[New Delhi]Airlines Challenges Development Charges @Rs 8500 In HC
The proposal to levy Rs 7500 to Rs 8500 per flight operated by Indian airlines to create a fund to develop regional airports under its UDAN scheme was today challenged in Delhi High Court which sought to know the government’s stand on the matter.
A bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal issued notice to Ministry of Civil Aviation, Airports Authority of India (AAI) and Director General of Civil Aviation (DGCA) and sought their replies by December 21 regarding the challenge to the levy, which comes into effect from tomorrow.
The order came on the petition by Federation of Indian Airlines (FIA) which has said that while the scheme allows it to pass on the levy to the passengers, it cannot do so as it is not a fee for which the carriers are rendering any service to the flyers.
The FIA, which represents scheduled carriers like Indigo, GoAir, Spicejet and Jet Airways, has sought quashing of the October 21 notification inserting the rule for imposing the levy as well as the November 9 order declaring rates of levy and the categories of the scheduled flights on which they would be imposed.
FIA, represented by senior advocate Arvind P Datar, said the levy would put an “immense financial burden”, estimated between Rs 388 crore to Rs 532 crore or more per annum, and sought orders prohibiting the AAI from collecting the levy.
It said that if the financial burden was passed on to the flyers, it would lead to an increase in tariff which would run counter to objectives of the National Civil Aviation Policy and the Ude Desh ka Aam Naagrik (UDAN) scheme under it to bring airfares down to affordable rates.
UDAN, as per the Centre, seeks to connect small cities by air as well as make flying more affordable for the people
Tag: Federation of Indian Airlines (FIA)
Airlines Challenges Development Charges @Rs 8500 In HC :UDAN
High Court Hammers DGCA’s Reasonability For Airlines Excess Baggage Charges
[New Delhi]Delhi High Court Hammers DGCA’s Reasonability For Airlines Excess Baggage Charges
Delhi High Court today asked aviation regulator DGCA how the figure of Rs 100 per kg for checked-in excess baggage between 15-20 kgs was reasonable as was contended by it.
“You have not said what is the basis for the figure of Rs 100 per kg,” Justice Sanjeev Sachdeva asked.
“How do you call it reasonable? Why not Rs 75 or Rs 150,” the judge asked after Additional Solicitor General (ASG) P S Patwalia, appearing for DGCA and the Ministry of Civil Aviation, said the Rs 100 figure was chosen as it was “reasonable”.
ASG Patwalia, in response to the queries, also said the Director General of Civil Aviation (DGCA), as an expert body, was competent to arrive at the figure and if the airlines were aggrieved by it, they should have approached it.
He also said that only four airlines had approached the court, all members of the Federation of Indian Airlines (FIA), against DGCA’s regulation which came into effect from July 1.
As per the new regulation, airlines have been asked to charge Rs 100 per extra kg till 20 kg as against their current rates, ranging from Rs 220 to Rs 350.
Currently, all domestic carriers allow free checked-in baggage up to 15 kgs.
Only Air India allows free baggage up to 23 kg.
During the arguments, the ASG said the different rates charged for excess checked-in baggage by the airlines was discriminatory and warranted interference by DGCA.
The court, however, observed that discrimination would have to be seen vis-a-vis passengers and not airlines and asked what was the material considered by DGCA to come to the conclusion that there was discriminatory pricing.
The ASG said DGCA relied on complaints received by it from passengers to come to the finding relating to discriminatory pricing.
Patwalia also argued that DGCA had the power under the rules to regulate air tariff and it can regulate unbundled services, like selection of seats, booking meals etc, by way of its April 30, 2013 circular under which the services were unbundled and that circular has not been challenged.
Profit Making Domestic 4 Airliners Demand Roll Back In Irrational ATF
[New Delhi]Airliners Demand Roll Back In Irrational ATF
Airlines body FIA demanded roll back in jet fuel prices
FIA today demanded a roll back of the 12 per cent hike in jet fuel prices by oil companies and sought appointment of an independent price regulator to deal with the issue of “irrational” pricing.
In a letter to Civil Aviation Minister Ashok Gajapathi Raju today, Federation of Indian Airlines (FIA) threatened to move fair trade watchdog CCI if the “non-transparent” price increase continues.
FIA is a body of four established domestic private Profit Making airlines –Jet Airways+ IndiGo+SpiceJet + GoAir.
Aviation Turbine Fuel (ATF), or jet fuel, price was yesterday hiked by 12 per cent by the oil marketing companies on global cues.making air travel more costly
Jet fuel constitutes over 40 per cent of an airlines operating cost and any upward increase in the prices pushes up the cost of operations of the carrier.
The FIA also keeps open its option to pay for fuel in line with the earlier charges
According to FIA, the average price per barrel (MOPAG) from January 2016 to February 2016 has declined by 22 per cent from a rate of USD 46.49 per barrel to 36.1 per barrel while during this period the exchange rate variation has been 1 per cent from Rs 67.60 to Rs 68.20.
Body says
During this period there has been no variation in sales tax.
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