Airline industry in a flutter as Patel grounds congestion levy

The domestic airline industry appears divided on the just imposed Rs 150-congestion cess by some carriers even as civil aviation minister Praful Patel on Tuesday ticked off carriers for levying the new surcharge.

Vijay Mallya’s Kingfisher Airlines, which had first come out with the surcharge, said it had no plans to rollback the cess. At the same time, government-owned Indian aligned itself with the minister’s views by emphasising that it will not impose a congestion surcharge.

Other full-service carriers, Jet Airways and Air Sahara, seem to be adopting a wait-and-watch approach. Low-cost players like Air Deccan and SpiceJet, on the other hand, are not keen on this new levy. Mr Patel’s outright rejection of the surcharge means that it is likely to be phased out even if not scrapped immediately by all airlines.

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