Fuel surcharge to be clubbed with base air fare

Mumbai: India’s aviation regulator, Directorate General of Civil Aviation, or DGCA, has asked domestic and international airlines to abolish fuel surcharge and include it in the base fare, two officials with the regulator said.
The move would push up costs for airlines as the 3% commission that they pay travel agents on base fares would now have to include the fuel component as well. Currently, airlines list fuel costs under the ‘YQ’, or tax category, which is excluded from the 3% commission paid to travel agents on base fares.
“Airlines are showing the fuel surcharge under the ‘YQ’ head, which is meant for taxes paid to the government. But in the case of fuel surcharge, no taxes are paid to the government,” said a senior official at DGCA. “Therefore, airlines were asked to club both basic fare and fuel surcharge.”
As a first step, DGCA has asked airlines to start listing a detailed break-up of fares for their passengers.
“Airlines are falling in line and we believe airlines will soon club fuel surcharge with basic fares,” the official said.
The direction was given at a meeting with airlines on Wednesday, chaired by director general of civil aviation, Nasim Zaidi.
22/08/09 P.R. Sanjai/Livemint

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Categories: Indian Aviation- In General Aug 2009