What are the Reasons for Jet Airways closure, and what will be the Future of the brand?

Jet Airways, once the top-notch airline in India, is now facing problems, and before looking into it, let’s start with a background of the brand first. The company came into being when the upper middle class and elite class prefer air travel only, and because of this, Jet Airways did extremely well and becomes the first choice for the passengers till 2005. The strategies of the brand were to provide excellence of services, but they charge as per their demand, and customers pay them without hesitation, so the business was doing great from the era of the 1990s till mid-2000s.

Jet Airways

What happened after 2005? What are the reasons behind Jet’s Closure?

Later in 2008, when the financial crisis hit the market, the Indian aviation market declined as it was an emerging market at that time, and the passengers dropped, due to which companies had to reduce the prices. But, when the fuel prices increase, all the brands have to raise the costs, and Jet did the same.

Things changed after 2005 when LCCs started to take over the place of Jet Airways with their customer-oriented pricing policies, and Jet found it difficult to compete with the new brand because of the high cost it charges throughout its career, due to which, the company’s business model affected badly.

Even though Jet did the same as other aviation brands, however, the former privately-owned firm had to face other obstacles, too. Firstly, it acquired Air Sahara at the time of crisis, and it had to pay a hefty sum of money. Secondly, other low-cost airlines started rising in India’s skies, and Jet couldn’t do anything but started losing its passengers. It was a tough time not only the company’s shareholder but for the workers, too. Jet needed to reduce its operational costs, but instead, it fired 1900  employees as the brand was under the burden of heavy debt, and that created another crisis for the company. Workers came out on the streets to protest against Jet, and then Naresh Goyal had to re-hire workers again. Things seemed better, but there were much more to come.

The Roller-coaster journey of Jet Airways

Later in 2009, pilots of the airline came out on the roads for protest, because the company didn’t let them create their union, and the owner solved this issue after a great hustle. In the same year, Jet launched another subsidy, Jet Konnect, and it was also a low-cost airline like JetLite (Air Sahara). The newly launched airline did a good business in starting years, but the company was still in debt, and it has to low its cost not only for the full-length carrier but for the subsidies, too. So, it was best only for short-term profit as the company flourished its business by 20% in India.

In 2012, the government of India allowed foreign airlines to take up a share in Indian airlines, and then Etihad lined up with Jet Airways by buying 24% share of the company. Later in 2013, Jet decided to compete with its national rivals; SpiceJet and IndiGo. Both airlines were low-cost carriers, and because of them, he also reduced the cost, but it wasn’t a smart move as the brand kept the high running costs. The year 2013 was a bit better for Jet, but 2014 was a complete disaster because of debt.

In 2015, Jet Airways again managed to reduce its losses, and the year 2016 was a good financial year, too. Things again changed in 2017, when IndiGo started dominating the Indian skies because of low-cost business strategies, and the international aviation market was also not ready to give the brand any chance. Meanwhile, fuel prices surged massively, and Jet started earning good again for a while. However, many investors refused to invest in the brand because of the chairman, Naresh Goyal. They wanted him to resign, but he stubbornly stayed there to save his seat. At last, he stepped down in 2019, but Jet becomes a failure now as many investors leave the company one by one, their fleet size reduced or almost finished in less than a year.

Etihad Airways

Future of the Brand

Right now, there is only one hope for the brand, and that is Etihad Airlines. If Etihad purchases Jet Airways, it still has to pay its $1.2 billion debt, which is massive, and Etihad is also facing financial crises, so the future of Jet is not so bright.

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Qatar Economy

HOW QATAR FOOTBALL WORLD CUP CAN HELP THE COUNTRY AND NEARBY COUNTRIES

FIFA 2022 World Cup Qatar, sounds like a massive breakthrough for not only Qatar but for the wider MENA region, and it would revolutionize the sporting development economy, too. The state’s goal is to be a global center of excellence for all aspects of the sport. With the benefits extending across Football maniac already exist in Arab countries, it will boost to another level, and will also make a positive bonding between Qatar and its neighboring countries.  Here are the following impacts that Fifa will have on Qatar and other MENA countries.

