‘Facilitation Fee’ levied by authorised travel agents on air tickets booked on Government account — Withdrawal regarding.

‘Facilitation Fee’ levied by authorised travel agents on air tickets booked on Government account — Withdrawal regarding.

No. 19024/1/2012-E-IV
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi.
Dated the 5th September, 2014.

OFFICE MEMORANDUM

Subject:- ‘Facilitation Fee’ levied by authorised travel agents on air tickets booked on Government account — Withdrawal regarding.

Attention is invited to this Department’s O.M. of even number dated 10th October, 2013 wherein the authorised travel agents namely M/s Balmer Lawrie & Company Limited (BLCL), M/s Ashok Travels & Tours (ATT) and Indian Railways Catering and Tourism Corporation Ltd. (IRCTC), were allowed to levy ‘Facilitation Fee’ @ 100/- per ticket for domestic sector and .7300/- per ticket for international sector for air travel, wherein Government of India bears the cost of air passage.

2. The issue has been re-examined in consultation with the Ministry of Civil Aviation and Department of Legal Affairs, in the light of provisions of the Aircrafts Rules, 1937, as amended from time to time, and it has been decided to withdraw this Department’s O.M. of even number dated 10th October. 2013 with immediate effect. Consequently, no fee/service charges (by whatever nomenclature), which are not included in the ‘tariff’ charged by Air India/Airlines, are required to be paid to the authorised travel agents.

3. Payment to the authorised travel agents for the Bills raised by them for air tickets procured/purchased till date, in respect of air travel already undertaken or due to be undertaken, would be regulated as per O.M. of even number dated 10.10.2013. It is reiterated that, as far as possible, air tickets on Government account may be obtained directly from Air India/Airlines (booking counters/offices/website) and if obtaining tickets directly from Air India/Airlines is not possible, should the services of authorised travel agents be availed of.

4. All Ministries/Departments are advised to bring these instructions to the notice of all concerned for compliance.

sd/-
(Subhash Chand)
Director

Source: http://finmin.nic.in/the_ministry/dept_expenditure/notification/air_travel/facilitaionFee_AirTicket_withdrawal05092014.pdf