Sunday, December 23, 2007

Jet, Kingfisher face cancellation of permits

Jet Airways and Kingfisher face cancellation of operating permits as aviation regulator directorate general of civil aviation (DGCA) on Thursday demanded to know the reason for not replying to a notice seeking explanation for clubbing fuel surcharge with taxes.
The DGCA which had sent a notice to the two carriers earlier this month, has shot off another notice to the CEOs of both companies. The companies are advised to show cause as to why action should not be initiated against them under paragraph 15 Schedule XI to the Aircraft Rules, 1937, the regulator said.
The relevant section states that DGCA could cancel or suspend the permit for any specific period if it felt there was sufficient ground to do so. The two airlines were directed to send their reply by December 19.
The show cause notice, issued by DGCA’s director of regulations K P Maggon, said his office has not received any reply yet. This is in violation of the terms of operation annexed to the permit to operate scheduled air transport services.
Following objections by passengers, DGCA had on December 4 asked the two airlines to clarify whether they collected fuel surcharge and congestion charge from passengers in the name of taxes.
23/12/07 Economic Times
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