Air Deccan drops term “congestion surcharge” and retains fare
28 Mar 2007
New Delhi: Air Deccan will "withdraw" the controversial congestion surcharge of Rs150, levied on each passenger ticket from Wednesday. The move will not impact air fares, however, as the amount will revert back to the basic fare charged per ticket.
Industry sources indicate that other private airlines are likely to move in tandem with Air Deccan on this issue.
According to Air Deccan sources, the surcharge of Rs150 was levied in an effort to draw the government's attention to the problem of congestion at airports in Delhi and Mumbai. Company officials said that each minute's hovering costs any company Rs2,000 as fuel-burn in a small plane like the A320. Airlines, they point out, accordingly moved Rs150 from the basic fare and listed it under a separate head of congestion surcharge.
As discussions with the government on this issue are already over, the airlines will remove the term and revert the amount back to the basic fare. Therefore, no reduction in fares will result.
The issue had attracted much attention after the Delhi High Court issued a notice to the civil aviation ministry asking it to explain why common passengers should be made to pay for administrative failures.
