Base Fare, UDF, Passenger Fees and Fuel Surcharge: What Is Base Fare? A base fare on a plane ticket is the price of the airline ticket before the addition of fees, taxes, and any surcharges. In most cases, a traveler’s base fare is going to be lower than the final price of the ticket. Some fares, such as ones to any international destinations, might increase significantly from the base fare when the additional taxes are added.
Fees Added To A Base Fare
Airlines are now adding fees to the base fare for things that were earlier be included in the price of the ticket. People are getting used to the baggage fees, but that is only one example of the fees.
One can now be charged for food and beverages, reserving a premium seat (not just a first-class seat but also a window or aisle seat might incur a fee), getting an advance seating assignment, a second carry on, early boarding, and even to have services from the airport ticket agent to do things such as print the boarding pass for you.
When a discount is offered, it is generally on the base fare. For instance, an airline offers a 30% discount for Rs. 10,000 tickets from Kolkata to Gujarat. One may think that the discount is being offered on Rs.10,000. However, that is not the case. The discount is only being provided on the base fare.
Hence, if the base fare is Rs. 2,500, the discount is Rs 750, and then the ticket will cost Rs 9,250. Let’s take a look at the other costs, Fuel surcharge, taxes, User development fees which inflate the price of the ticket.
Fuel Surcharges, User Development Fees, PSF Charges By Airlines
Fuel surcharge, Indian Airlines started charging this component on every ticket to account for the volatile fuel prices somewhere during 2005-06. Fuel surcharge benefits airlines offset part of their operations costs in which fuel bills contribute the most – nearly 40 percent. This is charged globally.
The majority of the airlines, including the Emirates, American Airlines, British Airways and Qantas, involve a fuel surcharge in the original price of the ticket. Other airlines add on a fuel surcharge during the booking process.
The airport charges User Development Fee (UDF) for each departing passenger, a charge levied by the airport operator on passengers for recovering the investment that is made on the development of the airport. The User Development. Charges vary from Airport to Airport and also for domestic arrival and domestic departure and International departure.
For example, for Bangalore UDF, in June 2014, Rs 260 and Rs 1,070 for the international passengers and UDF for Ahmedabad is Rs 124 for domestic flights and Rs 466 for international departure. UDF or User Development Fee at different airports can be found on the webpage of AirIndia on UDF.
Several airlines charge other fees such as convenience fees or the Printout charges from their passengers.
|Base Fare||Accrued by the airline||The fare charged by the Airline. Discount offered by the airline is generally on this fare.|
|CUTE Fee||The AAI (Airport Authority of India) and the private airports at New Delhi, Mumbai, Kochi, Bengaluru and Hyderabad.||Common User Terminal Equipment for services such as check-in etc.|
|Goods and Service Tax||12% for premium and 5% for the economy (for both domestic and international)|
|Passenger Service Fees||The AAI (Airport Authority of India) and the private airports at New Delhi, Mumbai, Kochi, Bengaluru and Hyderabad.||For covering Security and Facilitation all the AAI airports as well as private airports.|
|User Development Fees||The AAI (Airport Authority of India) and the private airports at New Delhi, Bengaluru and Hyderabad.||For funding passenger facilitation at selected airports, levied by the airports.|
|Fuel Surcharges||Accrued by the airline||Airline fuel surcharge to account for the volatile fuel charges.|
The Base Fee and the Fee Surcharge varies according to the airline.
A CUTE fee is Rs 50.
User Development Fee (USD) and Passenger Service Fee
User Development Fee (USD) and Passenger Service Fee (each departing passenger) is charged at some significant airports is as stated below: –
|Airport||D/I||Passenger Service Fee||User Development Fee|