New Delhi: Seeking ways and means to cut down on their costs, domestic carriers have now decided to ask the civil aviation ministry to review the recently issued directive that airlines should refund the passenger service fees, congestion surcharge and fuel surcharge in case of ticket cancellations. Between them these three components make up for around 60-80 per cent of the total ticket fare.
Currently, carriers refund just the basic fare, which could be as low as Re1.
"The civil aviation secretary had verbally assured us that the Civil Aviation Requirement (CAR) related to refund of ticket fares would be reviewed, keeping in mind the current industry scenario. However, since the reviewed guidelines have not come yet, we have decided to formally write to the ministry," said a Federation of Indian Airlines (FIA) member.
This was one of the decisions taken in the meeting held by the FIA, a lobbying body of the Indian carriers, in Mumbai.
The federation has also decided to take cargo carrier, Blue Dart, on to its board. This inclusion would allow the body to bring up cargo related issues before the government.
Indian carriers have informed the ministry that the new CAR, which requires them to refund more than 60 per cent of the total ticket fare, would act as a huge drain on revenues at a time when the industry was already taking huge losses.