Saturday, February 09, 2013

SC ban on transaction fee fails to cut airfares


The Supreme Court’s order banning transaction fee in airline tickets hasn’t made air travel cheaper. Agents continue to collect a service fee from customers. They contend though the court order restricts airlines from charging transaction fees, there is no ban on agents charging a fee for their services.
Also, now that airlines have withdrawn the fee component in fares, agents are free to charge any amount for their services.
In an order last month, the Supreme Court had said transaction fees, in any form, couldn’t be collected from passengers until the civil aviation secretary took a decision on the issue. In December, the Directorate General of Civil Aviation had issued a circular restraining airlines from collecting transaction fees, as this didn’t adhere to the Aircraft Rules, 1937. The Federation of Indian Airlines had moved the Delhi High Court against the circular. The court had asked the entity to file an appeal with the civil aviation secretary.
09/02/13 Business Standard
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