Airlines fleece travellers on refunds

Ever tried cancelling an air ticket? At best, you will get Rs 225 cash back, irrespective of the ticket price, if you happen to miss your flight. And if you decide to cancel your ticket, even days in advance, you’ll get back nothing! Air passengers across India are being taken for a ride by airlines on refund policies.

Passengers booked on full-service carriers don’t get back any cash if they cancel a ticket, even days ahead of their scheduled departure. “I had booked a ticket with SpiceJet, which I cancelled well in advance (five days). Apart from forfeiting the entire fare, the airline deducted the full travel insurance charge. Majority of the surcharge and taxes were also gobbled up,” said a partner in a Mumbai-based chartered accountancy firm B Maheshwari.

Airlines deduct Rs 500-750 from the ticket amount (which includes ‘taxes and surcharges’ of Rs 1,725) while the balance amount is credited to a non-refundable account. A passenger can use this non-refundable amount to travel by the same airline within 12 months.

But if the passenger decides not to travel by that airline, the full amount is forfeited! In case one decides to postpone travel, one will have to bear the cost of the air ticket to that destination on that day. If the fare is higher, the passenger will have to shell out more money and if it’s lower, most carriers don’t refund the balance. Did someone say policy of convenience? Now, let’s consider a ‘no-show’ on an airline.

"If a passenger happens to miss his/her flight, only the passenger service fee of Rs 225 is refunded," explained an official of a low-cost carrier. He also pointed out that while all low-cost carriers deduct Rs 750, Simplifly Deccan deducts Rs 500 in case of cancellation.

The Travel Agents Federation of India (TAFI) is also up in arms against the classification of surcharges under taxes, which are forfeited by airlines. The only reason for such a classification is to deprive travel agents of their legitimate commission, say travel agents, who get a commission on the fare but not on the surcharge.

“First of all, fuel surcharge and congestion charge (which amount to about Rs 1,800) should not be included in taxes. And in case they are, airlines should refund the whole tax amount to the customer in case of a cancellation or no-show,” says TAFI general secretary Ajay Prakash.

From Monday, airlines will increase the fuel surcharge by Rs 300 and travel agents across India are set to protest against this. “We are contemplating issuing an ultimatum to airlines that henceforth travel agents will not collect any additional surcharge on their behalf. They will need to make arrangements to collect the same from passengers directly,” Mr Prakash said.

SpiceJet VP-marketing and planning Kamal Hingorani says, “Fuel surcharge is not refunded in case of cancellation because if a passenger cancels the ticket at the last moment, there is an opportunity cost that the airline has to incur. For instance, the ticket could have been sold at a higher price. Selling it at a short notice is difficult.”
According to airline policy, “Cancellation/changes within two hours of departure or failure to check-in at least 30 minutes before scheduled departure will result in the fare being forfeited.”

Air Passenger Association of India (APAI) president Sudhakar Reddy is also unhappy with airlines. “With fuel surcharge increasing by Rs 300, amounting to Rs 1,625, this is even more misleading on the part of airlines.” Taking notice of the discriminatory refund policies of airlines, the Monopolies and Restrictive Trade Practices Commission (MRTPC), in May this year, had issued notices to six carriers—Indian, GoAir, Air Sahara, Air Deccan, SpiceJet and Alliance Air—terming their refund policies as unfair.

Union minister for civil aviation Praful Patel has also taken notice of the refund policies of airlines. “We will not only penalise them but also make them refund the money collected on account of tax,” he said on the issue of “cartelisation by airline companies” during question hour in Lok Sabha on Thursday.

On the other hand, the European Union on Friday issued new guidelines under which airlines must include all taxes and charges in the headline price first shown to consumers. Clearly, the Indian government also needs to take a strong view on discriminatory refund policies, which are hurting consumer interests
COURTESY INDIAN ECONOMIC TIMES

So airlines all over the world are the same!

Arik now Niger Republic's National carrier

Nigeria ’s domestic airline, Arik Air, is now the national carrier of Niger Republic , which will now be operating both local and international flights from that country.
This was made known at the weekend by the Chairman of the airline, Sir Joseph Arumemi-Johnson, while delivering a speech to commemorate the arrival of another new aircraft for the airline, Boeing 737-700NG, at the Arik Aviation Centre, Murtala Mohammed Airport , Lagos .
He said that passenger figure of the airline has grown in the one year of its operation and apologized to passengers for any hiccups in the operation of the airline, saying that such shortcomings would stop when the airline relocates to the new domestic terminal, MMA2 soon.
The company said that the new aircraft arrived Nigeria direct from Boeing Corporation in Seattle, United States of America last Wednesday and it is one of the two B737-700NG that would be delivered to the airline, adding that the second would arrive tomorrow, which will make the total number of aircraft in the Arik fleet to eight.

