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Airlines violate Aircraft Rules, 2004: TAFI

Association issues notifications on dual pricing, fuel surcharge

Jyoti Koul - New Delhi

TAFI has once again taken the legal route to resolve issues relating to dual pricing and fuel surcharge. According to federation sources, the airlines were warned from time to time to look into the matter but nothing was done and seeking legal action was the last option.

TAFI has been receiving several complaints from its members regarding unfair, restrictive trade practices by the airlines with respect to dual pricing for the same inventory of seats advertised in different media. Tickets sold on their web sites are cheaper than the actual cost given to clients as 'Carrier Guaranteed Fare Quote', thereby undercutting the agent. This leads to unfair/restrictive competition in the segments and the dates, in the same reservation codes available with agents (TAFI members) through CRS with mala fide intentions to stem their legitimate earnings.

According to TAFI president, Praveen Chugh, "This act creates unfair, restrictive competition and affects our clients' members who are the airline agents." By this practice, the airlines not only indulge in unfair practices but also violate Aircraft (2nd Amendment) Rules, 2004. "We want airlines to desist from every unfair trade notice as soon as possible upon the receipt of this notification," he informed.

TAFI has issued them another notice on fuel surcharge, according to which the airlines have resorted to unethical means by issuing advertisements quoting ridiculously low fares but adding mandatory additional charges in fine print ('taxes extra') by way of surcharges like fuel/insurance/security and airport congestion fees. According to the letter, these charges are not levied by the government and therefore cannot constitute tax. They are actually items such as fuel, insurance and security expenses incurred by airlines as operational costs that are termed as YR/YQ/XP/ and also using other terms which they have found convenient with malafide intention to make the general travelling public believe that the said 'taxes' are levied by statutory authorities.

"TAFI members have been collecting the said purported taxes on behalf of the airlines and paying the same to them at regular intervals either directly or as per their billing settlement plan. Such amounts actually should have been part of the fare and therefore commissionable to accredited agents," Chugh added.