The stalemate on whether travel agents should be paid a commission by the airlines continues.
After a meeting with the Directorate-General of Civil Aviation here on Monday, the Travel Agents’ Association of India said the airline regulator has resolved to settle the zero commission issue on September 30.
DGCA officials, however, said that no firm commitment was made at the meeting.
A statement issued by the association after the meeting adds that the DGCA will now approach the “legal cell” of the Government to seek its “approval” to be able to pass a verdict on zero commission.
The meeting was attended by 16 leading airlines, including Singapore, British Airways, Continental and Air India among others.
DGCA stand
“We will have to look at the rules and procedures. We have not made any commitment. Nothing firm was decided at the meeting which was called to hear out all the parties. We have to report (on the issue of commissions) to the Court and we will,” a senior DGCA official told Business Line.
Leading international airlines, including Singapore Airlines, stopped paying commission to agents since November last year. To protest the move, travel agents stopped selling tickets of airlines, which did away with commissions.
The statement adds that acting on the directive of the Kerala and Karnataka High Courts on the on-going communication between international airlines and travel agents on non-payment of commission by the airlines, the DGCA had earlier issued a letter to airlines raising question if paying no commission to agents and then asking customers to pay what was earlier paid by airlines was not anti-consumer.
Different practices
Globally, different practices are followed. In the US and most parts of Europe, airlines do not pay travel agents a commission for sale of air tickets. Travel agents make their money by selling value-added services such as hotel room reservations and car rentals.
“The meeting with the DGCA and international airlines was extremely positive. We are very confident that DGCA decision will work not just for the survival of the industry but customers will also benefit from the verdict,” said TAAI President, Mr Rajinder Rai.
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