IndiGo expected a reduction in excise duty on jet fuel in Union Budget 2022

Budget carrier IndiGo termed the Union Budget 2022-23 as "growth-oriented" while expecting a cut in the excise duty on jet fuel.

"Budget 2022-23 appears to be growth-oriented by an increase in the capital outlay of INR 7.5 lakh crore, fiscal deficit capped at 6.4% and efforts are being made to reduce compliance burdens and improve ease of doing business.We expect the Budget would enable India to achieve a growth estimate of 9.2%.Having said that, we were expecting tax concessions to the aviation industry in the forms of cut in ATF (aviation turbine fuel) excise duty and the allocation of concessional finance to airlines to help us come out of the pandemic."Ronojoy Dutta, Whole-Time Director and CEO, IndiGo

Welcoming the new incentives of issuing e-passports and the introduction of digital currency, Dutta said the government’s "relentless" focus on the national transportation infrastructure development with the PM Gati Shakti National Master Plan will strengthen the much-needed multimodal connectivity.

Also, besides facilitating the seamless movement of cargo, the plan will reduce logistics costs as well, he added.

IndiGo expected a reduction in excise duty on jet fuel in Union Budget 2022

Earlier, Finance Minister Nirmala Sitharaman in her Budget Speech on Tuesday, February 1 said the PM Gati Shakti National Master Plan is a transformative approach for economic growth and sustainable development and is driven by seven engines including roads, railways, airports, ports, mass transport, waterways and logistics infrastructure.

All seven engines will pull forward the economy in unison, Sitharaman said while presenting the Budget for 2022-23. These engines are supported by the complementary roles of energy transmission, information technology communication, bulk water and sewerage and social infrastructure.

The Indian Air Force (IAF) on Tuesday, February 1 received three of the last four Rafale fighter jets. The fighter planes were handed over by France at the Istres-Le Tube airbase of Rafale manufacturer Dassault Aviation which is situated northwest of Marseille.

After this, the IAF will wait for the right opportunity to take the fighter jets to India between February 15 and 20. According to people aware of the developments, the handed over planes will now be test-checked for all the details. The fighter jets are expected to arrive in India between February 15 and 16, the people cited above said.

IAF will wait for the right opportunity to take the fighter jets to India between February 15 and 20.

According to a report by The Hindustan Times when the Rafale jets will fly out of France, these fighter jets will receive mid-air refuelling by the air force of India’s close ally, the United Arab Emirates, using Airbus multi-role transport tankers.

These Rafale fighter jets are fully equipped with India specific enhancements, which will give them extra teeth to fight any regional adversary.

The last fighter jet is nearly ready with fresh paint and enhancements but will arrive in April due to the reasons best known to IAF.

Rafale jets will get mid-air refuelling by UAE Air Force.

The last of the 36 contracted fighters from France is actually the first fighter used for training IAF personnel after the deliveries started from France. This fighter was inspected by Defence Secretary Ajay Kumar at the Istres airbase during his visit to France for a high-level defence dialogue in December 2021.

Although IAF remains tight-lipped over what India specific enhancements are on Rafale, it is learnt that these relate to long-range Meteor air-to-air missile, low band frequency jammers, advanced communication systems, more capable radio altimeter, radar warning receiver, high altitude engine start-up, synthetic aperture radar, ground moving target indicator and tracking, missile approach warning systems and very high-frequency range decoys.

IAF receives 3 Rafale fighter jets with India-specific upgrades from France

On the arrival of the fighter jets, the IAF will test the specific enhancements to their satisfaction under Indian conditions apart from verifying the original equipment manufacturers claims as per agreement.

After this, work will begin in retrofitting the remaining 32 aircraft at Ambala in the western sector and Hashimara airbase in the eastern sector with the India specific enhancements with all the related equipment already with the IAF. The upgradation exercise will be carried out at Ambala airbase which has the maintenance cum repair set up for Rafale fighters in India.

(With Inputs from The Hindustan Times)

Nepal's second international airport will start its operation in May 2022, Minister for Tourism and Civil Aviation said.

All international flights can take off and land at the Gautam Buddha International Airport (GBIA) from May 26, the birth anniversary of Lord Buddha, Nepal's Minister for Tourism and Civil Aviation Prem Ale informed while inspecting the airport under construction in Bhairahawa, situated in Western Nepal.

If there is any technical problem in the plane flying in the Nepali sky, the situation of diverting the aeroplane to Kathmandu for emergency landing will come to an end. At present, there is no alternative to returning to the Tribhuvan International Airport (TIA) for an emergency landing.

For emergency landings, the planes will not have to be either diverted to India or head to the Kathmandu airport once GBIA comes into operation. Currently, only TIA has emergency landing facilities with 'foam and fire' vehicles. Arrangements have been made at GBIA for its operation.

The GBIA, which is being prepared for operation, also has minimum standards required for an emergency landing as per the International Civil Aviation Organisation (ICAO) standards. Aircraft that could not land in Kathmandu due to problems and adverse weather will now be able to land safely in Bhairahawa.

An expert team of Aeronautical Radio of Thailand (AeroThai) has already arrived in Nepal to prepare for a mechanical test flight (calibration flight) to verify whether the new airport is technically sound or not.

The construction work of the physical infrastructure of the airport has been completed by the Chinese company Northwest Civil Aviation Construction Group.

Tribhuvan International Airport

A team of AeroThai experts will fly the calibration flight to find out if the flight equipment is working. According to airport officials, the calibration and test flight will be carried out within a month.

''A team of AeroThai experts is working to bring the airport into operation on the occasion of Buddha Jayanti,'' the officials informed.

