SC pulls up DGCA, says airlines cannot charge transaction fee

Frowning over the Directorate General of Civil Aviation (DGCA) not enforcing its own orders, the Supreme Court has directed all airlines not to charge transaction fee from passengers in any form of airfare.

The court's order came on a petition by T.G.N. Nair pointing to the transaction fee being charged by the airlines.

The apex court bench of Justice D.K. Jain and Justice Madan B. Lokur said: "We regret to note that having issued the directions in exercise of its powers and being satisfied that provisions do not allow the transaction fee to be charged as a part of airfare , the DGCA is hesitant to enforce its own directions. We are of the view that December 12, 2012, order (of the DGCA) is still in vogue and the transaction fee can't be charged by the airlines."

"Accordingly, we direct that till any order is passed by the appellate authority of Airport Economic Regulatory Authority (AERA) or any other body/court, the transaction fee will not be collected in any form or under any other name," the court ordered.

As regards other charge, the court said that in light of explanation furnished by the Federation of Indian Airlines that the matter was being adjudicated by the AERA, we refrain from commenting on it.