Carriers seek govt review on ticket refund

New Delhi: Indian carriers, reeling under jet fuel costs and slowing passenger growth, have decided to write to the civil aviation ministry to review the recently-mulled government directive that airlines should refund the passenger service fees, congestion surcharge and fuel surcharge in case of ticket cancellations. These three components make up for around 60-80 per cent of the total ticket fare.
This was one of the decisions taken in the meeting held by the Federation of Indian Airlines (FIA), a lobbying body of the Indian carriers, yesterday in Mumbai. According to sources, the federation has also decided to include cargo carrier Blue Dart on its board.
Currently, the carriers only refund the basic fare which could be as low as Re 1.
"The civil aviation secretary had verbally assured us that the Civil Aviation Requirement (CAR) related to refundment of ticket fares would be reviewed, keeping in mind the current industry scenario. However, since the reviewed guidelines have not come yet, we have decided to formally write to the ministry," said an FIA member, and low cost carrier executive.
Indian carriers had told the ministry that the new CAR which required them to refund more than 60 per cent of the total ticket fare would mean a huge drain on their revenues at a time when the industry was meant to make huge losses.
Also, the inclusion of Blue Dart, another key decision taken in the meeting, would help the lobbying body bring up issues related to cargo to be taken up before the government.
10/08/08 Anirban Chowdhury/Business Standard

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Categories: Indian Aviation- In General Aug 2008