New Delhi: Flying Air India and Kingfisher Airlines will become cheaper from Wednesday. Both airlines have withdrawn the transaction fee on tickets sold through booking offices, websites or call centres.
The transaction fee was introduced last month and ranges from Rs 350 on a domestic economy class ticket to Rs 10,000 on a first class ticket to Europe or USA.
The system of transaction fee was started after airlines stopped commission on ticket sales.
Kingfisher too has scrapped the transaction fee, but only in the case of direct sales.
On Monday, Kingfisher Airlines Ltd said it would reduce airfares "across the board" as soon as the Government brings aviation turbine fuel (ATF) under the declared goods category.
"Kingfisher will immediately reduce airfares across the board as soon as the declared goods classification is approved for ATF," Chairman Vijay Mallya said in a statement late on Monday.
Mallya was responding to the Finance Minister P Chidambaram's announcement to introduce a bill during the forthcoming Parliament session to bring ATF under the declared goods category.
The declared goods status on ATF would attract a uniform sales tax of 4 per cent across the country. ATF is currently taxed by between 4-30 per cent across the country.
The airline had posted a net loss of 6.4 billion rupees for the six months to Sept. 30, hurt by high jet fuel costs and low demand. ATF accounts for nearly half of an airline's operating costs.
Shares of Kingfisher were up 5.71 per cent at 25.15 rupees in the Mumbai market.
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