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Jet Airways now adds a "convenience" fee!

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Jet Airways now adds a "convenience" fee!

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Old Jun 12, 2012, 3:49 am
  #16  
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Originally Posted by PVDtoDEL
Are you sure about that? Charging the amount as a fee instead of the base fare might have some tax consequences that the tax authorities might be interested in...
unlikely....but even if that is the case then its up to the tax authorities to take jet to court....still no basis for a consumer complaint....
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Old Jun 12, 2012, 9:47 am
  #17  
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Originally Posted by DELANRDFW
IIRC its USD/CAD 25 for tickets in USA/CAN respectively and INR 150 in India and UK GBP 4.50 for using a CC with UK address.
This is interesting. Jet Airways must believe that sales and fess/prices don't obey elasticity. You charge px for buying tickets using
  1. phone reservations, as well as not using phone reservations,
  2. web as well as for not using web
Very innovative. These guys must thing they are very smart. Surely they belong in *Alliance.
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Old Jun 12, 2012, 9:59 am
  #18  
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Originally Posted by PVDtoDEL
Are you sure about that? Charging the amount as a fee instead of the base fare might have some tax consequences that the tax authorities might be interested in...
I am not a lawyer, nor an aviation expert. Please explain why a fee would draw attention of tax authorities. It's not like it's the first time a fee has been charged by an airline.

Take the example of the fee for using a credit card. Master Card, Visa, Diners Club and other card issuers forbid merchants from charging a fee to customers for using a credit card. These fees have started appearing again, after having been quashed by the credit card companies. If you call you credit card customer service and complain about such a fee, the merchant could be put on probation by the credit card, not any government. Other than state and federal laws, there are two agreements involved in a credit card transaction. One between the merchant and the credit card issuer, and the other between the credit card holder and credit card issuer. The only way a govt cannot force merchants to act in a certain manner in regard to fees is if the credit card issuer goes to court against a merchant. The consumer can take the credit card issuer to court, but the former cannot sue the merchant for charging fees.
This is commonsense approach.
I will defer to our expert here.
Another is asking people to provide finger prints for cashing American Express traveller's checks.
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Old Jun 12, 2012, 10:00 am
  #19  
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Originally Posted by indialogue
And my personal opinion is that you need to read what I said more carefully. I first started off by asking if there wasn't "soft regulation of fares". Then, since the web booking page does not mention anything about what convenience they're charging for, in the light of the supposed "soft regulation of fares", I questioned if there wasn't a case to take them to consumer court and make them spell out what they're charging for. Still with me?

Since you questioned whether I knew what is or is not a matter of law, let me say it clearly here so there is no ambiguity, transparency in pricing is, or should be, a matter of law. Considering that India still does not have Truth in Lending, expecting the airline industry to expose everything here, might be expecting too much. But guess what, expect I will. Quixotic as that might be

And p.s. - kudos for digging out the post from JetAirways but posting on a forum read by, oh 200-odd people at most, is not transparency
One more fine. Dismissed.
So you expect me to post in more prominent places frequented by more people?
Sorry it's not my job.
Transparency does not mean bringing it to your notice, but making reasonable efforts to make it known to those who would be asked to pay.

Consumers ought to do their own research and 9W ought to make proper notifications in advance. I believe posting it on their website would suffice. You can't expect a merchant to knock on every door and inform every one in person. E-mailing is probably not a good option as not every one has a computer. Posting it on its website is probably the best, as that will get the information to every one who would use their website to buy a ticket.
When you purchase a ticket on the website, you agree to all the terms and conditions.
I do no know when 9W posted that announcement on their website. Jet airways may not have shown due diligence, but the buyer also must exercise caution. Jet does not twist your arm into purchasing a ticket.
Fraud is another issue altogether. If you can prove that 9W deliberately posted their notification in such a manner so as not to be visible or known to the buyer until after you8 have bought the ticket, you have a case.

Last edited by Yaatri; Jun 12, 2012 at 10:29 am
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Old Jun 12, 2012, 10:37 am
  #20  
 
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Originally Posted by shahadil
All other airlines in India offer a discount for booking on their website. I think jet thinks its the only airline people fly and they can charge whatever they feel like.
Booked on GoIndigo website last week and even they charged Rs 100 convenience fees.
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Old Jun 12, 2012, 10:44 am
  #21  
 
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Originally Posted by Yaatri
I am not a lawyer, nor an aviation expert. Please explain why a fee would draw attention of tax authorities. It's not like it's the first time a fee has been charged by an airline.
Fees are exempt from some taxes which apply to the base fare. Not sure about the specifics though, so I can't comment on this particular case. I'd think that 9W's legal department would know what they're doing though...
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Old Jun 12, 2012, 11:03 am
  #22  
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Originally Posted by PVDtoDEL
Originally Posted by Yaatri
I am not a lawyer, nor an aviation expert. Please explain why a fee would draw attention of tax authorities. It's not like it's the first time a fee has been charged by an airline.
Fees are exempt from some taxes which apply to the base fare. Not sure about the specifics though, so I can't comment on this particular case. I'd think that 9W's legal department would know what they're doing though...
I see your point. Fees, if no taxed at source, would be counted as income and subject to income tax at the end.How fees are to be taxed depends on accointing practices allowed under the law, which is a matter between the taxing authority and the airline. Consumer is not in the loop.

Last edited by Yaatri; Jun 12, 2012 at 11:14 am
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Old Jun 12, 2012, 11:31 am
  #23  
 
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Originally Posted by Yaatri
I see your point. Fees, if no taxed at source, would be counted as income and subject to income tax at the end.
Income, whether it is taxed at the source or not, would be subject to income tax at the end...
Originally Posted by Yaatri
How fees are to be taxed depends on accointing practices allowed under the law, which is a matter between the taxing authority and the airline. Consumer is not in the loop.
Quite right. But that loop affects the way many airlines choose to charge certain fees.
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Old Jun 12, 2012, 5:22 pm
  #24  
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I don't think this is anything compared to YQ.
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Old Jun 12, 2012, 5:35 pm
  #25  
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Originally Posted by UA Fan
I don't think this is anything compared to YQ.
Quite right. I don't get people getting bent out of shape at fees that are not significan at all.
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Old Jun 12, 2012, 6:03 pm
  #26  
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Originally Posted by Yaatri
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Quite right. I don't get people getting bent out of shape at fees that are not significan at all.
Indeed. I'll take this piddly $2 over YQ anytime.
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Old Jun 12, 2012, 6:06 pm
  #27  
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But I do agree with some posters in that there is a tax angle worth considering. If this was a large amount it might warrant attention. AFAIK Brazil banned YQ because it realized that it lost out on taxes for that part (?).
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Old Jun 12, 2012, 6:20 pm
  #28  
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Originally Posted by UA Fan
But I do agree with some posters in that there is a tax angle worth considering. If this was a large amount it might warrant attention. AFAIK Brazil banned YQ because it realized that it lost out on taxes for that part (?).
What would you gain by having tax angle looked into. Either nothing would change or would end up paying the fee plus tax. @:-)
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Old Jun 13, 2012, 1:39 am
  #29  
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If I remember correctly yq started at 100 or 150 rupees some 6 years back. Today it is about 1500 rupees. I am not saying convenience will go upto that but all things start small.
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Old Jun 13, 2012, 1:44 am
  #30  
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Perhaps they heard that bogus Ryanair story, and decided to charge for the on-board conveniences?
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