The Chairman of Arik said that as part of Arik Air’s long term commitment to the nation’s aviation industry, the airline has placed orders for a total of 36 aircraft and these orders include five Boeings 777, seven Boeing 787-900 and they are expected to be deployed on the airline’s intercontinental routes. “On October 2, 2006 Arik Air took delivery of three brand new CRJ900 aircraft, thus becoming the first Nigerian carrier in over 20 years to operate brand new aircraft. Arumemi-Johnson gave kudos to Nigerian pilots for their dexterity and their quick response in training, expressing the hope that a Nigerian pilot would handle the Dreamliner, Boeings 787-900 when it arrives Nigeria . The airline said that the 737-700 and other 737 series are short-to-medium-range airplanes that are best selling commercial airplanes that represent more than a quarter of the total worldwide fleet of large commercial jets flying in the world today. COURTESY THISDAY

Senegal rescinds decision to retire from ASECNA

Senegal has changed its decision to resign from the Agency for the Safety of Aerial Navigation in Africa and Madagascar (ASECNA).

On 15 November, Senegal had, through its Transportation Minister, Farba Senghor, confirmed its willingness to withdraw from the agency as Dakar was not satisfied with its services.

Senegal’s decision to withdraw from ASECNA was « irrevocable », Mr Senghor echoed at a press conference before stressing that a commission was set up to assess the modalities including the potential moving of the agency’s headquarters to another country.

According to the minister, the move to withdraw from ASECNA would enable Dakar to “ensure the safety of its airspace as of May 2008 through a Senegalese aerial safety Agency that was to be set up in the “coming days”.

In early November, Senegal had announced its decision to withdraw the management of its airports and airfields from ASECNA, arguing that the country “loses 50 billion CFA Francs per year due to ASECNA’s inadequate investment in the equipment, training and upgrading of the facilities”.

Why NCAA stopped licensing cabin crew

THE Nigerian Civil Aviation Authority (NCAA) has finally disclosed why it stopped the licensing of cabin crew members in the country. The Director General of the agency, Dr. Harold Demuren, speaking at a programme organised by Ramp officers at the Murtala Muhammed International Airport, Lagos, said that the International Civil Aviation Organisation (ICAO) recommended standards did not require the Civil Aviation Authorities to issue license to cabin crew.- COURTESY THE NIGERIAN TRIBUNE

FAAN buys Boeing 727 plane

The Federal Airports Authority of Nigeria recently acquired a Boeing 727-200F aircraft hull for one naira from the DHL Aviation Nigeria Limitedto be used for the practical training of the authority’s firemen and women in rescue operations in a smoky environment.

When i first heard this, i was thinking along the lines of a Bombardier Challenger private jet.

No Arabic passport, no entry into Libya

The Libyan government abruptly denied entry to tourists without an Arabic translation of their passports, forcing several planeloads of foreigners to turn back on arrival and stranding at least two French tour groups on the night of Monday 12th November.

The change, which was not officially announced, makes Libya the only country in the Middle East to currently demand Arabic translations for foreign passports.
Eighteen French nationals were stranded at Tripoli International Airport since Sunday night, until France's ambassador to Libya intervened Monday and they were allowed to return home, French Foreign Ministry spokeswoman Pascale Andreani said. Another group of 83 was expected to be allowed to leave later Monday.

The development reflects confusion in government policies, amid recent strides by Libya to promote itself as a lucrative tourist destination and to inch closer to a long-sought political goal of getting back into the West's good graces after years of ostracism.

Airlines whose planes were turned back included Swiss, Lufthansa, Austrian Airlines and British Airways. Jean-Claude Donzel, a spokesman for Swiss, an airline owned by Lufthansa, told The Associated Press the airline's office in Libya was caught unaware of the new rules, which came into force just hours before one of its planes landed Sunday. The flight returned to Zurich.

