Ban on misleading fare ads by airlines
For the first time ever, the government has forbidden airlines from publishing misleading low basic fares.
By TNN |
NEW DELHI: For the first time ever, the government has forbidden airlines from publishing misleading low basic fares that do not include the high surcharges and taxes that will be levied on the fares. The aviation ministry and DGCA recently asked a leading low cost carrier (LCC), which had started advertising fares of Rs 99 with the steep add-ons amount finding no mention, to withdraw the campaign.
"Airlines should not give a misleading figure. When you will not sell a ticket for Rs 99, with surcharge and taxes of about Rs 3,000 will be added to it, why should you give a wrong picture to consumers? We have accordingly told airlines to desist from doing so as a clear picture must be given," aviation minister Praful Patel said.
Apart from a low passenger service fee of Rs 225, all other hefty surcharges are pocketed by airlines. On the basic fee, Indian carriers levy four different types of taxes and surcharge passenger service fee, fuel and congestion surcharges and transaction fee. The EU has banned airlines from hiding taxes, fees and surcharge while advertising, since last Saturday.
Patel, who has been leading a campaign for getting relief to airlines that has led to the recent abolition of 5% custom duty on jet fuel and a sharp reduction in ATF price, said the benefit must ultimately flow to consumers. "But this cannot be in the form of advertisement of misleading fares. If the required steps of rationalizing taxes are taken, the situation could stabilize in coming months and real benefits start flowing to the public," he said.
Interestingly, British Airways also recently advertised Hyderabad-London return fares of Rs 90 plus taxes and surcharge. DGCA chief Kanu Gohain said: "We will ensure that Indian carriers don't indulge in misleading campaigns.
The LCC has withdrawn its misleading campaign from its website too. However, doing so for foreign airlines is not possible under our bilateral agreements," Gohain said.
"Airlines should not give a misleading figure. When you will not sell a ticket for Rs 99, with surcharge and taxes of about Rs 3,000 will be added to it, why should you give a wrong picture to consumers? We have accordingly told airlines to desist from doing so as a clear picture must be given," aviation minister Praful Patel said.
Apart from a low passenger service fee of Rs 225, all other hefty surcharges are pocketed by airlines. On the basic fee, Indian carriers levy four different types of taxes and surcharge passenger service fee, fuel and congestion surcharges and transaction fee. The EU has banned airlines from hiding taxes, fees and surcharge while advertising, since last Saturday.
Patel, who has been leading a campaign for getting relief to airlines that has led to the recent abolition of 5% custom duty on jet fuel and a sharp reduction in ATF price, said the benefit must ultimately flow to consumers. "But this cannot be in the form of advertisement of misleading fares. If the required steps of rationalizing taxes are taken, the situation could stabilize in coming months and real benefits start flowing to the public," he said.
Interestingly, British Airways also recently advertised Hyderabad-London return fares of Rs 90 plus taxes and surcharge. DGCA chief Kanu Gohain said: "We will ensure that Indian carriers don't indulge in misleading campaigns.
The LCC has withdrawn its misleading campaign from its website too. However, doing so for foreign airlines is not possible under our bilateral agreements," Gohain said.
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