Travel agents continue levying transaction fee despite SC order

Agents now free to charge any amount for services as airlines have withdrawn fee component in fares

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The supreme court order banning transaction fee in air tickets has not made air travel cheaper as agents continue to collect a service fee from their customers. The agents contend that the apex court order restricts airlines from charging transaction fee but there is no such ban on agents charging a fee for services rendered by them. Moreover now agents are free to charge any amount for the service as the airlines have withdrawn the fee component in the fares.

In its order last month the Supreme Court had said that transaction fee can not be collected from passengers in any form until civil aviation secretary takes a final decision on the issue. Last December the Directorate General of Civil Aviation had issued a circular restraining airlines from collecting transaction fee in the fares as it was not in consonance with the Aircraft Rules 1937. The Federation of Indian Airlines  moved the Delhi High Court against the circular and it allowed the airline body to file an appeal with civil aviation secretary.

In case of low cost airlines ticket included transaction fee in a separate head. The fee same was collected and retained by travel agents. Air India and Jet Airways tickets referred to transaction fee as "other charges.'' Following the Supreme Court order airlines have stopped including the transaction fee as a component of the fare and same does not  get printed on a ticket.

Air India issued a letter to travel agents desisting them from charging any transaction fee and said the agents may charge their customers for rendering the service. Thus agents are charging passengers by calling it management fee or service fee.

While prior to the supreme court order transaction fee of about Rs 200 was levied on domestic routes  by airlines.  Air India was  collecting  Rs 775-1300 as transaction fee on international tickets and same was being remitted to agents.  "We are collecting around Rs 150-200 on domestic tickets. It is upto each agent how much he charges,'' an agent said.

Iqbal Mulla, president of Travel Agents Association of India said the order does not ban agents from charging the fee. "Is it wrong for agents to charge fee for services. The agents will have to shut down their business as many airlines have already stopped paying commission.''