Excess baggage fee in domestic flights may see 300% hike

Agencies
August 18, 2017

New Delhi, Aug 18: Economy class passengers carrying more than 15kg check-in baggage on domestic flights may now have to pay almost thrice as much for the first five kilos.

Low cost carrier (LCC) SpiceJet is considering raising the Rs 500 pre-booking charge for carrying 20kg to Rs 1,425.

Hikes are also being contemplated for pre-booking in other weight bands beyond 20kg. Moreover, those checking-in more than 15kg without pre-booking may end up shelling out Rs 300 per kg.

"This is a proposal that we are considering. A final decision will be taken shortly," said a SpiceJet source. The new charges, if finalised, will be implemented from Friday itself. The move comes after the Delhi high court stuck down DGCA's order of Rs 100 per kg cap on excess baggage fee for the 15-20kg band on Wednesday. A senior DGCA official said, "We are studying the HC order to see the reasons why our order has been set aside. We will take legal opinion and then decide on whether to go in for an appeal against the HC order."

Other airlines are likely to follow suit. Only Air India said that economy class domestic flyers can check-in up to 25kg without a charge.

Even if airlines do not hike their existing charges, the impact on flyers checking-in 20kg can be significant if they implement the charge kept for beyond 20kg to beyond 15kg now. For instance, two low cost carriers (LCC) charge Rs 300 and Rs 350 per kg as excess baggage fee for domestic travel beyond the allowed limit. A full service airline charges Rs 500 per kg from economy passengers carrying beyond 20kg.

The higher charges used to start from over 20 kg due to the DGCA cap of Rs 100 on the 15-20 kg band. Now with that set aside, airlines are free to charge the higher fees they had for over 20 kg check-in baggage from over 15 kg itself now. No airline formally commented on what their policy for excess check-in baggage fees will be after Wednesday's HC order. "We are just waiting for someone to make the first move and then the rest will follow. Only AI can offer higher baggage limit as the airline is headed in a different direction (referring to impending sell off),"said an airline official.

AirAsia India, when launched in 2014, did not want to give any free check-in baggage to passengers and was directed by DGCA to allow 15 kg check-in baggage - like all other Indian carriers -to domestic flyers without any extra fee. 

"We welcome this change proposed by the Delhi High court on the excess baggage fees. We will however evaluate this internally and see how this can be beneficial to both the guests as well as the airline, as we continue our endeavor to make flying affordable for all,"AirAsia India said in a statement.

Comments

Wellwisher
 - 
Friday, 18 Aug 2017

All price hike to be with Indian Air Act Limoration. Air Lines has no right to hike any flight charge. Dear brothers please study about implemented by the Central Goverment.

 

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News Network
April 20,2020

Thiruvananthapuram, Apr 20: The Kerala health department has declared 88 local bodies including the corporation, municipality and panchayats, spread over 14 districts in the state as COVID-19 hotspots.

"The lockdown restrictions in these areas will be continued in the hotspots announced by the state health department," said state DGP Lokanath Behera in a statement.

"Hot spots are being announced based on COVID-19 positive cases, primary contacts and secondary contacts. As the outbreak of the disease increases, hot spots will be revised daily," said State Health Minister KK Shailaja.

However, the Minister said that a particular region will be excluded from the hot spot after a weekly data analysis.

District wise hot spots in the state - Thiruvananthapuram (3) including Thiruvananthapuram Corporation, Kollam (5), Alappuzha (3), Pathanamthitta (7), Kottayam District (1), Idukki (6), Ernakulam (2), Thrissur (3), Palakkad (4), Malappuram (13), Kozhikode (6), Wayanad (2), Kannur (19) and Kasaragod (14).

In Kerala, 400 people have detected positive for coronavirus, including 3 deaths, as per the Union Health Minister.

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News Network
June 15,2020

New Delhi, Jun 15: On Monday, petrol and diesel prices across the country were raised for the ninth consecutive day by 48 paise and 59 paise, respectively.

Petrol price per litre was raised to Rs 76.26 in New Delhi, Rs 83.17 in Mumbai, Rs 79.96 in Chennai, Rs 79.17 in Hyderabad, Rs 78.73 in Bengaluru and Rs 78.10 in Kolkata.

