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Faulty Indian Policies Causing Damage to Indian and International Airlines

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India's faulty airline policies

It was a dream come true when the low cost airline business burgeoned in India, fulfilling the dream of flying for many Indians. Today is the day when there is hardly any contrast in fare between the low cost domestic airlines and state run Air India.

While low cost airlines have instead become high cost airlines, the five star airlines (at least considered as five star airline) like Kingfisher are facing its extinction. Is it Kingfisher’s awry business strategy or the government’s faulty policies that is grounding India’s one of the most popular airline? The answer lies in a fact that we will be covering in this article.

Thailand’s Prime Minister, Yingluck Shinawatra, paid a State visit in Jan 2012, as a chief guest for Indian Republic day celebrations. The visit did what India had been looking for: bracing its forgotten look east policy. As a result, there were 6 bilateral agreements signed, including the treaty of transfer of sentenced person.

Though India’s business and trade ties with East Asian countries came back on the right track, India’s airport authorities gave a big blow to trade ties, by forcing Thai Air Asia and Air Asia (Malaysia) to reduce the number of flights to Thailand and Malaysia from New Delhi. The reason was high operating costs at Indian airports, that include high airport and fuel charges. Air AsiaX, a long-haul subsidiary of AirAsia, has completely pulled out from India for the same reason.

India already has a high sales tax rate on Aviation Turbine Fuel (ATF), which is one of the highest in the world, at 24 percent. It is believed that these taxes are proposed to be increased further, making India a high cost market for airlines. Fuel surcharge alone is the major part of the total fare on domestic airlines.

Airport charges will also be hiked. The Airports Economic Regulatory Authority has proffered an increase of 280 per cent in landing and parking charges at Delhi airport. The airport operator had asked for 774 per cent increase in the charges.

Meanwhile, one of Europe’s largest carrier, Lufthansa airline, has pulled out from the city of joy, Kolkata (Calcutta). Sources from the industry said that a lack of route profitability and unpredictable fuel costs have posed challenges for European carriers trying to operate out of Kolkata [Read: No flights: Europe drifts further away from Kolkata | The Statesman].

Following the steps, Austrian Airline pulled out from Mumbai on 25th March 2012, and Air France is reducing its frequency to Delhi, Mumbai and Bangalore to six flights a week in its summer schedule. Though Airlines did not disclose a countrywide financial data, global profits of these airlines have come under pressure, due to increased competition and high operating costs. [Read: Austrian Airlines, Air France to reduce India flights | Business Standard]

In a statement, Austrian Airline said it was suspending its Mumbai flight, “due to the challenging economic situation.” The airline has suffered operating losses of $100 million (Rs 650 crore) in the past two years and is restructuring operations. The airline said it was focusing on Israel and Tehran and would ply the Boeing 767 it used in Mumbai.

Till date, the trend was that the majority of international carriers were delaying or cancelling their services routes to several countries, except India, even in the downturn, considering the country’s market potential.

“Now passengers are just not travelling, with companies resorting to video conferencing due to cut in the travel budget. Several international carriers are mulling reduction in the frequencies or pulling out from India,” said a senior executive with Kingfisher Airlines Ltd.

In another similar move, British Airways had suspended its flights between Kolkata and London Heathrow around 3 years back. The airline has operated flights to Kolkata intermittently since the 1930s and currently operates three flights per week [Read: Foreign airlines start pulling out of India as traffic declines].

“The decision to suspend flights between Kolkata and London has been a difficult one to make. However, the route is not making a profitable contribution to our business and we are unable to sustain it,” Amanda Amos, British Airways’ area commercial manager South Asia, said in a statement. “India remains an incredibly important market for British Airways and we continue with our growth plans on routes that we believe will be profitable.”

KLM Royal Dutch, Singapore Airlines, Air Mauritius and Finnair are also in the line to pull out or reduce the number of flights to India.

In the end, India’s faulty policies have not only blemished the business of domestic carriers but have also troubled International carriers that they had to pull out. With ongoing contention with European Union over Emissions Trading System (ETS), India, Russia and China might also ban flights complying with ETS to fly over their airspace. Thus, European carriers, flying to East Asia, will have to follow a longer path taking a round of Africa and then over Indian ocean, which could be economically unfeasible.

In a consultation meeting with Airports Economic Regulatory Authority, British Airways, Air France-KLM and Lufthansa said they would reconsider their expansion plans for India, saying the proposed increase of 774 percent in charges is very high.

