04 September, 2013

SpiceJet hikes fares by 30%, Jet, AI to follow suit

Airlines have started raising air fares by anywhere up to 30% with immediate effect following the massive increase in price of jet fuel, which is now at an all-time high. Low-cost carrier (LCC) SpiceJet raised both spot and advance purchase fares from Tuesday evening by over 25%. Jet Airways said it was planning a hike shortly.

As a result of the hike, spot fares of Delhi-Mumbai jumped to almost Rs 10,000 — up from the earlier Rs 6,000-7,000 range. A senior Air India official said the airline will take a call on hiking fares on Wednesday. While other LCCs did not comment, they are also likely to follow suit. Increased advance purchase fares mean there is no escaping higher prices even if one buys tickets early to fly in the coming festive season.

"Raising fares in the ongoing lean season does not make sense but we have reached a point when it is no longer possible for airlines to absorb the latest jet fuel price hike. Not passing on the burden to flyers will now mean a certain Kingfisher-like fate for airlines," said an official.

India jewel in crown of Microsoft's Nokia buy

India could be a jewel in the crown in Microsoft's $7.2-billion buyout of Nokia's devices and services business as Finnish company's relatively healthier operations here and underlying growth potential will make it one of the most-promising market for the US tech giant.

While Nokia has been struggling globally, pulled down by the smartphone onslaught of Android and Apple's iPhone, the company is a strong number two in India, though its share has been shrinking. Nokia till recently was the leader in the burgeoning Indian mobile phone market and has a 13.2% market share now in the second quarter of this year. Samsung, which snatched leadership from Nokia, has a 13.8% market share, according to IDC.

Experts feel that an encouraging response to the Windows-run Lumia (it has a 5.4% share since its launch in December 2011) and a good share in the low-priced feature phone market (with the Asha series) makes India an attractive market for Microsoft when it attempts to rebuild the brand.

India plays a big role in Nokia's global operations at present. It is the second-biggest phone market for the company globally, behind China, and is among the very few markets which are profitable.

Notwithstanding the run-in with the government over tax matters, where Nokia is understood to have expressed its frustration to the authorities, the company has a robust manufacturing presence in India where it makes phones not only for the domestic market but also ships them to around 150 countries. Nokia's factory in Chennai is the largest manufacturing base for the company globally, and by February this year, the unit has rolled out 800 million units. The company has invested $285 million in the facility. The response to Lumia, where Microsoft and Nokia have both staked their future, has been encouraging, though the device has failed to be a blockbuster.

India has emerged among the top three markets for the Lumia range globally and with the increase in offerings, the device may capture more numbers. "The performance of the Lumia is not bad, considering that it is a relatively new device and runs on the Windows platform, which is not as popular as Android," said Manasi Yadav, senior market analyst with IDC India.

Seeking VVIP status lands Delhi CBI judge in hot water

A Delhi judge's desire to get 'escort and pilot' vehicles and VVIP security during his nine-day private visit to his ancestral village in Punjab is sure to earn him more than a censure as the Supreme Court on Tuesday requested the Delhi high court chief justice to make him aware about "misuse of power".

Unfortunately for additional district and sessions judge Narender Kumar Sharma, who is also the special CBI judge at the Tis Hazari complex, the letter addressed to Punjab additional DGP (security) landed in the hands of a bench comprising Justices G S Singhvi and V Gopala Gowda.

Ironically, the bench headed by Justice Singhvi has been attempting to put an end to the rampant misuse of red beacons on cars and also the flaunting of security cover by some who use political connections to categorize themselves as persons facing threat to life.

When amicus curiae Harish Salve handed over the letter to the bench, it asked Punjab's additional advocate general Ajay Bansal whether the Punjab government had provided the security cover demanded by the Delhi trial court judge. The state law officer said it had not been provided this time.

The bench said in its order, "The registry is directed to send a copy of the note to the registrar general of the Delhi High Court who shall place the same before the chief justice or the judge-in-charge of protocol so that he may be made aware of the misuse of position by a judge of the higher judicial service."

