Travel agents may appeal Supreme Court's ban on transaction fee

A day after the Supreme Court ruled that airlines could not charge transaction fee on passengers, travel agents are contemplating a legal recourse. Travel agents’ representatives are also planning to meet airlines next week to discuss the issue.

“We will discuss the issue with various travel agents’ associations. I think we will have to go to court,” said Subhash Goyal, president, Indian Association of Tour Operators. He pointed out that transaction fee was introduced after airlines abolished commission for agents. “If that fee, too, is being cancelled, then we will have to go to court,” he said.

Following the Supreme Court order, IndiGo and SpiceJet removed transaction fee, which was a component of tickets issued by agents, sources said.

Transaction fees include charges collected and retained by agents for issue of tickets of domestic airlines. According to the Aircraft Rules, 1937, transaction fees is not a part of the fare. The Director-General of Civil Aviation (DGCA) had issued an order on December 17, 2012, to all airlines not to charge such fees.

However, airlines approached the Delhi High Court appealing against the DGCA order. The high court asked the airlines to approach the next appellate authority, secretary of civil aviation.

According to aviation sources, transaction fees are not a pass-through to agents in every case.

Till the final decision on transaction fees is taken, there would be no levy of the fees, they said.

There is a transaction fee of other kind. Airlines such as Jet Airways collect a fee from passengers who use credit card for purchasing tickets.

On Wednesday, a Supreme Court bench of Justice D K Jain and Justice Madan B Lokur had said, “The transaction fee shall not be collected from any passenger in any form or under any other name.” The bench also rapped the aviation regulator for not enforcing its directives to airlines banning transaction fees.

“We are of the view that circular of DGCA dated December 17, 2012, is still in vogue and transaction fee cannot be charged by the airlines,” the bench said.