Sanskar Shrivastava is the founder of international students' journal, The World Reporter. Passionate about dynamic occurrence in geopolitics, Sanskar has been studying and analyzing geopolitcal events from early life. At present, Sanskar is a student at the Russian Centre of Science and Culture and will be moving to Duke University.

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How To Safeguard Your Business

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Businesses of all sizes face security risks on a daily basis. For example, a recent study found that, on average, 69.2 crimes that affect businesses, such as theft, occur every hour. Furthermore, in an era when we spend more time online than ever before, these threats have also turned digital – with cyber attacks increasing by 600% during the COVID-19 pandemic. 

As a result, those who want their businesses to continue to thrive, need not only concern themselves with business plans and new product ideas – they also need to be putting plans in place to safeguard their business. After all, failing do so could result in: 

  • A loss of profits.
  • Property damage. 
  • Legal complications. 
  • Damaged reputation.

With that in mind, here are some simple ways in which you can safeguard your business. 

Focus on access control. Access control is so important for companies because it enables you to manage who comes in, and out, of your business. This can stop unauthorised personnel gaining access to secure areas, meaning it can result in crimes such as theft. It can also heighten your health and safety procedures, especially if you have specialist equipment on site that only qualified personnel can use. Thankfully, there are various ways in which you can improve access control. For example, you could install video intercoms, which allow you to speak to/see whoever is requesting access remotely. Click here to find out more about video intercoms business.

Train your staff. Training your staff to become more security conscious (both in terms of digital and physical security) is a great way to safeguard your business. This is because many security mistakes are the product of human error; such as forgetting to lock doors/windows or forgetting to log out of software at the end of the day. By providing your staff with the appropriate training, you are 

strengthening your business security.  

Install security alarms and cameras. Installing security alarms and cameras will do more than simply alert you should a security breach occur; they are also a proven deterrent against crime. This is because they capture clear evidence of the crime, meaning it would be easier to catch and prosecute an offender. As a result, you may get much greater peace of mind as a result of installing these features on-site. 

Change your passwords regularly. Cybersecurity attacks are not always elusive or super technical. In fact, they are often the product of poor password control, which gives hackers the chance to access your systems and data. This can wreak havoc for any business, especially if any sensitive information, such as banking details are leaked. As a result, you should ensure that you choose strong passwords for your business. While this may seem something of a no-brainer, 61% of businesses do not apply basic password security techniques. You should also change the company passwords every three months. If employees have personal passwords for their emails, you should encourage them to do the same to maintain good cyber safety standards.

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Legal services that make life easier for expatriates and international companies

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Photo by EKATERINA BOLOVTSOVA on Pexels.com

When living in or doing business in a foreign country, you have to comply with a number of legal requirements that can only be carried out effectively with the right support from a professional team specialized in that area. Let’s find out what services you can get when you are an expatriate or own a foreign company that has to operate under a different set of laws.

Expatriates and expatriate companies must always comply with a variety of rules and requirements in order to be legal in the country where they reside, after all, that is the local law and it should be followed. In these cases, it is always necessary to seek professional advice from expert lawyers who know how to act in certain circumstances.

There are many good law firms that have amazing lawyers on their staff who are exclusively dedicated to immigration, international business and global mobility cases. They are specialists in the area, such as Carbray lawyers in Spain, who have earned a well-deserved reputation for their excellent work and professionalism.

This law firm has more than 15 years of successful track record, with first class services that help clients cut through red tape and help companies that need talent from other parts of the world to bring them in as quickly and effectively as possible.

Their services are mainly focused on accompanying its clients from the moment they decide to settle in the country until they need any legal advice on the different matters they have to deal with.

It is a legal firm that provides support to all international companies that come to the country, as well as those that, being nationals, will settle in other countries. The plan will always be to give them legal advice on everything they need.

Immigration procedures

Another speciality in which Carbray is an expert is in cases of people who arrive in the country and need to regularize their immigration status. immigration lawyers in Spain have a lot of work to do, due to the high rate of immigrants who are frequently entering the country and need to regularize their legal status.

The lawyers in this area know everything about the legislation and jurisprudence that applies to expatriates and non-residents in the country, as well as all the regulations and processes that must be complied with in order to obtain the corresponding visas and authorizations.

