Airlines stocks surge as they lower cancellation fee on tickets
Many airlines followed the directions of Union Minister of State for Civil Aviation, Jayant Sinha, asking for reducing down the cancellation fee charges to bring cheers to passengers.
Airlines stocks surged on Tuesday after domestic carriers decided to junk their flat Rs 3,000 cancellation fee for passengers.
This was reflected in the markets as all air carriers were trading in green.
Jet Airways was trading at Rs 715.45 per piece on the BSE, higher by Rs 22.40 or 3.19%. While SpiceJet surged by 3.08% on the index and was trading at Rs 150.75 per piece.
InterGlobe Aviation (Indigo) was gradually up by 0.36% trading at Rs 1146.05 per piece on the BSE.
Other airline-related stocks were: Global Vectra Helicorp trading at Rs 171.60 per piece up 5.47%; TAAL Enterprises was at Rs 164 per piece above 4.26%; and Taneja Aerospace & Aviation at Rs 62.50 per piece which climbed by 6.47% on the BSE.
Many airlines on December 18, followed the directions of Union Minister of State for Civil Aviation Jayant Sinha asking for reducing down the cancellation fee charges to bring cheers to passengers.
SpiceJet on its website mentioned that for all domestic sectors any cancellation to the booking will attract a fee of RS 3000 (w.e.f. 1st November 2017) or base fare plus fuel surcharge per passenger per sector per change, whichever is lower.
Further, it said that for all domestic sectors any change to the booking will attract a fee of Rs 2250 per passenger per sector per change. If the same fare is not available at the time of change, the difference in fares will be applied in addition to the change fee plus changes to any applicable fees. All fees are subject to change without notice.
Jet Airways, however, stated that the airline shall retain a change or cancellation fees as per terms and conditions agreed at the time of making reservation, in accordance to DGCA CAR Section 3 Series M, Part 2.
The Civil Aviation Ministry on August 1, 2016 had issued a notice and directions for domestic carriers in regards to refund of air tickets to passengers.
The Ministry had said, "The issue of refund of tickets by airlines has become a major source of grievance amongst airline passengers. A large number of complaints are regularly received which can broadly be divided into the following categories."
These categories- a) Delay in refund of unused tickets, b) The amount which is refunded by the airlines against cancelled tickets, and c) Policy of no refund of the ticket amount but to adjust against tickets to be purchased by the passenger for future travel in the same airline that too valid for a limited period of time.
The airlines have agreed to the notice related to Section 3 Series M Part 2, under which the ministry said, "Under no circumstances, the airline shall levy cancellation charge more than the basic fare plus fuel surcharge."
Also, the airlines shall not levy any additional charge to process the refund, the notice had stated.