The Hindu Business Line : IATA agents oppose abolition of commission by Air India

Mr Eapen alleged that the present decision to discontinue with the travel agency commission is to please the Star Alliance as Air India is on the threshold of getting a membership there.

V. Sajeev Kumar

Kochi, June 23 Protest is brewing among International Air Transport Association (IATA) agents over the decision of Air India to abolish travel agency commission with effect from October 1, this year.

Mr Biji Eapen, President of the IATA Agents Association of India, pointed out that the commission on sale of an air ticket is the legal and legitimate right of an IATA Travel Agent for promoting and selling the airline’s product and service. However, the present move of the national carrier would result in retrenchment and massive unemployment in the travel and tourism industry in India.

Today, all services are rendered free of charge by the travel agent since he is paid commission by airlines. When agency commission is denied to the travel agent, he will, naturally, have to turn to the customer for recovering the cost of these services, he said.

Govt support

Travel agents in developed countries such as Australia or Japan are still getting 9 per cent of the commission due to the support of their respective governments. Agents in oil rich countries like Kuwait and the UAE are also still enjoying 7 per cent commission on all carriers except the Star Alliance Group.

Mr Eapen alleged that the present decision to discontinue with the travel agency commission is to please the Star Alliance as Air India is on the threshold of getting a membership there. The Union Government seems to be concerned only about the crisis due to ATF costs and not bothered about those employed in the industry, he added.

According to Mr Eapen, airlines provide only transportation whereas it is the travel agent who fills the aircrafts with passengers and cargo. Majority of Indians depend on travel agents for passport, visa, foreign exchange, choice of airlines and cheapest air fares to suit their pockets.

Besides, many are not even exposed to internet or credit cards and use thumb impressions instead of signatures. It is estimated that almost 60 per cent of travellers continue to depend on a travel agent at the global level, he said.

fuel surcharge

The Association also expressed concern on the increasing hike of airline fuel surcharges and pointed out that fuel surcharges were to offset any fluctuations in ATF costs, and subsequently be merged with the basic price of the ticket. However, this did not happen and these fuel surcharges continue to be shown separately by almost all the airlines.

There is no relation between airline fuel surcharges and the average increase in ATF price. Airlines are unilaterally deciding the amount of fuel surcharge and there is no governmental regulatory body for monitoring. Moreover, fuel surcharge differs from airline to airline for the same journey using the same type of aircraft, Mr Eapen said.

Though fuel surcharges are non commissionable to the travel agent, he is responsible for collecting the same from the traveller and remitting it to the airline, he said.

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