New Delhi: The convenience fee charged on online air tickets may soon be a thing of the past. The Centre has written to domestic airlines proposing withdrawal of the fee charged for online transactions.
Most domestic airlines charge a non-refundable convenience fee of Rs.150, on an average, for online booking of a one-way ticket. Jet Airways and GoAir charge a Rs.150 fee per route for every passenger. IndiGo takes Rs.75 from a passenger on all net banking transactions and Rs.150 for all credit or debit card purchases. SpiceJet and AirAsia India also have different slab rates for internet banking and card transactions. Vistara charges Rs.200 as ticketing fee per passenger that is non-refundable.
“The government wants to promote electronic payment and the Finance Ministry has been taking up the issue of reducing online transaction costs with various government departments,” said a senior civil aviation ministry official, on conditions of anonymity.
“We have been asked not to pass on the cost of convenience fee to the consumers,” said another civil aviation ministry official.
Domestic airlines have, however, opposed the move asking the government to bring down the Merchant Discount Rate (MDR) they end up paying to the banks on such card transactions.
“(We)…would like to express our concerns, on the proposal of withdrawal of convenience fee on card transactions, if considered, without any change of rates in MDR levied by the banks on card transactions, will add a huge burden on the airlines’ card cost and will significantly escalate with the increase in volume,” the Federation of Indian Airlines (FIA), which represents leading airlines such as IndiGo, Jet Airways, SpiceJet and GoAir, said in its submission to the ministry.
14/07/16 Somesh Jha/The Hindu
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Most domestic airlines charge a non-refundable convenience fee of Rs.150, on an average, for online booking of a one-way ticket. Jet Airways and GoAir charge a Rs.150 fee per route for every passenger. IndiGo takes Rs.75 from a passenger on all net banking transactions and Rs.150 for all credit or debit card purchases. SpiceJet and AirAsia India also have different slab rates for internet banking and card transactions. Vistara charges Rs.200 as ticketing fee per passenger that is non-refundable.
“The government wants to promote electronic payment and the Finance Ministry has been taking up the issue of reducing online transaction costs with various government departments,” said a senior civil aviation ministry official, on conditions of anonymity.
“We have been asked not to pass on the cost of convenience fee to the consumers,” said another civil aviation ministry official.
Domestic airlines have, however, opposed the move asking the government to bring down the Merchant Discount Rate (MDR) they end up paying to the banks on such card transactions.
“(We)…would like to express our concerns, on the proposal of withdrawal of convenience fee on card transactions, if considered, without any change of rates in MDR levied by the banks on card transactions, will add a huge burden on the airlines’ card cost and will significantly escalate with the increase in volume,” the Federation of Indian Airlines (FIA), which represents leading airlines such as IndiGo, Jet Airways, SpiceJet and GoAir, said in its submission to the ministry.
14/07/16 Somesh Jha/The Hindu
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