Why are the airlines taxes so high in India? Seems to be disproportionally high when compared to the cost of the base airfare.

I know the taxes are govt. regulated. But it would be helpful if someone can shed some light on this.

could it be that these taxes also include the fuel surcharges that all airlines seem to be tagging on as 'tax', when it should actually be part of the base airfare?

I was looking at some flight pricing with India and found the taxes to be much higher for flights which involve a cgnahe of planes. This makes the pricing really ridiculous. Is this normal? Aren't they double charging the taxes when all I want to do is go from point A to B and the only way to go is via C?

ALL itineraries in India are a combo of one way fares - taxes and fees are calculated for each sector. Passenger service fee, a massive fuel surcharge and a "congestion charge".

So, for a spicejet flight I booked today (2 adults + 1 child) the breakup is as below. Divide by three for the actual taxes and fees per person I guess. The base fare is MAA-HYD RT (500 onward and 599 return per person)

Payment Details Rs
SpiceJet Base Fare 3297.00
PSF 1350.00
Fuel Surcharge 9900.00
Congestion charge 900.00
Subtotal 15447.00

These are not "taxes" as such. In fact,
http://economictimes.indiatimes.com/articleshow/2599110.cms

Govt asks airlines to come clean on tax component

[...]

The government’s call for transparency in air fares follows growing complaints from passengers about the ‘taxes’ paid by them. Almost all airlines show fuel surcharge, which now stands at Rs 1,650, under the head of ‘taxes and levies’ though this amount is not deposited with the government. It’s the same with the Rs 150 congestion surcharge.

The actual amount passed on to the government is only the passenger service fee (PSF) of Rs 225 per sector. Therefore, passengers have complained that they are forced to pay Rs 2,025 under the head of ‘taxes and levies’ while the government charges only Rs 225 as PSF.

It appears some airlines are using the ambiguity to enrich themselves in case a ticket is cancelled. Only the PSF of Rs 225 is returned in full while the fuel surcharge and congestion surcharge are treated as part of the fare — subject to deductions and, in some cases, forfeiture. This is the reason why the civil aviation ministry has cracked the whip now. The move comes days after ET highlighted how passengers were being taken for a ride.

The fuel surcharge will be going up soon if it hasn't already - the Govt has allowed the fuel retailers to pass on some of the rising costs to the airlines...

Incidentally IME this is not a purely Indian phenomenon - the British airlines have quoted low fares which in some cases are doubled by the addition of taxes, fees, charges, surcharges......

Thanks "hserus". The information you posted and the article on ET was very helpful. Now I understand why I have to pay Rs. 2000 in taxes and fees for a Rs. 500 ticket

Why are the airlines taxes so high in India? Seems to be disproportionally high when compared to the cost of the base airfare.

I know the taxes are govt. regulated. But it would be helpful if someone can shed some light on this.

Most of it is "fuel surcharge", it goes to the airline not the government. It allows airlines to advertise ridiculous fares like Rupee 1, and still charge you whatever they wish anyway.

Basically, dishonest marketing which governments are allowing in India as well as the USA.

I plan to stop i Dubai on my way to India (Ahmedabad). Any idea what airlines fly the Dubai - Ahmedabad route?

Thanks
BB