Saturday, March 24, 2007

Only Deccan, Paramount scrap congestion charge

New Delhi: Two airlines, Air Deccan and Paramount Airways, have decided to withdraw the Rs 150 per passenger congestion surcharge following a communication from the Directorate General of Civil Aviation (DGCA). But two others, IndiGo and GoAir, have refrained from clearly stating their stance in their response to the DGCA, while many other airlines are still debating whether they might continue levying the amount without actually naming it a “congestion surcharge”. The airlines were asked to respond by March 24.
“Since domestic air fares are not regulated by the government, airlines are free to decide on air fares. Many airlines are contemplating whether to drop the surcharge and, instead, charge the same amount by adding it to the base fare,” an airlines source said. Representatives of at least two airlines confirmed, on condition of anonymity, that such a move was being actively considered by their companies.
Air Deccan MD Captain G R Gopinath was categorical, “No, we are just dropping it.” Civil Aviation ministry officials admitted that it is the nomenclature used for levying the surcharge that has upset the government.
23/03/07 Raghvendra Rao/Indian Express
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