Airline transaction fee on passengers banned by Supreme Court

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PTI: New Delhi, Jan 23 2013, 19:15 IST
Airline passenger.jpg
commission policy for their agents. Under transaction fee, agents charge customers any amount of their choice and there is no uniformity in it.

Senior advocate U U Lalit, appearing for Federation of Indian Airlines (FIA), urged the apex court not to pass any order as it would challenge the DGCA circular before an appropriate authority.

The apex court, however, turned down the plea saying, "We cannot shut our eyes that circular is being violated and DGCA is not able to enforce it."

"We are with you except on transaction fee. It has been decided by the regulator and violation of circular cannot be permitted," the bench said.

The court rapped the DGCA for not being able to enforce its rules, saying the regulator was not concerned about the passengers.

"Don't take it casually. Why do you create embarrassment for yourself. Don't issue any circular which you cannot enforce," the bench told DGCA.

"There is lack of transparency as far as passengers are concerned and poor passengers do not know what is happening," the bench remarked over the transaction fee being levied by the airlines.

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