Business Daily from THE HINDU group of publications
Tuesday, Dec 09, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Dec 09, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Logistics
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Airlines
The travel agents were earlier getting 9 per cent commission, which was later reduced to 7 per cent and then to 5 per cent and was subsequently scrapped altogether. Our Bureau Bangalore, Dec. 8 Travel agents, who claimed that two domestic airlines had agreed to restore part of the earlier commission to them, have asked other airlines to follow suit. A representative of the Travel Agents Federation of India (TAFI), which represents a part of the travel agents’ industry, told Business Line that both Jet Airways as well as Kingfisher Airlines had agreed to pay part of the commission on the gross fare (excluding passenger service fee of Rs 225) of each ticket to those agents who sell their tickets. While a Jet Airways spokesperson said it had agreed to offer 3 per cent commission to the travel agents, which will come into effect immediately, a Kingfisher Airlines said it had not taken a decision on the same. Travel agents across the country had boycotted Jet Airways after all the airlines refused to pay any commission to travel agents. Nearly 85 per cent of the total Jet Airways tickets worth Rs 18 crore sold daily are routed through the travel agents. The travel agents were earlier getting 9 per cent commission, which was later reduced to 7 per cent and then to 5 per cent and was subsequently scrapped altogether. A Jet Airways spokesperson said recognising the difficult economic environment for the travel industry as a whole, Jet Airways engaged in a constructive and intensive dialogue with the travel agency associations to find solutions acceptable to the airline and the partners in the travel trade. “As a result of this dialogue, Jet Airways has agreed to pay 3 per cent commission on gross fare (defined as basic fare plus fuel surcharge) of domestic and international tickets sold in India,” the spokesperson said. The commission scheme will come into effect immediately and will replace the transaction fee model recently introduced. JetLite will, however, continue with the practice of transaction fee model consistent with the practice adopted by the other low cost carriers (LCCs). The TAFI representative, Mr Sampath Kumar, the national managing committee member of the federation, said the decision was taken after a five-hour marathon meeting between various travel agents’ association and the airline representatives on Sunday. “We still want the airlines to restore the 5 per cent commission,” Mr Sampath Kumar said. “Now they understand they need to pay us.” He said the travel agents will continue to pursue their demand for full restoration of commission of 5 per cent. As of now, out of 60-odd international airlines, 17 of them have withdrawn commission to the travel agents. Airlines will stop paying commission to travel agents from Nov 1 Reinstate travel agency commission: IATA agents Move to scrap commission on air tickets opposed Zero commission: Airlines to take a call on Aug 1 More Stories on : Airlines | Jet Airways (India) Ltd
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