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Understanding Airfare

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By: Payal Jain, In Travel
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Updated: Saturday, February 16, 2008
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Every now and then we are moved by the ads given by the airlines of their fare discounts, and we suddenly log on to the net to get the Rs. 500 or Rs. 100 slot as quickly as possible. And suddenly we see that the ticket price is different from the ad price and now the cheap ticket is around Rs. 2500 which is including of taxes. Watch out for the following surcharges which may be a part of your travel airfare:

1. FUEL SURCHARGE: The cost of aviation turbine fuel (ATF) is rising and the customers have to pay the price. The country’s domestic airlines recently decided to increase this surcharge by Rs 300 a ticket, to Rs 1,650 per passenger. Unfortunately, the ATF surcharge is a uniform amount immaterial of the distance covered, and does not take into account states where the ATF tax is low—the tax burden ranges from 4% to 34%.  Some airlines are indeed considering imposing differential surcharge which will help lower fares for low tax states and increase fares for passengers embarking from high tax states.

2. PASSENGER SERVICE FEE: It is the service fee which goes to the airport operator for providing passenger amenities, maintenance and security. These days it is around Rs. 225

3. CONGESTION FEE: This is the charge taken to take care of flight delays, clogged runways, jam-packed airport waiting areas etc. losses as airlines are paying for choked airspace, and ATF is also burned. In an attempt to recover this loss, all airlines barring Indian, include a congestion charge in the airfare.

4. PREFERRED SEAT FEE: If you select one of the seats around the emergency exit or any other specific area then there is a seat assignment fee. The airline also charges more if you choose a window seat.

5. TRANSACTION FEE: The fee charged by airlines if you don’t book directly with them is the transaction fees. If you take the travel agent route this charge can be anything from 6% to 10% of the base fare. Always ask for confirmation before making a transaction.

6. CHANGE-OF-PLAN FEE: Changes are not allowed on all ticket types, which basically mean that promotional fare tickets and the cheapest fare classes are out. If you are allowed to make changes, then it has to be done at least one hour before the flight is due for take-off, though some airlines will ask for minimum six hours. And even then you are slapped with a penalty, between Rs 500 and Rs 750 per sector, over and above the cost of the changed flight.

On international air tickets, the tax structure of the airfare depends on the destination you are travelling to. Most countries have an international arrival and departure tax, which varies for economy class travel and the rest, some countries have an international security fee, and others have a noise isolation charge and so on.

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