IAAI calls for DGCA intervention on Lufthansa flouting tax code

IATA Agents Association of India (IAAI) has urged the Directorate General of Civil Aviation (DGCA) to intervene and stop Lufthansa Group from collecting USD 18 as Distribution Cost Charge (DCC) through “YR” tax code over and above the fare.  The Association in a letter written to the DGCA has called collection of USD 18 as DCC by Lufthansa through “YR” tax code over and above the fare as “arbitrary, illegal and a gross violation of our National Law.”

Citing various orders by the Apex Court as well as the regulatory bodies, IAAI  letter said that DCC by nomenclature itself should be an integral component of the fare which forms the ‘Tariff’, is being collected at USD 18 under “YR” tax code, over and above the ticket fare, is in contravention of the Orders from DGCA dated 05.03.2010 and subsequent Regulatory Directive on 17.12.2012, the Supreme Court Order of 23.1.2013 and the MoCA Order of 16.9.2013, prohibits any airline to charge any additional amount or fees over and above the ticketed amount under Rule 135 of the Aircraft Rules, 1937, that deals with airline tariffs in sub-rules (1), (2) and (2A).

“Airlines are required to clarify and justify the taxes or amounts that are being levied under any particular tax codes and, in India, our Regulator -DGCA has to recognise and approve them. Also, we had strongly objected the LH policy on bookings through ‘Agents-site’as the airline is deliberately flouting our statutory law by depriving commission and forcing agents to charge transaction fee over and above the ticketed amount,” ,” informed Biji Eapen, President, IAAI .

IAAI also termed Lufthansa’s recent assurance on “web parity” as a “diversionary tactic” to “hoodwink” the travel agents, saying that an airline charging an additional USD 18 for availing GDS facilities cannot have a disparity in fares between its website and the GDS. (Source-Travel Biz Monitor)

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