When aircraft operators defied government

Rejecting a government directive to withdraw the contentious "congestion" surcharge imposed on all air tickets by Wednesday, airline companies have said there is no question of a rollback.
However, the carriers are divided on whether to openly defy the government or merely change the classification and adjust the Rs 150 paid per passenger in the basic fare.
Congestion surcharge is a charge passengers pay to airlines to cover the cost of aircraft burning extra fuel ahead of landing and take-off. Hectic negotiations are on to reach a possible consensus.
"Though the Directorate General of Civil Aviation has asked us to review the congestion surcharge, we do not plan to lift it," Vijay Mallya, chairman and CEO of Kingfisher Airlines, told Business Standard.
However, Air Deccan and SpiceJet have decided to load the surcharge on the basic fare.
The Delhi high court recently asked the ministry to look into the issue and respond, following a public interest litigation challenging the imposition of the levy. The congestion surcharge enables carriers to garner revenue of nearly Rs 300 crore.
22/03/]07 P R Sanjai & Surajeet Das Gupta in Mumbai/Business Standard/Rediff

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Categories: Airports Mar 2007, General Aviation Mar 2007