Airlines say no to withdrawal of congestion surcharge

Domestic airlines are on a collision course with the civil aviation ministry over the issue of imposition of congestion surcharge. The airlines are planning to reject the ministry's request for withdrawing the levy imposed to meet increased fuel expenses due to delayed landings at major airports.

All domestic airlines, except Indian, have been levying Rs 150 per ticket as congestion surcharge since December last year.

Sources close to the development said the ministry would formally request the airlines to withdraw the surcharge at a meeting with the representatives of the Federation of Indian Airlines (FIA) on Tuesday. The meeting is likely to be presided over by Civil Aviation Minister Praful Patel.

"The ministry may look at offering the airlines more incentives for flying during non-peak hours. It has already decided to increase landing and navigation charges for peak hours and reduce them for non-peak hours to decongest the metro airports," an official in the ministry said.

The Delhi High Court recently asked the ministry to look into the issue. The court was hearing a case of public interest litigation (PIL) challenging the imposition of the levy.

But airlines say they are losing huge amounts due to congestion and will not withdraw the surcharge. "If they request us, we may drop the surcharge and add it to the basic fare. We are already selling tickets at lower than the cost price," a senior executive of Air Deccan said.

"Of course we can't remove the surcharge. Let's see what can the government offer us," said a senior executive of SpiceJet.

An airline executive said planes had to wait for 45 minutes to one hour to land. "If the congestion charge is lifted, we will be forced to add it to the basic fare. A one-minute delay costs Rs 2,100 for a small aircraft," he added.