Tuesday, 17 April 2012

A 'subsidised' Hajj!?


This refers to the limiting of 'Haj subsidy' by the govt. to a person to 'only once in a lifetime'. First up, it is a welcome step to scrap any ‘subsidy’ which benefits only a section of the population of a country. Secondly, given the financial condition of Air India which enjoys monopoly in Haj flight operations (govt. only a day before approved a Rs. 30,000-crore bailout package for AI), it is a step in the right direction. But the point to be examined is, whether there exists that much of subsidy which the govt. boasts of? First, all the Hajis have to compulsorily travel by Air India or Saudi Arabia Airlines. If International private players are allowed to operate Hajj flights for the selected Hajis, flight costs could automatically come down. Jet fuel costs the most in India and as a result the higher costs of operation.


The govt. claims that it offers a subsidy of Rs. 47,454 per passenger while the Haji pays Rs. 12,000. But it is astonishing to note that ordinarily a return ticket for Delhi-Jeddah-Delhi costs only Rs. 22,693! Now the Haji pays Rs. 12,000 by himself, so an effective ‘subsidy’ of Rs. 10,693 only as compared to Rs. 47,454 as stated by the govt! Now this much of subsidy can be expected considering the quality of the carrier as compared to other international carriers and also the compulsion of travelling by Air India only!

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