, Bengaluru, Nagpur, Jaipur, Ahmedabad, Chennai and Kochi

Popular Holiday Destinations It Flies To : UAE, Egypt, Jordan, Russia, Kuwait, Lebanon, Turkey, Qatar and Kenya

Price : Starting from Rs 6000*

The Sharjah based airline offers great deals on flights from India to holiday destinations in Asia, Africa and Europe.

The airline has one of the best loyalty programs amongst other airlines in the region and offers you maximum value for the points earned.

They also have a very unique program known as ‘Fun Onboard’ where passengers can showcase their talents on the flight.

6.INDIGO

Operates From: Mumbai ,Bangalore, Delhi, Chennai, Hyderabad and Kolkata

Popular Holiday Destinations It Flies To : Singapore, Kathmandu, Muscat, Dubai, Doha, Colombo, Bangkok and Sharjah

Price : Starting from Rs 7500*

IndiGo was one of the first low-cost airlines in India to ferry passengers abroad and is the biggest airline in the country.

Being a low-cost carrier it offers only economy class seats.

There is no wi-fi or Inflight entertainment, however, it has one of the best on-time performances and is very pocket-friendly.

You can get your snacks along with you onboard but you also have the option to buy food if you are in a mood to spend.

So if you’re looking to reach your destination without major delays and don’t really care about the fancy amenities that airlines generally provide, IndiGo is a very good option.

7.SPICEJET

Operates From : Mumbai, Delhi, Amritsar, Guwahati, Kolkata, Chennai and Hyderabad

Popular Holiday Destinations It Flies To : Male’, Muscat, Colombo, Bangkok, Dubai, Dhaka And Kabul

Price: Starting from Rs 7500*

The second biggest Low-cost airline in India has been flying internationally since 2010 and is different from traditional budget carriers.

The airline offers Its “SpiceMax” members premium services such as pre-assigned seats with extra leg-room, priority check-in/boarding/baggage handling and complimentary meals.

8.AIR INDIA EXPRESS

Operates From :Kochi, Delhi, Mumbai, Pune, Amritsar, Lucknow, Jaipur, Varanasi, Kolkata and Chandigarh

Popular Holiday Destinations It Flies To : Dubai, Abu Dhabi, Bahrain, Dammam, Doha, Kuwait, Muscat, Singapore, Kuala Lumpur, Riyadh and Dhaka

Price: Starting from Rs 7000*

Air India Express is the low-cost subsidiary of Air India and is known for connecting Tier 2 cities to international destinations with their flights.

You have a choice between Indian and continental cuisine onboard with complimentary liquor/wine, which you can have while watching your choice of in-flight entertainment.

If you want to know more about the different services offered by your airline, look no further. Simply download the AirWhizz App to get information regarding different airline rules, policies and services on your fingertips and fly stress-free!

* Please note that all prices mentioned here are only indicative. They are meant to give you a general idea. For the actual price and service details please refer to the information displayed on the airline’s official website or online travel portals.

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Air India Seeks Rs 1000 Crore To Manage Day To Day Operations!

With the Air India disinvestment falling into shambles, it seems like the debt-ridden airline can’t catch a break.

The airline is looking for a 1000 crore short-term loan to manage its day to day operations. The airline is cash-strapped and has not paid its 11000 employees their salaries for the last 3 months.

The airline has released a bid document, requesting banks to provide them with a loan and put their financial bids by 13th June. The short-term loan will be for a duration of one year from the date of availing the loan but, they can renew their loan after this period.

The airline has borrowed a total of Rs 6700 Crore from various banks between September 2017 and January 2018 to manage their working capital requirements and other needs.

Air India till now has received Rs 26000 Crore under the bailout package which was announced by the former UPA government back in 2012. The bailout clause said that Air India will get a total of Rs Rs 30,231 crore till 2021 if they can achieve their targets set by the UPA government.

The airline has been getting this money despite not achieving its targets. In 2016-2017 Air India recorded a loss of Rs 3643 crore and it is projected that in 2017-2018 it will suffer losses of Rs 3579.

The Government had agreed to sell 76% stake in Air India last year in June, but they received no bids for the national Carrier despite the fact that the date for submitting bids had been extended to 31st May 2018.

According to Civil Aviation Minister, Mr. Suresh Prabhu, the future course of action for the Air India disinvestment will be decided by Air India Specific Alternative Mechanism (AISAM), a group of ministers headed by Union Minister Arun Jaitley, in due course of time.

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