50 SKY SHADES - World aviation news

Carriers Hit by Tax Refunds Storm

Download: Printable PDF Date: 16 Oct 2015 05:07 (UTC) category:
Publisher:
Carriers Hit by Tax Refunds Storm - Airlines publisher
Tatjana Obrazcova
Aircraft: Airplanes
Source: The Standard

Budget airlines Scoot, AirAsia and Thai AirAsia have been inappropriately charging administration fees when returning the departure tax on canceled trips, the Consumer Council said.

Airlines receive HK$60 million a year from the Civil Aviation Department to help collect and refund the air passenger departure tax from travelers, the council said.

And so it is unfair, chairman of publicity and community relations committee Michael Hui King-man added, for airlines to charge passengers who do not board flights administrative fees for tax refunds while receiving the CAD payment at the same time.

In response, a spokesman for Scoot said it will refund the tax without charging administration fees if customers write to its Singapore office within six months of the departure date.

AirAsia, which owns Thai AirAsia, said customers who use credit cards to pay for tickets instead of a membership account will be charged an administration fee for the refund of a composition of airport tax, including the departure tax.

The fee will vary depending on the flight destination.

The council also found that of 14 airlines surveyed some including Cathay Pacific and Dragonair do not arrange for a refund of the tax payment unless passengers make a claim.

Gilly Wong Fung-han, the council's chief executive, said some of the 1,458 complaints filed in the first nine months are related to the difficulty and the waiting time needed to get a refund.

Hui added: "Many customers don't even know they can get a refund."

There is no mechanism to monitor refund policies of airlines or how they should handle tax payments that are not refunded.

"My assumption is that they have to do extra work as well as give back the money," Hui said.

Apart from the departure tax pinned on every outbound ticket, customers are also charged passenger and cargo fuel surcharges and airport passenger security and terminal building charges.

"All the airlines should be required to show a breakdown of the details of tax charged in order to increase transparency and for customers to understand what they are paying for," Hui said.

And the CAD should take an active role in mapping out a clear procedure on how passengers may get the refund, he added.

One way is for airlines to give the refund to the CAD, with which passengers may then apply for a claim.

The CAD said it will consider the council's suggestions.





Recommended

TARMAC Aerosave becomes the world’s first triple AFRA-accredited company, doubling aircraft dismantling capacity

TARMAC Aerosave has set a new industry benchmark by becoming the first company in the world to secure Aircraft Fleet Recycling Association (AFRA) accreditation across all three scopes of aircraft disa...

Viasat delivers major U.S. capacity expansion for JetXP business aviation customers

Viasat has significantly expanded the capacity of its JetXP in-flight connectivity service across the United States, delivering up to five times more bandwidth for business aviation customers equipped...

Bombardier marks 40 years of Smart Services programs at NBAA-BACE 2026 in Las Vegas

Bombardier marked the 40th anniversary of its industry-leading Smart Services cost-per-flight-hour programs, which today support more than 1,500 enrolled aircraft and account for over 11 mil...

Archer showcases electric air taxi operations in historic San Francisco Bay flights

Archer Aviation all-electric Midnight air taxi successfully completed several days of piloted flights across the San Francisco Bay Area as part of the company’s “No Roads” flight tou...

Android Apps development in Riga, Latvia