Friday, December 21, 2007

Tax component: Kingfisher, Jet issued show cause notices

New Delhi: The Director General of Civil Aviation (DGCA) has today issued a show cause notice to Jet Airways and Kingfisher Airlines asking them as to why action should not be initiated against them under paragraph 15 of Schedule XI to the Aircraft Rules, 1937, for not furnishing the details of the charged tax components in their domestic airline tickets, as this was in violation of the conditions for operations annexed to the Permit to operate Scheduled Air Transport Services.
It may be recalled that the Government had on 4th December 2007 asked all airlines to clarify as to what charged tax components in their tickets were. They had also been asked to provide confirmation whether all the taxes shown by them in their tickets/website had been deposited with the Government. The Airlines had been asked to submit the record of the taxes thus deposited. In a letter dated 4th December 2007 the Director General of Civil Aviation had said that perusal of the fare shown on the airlines website had revealed that the airfares had two components – the basic fare and the taxes. However, it was not clarified as to whether components like Passenger Service Fee and Fuel Surcharge were included in the basic fare or had been clubbed under the heading of “taxes”.
21/12/07 Press Information Bureau (press release)
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