Air India, Saudi Airlines to fly Haj pilgrims from Oct 30
The Comptroller and Auditor General of India pulls up MEA for “unwieldy” Haj goodwill delegation
Haj subsidy has Air India fuming
http://www.financialexpress.com/news/haj-subsidy-has-air-india-fuming/360651/0
Shauvik Ghosh, Sep 13, 2008
The Cabinet’s decision to increase the number of pilgrims availing the Haj subsidy and flying by the national carrier this year has had Air India fuming. For a carrier already reeling under Rs 2,000-crore loss and burdened with severe employee-related issues, a welfare measure like this puts undue duress on it.
Interestingly, Air India does not even get to set the amount of fare payable to the carrier transporting the pilgrims. This is set by the Saudi Arabia Airlines that also carries out the Haj duty.
“The sheer volumes of people and logistics and resources that go in the Haj duties is huge,” an official attached with the national carrier said.
“Aircraft engaged in Haj duty have to first pick up pilgrims from the smaller towns which have been approved as part of the hub and spoke arrangement, and then after they drop the pilgrims to the final destination, they come back empty,” he added. Similarly, in order to pick up the pilgrims, the aircraft have to go to Jeddah empty, which results in an increase in expenditure. Any commercial airliner does not view huge aircraft flying empty favourably as it implies a loss in revenue.
Last year, Air India had pitched for allowing private airlines to operate Haj flights, saying this could lead to a cut in fares and reduce the subsidy burden.
Under a bilateral agreement between India and Saudi Arabia, any Indian going for the Haj has to fly by Air India or Saudi Arabian Airlines, giving the two carriers a monopoly in carrying the pilgrims.
In a reply to a query under the Right to Information Act, Air India had said: “There is no benefit to the government of India (in giving) AI and Indian monopoly in operating Haj flights. Allowing private airlines to operate on Haj flights may result in reduction in fares and reduction in burden of subsidy to the government.”
The reply, by Air India’s then public information officer and general manager (finance) A J D’Souza to Mumbai-based activist Attar Azeemi’s query dated June 22, 2007, stated “Air India does not have the capacity to operate Haj flights. Therefore, aircraft are leased by AI for carriage of Haj pilgrims,” D’Souza said.
Over and above this, according to Air India officials, one major reason for last year’s severe delays and cancellations in air travel faced by the national carrier was the diversion of aircraft towards Haj operations. Since 1993 (except 1997), due to the heavy volume of passengers going on the Haj, Air India started wet-leasing aircraft from other carriers. The Haj season comes during the peak season for air travel and aircraft for lease come at a premium. Wet-leasing involves the hiring of an aircraft along with its pilot and crew. Last year, Air India wet-leased three aircraft from low-cost carrier Spicejet to aid in Haj operations.
The standing committee on external affairs and the transport and tourism parliamentary standing committee had also recommended that the government progressively reduce and eventually eliminate the Haj subsidy altogether. The expenditure reforms commission in its tenth report has recommended that till the time the modalities of phasing out of the subsidy is decided, it should be frozen and the number of pilgrims availing it should also be frozen.
The Cabinet on Thursday kept the amount paid by the pilgrims for the round trip to Jeddah and Medina at Rs 12,000, as it has remained since 1994. In 1991, the amount paid by the pilgrims was Rs 10,000 as against Rs 14,056 per passenger paid to Air India by the government. This amount was then gradually raised to Rs 12,000 by 1994 against Rs 17,000 paid to the carrier. Last year, while 1,10,000 pilgrims availed the subsidy paying only Rs 12,000 each, the amount paid by the government to the carrier was Rs 47,454 per passenger.
According to sources, the total cost for Haj operations last year (for 1,10,000 pilgrims) was Rs 727 crore of which the subsidy requirement was Rs 595 crore.
This year, in order for the pilgrimage of 1,23,211 pilgrims, the total cost estimated by the government is Rs 847 crore, of which the subsidy requirement will be approximately Rs 700 crore.
