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21 August 2024 at 3:50:16 pm

Kaleidoscope

Robots compete in the cheerleading final during the World Humanoid Robot Games in Beijing on Monday. Tribal women carry bundles of firewood on their heads along a forest trail in Nadia, West Bengal, on Monday. People offer prayers on the last Monday of the holy month of 'Shravan' at Mahadev Temple in Prayagraj, Uttar Pradesh, on Monday. People take part in a 'Kanwar Yatra' procession on the last Monday of the holy month 'Shravan' in Ajmer, Rajasthan, on Monday. Children look on at a...

Kaleidoscope

Robots compete in the cheerleading final during the World Humanoid Robot Games in Beijing on Monday. Tribal women carry bundles of firewood on their heads along a forest trail in Nadia, West Bengal, on Monday. People offer prayers on the last Monday of the holy month of 'Shravan' at Mahadev Temple in Prayagraj, Uttar Pradesh, on Monday. People take part in a 'Kanwar Yatra' procession on the last Monday of the holy month 'Shravan' in Ajmer, Rajasthan, on Monday. Children look on at a Pookalam, a floral rangoli, at the Kerala State Council for Child Welfare as part of Onam celebrations in Thiruvananthapuram, Kerala, on Monday.

Cap air travel ‘CF’ upto one pc

AI generated image
AI generated image

Mumbai/Nagpur: A consumer rights panel has sought urgent intervention by the government to a ‘systematic exploitation of fliers by a cartel’ comprising commercial airlines and online travel portals through arbitrary and exorbitant ‘Convenience Fees’ (CF) – estimated at a staggering Rs. 14,000-cr per year -  and demanding a cap of 1-pc.

 

A representation has been sent to Prime Minister Narendra Modi, Minister for Civil Aviation (MoCA) K. Rammohan Naidu, besides heads of the Central Consumer Protection Authority (CCPA) and Competition Commission of India (CCI), and officials of all concerned departments, Council for Protection of Rights (CPR)-Nagpur President Barr. Vinod Tiwari on the issue.

 

The CPR has claimed that all commercial carriers and top online travel agencies (OTAs) like MakeMyTrip, ClearTrip, EaseMyTrip, GoIbibo plus others were charging exorbitant, unnecessary and non-refundable ‘CFs’ that has no bearing on the actual cost of digital processing of the tickets.

 

“It appears that the airlines and OTAs operate virtually as a ‘cartel’ to fleece the air passengers. The CFs range from Rs 350-Rs 600 per flier per sector, though some smaller individual portals levy a flat rate of around Rs 300-400, regardless of the ticket prices. We want the Centre’s intervention and an investigation by the CCI into this suspected collusion,” Tiwari told ‘The Perfect Voice’.

 

These gross CFs have become a mandatory component of the air ticket “rather than payment of an optional service”. In Jan. 2026, the CCPA barred all restaurants in the country from levying a separate ‘Service Charge’ on the final food bills following a Delhi High Court ruling, then under what rules can airlines-OTAs levy the mandatory CF, demanded Tiwari.

 

The CPR chief said that airlines already recover infrastructure and operational costs through the base fares and fuel surcharges, making the additional Internet-handling or Web check-in related charges irrelevant and dubious. Accusing the of ‘drip pricing’, he said the CF charges are suppressed in the initial fare displayed on the screens, but pop up only at the final payment stage, “practically ‘trapping’ the consumers and ultimately forcing them to pay up”.

 

Tiwari’s representation has proposed a 0.5-1.0 pc ceiling on the CF, irrespective of the ticket price, a full audit of the huge revenues reportedly generated by the airlines-OTAs vide the CFs, and a refund of half the CFs collected in case of cancellations.

 

“This will prevent exploitation of the fliers, restrict the airlines-OTAs from milking routine digital payments as high-margin revenue sources, often 15pc-20 pc of the ticket costs, and lead to fair competition among all the stakeholders,” suggested Tiwari.

 

This 0.5-1.0 pc limit would additionally benefit the air passengers by making flying somewhat cheaper as envisioned by the PM, reduce the burden on low-cost, short-hop travelers, the budget-conscious holiday crowds, or the growing tribe of ‘frequent fliers’ in the country while actually boosting the turbulent aviation sector, Tiwari contended.

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