Archive for December 24th, 2006

Flight Delays – Are low cost airlines justified taxing Customers

If you had taken a flight out of New Delhi Airport in last month or two. You would be familar with the scene i would be describing. Overcrowded departure terminal with Frustrated passengers and airline staff. The scenario is so bad people have to be seated in makeshift tent terminal put outside just terminal 1B.

Airlines are changing congenstion surchage and what all taxes to passengers. But still flights are not flying out of delhi. Low cost airlines are giving out tickets at low price of 500 INR for destinations as far as Bangalore or chennai. But the tax regime being followed make the same ticket around 1600 INR. Talk about making things feasible for common man. The tax regime is not in line with the price of good being charged. They are still taxing air travel as luxury travel whereas the ticket is cheaper than price of super fast trains. Taxes should be a percentage figure of goods being sold instead a fixed price regime is making it sound unfeasible for lakhs of people who still travel via rail or bus.

Recently jagson airlines came out with special fare of 899 to Kulu and Chandigarh. Add taxed this make this same figure fly to 2000 bucx. Which means two and fro travel cost is 4000 bucx. So a premium tax of almost 110% the value of ticket. DGCA need to come out with better tax regime to keep air travel economical.

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December 2006
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