Civil Aviation Minister confirms transaction fee illegal

IAAI — By on July 26, 2013 at 2:44 pm

Member  of  Parliament  Maya  Singh had  made  Special  Mention  in  the Rajya  Sabha  (  Session  222)  fo immediate  ban  on  charging  o transaction  fees  on  the  tickets  fo international  travel  and  action  aspe law against  the defaulting airlines.  In  his  reply  letter, Ajit Singh  clearly states  that  the  law  does  not  permi charging  of  Transaction  Fee.  In  his letter the Minister refers to, and goes into the details of, the Writ Petition  Civil  )  No.  16551  of  2009  filed  by ‘IATA  Agents  Association  of  India against  the  16  foreign  Airlines  fo charging  transaction  fee  in  lieu  o commission  payable  to  Agents,  the Kerala  High  Court  Order  and  the historic DGCA Order dated 5th March 2010. The  aforesaid  communications  were obtained by IATA Agents Association of  India  through RTI. Hearing before Secretary, MoCA As directed by the Hon’ble Delhi High Court,  Secretary,  Ministry  of  Civi Aviation, heard the appeal under Rule 3B of Aircraft Rules, 1937. IAAI was represented by Shri R. K. Maheshwar and  Shri  Biju  P.  Raman, Advocates besides  the PST. FIA  was  represented  by  thei Advocates besides Air  India,  Jet  and Indigo Representatives.  Airlines presented their point of view saying  the  order  of  05 March  2010 does   not   res t r ict   levying  of Transaction  Fee.  Further,  market conditions  and  transparency  and  the current  global  situation  warrants levying of  TF. IAAI  made  it  very  clear  that  the Aircraft  Act  and  Aircraft  rules mandate  commission  as  integral part of  the  fare  and    does  not  allow charging of TF. Further, the ruling of the  Hon’ble  Supreme  Court,  is  very clear on  this matter. IAAI also placed before the Secretary MoCA,  the  ruling  of  the  Court  in Israel,  the  circular  of  AI  offering commission  in  USA,  as  well  as  the categorical reply by the Hon. Minister for  Civil Aviation,  Shri Ajit  Singh’s reply  to Ms Maya  Singh MP,  in  the Rajya  Sabha  on  23rd  March  2013, stating that DGCA had issued a fresh advisory  on  17th  Dec  2012  in conjunction to the DGCA Order dated 5th March  2010  issued  in  favour  of IAAI.  Secretary  MoCA  patiently heard  all  the  parties  and  asked pertinent  questions  to  get  more information on  the matter. W.P ( C ) 13123 / 2013 before Kerala High Court This  case  is  pending  before Hon’ble Kerala High Court for the Order from Secretary, MoCA for further proceed- ings.  As per Govt. provisions the Secretary, MoCA  has  30  days  period. We  are awaiting  the Order. If  no  reply  is  received  within  the stipulated  period  IAAI  will  again approach  the  Delhi  High  Court  for remedy.

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