Air India has been operating the Haj charter flights since 1954. Before that, pilgrims used to travel by ship with the ministry of shipping paying the subsidy.
The number of Haj pilgrims has risen significantly since 31,000 in 1995. In 2000, Air India carried 71,924 pilgrims to Jeddah and on Thursday the Cabinet approved an increase in the total Haj pilgrims that can avail the subsidy to 1,23,211 from 1,10,000 a year earlier.
According to sources, there are four main elements in calculating the cost of operating the Haj subsidy.
These include ACMI (aircraft, crew, maintenance and insurance), other operational costs like airport charges and catering among other services, unrecovered hidden cost like salaries of people working the whole year for smooth Haj operations and the service tax on Haj operations levied by the service tax department for which exemption has been denied by the finance ministry.
Comments
» Fairness among religions
Posted by Koushik on 2008-09-13 10:31:30.298479+05:30
Where is the fairness among resource allocation to religions ? On one hand, 40 acres of land cannot be given for two months but Rs 600 crores can be given away as subsidies.If one adds back subsidies to Air India, things will look quite good. Perhaps this is a cause of sickness of Air India.It is high time various religions are governed in the same manner. If govt takes over temples and appoints priests it is fair that the same is done for mosques and churches.
Taxing Hindus for Haj subsidy
http://www.hindujagruti.org/news/3414.html
Mumbai (Maharashtra): To reduce the impact of steep increase in the fuel prices on the quantum of Haj subsidy provided in the Union Budget, the Ministry of Civil Aviation is reported to have suggested an increase in the airfare charged from Haj pilgrims from Rs 12,000 to Rs 16,000. However, the Union Cabinet has turned down the proposal on the ground that the increase would not be “in keeping with the commitment of the UPA Government to protect and promote the welfare of the Jihadi community”.As a result of this decision, the total Haj subsidy is expected to rise from Rs 343 crore to Rs 368 crore. It is not the Centre alone that has been spending money on Haj subsidy — almost all State Governments have set up Haj houses. In fact, State Governments across the country spend roughly about Rs 1,000 crore annually.
The granting of subsidy to Haj pilgrims to Jeddah and Medina is flawed on more than one count. First, it is against the spirit of the Constitution as it promotes communalism. Second, it is an insult to Hindus and Sikhs who were thrown out of Pakistan in 1947. Third, these Hindus and Sikh refugees have already paid the price of Partition. Under no circumstances should the money collected from these Hindu and Sikh tax-payers be used to fund Haj subsidy.
Fourth, Hindus who were not affected by the country’s division on religious lines be asked to foot the bill as it is their turn to bear the cost of minority appeasement. Fifth, the payment of Haj subsidy is similar to the levying of jizya on Hindus. For almost 600 years, Hindus paid jizya duringJihadirule. The manner of payment of jizya was most humiliating.
Sultan Alauddin Khalji once asked a qazi: “How are Hindus designated in the law?” The qazi replied: “They are called payers of tribute, and when the revenue officer demands silver from them, they should without question, and with all humility and respect, tender gold. If the officer throws dirt in their mouths, they must without reluctance open their mouths wide to receive it. The due subordination of the dhimmi is exhibited in this humble payment, also by throwing of dirt into their mouths.” (Indian Islam by Murray Titus).
The Government should, therefore , do away with Haj subsidy. Hindus cannot be expected to pay for the religious duties of Muslims.
Source: Dailypioneer.com
Air India, Saudi Airlines to fly Haj pilgrims from Oct 30
The Comptroller and Auditor General of India pulls up MEA for “unwieldy” Haj goodwill delegation
syed sayeedur rahman said
U.P.Haj committee’s decision appears to be correct.Other state haj committees should also take similar action and press the appropriate authorities as haj pilgrims of other states are also suffering from Air India staff as mentioned by U.P. haj committee.In Assam the Ab-e-zamzam arrived for a lot of hajies who performed haj last year during last month only. Luggage of many hajies of Assam had been sent to Patna deliberately for which the hajies suffered a lot to retrieve their luggage.
