Wednesday, February 25, 2009
DGCA told to sort out travel agent commission issue
MUMBAI: Domestic travel agents, which have been demanding commission from foreign airlines, have managed to draw the government�s attention.
Civil Aviation minister Praful Patel on Tuesday asked the Directorate General of Civil Aviation (DGCA) to look into the matter, a person privy to the development said. He said the DGCA might ask both parties to explain their case.
Earlier, members of six associations, including the Travel Agents� Association of India (TAAI), Travel Agents Federation of India (TAFI) and the IATA Agents Association of India (IAAI), met Mr Patel in New Delhi. TAAI president Rajii Rai told ET: �We have urged Mr Patel to restore our commission.�
Most airlines stopped paying 5% commission from November last year forcing agents to shift to a fixed-transaction fee on every ticket purchased. From December, however, the fixed-transaction fee, which was in the range of Rs 350-2,500 a ticket, was also discontinued.
Later, all domestic carriers agreed to pay 3% commission to travel agents from December. But foreign airlines have not been paying anything to travel agents.
Typically, travel agents and online portals account for more than 85% of airlines\' ticket sales, while the remaining 15% are sold directly by the carriers. There are about 50,000 travel agents in the country.
Civil Aviation minister Praful Patel on Tuesday asked the Directorate General of Civil Aviation (DGCA) to look into the matter, a person privy to the development said. He said the DGCA might ask both parties to explain their case.
Earlier, members of six associations, including the Travel Agents� Association of India (TAAI), Travel Agents Federation of India (TAFI) and the IATA Agents Association of India (IAAI), met Mr Patel in New Delhi. TAAI president Rajii Rai told ET: �We have urged Mr Patel to restore our commission.�
Most airlines stopped paying 5% commission from November last year forcing agents to shift to a fixed-transaction fee on every ticket purchased. From December, however, the fixed-transaction fee, which was in the range of Rs 350-2,500 a ticket, was also discontinued.
Later, all domestic carriers agreed to pay 3% commission to travel agents from December. But foreign airlines have not been paying anything to travel agents.
Typically, travel agents and online portals account for more than 85% of airlines\' ticket sales, while the remaining 15% are sold directly by the carriers. There are about 50,000 travel agents in the country.
# posted by Donna Adams : 3:07 AM
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