Patching up with the neighbors

Recently, Gianni led Fifa summit in which he presented the offer to include 16 more teams in the tournament. Qatar has to share some games with neighboring countries because of limited stadiums, and it is difficult to manage lots of teams by only one nation. Back then in 2017, Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt cut relations with Qatar because of it allegedly supporting terrorism. This tournament would not only reunite the countries together but also end amid tensions with Saudi and other regions.

Qatar Stadium

Healthy Culture Exchange

There are millions of football fans all around the earth, and the game unites people together on one platform to support the best teams and players. As Arab countries often face criticism just because of terrorism, this tournament will help Qatar and these countries to prove themselves as one of the most hostile people in the world.

Economic Growth

As Qatar is going to host one of the massive tournaments of the Middle East in the sporting sphere for the very first time, hopefully, it would have a significant impact on the Qatari economy before, during, and even after the events. High revenues and investments are speculating in sporting venues, transports, hotels, broadcasting, and leisure facilities will give a boost to the economic growth, and it will also generate fixed-term employment in the region as well.

Rise in Investment

As per July report 2013 by Deloitte, Qatar will likely to invest around $200bn, out of which, $140bn will spend on transport infrastructure including a new airport, roads, and the Doha Metro. While $20bn will reserve for tourism. It will not only help in uplifting the FDI, but the domestic investment will increase, too. It will also boost the economy.

 

More Bids to More Events

FIFA World Cup may open the path of their super leagues of the tournament in Qatar as there is a chance that Doha may win the bid for Olympics as it has the resources. In January 2015, Sheikh Saoud bin Abdulrahman Al Thani, the secretary-general of the QOC said, Qatar would continue to offer for prime international sporting events. It means, bidding for hosting matches from foreign Football leagues, but as Sheikh Saoud said, “Qatar is open to any sport.”

Qatar’s potentiality to organize tournaments has already proved, and the state is supporting clubs, athletes and events from around the globe on a week-to-week basis is increasing rapidly. One of the challenges will be the development of interest in athletics among all Qataris, with the aim of improving health and welfare, and securing more medals and trophies for local athletes.

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Chana Demand and Supply

What is the demand for Chana (Chickpea) Commodity, and what Companies are dealing with Chana?

Chickpea, popularly known as Chana, is one of the most desiring pulses in the Subcontinent. The highly essential Rabi crop is sown during the time of October to November, but it harvests from February to March. India is one of the largest users of Chana, and the ruling producers are Madhya Pradesh, Karnataka, Rajasthan, Andhra Pradesh, and Uttar Pradesh.

The Demand of Chana Commodity

As of February 2019, the subnormal growth demand of Chana and a proportionate supply of it force the market to lower the trade level. According to the statistics, Chana (Kanta) price was at INR 4,200 to 4250 a quintal, while on the other hand, Desi Chana rate was INR 4,150 in the Indian markets. When it comes to Vishal Chana, per quintal price rate was 4,100 Indian rupees.

When we look at the Stats, we know that since the start of December 2018, the future of Chana has seen under pressure. As per the reports of the National Commodities and Derivative Exchange (NCDEX), the price level for Chana commodity fell about 6.7 percent till date.

The reason for low price rate of Chana commodity is because the output came in higher during the last two years by producing and importing a high amount of the product. As per the records, India imported over 31 lac tonnes of the commodity in the past three years. Moreover, the supply (100 tonnes) raised more than the consumption (70-75 tonnes), which results in the fall of the Chana demand.  

Companies that are dealing with Chana (Chickpea) Commodity

India is the biggest importer of Chana, and it imports Kala Chana, Split Chana, and other types of the product from many countries like Pakistan, Australia, Myanmar, United Arab Emirates, Kenya, etc. As e-commerce is popular more across the globe, you can buy any variety of Chana from one of the largest online store, indiamart.com. Moreover, you can also buy from another accredited e-commerce website, Amazon. If you don’t want to buy from the site, then go for the Indian domestic markets, and you will get high-quality Chana from there.

What are the famous Chana Dishes in India?

In India, there is a diversity in the dishes of Chana, and people love to make different types of it with the use of local masala (Spices). Whether you like Kala Chana, Chana Dal, Chana (Chickpea) Curry, White Chana, or others that can serve with either rice or Roti (tortilla), you can find the variety of the dishes in almost every traditional restaurant of the country.

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What happened to Venezuela, and what challenges its Economy is facing?

