Civil Aviation Minister & airlines on a collision course

Civil aviation minister Praful Patel and domestic private carriers are headed for a face-off with Kingfisher Airlines and Air Sahara rejecting his suggestion that the Rs 150 congestion surcharge on each ticket be withdrawn. Kingfisher was the first to announce the levy. India’s largest carrier, Jet Airways, said it had not received any official request for a roll back of the surcharge, while Air Sahara president Alok Sharma said he would not immediately withdraw the surcharge, though a final decision would be taken at an internal meeting. Low-cost carrier SpiceJet said that since levying the surcharge was an industry-wide move, it would abide by any decision taken by the recently formed Federation of Indian Airlines. The largest low-cost carrier, Air Deccan, is yet to impose the surcharge though it was seriously considering it. State-owned Indian Airlines has decided to drop the surcharge in keeping with the minister’s wish.

According to sources, the congestion surcharge may now be investigated by the Directorate-General of Civil Aviation. Earlier in the day, Patel expressed his displeasure over the levy and asked airlines not to impose it. He also said the government would look into the issue. He said airlines should increase fares rather than impose a surcharge. What seems to have irked Patel is the fact that the airlines already charge a Rs 750 fuel surcharge on every ticket. Domestic airlines had imposed the surcharge from December 1 to offset losses due to fuel burnt in the air while waiting for planes turn to land. Patel said since the delays were mostly at Delhi and Mumbai airports, carriers should deploy their planes accordingly. The airline industry is expected to incur losses of around Rs 2,200 crore a year. The congestion surcharge was projected to help industry recover nearly Rs 450-500 crore.

visit us @ http://www.silkrouteholidays.com