The travel agents' community is in a state of flux over the quantum of commission from the airlines, as they prepare to table their demands to the 16 foreign carriers which had resorted to zero commission. The agents on Monday said that they will be approaching the airlines, despite carriers maintaining silence on the issue.
Airlines, including Singapore Airlines, Lufthansa, Delta, KLM, Qatar Airways and British Airways, among others had resorted to zero commission despite the agents' agitation.
Last month, the aviation regulator directorate general civil aviation (DGCA) passed an order in favour of the travel agents, wherein it said that all airlines that had gone in for zero commission should move back to the commission-based regime. The order issued by DGCA chief, Nasim Zaidi stated: "As per rules, the DGCA cannot lay down the quantum of commission payable by airlines to agents. It is entirely up to the airlines to take a decision in this regard in consultation with agents, taking into account various commercial factors."
Talking to the mediapersons here, Rajinder Rai, president of Travel Agents Association of India, said: "We have not been able to arrive at a consensus over the quantum of the commission. But we want to arrive at an amicable solution. We are meeting them and do not plan to continue our agitation. A fair commission regime is looked at." He, however, added that the current 3% commission is "not enough" and just helped the industry sustain during the zero-commission regime.
The agents plan to resolve the commission issue with foreign airlines first and then move to domestic airlines including Air India, Jet Airways and Kingfisher. Domestic airlines had resorted to zero commission for a short duration before reverting to the commission-based regime. They had agreed to pay 3% to the agents.
It is noteworthy that agents, who have been boycotting Singapore Airlines since it introduced zero commission in India, quietly withdrew the boycott three months back. Foreign carriers have been firm on the zero commission. British Airways recently resorted to withdrawal of ticket stock from agents around the country. Though this move was seen as part of the regular process undertaken by airlines to streamline costs, the agents are cautious and say they will raise the issue with the airline.
Last year, the zero-commission system adopted by most foreign airlines replaced commissions by transaction fees. The agents opposed it, saying it would create discrepancy as there could be no uniform fee charged by the agents.
Over the years, the commission rates paid by airlines have been progressively brought down from 9%.
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