Airlines, travel agents clash over surcharges

Confused about a plethora of surcharges in the airline ticket despite basic fares remain the same? Airlines, without exception, are levying surcharges in different ways to bypass the commission payable to travel agents on increased fares. International airlines, in fact, have gone a step ahead by imposing Rs 300 per ticket as surcharge which cannot be attributed to any cost.

If a ticket to Ahmedabad-Delhi is booked for Rs 99 (in a low fare carrier), the customer will end up paying Rs 1,324. Out of Rs 1,225 extra amount, the passenger service fee (PSF) is fixed at Rs 225. Remaining cost is attributed to the fuel surcharge (Rs 750), congestion surcharge (Rs 150) and the transaction surcharge (Rs 100).

Again, the online booking is followed by a transaction surcharge. It is Rs 100 for budget carrier SpiceJet and Air Deccan charges Rs 50. GoAir, however, does it free.

Irked at this, a leading IATA recognised travel agent said: "Airliness want to skip travel agents' commission. For this, they are into new surcharges and in some case a hidden surcharge with no name."

Said Vijay Mallya, chairman and CEO, Kingfisher Airlines: "Surcharges are temporary in nature. These are to cover the additional cost incurred by the airlines. Under surcharge, there is no commission payable to travel agents and fares will lower in distribution system."

Recently, Union civil aviation minister Praful Patel had criticised airlines' decision to levy congestion surcharge of Rs 150 per ticket.

A leading low-fare senior executive said there is no difference in raising basic fares or levying surcharge. "Both of these measures would mean the same thing, except the change in names," he said.

When contacted the Travel Agents' Federation of India (Tafi) begged to be different. Its national general secretary, Ajay Prakash, said there is no justification in levying such surcharges and it misleads the public by advertising lowest fares, excluding these tax burden, by airlines.

Prakash further said,"International airlines are also imposing various surcharges. In every ticket there a hidden surcharge of Rs 300 which is not attributed to fuel, congestion or insurance."

A leading tour operator said the international airlines are lowering fares and increasing tax.

For example, international airlines are fixing different basic fares to various destinations from India and would be adjusted to tax bracket, "all surcharges, which are not legitimate government taxes, must be included in the published fare advertised by airlines," Tafi president Praveen Chugh.