Bangalore, February 4
Financial constraints have come in the way of cash-strapped Kingfisher Airlines’ (KFA) entry into the global airlines’ grouping “oneworld”.

The DGCA had asked KFA officials last month to focus on recapitalisation and fix a timeline for it. The latest fiasco indicates that efforts of KFA for “recapitalisation” (infusing fresh capital) have not been working.

KFA sprung a surprise when it announced in December last that it would become part of oneworld, one of the world’s three largest global airline alliances, with effect from February 10, 2012. By joining oneworld, the debt-ridden KFA was also hoping to make a financial turnaround.

However, a joint statement issued by KFA and oneworld late last night said KFA’s entry into the global airlines’ alliance was being put on hold to give KFA time to strengthen its financial position.

“These are turbulent times for the airline industry. We have been working closely with Kingfisher over the past months and it has become increasingly clear recently that the airline needs more time to resolve the financial issues it is confronting before it can be welcomed into oneworld”, Bruce Ashby, CEO of oneworld, has been quoted to have said.

Kingfisher Airlines chairman Vijay Mallya said, “In light of many priorities centred around Kingfisher Airlines’ recapitalisation efforts, we felt it prudent to defer our entry into the alliance for a little while. This will allow us the opportunity to focus on the issues at hand and we look forward to being part of the oneworld alliance very shortly”. The development came a day after the International Air Transport Association suspended Kingfisher due to non-payment of dues.

“Oneworld” covers 12 of the world’s prominent airlines and 20 affiliated carriers, like American Airlines, British Airways, Cathay Pacific, Finnair, Japan Airlines, Qantas and Royal Jordanian. Together, these airlines operate 10,000 daily flights to more than 750 destinations across the globe.

Had KFA successfully pulled off its entry into oneworld, it would have become the only carrier from the subcontinent to join the alliance.

Chandigarh, February 4
With intermittent gaps in production all through 2011, Honda Siel Cars Limited (HSCI) is hoping a robust growth this year. Buoyed by the response to its recently launched hatchback, Brio, the company hopes to regain its position among top car makers.

Though the company makes petrol cars only, it is now looking at developing diesel engines. Honda’s R&D centre in Japan had recently showcased 1.6-litre diesel engine at the Tokyo Motor Show. This engine has been developed for the Honda Civic, and will be initially launched in Europe. Though HSCI has no immediate plans of launching the diesel variants of its cars in India, company officials said with the demand for diesel cars rising, market forces would dictate its entry into the Indian market.

Talking to The Tribune here today, Jnaneswar Sen, senior VP, sales and marketing, HSCI, said in order to retain its growth trajectory, the company introduced the Jazz and City with minor changes, and also reduced their prices.“But with the rising gap in the prices of petrol and diesel, it would not be long before we decide on bringing in our models with diesel engines,” he added.

Sen said last year had not been very good for the car maker because of tsunami in Japan and floods in Thailand, which brought down the production of its various models in India by almost 50 per cent.

It may be mentioned that 23 per cent of parts used in Honda City and Jazz are imported from Japan and Thailand while 20 per cent of parts in Brio are imported from Thailand. Between April 2011- January 2012, HSCI manufactured 34,555 units in India, as compared to 51,044 units manufactured in the corresponding period last year.

He, however, said with production in Thailand and Japan resuming, they, too, had started manufacturing all models again and were hopeful of clearing the backlog by March. “But 2012 will be the year of consolidation for us. We are not targeting any new launches, but are optimistic that Brio will become the second pillar of our business here, after the City,” he added.

New Delhi, February 4
Prices of gold tumbled by Rs 600 while silver fell sharply by Rs 1,590 a kg on the bullion market here today due to heavy selling by stockists which took cues from weak global markets. Gold plunged by Rs 600 to trade at Rs 28,040 per 10 grams.

Silver dropped by Rs 1,590 to Rs 55,650 per kg triggered by a steep fall in overseas markets. — PTI

In 21st century, when highly sophisticated gadgets are commissioned to regularise systematic operations of flights of varying types of aircraft - jumbos, small planes and helicopters - some of the Indian airports are still manned by not technically qualified air traffic controllers (ATCs) but by 'firemen' and the like.