"The government has been pushing to promote its thousands of miles of pristine Mediterranean coastline, sweeping desert sand dunes and ancient ruins as a travel destination. COURTESY YAHOO NEWS

This is retroactive, in this day and age? But the final conclusion is that a visa does not entitle one to enter into a country. All of us planning holidays in Libya , please take note.

Oceanic Bank appointed BSP Bank

Oceanic Bank International Plc has been appointed as the settlement bank for the planned International Air Transport Association (IATA) Billing and Settlement Plan in Nigeria. BSP, as we all know, is aimed at facilitating timely revenue processing and settlement among airlines operating in the country. Speaking at the Nigeria Aviation 2007 International Conference and Exhibition held in Abuja recently, Managing Director of Oceanic Bank, Cecilia Ibru said the bank was chosen because of its expertise in providing electronic banking and payment services in the country and beyond. COURTESY BUSINESSDAY

This does not come as a surprise, Oceanic Bank Plc, has been at the forefront of Aviation lending and actually was at the head of the consortium that bankrolled the development of the Murtala Muhammed Airport 2 Terminal to the tune of N20bn.

Dubai Air Show: Virgin Nigeria buys Embraer jets. Dana enters airline industry

Brazil's Embraer has agreed to sell 10 aircraft to Virgin Nigeria in a deal that could be worth $811 million, the planemaker said on Sunday. Virgin Nigeria agreed to buy seven Embraer 170 aircraft and three 190s, it said in a statement at the Dubai Airshow. The deal gives the airline the option to buy six more 190s and purchase rights for eight 190 and 195 aircraft, it said. The deal would be worth $811 million if all options were exercised, Embraer said. COURTESY REUTERS

The E-170 is a regional jet in the class of the Bombardier CRJ-900, and this deal is indicative of the immediate vision of Virgin Nigeria. Whereas Arik seems to be going intercontinental, VK seems to be concentrating on regional routes. No matter the strategy, we welcome the fact that new planes are being added to Nigeria's register everyday. It is a total win-win situation. Congrats VK. Meanwhile, DANA Group Lagos, will be entering the airline industry with two brand new business jets.

Another plane crash in the Sudan

We sincerely hope we wont be blogging about plane crashes but this particular one is interesting because of the plane involved, an Antonov (picture shown) which accounts for nearly half of all the accidents that have take place in Africa in the past decade. And mostly in the Congo DRC.

A cargo plane crash landed and caught fire at Khartoum airport but no one was killed, civil aviation officials said on Thursday. The Antonov 12 cargo plane belonging to the privately owned Juba Air Cargo company took off for the south Sudan capital of Juba but due to technical problems had to return to Khartoum, officials said. "The plane landed outside the civilian airport close to the military airport," a Sudanese Civil Aviation official said. "It is burnt but all the crew are well," he added.

COURTESY REUTERS AFRICA

Nigeria is the first country in Africa to issue e passports

It is not everyday that Nigeria pioneers something, so we thought it nice to publicise this fact. This of course is in line with IATA's initiative to Simplify the Business and bring about annual savings of over 3 billion USD to the industry.

"The Nigerian Immigration Service (NIS) would deploy e-passport processing facilities to Nigerian consulates in New York, London, New Delhi and Johannesburg before Christmas, this is according to the comptroller-general Mr Chukwurah Udeh, the NIS chief, said that the plan was aimed at addressing the plight of Nigerians in obtaining the document. Besides, he said the NIS would deploy the facilities to 16 new processing centres across the country. He described Nigeria as the first country in Africa to issue e-passports in compliance with International Civil Aviation Organisation (ICAO) recommendations."

COURTESY LEADERSHIP ABUJA

Plane crash avoided in South Africa

A Nationwide Boeing 737 had to make an emergency landing at Cape Town International Airport 7TH November when an engine fell off during takeoff.

The plane, which had been bound for Johannesburg, landed safely after airport fire and rescue services hurriedly cleared the debris from the runway.

The incident was confirmed by the Civil Aviation Authority’s (CAA) executive manager for air safety investigations, Gilbert Thwala, late this afternoon.

"A 737 from Nationwide was taking off and the engine dislodged from the wing," he said.

"It was able to come back and land safely at the airport."

There were 106 passengers on board.

Thwala said a two-person team of CAA investigators was on its way from Johannesburg to Cape Town to compile a report on the incident.

COURTESY SOUTH AFRICAN TIMES