Types of residence permits

The variety of authorizations issued by the Spanish government to non-resident foreigners is quite high. There are different types:

  • Wealth or non-profit visa: this is a permit to live in Spain for up to one year, as long as you do not work in the country, although you can work remotely for foreign companies. With Carbray’s support, you can get this visa quickly, without so much red tape; you just have to prove that you have enough income to survive without working. 

Another advantage is that if you need to bring your partner and children, you can do so by making a joint application. By obtaining the visa, you and your family can enjoy all the rights and freedom of movement of all European citizens.

  • Golden Visa: also known as the investor visa, this is a residence permit issued to non-Europeans who want to invest in the country. It is very easy to apply for and does not require any further formalities beyond the investment to be made.

This permit takes about 20 days to process, lasts for two years, can cover the partner and children, and also allows you to work in the country.

  • Self-employed visa: this is a permit for self-employed workers to work in Spain for one year, which can be extended twice, for two years each. After five years, a permanent visa can be requested.

To apply for the corresponding authorization, you only have to demonstrate that you have sufficient resources to invest in a business project and possess the skills to carry it out and develop it.

  • Visa for entrepreneurs and companies: intended especially for those who are going to set up a company or a branch in Spain.
  • Residence permit: to live permanently in the country.
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4 Changes to Increase Your Bottom Line: Dip in Revenue? No Problem!

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It’s happened to the best of us: a dip in our bottom line. Don’t worry, though, there are plenty of things you can do to move that curve back up! In this blog post, we will discuss four changes that you can make to improve your revenue and get your business back on track. Making just a few small changes can have a big impact on your bottom line.

Evaluate Your Expenses

One of the first places to start when you are trying to increase your revenue is by evaluating your expenses. Take a close look at where your money is going and see if there are any areas where you can cut back. Even small changes can make a big difference in your bottom line. If you’re not sure where to start, try looking at things like office supplies, travel costs, and marketing expenses. See if there are any areas where you can reduce spending without sacrificing quality or effectiveness. Don’t be afraid to negotiate with vendors either. If you feel like you’re paying too much for something, reach out and see if you can get a better deal. You may be surprised at how often this works! Finally, make sure you are taking advantage of any tax breaks or incentives that your business may be eligible for. There may be some easy money that you’re leaving on the table!

Review Your Pricing

Another way to increase your revenue is by reviewing your pricing. If it’s been a while since you’ve evaluated your prices, now is the time to do it! Make sure you are charging enough for your products or services to cover your costs and leave you with a profit. Don’t be afraid to raise your prices if necessary. If you’re providing a high-quality product or service, your customers will be willing to pay more. You may even find that raising your prices helps to increase demand for your product or service! Of course, there may also be times when lowering your prices is the right move. This can be especially true if you’re trying to enter a new market or reach a different customer base. By offering a lower price, you can attract new customers and boost your revenue.

Increase Your Sales

One of the most obvious ways to increase your revenue is by increasing your sales. This can be done in a number of different ways. First, take a look at your marketing efforts. Are you reaching as many potential customers as possible? If not, it may be time to invest in some new marketing initiatives. These include from your website design to social media to traditional advertising. There are a lot of great options out there, so find one that fits your business and budget and get started! You can also try selling more to your existing customer base. Upselling and cross-selling are great ways to boost revenue without having to find new customers. If you’re not sure how to do this, ask your sales team for help! They’ll be able to give you some great ideas. Finally, don’t forget about seasonal sales! This is a great time to offer discounts and promotions to boost your revenue. Just make sure you plan ahead, so you don’t end up cutting into your profits!

Reduce Your Expenses

Now that we’ve covered some ways to increase your revenue let’s take a look at how you can decrease your expenses. Reducing your expenses is another great way to improve your bottom line. Here are a few ideas to get you started: First, take a close look at your inventory levels. Do you have more products than you need? If so, you may be able to reduce your inventory costs by reducing your stock levels. You can also save money by negotiating better deals with your suppliers. If you feel like you’re paying too much for something, reach out and see if you can get a better price. Chances are, your supplier will be happy to work with you! Finally, make sure you’re not wasting any resources. This includes things like office supplies, energy, and even water. By reducing waste, you can lower your expenses and improve your bottom line.

There are a lot of great ways to boost your bottom line. By increasing your sales, reducing your expenses, and taking advantage of tax breaks and incentives, you can easily improve your bottom line. So what are you waiting for? Get started today!

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