Corporate Newsletter October 2023

News at a Glance:

Abu Dhabi to launch the new Terminal A in November:

Terminal A is more than just a new terminal - it's a new gateway to Abu Dhabi and the world where travellers are provided unparalleled travel experiences, seamless connectivity, remarkable hospitality and exceptional comfort.

Starting November, Etihad Airways and other airlines will start a phased transition of their flights to Terminal A - the new, state-of-the-art home in Abu Dhabi International Airport. The entire move is expected to be completed by mid-November.

In this transition phase in the first two week of November, travellers are advised to check their flight information carefully before going to the airport because flights MAY depart from or land in a different terminal to the one shown on their booking confirmation. A shuttle bus service will operate for guests transiting in Abu Dhabi who may need to transfer between terminals. There's no need to leave the airport.

Terminal A is located less than 20 minutes from Yas Island - the entertainment capital of Abu Dhabi - and about 30 minutes from the city centre and major attractions like the Sheikh Zayed Grand Mosque.

Akasa Air to place three-digit aircraft order in the next 75 days:

Akasa co-founder and CEO, Mr Vinay Dube made an announcement to the press on 17th Oct that the airline will be placing a three-digit aircraft order in the next 75 days. The 20-aircraft-strong airline's current order book comprises 56 more Boeing 737 MAXs.

Seeking to put the pilot exodus behind him which led to some flight cancellations in July and August, Dube said the airline, which had 330 pilots in April has added another 120 pilots in the six months between April and September and now has 450 pilots on its rolls.

Having received the nod from DGCA to fly overseas after adding the 20th aircraft to its fleet, Akasa is preparing to start international flights in December and has received the nod to fly to Saudi Arabia, Qatar and Kuwait.

Akasa, which started flying in August 2022, hopes to end this calendar year with 22 aircraft (currently has 20) and the financial year with 25 aircraft and next fiscal with about 40 aircraft.

Air India rebranding: New uniforms by Manish Malhotra

Air India has collaborated with the celebrated fashion designer Manish Malhotra to redesign Air India uniforms for its frontline staff, which includes cabin crew, cockpit crew, ground personnel, and security staff. The airline aims to roll out the new uniforms for its 10,000-plus employees by the end of 2023.

This strategic move is part of Air India's larger modernisation program and rebranding effort, reflecting a dynamic, progressive, and vibrant India on the global stage. Towards this goal, the first of Air India's six Airbus A350-900 aircraft is expected by the end of this year, with the remaining deliveries scheduled through March 2024.

Air India Express & Air Asia India unveil common branding:

The new 'Air India Express' branding was unveiled on a new Boeing 737-8 aircraft on Oct 18. This will be a common branding for Air India Express & Air Asia India as part of a planned move to operate Air India's low cost arm under the name of 'Air India Express'. The refreshed brand identity features a modern look with bold, bright colours and a new aircraft livery. The new tagline of 'Fly As You Are' is meant to differentiate the airline from others by making meaningful connections across places, peoples and cultures, curating frictionless and digitally enabled travel experiences to provide best in class value, and offering services with a sense of unique Indian warmth.

IndiGo starts charging fuel charge on all flights:

The country's largest carrier, IndiGo has announced the imposition of 'fuel charges' on all passenger tickets on domestic and international flights from October 06, 2023 to battle rising fuel prices in the last three months.

Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance. The fuel charge will be added to the passenger's ticket cost which can lead up to an increase of INR 1,000 on any flight ticket.

Aviation Fuel accounts for a substantial portion of an airline's operating expenses, taking up almost 40 per cent of the operational cost.

New TCS rule on Overseas Tour Packages from October 1, 2023

The Central Government had initially announced the implementation of new Tax Collection at Source (TCS) rates from 1st July 2023, as per the Union Budget 2023. However, concerns about the unpreparedness of reporting systems and the increased compliance burden led to a postponement of the new TCS rates to 1st October 2023 which is now in effect.

In the Union Budget 2023, the tax collection at source (TCS) for foreign remittances under the Liberalised Remittance Scheme (LRS) saw a significant hike from 5% to 20%. This change was meant to apply to various transactions, including international travel and foreign remittances, but not for education expenses abroad or medical reasons

Revision in TCS on LRS Transactions from 1st October 2023 for various types of remittances:

Note:

• Threshold limit of Rs. 7 lakh per FY for LRS as mentioned in point no. (1), (2) & (3) is a combined limit on all categories of LRS payments, through all modes of payments, regardless of the purpose.
• Threshold limits as mentioned in point no. (1), (2) & (3) are remittances/forex drawls availed under LRS across all Authorised Dealers (ADs).
• LRS remittance processed by the Bank as an Authorised Dealer towards air travel ticket booking or hotel booking by a resident individual customer would be subject to TCS as per the rate provided as mentioned in point no.(3) of the above table.
• (*) Threshold limit for Rs. 7 lakh per FY for purchase of Overseas tour program package is independent of the threshold limit mentioned in point no.(1).

India Travel Updates:

Indigo announces new timings for its flights between Pune & Rajkot and Vadodara:

Indigo has announced new exclusive flights from Pune to Rajkot effective 7th Nov with updated timings as per below:

International Travel Updates:

Air France increases flights to India:

Effective December 02, 2023, Air France will offer 3 additional flights between Mumbai and Paris-Charles de Gaulle (CDG) taking it to 10 weekly flights on this route.

These extra flights will be operated with a combination of A330 (Business: 36 Premium Economy: 21 Economy: 167) and A350 (Business: 34 Premium Economy: 24 and Economy: 266) aircrafts.

The schedule of the additional flights are as follows:

In addition, effective January 17, 2023, Air France will increase flights operations between Delhi and Paris-CDG to 10 weekly.

Emirates to offer Premium Economy on Mumbai and Bengaluru routes:

Premium Economy offering will be available to customers flying to and from Mumbai and Bengaluru, starting on 29th October 2023. Emirates will operate its newly retrofitted flagship A380 aircraft to Mumbai & Bengaluru, featuring the new Premium Economy seats, as well as refreshed interiors that provide an elevated experience in all other cabin classes.

Travellers flying on the Dubai-Mumbai route can book Emirates Premium Economy seats on EK500/501, while customers flying on Dubai-Bengaluru route can book their flights on EK568/569 to enjoy the industry's latest premium economy product with luxurious seats, more legroom, and an elevated dining experience.

Emirates daily flights offering the Premium Economy experience to/ from Mumbai and Bengaluru will operate as follows:

Uganda Airlines to begin India operations to Mumbai:

Uganda Airlines has commenced three times a week service between Entebbe and Mumbai from October 07 using the Airbus A330-800 neo aircraft. With this new connection, a non-stop air link between India and Uganda will be re-established after more than half a century.

The schedule of the three times a week service is as follows:

The flight schedule has been designed to connect with Uganda Airlines' existing network, accommodating passengers who wish to continue their journeys beyond Uganda.

Azerbaijan Airlines announces flights between Baku and Mumbai:

Azerbaijan Airlines has announced thrice-a-week direct flights between Baku and Mumbai with effect from October 29 as per the below schedule:

Odyssey in the News:

Odyssey was in the news with two articles published in the Times of India where our CEO, Nikhil Thakurdas shared his views.

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