The one-page letter written on August 26 detailed the tour itinerary of the additional district and sessions judge from September 1 to September 9, during which he wanted the ADGP to "make necessary security arrangements with pilot and escort" and accord him "VVIP security". The judge wanted security cover and escort and pilot vehicle from Shambu border from September 1 till he came back to Delhi on September 9.

Justices Singhvi and Gowda were peeved at the demand for "VVIP security" and said, "It will take many years for some people to give up the VVIP tag."

On the issue of security cover, the bench agreed with Salve that it has to be need-based and not a status symbol. "Security men should not be there to open the gates. Need-based assessment for providing security cover is to be done honestly by a professional agency, that is all," it said. Salve said he would provide his suggestions to solicitor general Mohan Parasaran in a week. The court asked the SG to respond to that and adjourned the hearing.

The bench said, "It will have to be uniform for the entire country. Of course, Jammu and Kashmir and other states which have problems because of elements coming in from other countries would be exempted from this exercise."

Fuel price hike: Motor strike in Kerala partial

The dawn-to-dusk strike called by motor workers' unions in Kerala on Wednesday demanding rollback of the recent hike in fuel prices evoked partial response across the state.

Initial reports from different centres said private buses, trucks, taxis and autos are largely keeping off the roads in most places, affecting the mobility of people. The unions in the state-run KSRTC have not joined the strike and it maintained services as usual. Private vehicles are plying without any hitch.

Police said no violence had been reported from anywhere. University examinations scheduled for the day have been postponed in view of the strike. Essential services like ambulances, milk supply and media have been exempted from the strike. The strike was called by the joint council of motor sector unions which included those affiliated to pro-left CITU and AITUC and pro-Congress INTUC.

BCCI puts CSA on notice, could host Lanka or Pakistan

The Indian cricket board (BCCI) has decided to play a severely truncated series of five matches - two Tests and three ODIs - against South Africa, a minimum requirement to fulfill ICC's Future Tour Programme (FTP) obligation.

The available window for this is between the first week of December and the second week of January. India will be on a short tour of New Zealand after that.

Sources said BCCI is hoping to hear from CSA before its AGM (this September end) to get the final confirmation on the series.

If CSA doesn't get in touch with BCCI on time, India is planning to invite either Sri Lanka or Pakistan (subject to clearance from home ministry) for a home series this December. This would mean an extra income of almost Rs 300 crore for the board through television and other title rights. Both the teams have been sounded out.

The CSA officials have so far been in touch with BCCI's working committee members who are not in a position to decide on the fate of the series. "They need to get in touch with the officials who are taking decisions in the board not the working committee members," a top BCCI official told TOI on Monday, hinting to a growing rift between BCCI and CSA.

Differences between the two boards came to the fore after CSA went ahead and appointed Lorgat as its CEO despite BCCI's strong objection.

West Indies agree to tour India in November

The West Indies Cricket Board (WICB) on Wednesday accepted India's invitation for a series in November which would allow senior batsman Sachin Tendulkar to play his milestone 200th Test in front of home fans.

"The West Indies Cricket Board today confirmed that the West Indies team will tour India in November. The tour will include a two Test series and three one-day internationals. The WICB and the Board of Control for Cricket in India agreed to utilise the mutually available window in November for the tour," the WICB said in a statement.

The tour was proposed by the BCCI's working committee in a meeting on Sunday and would precede India's trip to South Africa in December.

Tendulkar has played 198 Tests so far and the second Test of this series would take him to one of the several milestones he has touched in a glittering career.

For the West Indies, the Indian tour will precede the trip to New Zealand which is scheduled to commence on December 3 and conclude on January 15 next year.

"The full India tour schedule will be released following final agreement by the two boards," the WICB stated.

West Indies last faced India in a limited-overs series earlier this year in the Caribbean. India won that tri-nation series which also involved Sri Lanka.