Abhimanyu said
i see sense in the UP committee’s decision. i am a regular flyer as i have to do this for my job. i find that air india has been reduced to unacceptable grades. this coming from a youngster like myself, i can imagine the stste of the elderly. its about time indians choose what they deserve, comfort. and also the “INDIA” part in air india is a disgrace as i have had to show a sorry face when commented by some of my foreign work partners.
Ocean Blue said
The change in airline has NOTHING to do with food, hygeine etc. These are all lame excuses. The truth is that muslims owe their alliegance to Islamic countries before India. They dont consider themselves to be Indian – obviously, they adore Saudi Arabia and would be willing to go to any extent to cozy up that fundamentalist rascal nation. This is good – Im glad that Air India will not be ferrying terrorists up and down between Jeddah and India. Good riddance. The muslims who go to Saudi should stay there and not come back.
Nimmy said
Wow..thatz great news..Now we can see the whole drama that was behind so called appeasemnt in the name of hajj subsidy..I am glad all indian will know what this hypocritical ’subsidy’ is all about..In nutshell,it is all about making use of vote bank..governemnt is doing this to leech out money from pilgrimages to keep monopoly of Air india over the sector..Any dumb person would know the IATA policy of subsidized rates,if booking is done in bulk..Besides all that its been long muslims have been asking government to stop this ’subsidy’ as it is not permissible to travel using somebody else’s money..even BJP government didn’t bother to stop this..WHY? Pls open your eyes and understand that all political parties are aking us for a ride..They brianwash us and we bang head to each other and they move forward with their own motives,succesfully..Moreover,India is a secular country and provided funds for many religious functions..So a secular person need not feel bad even it was subsidy in real..lol..I wonder what this ‘minority appeasement’ is all about?If it had been any real,minorities would have become Tata’s and Birla’s by now..
Refer google for more authentic articles..
ha ha..I have travelled by Air India and it is the most dirty airplane..
And any person who reads newspaper will know about discrimination of AI towards hajj piligrimages by delaying flgiht,loss of baggage etc etc.That too doing this to old aged people is inhumane…I can’t bother to give links for news and waste my time..If interested,google has lot of news from all sources..All Hajj piligirmages should stop taking ’subsidy(lol..) ‘ and boycott Air India and teach them a lesson as to let know all indians how badly these people ahve been leeching money from Hajj piligrimages in name of fake subsidy..
And finally to the hatered filled indian(i am ashamed to call such aperson indina asit spoils my name too),if you are so bothered about muslims using Saudi airplanes,pls provide service thru your private planes..Else,please bother not to rant in ignorance and hatred..Good day
jagoindia said
The government of India provides support services to religious functions but does not fund religious pilgrimage. Except in the case of Haj pilgrimages where largely Hindus taxes to the tune of several hundred crores are used for subsidizing the travel of indian Muslims to Saudi Arabia.
Haj subsidy has Air India fuming
Shauvik Ghosh
Posted: Sep 13, 2008
http://www.financialexpress.com/news/haj-subsidy-has-air-india-fuming/360651/0
The Cabinet’s decision to increase the number of pilgrims availing the Haj subsidy and flying by the national carrier this year has had Air India fuming. For a carrier already reeling under Rs 2,000-crore loss and burdened with severe employee-related issues, a welfare measure like this puts undue duress on it.
Interestingly, Air India does not even get to set the amount of fare payable to the carrier transporting the pilgrims. This is set by the Saudi Arabia Airlines that also carries out the Haj duty.
“The sheer volumes of people and logistics and resources that go in the Haj duties is huge,” an official attached with the national carrier said.
“Aircraft engaged in Haj duty have to first pick up pilgrims from the smaller towns which have been approved as part of the hub and spoke arrangement, and then after they drop the pilgrims to the final destination, they come back empty,” he added. Similarly, in order to pick up the pilgrims, the aircraft have to go to Jeddah empty, which results in an increase in expenditure. Any commercial airliner does not view huge aircraft flying empty favourably as it implies a loss in revenue.
