Business Standard
Thursday, May 24, 2012
Sponsored by  
drived banner
drived banner
  Advanced Search
RSS
Content Guide
Follow us on  
||||Economy & Policy||||| 
 Section Home | News Now | Today's Paper | Features & Analysis | Politics & Public Affairs | Q&A | Columnists | BS Says
Home > Economy & Policy Live Markets | Commodities
 

Patel wants airlines to club fare, surcharge
Mihir Mishra / New Delhi Jan 17, 2010, 00:59 IST

Airlines and travel portals may soon have to publish one fare that includes the basic fare and the fuel surcharge. At present, airlines and portals first give the basic fare and add the fuel surcharge and the airport and user development fees levied by the government when the ticket is purchased. The fuel surcharge levied by the airlines often exceeds the basic fare.

Union Civil Aviation Minister Praful Patel has asked the Directorate General of Civil Aviation (DGCA), which regulates the sector, to ensure that airlines and travel portals incorporate the fuel surcharge in the basic fare. The airport and user development fees will be kept out of it. “The minister has asked DGCA to ensure that the airlines and portals charge only one fare,” said a source in the ministry.

Patel has taken this step after he received complaints from fliers about the huge difference between the basic fare advertised by airlines and the actual cost of the ticket. In the past too, DGCA has asked the airlines to publish one fare. But it had no effect. With the minister getting into the act, it would seem that the practice could finally change.

Airlines have said that they disaggregate the components for the convenience of the customers, and portals said they simply show whatever they receive from the airline.

"We started giving one fare but we got a lot of queries on the break up. So, we got back to the disaggregated structure. But DGCA is supreme, and if it asks us we will get back to the earlier plan," said Mohit Srivastava, head of online sales, makemytrip.com, an online travel portal.

"We are showing whatever we receive from the airlines. Also, the recommendation was that the fuel surcharge should be shown in a way so that the people know it is being charged by the airline and not the government, and that is what is happening," said Bhawna Agarwal, founding general manager (airlines business group), Yatra.com, another travel portal.

Around 60 per cent of the air tickets sold in the country are booked online.

New Ipad Application :Business Standard's all new IPad App
Click here to download for free
Arrow Other Stories     
- NSE loses trillion-dollar market cap tag, BSE a whisker away
- Facebook shares fall for fourth day
- MCA orders scrutiny of Reebok India's books
- REC posts higher quarterly profit at Rs 762 cr
- Auto industry fumes over petrol price hike
  Read Business news in 
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- Journey on, We are by Your Side. Click here to know more
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- The Best Seller is Also the No. 1 in Mileage. Click here
- Watch The Film Here. Click here to know more..
- Leader in Passenger Car & Automobile Tyres. Click here
- 1 billion in saving for Unilever without any tangles.
- Learn How One City is Running on FOOD SCRAPS.
- One Partnership Endless Possibilities. Click here to know more
- Helping doctors detect diseases earlier, saving costs & extending lives.
- 36 Lakhs can get you a pool of Luxuries. Click here
- Which is the best plan for your daughter
- Check out the TRUE COLOURS of your Stocks, Now for FREE!
- One of the leading business schools in the world.Know More
Sorry, comments to this story are closed
Latest Messages
Table for Two
  Now available at Special price
  Rs.280/- Only

  Buy Now
BS POLL
UPA 2 has completed three years. How do you rate its performance?  Read the story
  Good
  Average
  Bad
Submit
Most Popular
Read
E-Mailed
Commented
   
- Petrol price up Rs 7-plus in sharpest rise ever
- UPA allies, Opposition flay petrol price rise
- Telecom industry warns of mobile tariff hike
- Rupee breaches 56/dollar amid feeble RBI action
- Social media a new form of entertainment for GenY: Survey
 
 More  
New Ipad Application
 Business Standard's all new IPad  App
 Click here to download for free
  Hot Searches  
 
Creamy layer |  Air India |  GAAR |  DRDO  |  Black Widow |  Satyamev Jayate |  Akshaya Tritiya |  Aamir Khan |  IPL |  IVRCL |  Ertiga |  Sarfaesi Act |  Vodafone |  Imagine TV |  Transfer pricing |  Rupee |  Kingfisher Airlines |  Silver |  Provident Fund |  income tax refund |  Budget 2012 |  iPhone |  Reliance Industries |  SEBI |  BSNL |  BSE |  NSE |  Mukesh Ambani |  Anil Ambani |  Infosys |  Pranab Mukherjee |  Sonia Gandhi |  Rahul Gandhi |  New Pension Scheme |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  Barack Obama |   
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World | General News
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us