The government has asked all 25 international airlines, operating to and from Bangladesh, to merge their fuel surcharge with the basic fare. This merger will reduce the air ticket fare and will enable the country to save Taka 150 crore annually. International airlines are charging average 50 percent of the total fare as fuel surcharge that deprives the local travel agents from getting nearly Taka 150 crore annually as commission. The airlines now give commission from the basic fare only. “I have given directives to the Civil Aviation Authority several times to ask the foreign airlines to merge their fuel surcharge with basic fare,” Civil Aviation and Tourism Minister Rashed Khan Menon told yesterday. As per the directives of the Civil Aviation Ministry, the Civil Aviation Authority, Bangladesh (CAA,B), issued letter to all foreign airlines to merge their fuel surcharge with the basic fare or provide commission to the travel agents on fuel surcharge in November last year. “We sent letter to the airlines one year ago, but they did not follow our instruction yet,” said a CAA,B official wishing to remain anonymous.
Menon said he is fully aware of the matter as the airlines are not following the regulations of Bangladesh Bank regarding charging the fuel surcharge. “I am serious about the matter as interest of the common passengers is related here. I will send another directive to the CAA,B to ensure that the airlines on merging their surcharge with the fare,” he said. In case of failure of CAA,B, Menon said “If required, we will summon representatives of all the airlines to the Ministry to know why they are not following the directives of the CAA,B and regulations of Bangladesh Bank.” President of the Association of Travel Agents of Bangladesh (ATAB) Monjur Morshed Mahbub said the airlines give Seven percent commission on basic fare of every ticket to the travel agents. “We give 4 to 5 percent out of the 7 percent to the passengers when we sell ticket,” he said.
Currently the airlines are giving commission to travel agents only 50 percent of the total fare as they (the airlines) are showing 50 percent as basic fare and 50 percent as fuel surcharge. He said the airlines remitted Taka 4162 crore from the country by selling tickets last year. “Of the Taka 4162 crore, half of the money they took on fuel surcharge head without giving us any commission, that is a loss of nearly Taka 150 crore,” he said. “Of this Taka 150 crore, Taka 80 to 90 crore is supposed to go to the pockets of common passengers as we usually keep 4 to 5 percent from our 7 percent commission,” he said.
Citing example, Mahbub said Malaysian airlines is taking Taka 16,500 as fuel surcharge on its Dhaka-Kuala Lumpur-Dhaka route, whereas it charges only Taka 310 on its Kuala Lumpur-Dhaka-Kuala Lumpur route. “Similarly, Emirates airline charges 32 percent of its total fare on Dhaka-New York-Dhaka route, he added. Mahbub alleged that the airlines are showing 50 percent of its total fare as fuel surcharge on their Dhaka route only to give less commission to the travel agents that is ultimately depriving Bangladeshi passengers and the government.