South American country, Venezuela, was one of the most secure and stable economies in the world, and then the nation got some self-serving politicians in power, who shook the country’s foundations by creating hyperinflation in the country. Isn’t it scary to live in a place, where the annual rate of inflation is 1,300,000% on average? Isn’t it horrible to deal with corruption, social unrest, capital controls, self-serving politics, a global economy bust, and price-fixing? Indeed it’s quite a terrible situation, and Venezuela is sadly going through with all the negative stuff that can destroy any economy’s growth.

What happened to Venezuela?

It all initiated in 1998 when Hugo Chavez came into the government, and he raised the oil prices, which only rose government finances and allowed the socialist regime to boost the spending and borrowing. The conflict began in 2003 when the labor protest at PDVSA, which is the state’s oil company. The strike influenced the production of oil negatively, and it also crippled the entire Venezuelan economy as the Gross Domestic Product fell by 27% within the first four months of the year 2003.

Chavez instituted some measures like nationalization of many industries, installation of import controls, the introduction of a currency peg, and the establishment of subsidies on food and other consumer goods, which were enough to raise the inflation crisis. When the crude oil price collapsed in 2014, the Venezuelan economy faced another challenge; the country’s economy shrank 30% from the duration of 2013 to 2017, which is a drastic change. Moreover, in 2018, the Real GDP was fell by about 18 percent.

venezuela street - man

The ongoing President, Nicholas Maduro first won the elections in April 2013 after the death of his mentor and predecessor, Chavez. He elected twice for six years, and in his first term, Venezuelans blame him for ruining the economy by choosing fiscal deficits rather than promoting welfare spending.

What are the challenges the Venezuelan economy is facing?

Venezuela is one of the prosperous countries that have oil reserves, and its economy is highly dependent on crude oil exports. When Maduro came into power in 2013, then he didn’t have any backup policies for future fluctuations in the oil prices. He didn’t know how to save its country from the collapse of crude oil prices in 2014, which led the economy to move downward, and people have to face hyperinflation.

The hyperinflation caused many Venezuelans to flee the country, and as per the UN report, almost 3 million people have moved to other countries in the last three years. Those, who are still living in it are facing the challenges of scarce resources, poor healthcare system, and the shortage of clean water, electricity, toiletries, and high unemployment.

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How the War Affects the Stock Market in a Negative Way?

You might astonish how war can affect the stock market, but we can explain with recent events. Well, they both are entirely two different things, but war is one the crucial issue when it comes to making money in the economy. The stock market reacts differently to different variables, but war can entirely make it shut down. For instance, in the time of World War 1, the stock market closed for four months throughout the world after the war started.

Cyber War Monitoring

No matter which part of the world whether it is US-Korea, US-Iraq, India-Pakistan, or any other country have conflicts or have a war-like situation, it does affect the stock market negatively. In the time of the war, people start selling their bonds and shares and make fewer investments as there is a state of instability, and they start investing in companies like weapons and gun powder, etc.

To determine the influence of the war, let’s look into how the wars that have happened recently and have shaken up the stock market. Many people have the impression that the recession of the 2000s started with terror attacks on 11 September 2001, because after that incident the events have dropped down sharply.

North Korea Testing Missiles

Geopolitical tensions occur due to North Korea, which may trigger a war-like situation that eventually impacts other stock markets across the globe. According to the report, if North Korea tests its ballistic missile, then there will be a sharp decline in its stock market.

India-Pakistan Air Conflict

There is no doubt that the stock market has affected by war jitters. In the time of peace, we both neighbors have a strong rally, but the market immediately moves to worse because of Indo-Pak Air Strike, and there had been a decline of 200 points in Sensex and 10800 falls in Nifty. While on the other side, Karachi gets the shock of a 4% loss in its stock Exchange tank. Even after the Kargil war, there was a decline in the stock market of both countries.

Overall Trend

Well, wars are of different categories and make sure which one you want to highlight. A war in some cases can be beneficial for the economy take, for instance, the US markets, when the United States decided to go back to Iraq in 2003 we’d currently been in a 2-year bear market, and once the invasion of Iraq started, the markets began to bullish again. And we went on to have a 4-year bull market, the World War, which is a whole different ball game, and it was generally bad for economies particularly for those involved in the actual war. For instance, look at Germany, it was only between 1933 and mid-1939 that the country prospered, but once the war declared in early fall of 1939, their economic prosperity was no more. Now on the other hand, once a war is over this generally generates a new bull market as hope comes back to investors.

