The apex association of courier companies in India on Tuesday strongly contested the claims by the three major domestic airlines on baggage charges for on-board couriers and said the rates per kilogram have been increased by between 20 to 125 per cent on certain sectors and flights.
In a statement, the Express Industry Council of India also countered the airlines' claim that the 67 per cent hike in OBC rates would only result in a marginal hike in courier rates for the customers.
They said the cost of the OBC as a percentage to the sale price was around 40 per cent.
"An increase of 60 per cent by the airlines, coupled with the ticket charges and other service charges would mean the cost to the courier companies would go up by 30 per cent. If the increase to the customers would have been only 1.5 per cent as the airlines have stated, the courier companies would have definitely absorbed the increase," the EICI said.
Indian Airlines, Jet Airways and Air Sahara had increased the courier baggage rates by about 60 per cent from June 16, 2003. This was in addition to the seven per cent hike effected in January this year following the Gulf War, which led to a total increase of 67 per cent in last six months.
The courier companies said that they would not be in a position to absorb the hike in courier rates and that it would have a devastating effect on the industry if it was not rolled back.
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