Airlines in the UAE continue to impose taxes and charges while justifying their stance, and travel agents and passengers bear the brunt by paying higher air fares which they consider unfair.
Airlines in the UAE continue to impose taxes and charges while justifying their stance, and travel agents and passengers bear the brunt by paying higher air fares which they consider unfair.
However, a recent meeting of the Board of Airline Representatives here has decided to sort out the sticky issue by forming a sub-committee.
In all, charges ranging between Dh300 and Dh400 comprising fuel surcharge, insurance war risk premium and airport departure tax are levied on passengers flying out of the UAE.
Travel agents have opposed additional charges but to no avail so far. Passengers have also been hit hard by the high fares and are constantly complaining. The airlines are refusing to budge since the charges yield additional revenues.
"We have no say in this. The airlines dictate. We as agents follow their directives. We have opposed it, taken up customer complaints but nothing has come out of it," said a senior executive of a leading travel agent.
"It is wholly unjustified. The war is over but the fuel surcharge and the war risk premium which was introduced during the Afghan war in 2001 is continuing. Customers are unnecessarily taxed," said a passenger.
Air India's return fare from Abu Dhabi to Mumbai is Dh1,550 plus Dh330 which includes the additional charges. Gulf Air's fare is Dh1,530 plus Dh330. Additional levies are higher to Europe and the U.S.
The departure tax or automation charge varies from destination to destination. While Dh60 is imposed on those travelling to India, it goes up to Dh150 to Lebanon. There is no charge to Syria, Manila or Bangkok.
"The charges need to be rationalised. It is totally unfair to tax the customer. These charges are questionable."
Travel agents are peeved that the additional charges imposed on passengers go straight into the airlines' kitty with no commission paid to general sales agents.
"We stand to lose commission for those additional charges which effectively amount to 25-30 per cent of the total fare," noted a travel agent, adding "only the fare is commissionable, not the charges".
Some airlines are even using it as a tool to gain a competitive edge over others. "They are waiving these additional taxes on some weak routes to attract more passengers," said a travel agent.
Airline officials justified their stand but hinted a rationalisation plan is being worked out. "A Board of Airline Representatives meeting has been held. We have formed a sub-committee and the issue is being studied," said an airline official.
Perhaps the airlines are raking in more revenues through these taxes to offset the losses they suffered in the last two to three years due to post-September 11 events, the Iraq war and SARS. They also maintain that fuel prices are still on the high side.