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Technical Indicators of Retail Traders

A professional approach and rich quick mentality, the delicate blend of both is required to make the outstanding trading setup for retail traders. Every successful trader has a different style and mind setup. But in the end, the art is ultimately left up to you, and we can only help you with science.

Trading Indicators and Tools

The most successful trading setup includes price action & a mix of 5 different tools which are listed as follows:

  • Trend indicator

The best trading setup for retail traders is using trend indicator that means not going against the trend, and it makes the job more difficult. It’s preferable to pick moving average to get an overall idea of the Trend.

      1. Try to use multiple moving averages to get a good understanding of small, mid and long term trend.
      2. Using Gann recommended moving averages will help you further.
  • Momentum indicator

In retail setup, you might have heard that trend is your friend, but not all the time, because it’s only your pal till it lasts. Trend’s trading is quite easy, but knowing whether it would stay consistent or not is the essential aspect of the trading setup. We may have seen some beginners complaining about reversing back of trends after entering the business. Therefore, checking the trend’s strength is more crucial momentum indicator that works best for the job.

  • Multi-time frame charts

The use of multiple times frames makes your trading setup much more efficient.

  • Time cycle tool

While considering the price factor, most traders neglect the essential element, which is equally responsible for stock movement is a time cycle. Stock market charts consist of two axes: Price is plotted on the x-axis, while time plotted on the y-axis. Professional traders also take into account time axis which gets them more than 50% edge on retail traders. Time-action is as much crucial as price action.

  • Support/ Resistance levels

To plot this, one should use Fibonacci levels and look for its confluence with Gann levels or pivot points. Higher the confluence of multiple levels, support or resistance level will be stronger.

Moving Average Example

Please, practice these concepts by selecting only 3 to 5 stocks, and keep paper trading in them daily. You will feel amazed at how these tools work like wonder.

Keep Yourself Up To Date | Are You A Trader

Top 10 Best Stock Brokers India

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How to make Crores (Millions) using SIP Model

Systematic Investment Plan (SIP) allows investors to invest a fixed amount in a mutual fund scheme regularly. Many people didn’t know about it, but its popularity has increased in the past few years, and now, every wise person is ready to secure his/her future through SIPs. Let us tell you how you can make crores (millions) using SIP model.

SIP for Professionals

How SIPs got recognition among individuals?

SIPs are getting famous from the last few years because of demonetization, and individuals unveiled the benefits of SIP and mutual funds. Though many investors were already familiar with the Systematic Investment Plans, still individuals found out more about it from Amfi’s Mutual Fund Sahi Hai campaign.

SIP is a tool that encourages investors/traders to invest consistently in a mutual fund scheme, and it also makes it possible for you to decrease or increase the investments in those schemes over time. It also discourages lump sum investment so that salaried traders can invest, too.

Why should you invest through SIPs?

We can give you some reasons for investing in mutual funds through SIP.

Firstly, it will bring financial stability and discipline in your life. Secondly, you can invest regardless of market index level, etc. Moreover, by using the SIP model, your investments will automatically invest in a scheme without doing anything.

How to make Crores using SIP model?

Mostly the returns on SIP equity mutual fund are in between the range of 12 to 18%, but let’s assume the average SIP returns in 20 years will be about 12% annually. As per the assumption, you will get 1.9 crores in 20 years by investing 20,000 per month. Isn’t it great to know that you will get returns in millions after spending just twenty thousand monthly? We are sure it is, but let us tell you how can this happen. Well, your actual investment in twenty years would be 20 years = (20,000 Rs) x (12) (investment per annum) x (20) (investment over a period) = 48 Lacs. The returns on your actual investment will give you 1.9 crore with a fixed amount of 20,000 per month, but you can even increase your investment every six months or annually as per your suitability.

Moreover, you can also create a portfolio of mutual funds by investing 20,000 monthly through SIP, but make sure to not have lots of them (only 2 to 4).

