Financial Times

Dollar air fares still under discussion

By Lashica Abeywickrama

The Civil Aviation Department said last week that a controversial plan by the Board of Airline Representatives (BAR) to quote air fares in US dollars instead of the local rupee is still under discussion and not finalized.

H. M. C. Nimalsiri, Director General of the Civil Aviation Authority said both BAR, that represents airlines, and travel agents, opposed to the plan are having discussions on this issue.

He conceded the customer could get affected by the scheme.

“There will be a confusion created within the passengers if this is being implemented. However any decision made would be for the benefit of the customer.”

Travel agents have slammed the plan due to be enforced from October saying this practice is not in existence in India, Singapore, Thailand or any other country where all fares are quoted in the local currency.

“This introduction will undermine our rupee value and will also cause a major fluctuation in the air fares resulting in a serious problem for the outbound travel industry,” one industry source said.

He said passengers would be confused since the quoted fares is in US dollars and the equivalent of Sri Lankan rupees would be worked out on the basis of the conversion rates on the date of purchase, which may result in a higher charge to the passenger.

Wing Cmdr Noel Fernando, President of the Travel Trade Association said they opposed this process and up to now the authorities have not provided a valid reason for the scheme.

He said with the political unrest in the country one might not be able to predict what would happen next and if the currency fluctuates the people will be confused about their air fares.

“We are very proud of the Sri Lanka rupee and we do not want to devalue it by any means” he said.

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