Chennai, May 30
In a move that is likely to trigger price war in the aviation industry, new low-cost airliner AirAsia India today said its maiden flight on Bangalore-Goa route on June 12 will cost just Rs 990 including taxes.

"Our collective goal is that every Indian should have an opportunity to fly. We have our plane parked here already", AirAsia India CEO Mittu Chandilya said.

Earlier, Chandilya had said the airlines' fares will be about 35% lower than the current market rates.

"June 12 would be the first flight. It will be A320 (aircraft). The timing of the flight will be around 3pm from Bangalore to Goa, and then back from there (Goa) around 6'0 clock," Chandilya said, adding the airline is not looking at operating from Delhi and Mumbai for now.

AirAsia India, a joint venture between Malaysian carrier AirAsia, Tata Sons, and Arun Bhatia's Telestra Tradeplace, was granted flying licence by aviation regulator DGCA earlier this month after 9-month-long wait and various legal hurdles.

In anticipation of the airline's entry into the Indian market, no-frill airlines such as SpiceJet and IndiGo have forced all other carriers to offer discounted fares over the past few months.

AirAsia India's offer of Rs 990 including taxes is likely to now force other carriers to review fares on this sector on the same day, which now cost around Rs 5,000 one-way.

To a query, on the airline total load factor, he said: "I would love to have 100% load factor. But 60% will be reasonable. For the fare we are going with Bangalore-Goa. It will be Rs 990 inclusive of taxes," he said.

Asked about other airlines mulling reduction in airfares, he said: "Frankly, my view on that is it will help companies to rationalise costs. That is the way, I look at it." On the expansion plans, he said the airline during the current financial year would connect 10 cities across the country with 10 aircraft. — PTI

Airline's plan

* As per Air Asia India’s CEO, their fares would be about 35% lower than the current market rates

* The airline is not looking at operating from Delhi and Mumbai for now

* AirAsia offer is likely to force other carriers to review fares on this sector

* At present, fares on this sector cost around Rs 5,000 one-way

* During the current financial year, the airline would connect 10 cities across the country with 10 aircraft

New Delhi, May 30
The Finance Ministry has kicked off preparations for the Union Budget to be presented in early July by initiating pre-Budget consultations.

The Revenue Secretary today held pre-Budget meetings with industry representatives. Sources said at least a month’s time is required for the Budget-making exercise. The UPA government had presented an Interim Budget in February in view of the General Election.

Industry body CII has pitched for extending the short-term stimulus package, early rollout of GST and rationalisation of subsidies in the first Union Budget under Narendra Modi-led government.

The industry chamber put forth its agenda for growth and economic revival in a pre-Budget consultation meeting with Revenue Secretary Rajiv Takru and other Finance Ministry officials.

"CII has strongly urged for early implementation of GST as a surefire means of lifting investor sentiment and putting the Indian economy back on track. We have also suggested the extension of short-term stimulus package involving reduction of excise duty on certain goods up to March 31, 2015," CII said.

The CII also asked the government to slash the excise duty rate from the current level of 12% to 10% across-the-board to revive demand in the economy. It further suggested that a 10% rationalisation of subsidy expenditure could result in savings to the tune of Rs 25,000 crore.

To provide a fillip to manufacturing, the industry chamber recommended investment allowance as an incentive for capital formation in the manufacturing domain.

PHD Chamber of Commerce and Industry has asked the Finance Ministry to raise the limit of medical reimbursement for salaried persons to a minimum level of Rs 50,000 as also hike the deduction ceiling of interest on housing loan to a minimum of Rs 5 lakh per annum, besides raising the present income tax limit for taxation purpose to Rs 2.5 lakh per annum.

Industry’s recommendations

* CII has pitched for extending the short-term stimulus package, early rollout of GST and rationalisation of subsidies

* It has asked the govt to cut the excise duty rate from 12% to 10% across-the-board to revive demand

* CII suggested that a 10% rationalisation of subsidy expenditure could result in savings to the tune of Rs 25,000 cr

* The industry chamber also recommended investment allowance as an incentive for capital formation in the manufacturing domain

New Delhi, May 30
The economy has shown a marginal improvement over last year but remains subdued with GDP growth for 2013-14 at 4.7%, below the official estimate of 4.9%. It grew by 4.6% in the Q4 of FY14, mainly due to a decline in manufacturing and mining output.

GDP growth in 2013-14 was less than the Central Statistics Office (CSO) advance estimate of 4.9%. The picture was better on the fiscal deficit number at 4.5% of GDP in FY14, lower than 4.6% projected in the revised estimates.

The outperformer was the farm sector which saved the day for the economy. Farm output expanded 6.3% in January-March compared with 1.6% growth in the same period of 2012-13.

Industry said the numbers are disappointing and is now looking towards the new government to revive the economy. CII said the GDP figures are disappointing, however, going forward, it expects some pick-up in investments as the de-clogging of the project pipeline would help revive demand in the economy.

Ficci said the new Modi government has enthused the investor sentiment. 

Farm sector saves the day

* Growth in FY14 was less than the Central Statistics Office's advance estimate of 4.9%

* Manufacturing sector declined by 1.4% in Q4 as against growth of 3% a year ago

* Farm output expanded 6.3% in January-March as compared to 1.6% growth in the same period of 2012-13

Singapore, May 30
An Airbus A-380 of the Singapore Airlines (SIA) today took off from here for Delhi, marking the maiden flight of the superjumbo to India. Another A-380 would take off later for Mumbai, as part of SIA's plans to launch daily flights of this large fully double-decker airliner that can carry 471 passengers in a three-class configuration.

The Southeast Asian carrier became the first global airline to launch the operations of the superjumbo to India, after the government lifted restrictions on the flights of the 'big bird' this January.

Major Gulf carrier Emirates would become the second airline to deploy these Airbus A-380s from Mumbai in July. The SIA's aircraft has a total seating capacity of 471 seats with 399 in economy, 60 in business class and 12 First Class suites.

"The A-380 has received an overwhelming response from the Indian travelers. This reiterates our belief in the Indian market and their aspirations to travel the world which has been the key factor for Singapore Airlines' growth story in India," SIA general manager David Lau said at the launch of the superjumbo operations to India. — PTI

Frankfurt, May 30
German industrial giant Siemens plans to eliminate about 11,600 jobs around the world as part of a major restructuring, a company spokesman said today.` "These jobs will be cut," the spokesman said, confirming remarks made by chief executive Joe Kaeser to a conference of investors and analysts in New York.

The spokesman said some staff may be redeployed in company "divisions that will be reinforced," without providing further details.

"It is not yet clear how many people will be recommended for other positions," he said, adding that the company was in talks with the works council on the restructuring.

Some 7,600 positions will be axed as part of a company overhaul announced by Kaeser on May 7. — AFP