You can invest by choosing any of Large Caps Fund, Balanced Fund, Mid & Small Caps Fund, Multi-Cap Fund, and more. There will be plenty of combinations for you to invest your 20,000 per month, so pick wisely.

Enquiry Form For SIP Investment with Zerodha or ICICI Securities or Kotak

Different Types of Mutual Funds in India

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JAWA Advantageous and Disadvantageous in Indian Land

 Jawa Bikes are popular for their exquisite nature, their make, different models and also their efficiency. Well, it’s said everything has its bad and good side and Jawa Bikes are no exception. Here are the positives and negatives of Jawa Bikes.  Jawa and Jawa 42 are direct rivals to the Classic 350.

Positives

Jawa Motor Cycle Inda

 

  • Light Weight

 

         These bikes not only got the power, but they also are lighter hence making it easy for riders to enjoy.                These bikes are a preference of many people because of this feature.

 

  • Suitable Seat Height For most Indians

 

The height of the Bike matters in order to accommodate the height of the people likely to buy them. With a seat height of 765mm, Jawa Bikes are made to captivate an enormous number of buyers, even short people would find these bikes to be suitable for them.

 

  • Jawa Bikes have more power

 

Jawa and Jawa 42 have more power compared to the rival bikes such as Classic 350.  Powering both the motorcycles is the same 295cc, liquid-cooled, single cylinder engine that puts out an incredible 27bhp of max power and 28Nm of peak torque.

 

  • Good Looks

 

Jawa has inspiring looks which are eye-catching and quite convincing for the buyer not to fall in love with them. The good looks attract many.

Negatives

 

  • Not-so-comfortable seat.

 

Most reviewers have tabled a complaint on the seats of Jawa Bikes. The seats have a hard-cushioning which is not comfortable especially if the rider is going for long highway rides.

 

  • Missing rear disc brake & dual-channel abs

 

These Bikes get 280mm front disc brakes and single-channel ABS set up and are being praised by most reviewers for their stopping power.

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Crude Oil Mining Image

Crude Oil Price Analysis 2018-2019

One of the necessities of the universe right now is nothing, but crude oil, which is unrefined petroleum that formed of hydrocarbon deposits along with different organic materials.

It refines to make products like gasoline, petrochemicals, and diesel. Since it’s a very crucial need of the modern era, so let’s check out the crude oil price analysis of 2018-2019. It will also be beneficial in predicting the future of oil prices.

Crude Oil Mining Image

Crude Oil Analysis 2018-19

When we take a glance at the first half of the year 2018, we can see the fluctuations in the price of crude oil. As per the statistics, the price was 69.08 U.S dollars per barrel, which fell a bit and become 65.32 in February 2018. In March, it rose a bit to 66.02 dollars per barrel, and then you could see the further rise in the Brent crude oil price for April and May (72.11 and 76.98 respectively). The oil price for the last month of the first half of 2018 recorded as 74.4 dollars.

The year’s second half, however, brought more positive results with it as the overall Brent crude oil prices were low, but there were also some exceptions like 78.89 in September and 81.03 in October. The last month’s price recorded as 57.36 dollars per barrel, which shows the decrease in the price level for Brent Crude Oil.

Comes from the Brent oil field, which located in the North-East of the Shetland Islands (part of the United Kingdom), the Brent oil is among the lightest crude oils consists of a low content of Sulphur. The notable point is it refined into gasoline and middle distillates in North-West Europe.

The other crucial benchmark includes West Texas Intermediate (WTI), and it also rose close to 30% between the time duration of January and October, from 60 dollars to 78 dollars. Keep in mind WTI is quite essential for North America, and Dubai Crude dominates the Asian Market for oil.

Crude Oil Forecast

US Crude Oil Production and Imports

As per the forecast, the average crude oil price per barrel will be 73.7 dollars in 2019. The predictions depend on the supply and demand’ interaction in the international market for oil. After the modest growth in 2018, the expectations are high that the nominal price of West Texas Intermediate will increase to 50 dollars per barrel, and the Brent price will rise to 53 dollars per barrel in 2020. Moreover, the World Bank also expects the overall increase in all three Crude oil benchmarks (Brent, WTI, and Dubai Crude) even after 2020. The expectations are $70 would be the average rate per barrel by 2030.

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Future of Gold Price Demand and Supply

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