Recently, this deplorable situation occurred at a prayer hub of Tirupati airport, where VVIPs, industrialists, politicians, bureaucrats, actors and sports stars regularly land and takeoff for ‘puja’ and blessings from the ‘divine gurus’.

Tower, in an aviation terminology, is flight operations' 'heart'. Just as a human body's sustenance and survival is controlled by heart beat, the ATCs are entrusted with the responsibility of preventing collisions, regularising separation of aircraft, allotting altitude, informing pilots about runway/weather conditions, providing wind shear and also arranging systematic operations of landings and takeoffs smoothly.

A very vex and frightening situation arose as Jet Airways' ATR-72, with more than 70 passengers on board, sought an urgent 'guidance' from the ATC before landing at Tirupati airport. Amidst agonising minutes, the commander got a message that no ATC had reported for duty and the man, who was operating the tower, was a mere fireman. Left with no option, he depended upon his 'information' and touched down safely. He heaved a sigh of relief as the aircraft landed without any untoward incident. "It was a very ticklish situation", the commander was reported to have said, adding: "It was shocking that no ATC was on duty during busy hours".

According to reports, Tirupati handles minimum seven scheduled flights in a day in addition to several non-scheduled helicopter services.

Why such an important airport should be left unattended. The facilities at the airport are minimum and the commanders have to depend upon their own skill and experience to operate flights here.

Tirupati is not the only neglected airport. There are many airports which continue to be mere air-fields.

Q: I purchased a HUDA plot through GPA registered at MP. The plot was registered by Tehsildar and transferred by HUDA authorities in 2007. My query is can any complication arise in future due to transfer of plot through the GPA registered by the practice of dealers registering in other states in previous years.

— Satish Sharma

A: Yes, you would face an insurmountable difficulty as and when you intend to sell the plot or give it as a gift. The Supreme Court has ruled that w.e.f. 11.10.11, General Power of Attorney cannot be treated as a registered sale deed which is the only legal tool for property transactions. Consequently, the ownership of the plot still remains with the person who has sold the property to you and therefore, you will not be able to claim the benefit of long-term capital gains.

There were many property transactions taking place without getting registered with stamp duty valuation authority by using ‘Agreement to Sell’ or ‘Power of Attorney’. FA09 has plugged this loss of revenue by amending Sec. 50C for computing tax on capital gains as well as on gifts requiring to take the value adopted or assessed or assessable for payment of stamp duty where land or building gets transferred without getting registered with stamp duty valuation authority and executed through agreement to sell or PoA.

Q : I work in a government firm and have some doubts about tax benefits.

1) I got injured in an accident six months ago and got operated. I want to know whether I can get any tax benefit. If yes, then under which section?

2) My second question is whether we can take tax benefit of HRA and home loan at the same time. Again, under which section?

— Kiran Kene

A: Yes, you can get third-party accident benefit from general insurance if it was a car accident. As regards income tax, if the accident has resulted in making you a handicapped person with at least 40% disability, you can claim a deduction u/s 80U.

As far as home loan tax benefits and HRA going hand in hand is concerned, this issue was discussed in the previous week’s column. Here is a recap.

HRA and home loan provisions are two different issues as far as the Income Tax Act (ITA) is concerned and one does not influence the other. So, you may own a flat or any number of flats, this will, in no way influence the HRA deduction that you are entitled to.

There is no specific income tax section number as such that expressly allow this. However, note that in income tax language silence signifies approval. In other words, the Income Tax Act need not expressly allow something - lack of express disallowance also signifies intention of approval. HRA is dealt with by Sec. 10(13A) read with Rule 2A. Interest on housing loan is deductible under Sec. 24. Nowhere does it say either in Sec. 10(13A) or in Sec. 24 that the two are mutually exclusive.

The authors may be contacted at wonderlandconsultants@yahoo.com