BASED on a Supreme Court order issued on January 23, India’s Directorate General of Civil Aviation (DGCA) has banned all airlines from charging passengers any transaction fees, a move that has been lambasted by airline ticketing companies in the country.
SpiceJet and IndiGo have since removed their transaction fees following the order. Transaction fees were introduced when airlines stopped paying commission to IATA-affiliated ticketing companies.
Subhash Goyal, president, Indian Association of Tour Operators, said: “We will discuss the issue with various travel (consultant) associations. I think we will have to go to court. If there are no airline commissions and no transaction fees, how will we survive?”
Rajendra Churiwala, director – eastern region, IATA Agents Association of India, agreed: “We have to charge a transaction fee since airline commissions to (airline ticketing companies) have been abolished. We cannot be expected to run a business without any profit.”
Added Rakesh Lamba, director of New Delhi-based Prakriti Holidays: “With no margins on flight ticketing and constantly reducing profits in the offline travel space, the smaller companies will fold up and go bankrupt. The DGCA must accept that there are many more small- and medium-sized travel companies than large-sized ones. It is a question of survival for us now.”
The airlines have approached the Delhi High Court to appeal against the DGCA order but have been directed to air their grievances with the Ministry of Civil Aviation instead.
