What are you paying for when you buy an airline ticket?

What are you paying for when you buy an airline ticket?

What are you paying for when you buy an airline ticket?

New Delhi: What are the various cost components that go into your airline ticket? Why is there still a fuel surcharge when oil prices are now lower? To find out answers to these airline ticket FAQs, Mint talks to Richa Goyal, director of Stic Travel Group. Edited excerpts:
What is the biggest cost component for an Indian airline today?

The biggest cost component for any airline is typically landing and parking charges. These depend on which city you are flying to and how much time an aircraft spends on the ground between flights.
Who levies landing and parking charges?
Airport operators.
What are the various elements that a passenger pays for in a ticket? When I book a ticket, I see three components—full economy fare, PSF and fuel charges. Could you explain these?
Full economy fare is your basic fare for that sector. PSF is what we call the passenger service fare, and the fuel surcharge is the surcharge that most airlines are now levying on top of the basic fare because of the increase in fuel costs.
A domestic carrier may have fewer tax components. For example, Jet Airways (India) Ltd will have a YQ tax, which refers to the fuel surcharge. And they’ll have an IN tax, which is like a departure tax for Delhi airport, for instance. And they’ll have a PSF as well.

The key learning, I think, with all these tax components, for a traveller, is that when you are buying a ticket which is, say, a refundable ticket, it is important for you to know what component you will get the refund on. Because typically, on the basic fare, you will get the refund, but you will not get a refund on taxes.


~ by anand213 on March 31, 2009.

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