Business Daily from THE HINDU group of publications
Wednesday, Feb 04, 2009
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Business Daily from THE HINDU group of publications Wednesday, Feb 04, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Airlines Marketing - Trends TAAI hints at blocking ticket sales of more airlines
Our Bureau Hyderabad, Feb. 3 Travel Agents Association of India (TAAI) has warned that it might bar sales of tickets of all the 11 major international airlines if they do not resume paying commission. “Pay commission (in) India where you are getting revenues, or quit India,” Mr Rajji Rai, President of TAAI, said. The managing committee of TAAI met here to discuss an action plan to counter the airlines’ decision to introduce the “zero commission” regime. It is estimated that travel agents would lose about Rs 300 crore if the airlines decide to stop giving commissions. Though there are about 70 foreign air carriers of varied sizes, the association would focus on those with “deep pockets”. “We have stopped support to Singapore Airlines for the last 37 days. We have now decided to stop selling packages to Singapore and withdraw our support to selling Singapore as a destination,” he said. “If they don’t resume commissions, we will increase commission to 7 per cent from the present 5 per cent.” RetrenchmentAddressing a press conference here, he asked the Union Government to bring out a legislation to mandate the airlines to pay commissions. “We will contemplate similar action against other airlines if they do not relent,” he added. As the zero commission norm hits them, cutting into revenues, TAAI members are worried that it might lead to retrenchment of sizeable number of employees of the 14-lakh strong industry. Low-cost carriersFaced with dwindling load factors, low-cost carriers seemed to have changed their stand and have approached the travel agents with offers of special fares. “We have spoken to Indigo and Spice and they came forward to give us special fares. On our part, we will give them traffic,” Mr Vijay Mohan Raj of TAAI (Andhra Pradesh) said. More Stories on : Airlines | Trends
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