Carriers hold ground on congestion surcharge

Rejecting a government directive to withdraw the contentious "congestion" surcharge imposed on all air tickets by today, airline companies have said there is no question of a rollback.

However, the carriers are divided on whether to openly defy the government or merely change the classification and adjust the Rs 150 paid per passenger in the basic fare.

Congestion surcharge is a charge passengers pay to airlines to cover the cost of aircraft burning extra fuel ahead of landing and take-off.

Hectic negotiations are on to reach a possible consensus.

"Though the Directorate General of Civil Aviation (DGCA) has asked us to review the congestion surcharge, we do not plan to lift it," Vijay Mallya, chairman and CEO of Kingfisher Airlines, told Business Standard.

However, Air Deccan and SpiceJet have decided to load the surcharge on the basic fare. Said G R Gopinath, CEO of Air Deccan, "The whole idea of having the surcharge was to draw the government's attention to the problem of congestion. In that we have been successful."

The Delhi High Court recently asked the ministry to look into the issue and respond, following a public interest litigation (PIL) challenging the imposition of the levy.

The congestion surcharge enables carriers to garner revenue of nearly Rs 300 crore. Airline executives say aircraft have to wait for 45 minutes to an hour to land at airports like Delhi, Mumbai and Bangalore. A single-minute delay for a small aircraft costs Rs 2,100 "� which is virtually what a passenger pays on a budget carrier between Delhi and Mumbai.

"Congestion is a fact at metro airports. So, we had to levy a congestion surcharge to meet the cost of additional fuel burnt. If the government insists on us withdrawing the surcharge, it could be adjusted under a new name," an airline executive cautioned.

Union Civil Aviation Minister Praful Patel has clarified that domestic airfares are not regulated by the government after the repeal of Air Corporation Act 1953 and airlines are free to charge fares.

In its bid to ease congestion at metro airports, the DGCA has announced a plan to impose a differential tariff for peak and non-peak hour operations.

It has also asked the government not to allow in the summer new services in peak hours at Delhi and Mumbai airports.