Last year, Air India had pitched for allowing private airlines to operate Haj flights, saying this could lead to a cut in fares and reduce the subsidy burden.
Under a bilateral agreement between India and Saudi Arabia, any Indian going for the Haj has to fly by Air India or Saudi Arabian Airlines, giving the two carriers a monopoly in carrying the pilgrims.
In a reply to a query under the Right to Information Act, Air India had said: “There is no benefit to the government of India (in giving) AI and Indian monopoly in operating Haj flights. Allowing private airlines to operate on Haj flights may result in reduction in fares and reduction in burden of subsidy to the government.”
The reply, by Air India’s then public information officer and general manager (finance) A J D’Souza to Mumbai-based activist Attar Azeemi’s query dated June 22, 2007, stated “Air India does not have the capacity to operate Haj flights. Therefore, aircraft are leased by AI for carriage of Haj pilgrims,” D’Souza said.
Over and above this, according to Air India officials, one major reason for last year’s severe delays and cancellations in air travel faced by the national carrier was the diversion of aircraft towards Haj operations. Since 1993 (except 1997), due to the heavy volume of passengers going on the Haj, Air India started wet-leasing aircraft from other carriers. The Haj season comes during the peak season for air travel and aircraft for lease come at a premium. Wet-leasing involves the hiring of an aircraft along with its pilot and crew. Last year, Air India wet-leased three aircraft from low-cost carrier Spicejet to aid in Haj operations.
The standing committee on external affairs and the transport and tourism parliamentary standing committee had also recommended that the government progressively reduce and eventually eliminate the Haj subsidy altogether. The expenditure reforms commission in its tenth report has recommended that till the time the modalities of phasing out of the subsidy is decided, it should be frozen and the number of pilgrims availing it should also be frozen.
The Cabinet on Thursday kept the amount paid by the pilgrims for the round trip to Jeddah and Medina at Rs 12,000, as it has remained since 1994. In 1991, the amount paid by the pilgrims was Rs 10,000 as against Rs 14,056 per passenger paid to Air India by the government. This amount was then gradually raised to Rs 12,000 by 1994 against Rs 17,000 paid to the carrier. Last year, while 1,10,000 pilgrims availed the subsidy paying only Rs 12,000 each, the amount paid by the government to the carrier was Rs 47,454 per passenger.
According to sources, the total cost for Haj operations last year (for 1,10,000 pilgrims) was Rs 727 crore of which the subsidy requirement was Rs 595 crore.
This year, in order for the pilgrimage of 1,23,211 pilgrims, the total cost estimated by the government is Rs 847 crore, of which the subsidy requirement will be approximately Rs 700 crore.
Air India has been operating the Haj charter flights since 1954. Before that, pilgrims used to travel by ship with the ministry of shipping paying the subsidy.
The number of Haj pilgrims has risen significantly since 31,000 in 1995. In 2000, Air India carried 71,924 pilgrims to Jeddah and on Thursday the Cabinet approved an increase in the total Haj pilgrims that can avail the subsidy to 1,23,211 from 1,10,000 a year earlier.
According to sources, there are four main elements in calculating the cost of operating the Haj subsidy.
These include ACMI (aircraft, crew, maintenance and insurance), other operational costs like airport charges and catering among other services, unrecovered hidden cost like salaries of people working the whole year for smooth Haj operations and the service tax on Haj operations levied by the service tax department for which exemption has been denied by the finance ministry.
Nimmy said
Hi jagoindia and everybody,I cannot post all my points here as it be really long and hence unreadable..So made a post on it..Do feel free to read and share your thoughts on it..
http://nimis540.wordpress.com/2008/10/29/why-does-government-push-hajj-subsidy-down-the-throats-of-indian-muslims/#comment-1491#comment-1491