Retirement fund body EPFO has onboarded Air India Ltd for social security benefits like PF, pension and insurance and has received contributions for about 7,453 employees for December from the airline, a labour ministry statement said on Saturday, January 21.

The Tata Group took over the debt-ridden airline from the Government of India. Air India had applied for EPFO coverage, which has been allowed, the retirement fund body said.

"EPFO (Employees' Provident Fund Organisation) onboards Air India for social security coverage to service the social security needs of their employees. Air India Ltd applied for voluntarily covered u/s 1(4) of the EPF & MP Act, 1952 which has been allowed vide gazette notification on January 13, 2022 -- with effect from December 1, 2021," the ministry statement said.

The social security benefits will be provided to around 7,453 employees for whom contributions have been filed by Air India with EPFO for December 2021, it added. These employees of Air India now will be entitled to benefits like they will receive an extra 2% employer's contributions in their provident fund (PF) accounts at 12 per cent of their wages.

Earlier they were covered under the PF Act of 1925, where the contributions to the PF was at 10% by the employer and 10% by the employee. The EPF Scheme 1952, EPS 1995 (employees pension scheme) and EDLI 1976 (group insurance) will now apply to the employees.

Before this shift, Air India employees were contributing to the provident fund and the money was channelised into two funds AIEPF (Air India Employees Provident Fund) and IAEPF (Indian Airlines Employees Provident Fund) with a total investment of around INR 4,500 crore. These two funds were recognized under Provident Fund Act 1925.

A guaranteed minimum pension of INR 1,000 per month will be available to employees and pensions to family and dependents in case of the death of the employee. An assured insurance benefit in case of the death of a member will be available in the range of minimum INR 2.50 lakh and a maximum of INR 7 lakh.

No premium is charged to the EPFO covered employees for this benefit. The ministry informed that since 1952-53, Air India and Indian Airlines were two separate companies that were covered under PF Act, 1925.

In 2007, both the companies merged into one company, Air India Ltd. Under the PF Act, 1925, the benefit of the provident fund was available but there was no statutory pension scheme or insurance scheme. The employees used to participate in a self-contributory annuity-based pension scheme.

Based on the scheme parameters, the accumulations used to be paid to the employees. There was no minimum pension guarantee and no extra benefit in case of the death of a member.

The Narendra Modi government has accorded approval for the construction of 21 greenfield airports in the country, President Ram Nath Kovind said on Monday, February 1.

Among them, the country's biggest airport is coming up at Gautam Buddha Nagar district in Uttar Pradesh, he said his address to the joint sitting of both Houses of Parliament at the start of the Budget Session.

Ram Nath Kovind, President of India

Minister of State for Civil Aviation V K Singh had in December 2021 told Parliament that the Civil Aviation Ministry has so far accorded 'in-principle' approval for setting up of 21 greenfield airports across the country in places such as Mopa (Goa), Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Kalaburagi, Bijapur, Hassan and Shimoga in Karnataka.

The greenfield airports will also come up in Datia (Gwalior) in Madhya Pradesh, Kushinagar and Noida (Jewar) in Uttar Pradesh, Dholera and Hirasar in Gujarat, Karaikal in Puducherry, Dagadarthi, Bhogapuram and Oravackal in Andhra Pradesh, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala and Hollongi (Itanagar) in Arunachal Pradesh, Singh had noted.

PM Modi laid the foundation stone of Noida International Airport on November 25

"A new airport is being set up at Hollongi, Itanagar. A modern new terminal has recently been opened at the Maharaja Bir Bikram Airport in Tripura. This development of the North East will prove to be a golden chapter in India's growth story." Ram Nath Kovind, President of India

The president also said that a new era of development in Jammu and Kashmir, and the Ladakh region has begun and the commencement of international flights on the Srinagar-Sharjah route is a part of this.

Jet fuel price on Tuesday, February 1 rose to record levels across the country following a steep 8.5% hike necessitated due to a spike in international oil prices.

While the jet fuel or Aviation Turbine Fuel (ATF) price has been hiked for the third time in a month, petrol and diesel prices remained unchanged for a record 88th day in a row.

ATF price was hiked by INR 6,743.25 per kilolitre or 8.5% to INR 86,038.16 per kl in the national capital, according to a price notification of state-owned fuel retailers.

Aviation Turbine Fuel prices rise by a whopping 8.5% to new highs

This is the highest ever price touched by ATF. The rate is higher than INR 71,028.26 per kl reached in August 2008 when international crude oil prices touched USD 147 per barrel. Brent crude oil on Tuesday, February 1 was trading at USD 91.21 per barrel.

The price increase will put pressure on the already strained balance sheets of airlines.

Tuesday’s price hike is the third increase in a month. Rates were hiked by INR 2,039.63 per kl or 2.75% to INR 76,062.04 per kl on January 1 and then again by INR 3,232.87 per kl or 4.25% to INR 79,294.91 per kl on January 16.

These increases in the rate came on the back of two rounds of price cuts seen in December that reflected a drop in international oil prices during the second half of November and mid-December.

ALSO READ - IndiGo and SpiceJet shares experience turbulence as ATF price rises

Thereafter, international rates have firmed up, leading to the hike in ATF prices.

ATF price had last peaked at INR 80,835.04 per kl in mid-November 2021 before it was cut on December 1 and 15 by a total of INR 6,812.25 per kl or 8.4%. Jet fuel prices are revised on the 1st and 16th of every month based on the average price of the international benchmark in the preceding fortnight.

ALSO READ - ATF prices increase by 13.8% in a month, expected to hurt the aviation sector

This is despite a wild swing in international oil prices. Brent crude oil, the best-known international benchmark, was at USD 82.74 per barrel on November 5, 2021, before it started to fall and touch USD 68.87 a barrel on December 1.