Diesel price per litre was hiked to Rs 74.62 in New Delhi, Rs 73.21 in Mumbai, Rs 72.69 in Chennai, Rs 72.93 in Hyderabad, Rs 70.95 in Bengaluru and Rs 70.33 in Kolkata.

Since 7 June, after ending their 82-day hiatus in daily revision, state-owned oil marketing companies have increased petrol price by Rs 5 per litre and diesel by Rs 5.23 per litre.

These prices are close to levels last seen in October-November 2018 when international oil prices had spiked close to $80 per barrel. In October 2018, petrol price in Mumbai had crossed Rs 90-mark and in Delhi, it was around Rs 83 per litre.

Comparatively, on Monday, Brent crude, the international benchmark for crude oil prices, fell 2.3 percent to $37.84 a barrel over concerns of subdued demand for fuel as new coronavirus infections were reported in China and the US.

The present spike in fuel prices in India could be attributed to the fact that central and state governments, along with oil marketing companies are looking to make up for their loss in revenues due to the lockdown.

Last month, the central government had increased the excise duty on per litre of petrol by Rs 10 and per litre of diesel by Rs 13. Several state governments have also hiked their VAT or cess on fuel in the last month. In fact, now around 70 percent of the retail price of fuel is just some form of tax.

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News Network
July 10,2020

London, Jul 10: India's Reliance will load its first cargo of Venezuelan crude in three months this week in exchange for diesel under a swap deal the parties say is permitted under the US sanctions regime on the Latin American country, according to a Reliance source and a shipping document from state oil firm PDVSA.

Washington has exempted some Venezuelan oil trade from sanctions when transactions are in exchange for fuel and food or to repay debts rather than for cash. But that trade slowed as the US tightened restrictions and refiners, shippers and insurers have been steering clear of Venezuela to avoid any risk they may fall foul of sanctions.

Washington aims to deprive Venezuelan socialist President Nicolas Maduro of his main source of revenue with the sanctions, which have driven Venezuelan oil exports to their lowest level since the 1940s.

Reliance gave the US State Department and the Office of Foreign Assets Control (OFAC) notice of the diesel swap and received word back that the policies that allowed the transaction were still in place, the Reliance source told Reuters.

Reliance has previously said that its supplies of fuel to PDVSA in exchange for crude were permitted under sanctions.

An oil tanker named Commodore would load the cargo of crude in Venezuela and ship it to India, the tanker's manager NGM Energy said.

"All details of the transaction and transportation were shared with US authorities, who confirmed that the U.S. policy authorizing such transactions remained in place," NGM Energy said in a statement to Reuters.

"The shipment is made in connection with the humanitarian exchange of oil for diesel fuel."

The Commodore is loading a 1.9-million barrel cargo of crude for Reliance at Venezuela's main oil port of Jose, according to an internal PDVSA cargo schedule seen by Reuters.

The Liberian-flagged Commodore was at the Jose Terminal on Thursday, ship tracking data on Refinitiv Eikon showed.

The US State Department, Treasury's enforcement arm OFAC, and PDVSA did not immediately respond to a request for comment.

Reliance has a swap deal to provide diesel to Venezuela in exchange for fuel but has not received a cargo of crude since April. Sources at Indian refiners told Reuters earlier this year they planned to wind down their purchases of Venezuelan oil to avoid any problems with supply due to sanctions.

Other long-time customers of PDVSA, including Italy's Eni and Spain's Repsol, have continued taking cargoes of Venezuelan crude this year under permission granted by the US Treasury Department to exchange the oil for diesel supply as part of debt repayment deals, according to sources from the companies.

NGM Energy also manages the Voyager I tanker, which the United States removed from its list of sanctioned vessels last week after NGM and the ship's owner Sanibel Shiptrade said they would increase measures to ensure vessels complied with international sanctions.

"Last month, NGM Energy SA adopted a firm policy of not allowing vessels under its commercial management to trade to Venezuela, or to carry Venezuelan petroleum cargoes, absent US government authorization," NGM said.

"NGM continues to stand by that pledge."

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