Business Daily from THE HINDU group of publications
Monday, Nov 10, 2008
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Business Daily from THE HINDU group of publications Monday, Nov 10, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Airlines Web Extras - Corporate Disputes Travel agents, airlines split on transaction fee issue Shubhra Tandon Mumbai, Nov. 9 All issues have not yet been smoothened out between the travel agents and airlines after the implementation of transaction fee system. With some airlines not agreeing to go in for it, they have been boycotted by the travel agents. Consumers too are confused with the current scenario, said agents. The two leading travel agents associations – Travel Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) – also differ on the terms laid down by the airlines in this respect. While TAAI has agreed to the transaction fee system, TAFI official said that its members have been advised not to sign any agreement with the airlines as it continues to demand commission in its present format. There are 13 airlines which have gone to ‘zero or no commission’ for travel agents from November 1; not all have implemented the transaction fee system. “There are three airlines which will implement ‘no commission’ later. While Emirates will adopt this from April, Eithad and FinnAir will go for it from January 1. Airlines like Cathay Pacific, British Airways and few others continue to give commissions,” Mr Pradip Lulla, Vice President, TAFI told Business Line. Meanwhile, both TAAI and TAFI affiliated agents have stopped sales of KLM, NorthWest and Air France tickets. According to agents, even the transaction fee system is not free from discrepancies. This new system restricts the cash flow for the agents because the entire payment is to be lodged with the airlines and a credit note would be issued by the latter after the billing cycle is complete.
“This is not acceptable. We would like that the current scenario of ‘cut and pay’ should continue whereby the agent is able to take his due and then return the rest of the collected amount,” said Mr Rajji Rai, President, TAAI. He added, airlines have formed a committee to look into the matter and will give their decision within a week. In another move, airlines have agreed to maintain parity in fares being offered by the agents and themselves at their (airlines) portals, airport and city ticket counters. This will be followed till December 31, 2009, said Mr Rai. “We also feel that if some agents do not agree to adopt transaction fee system they should be allowed to charge their own service charges without affecting their income flow,” he said. But what do the customers say? “Consumers are confused. As such the air fares are skyrocketing, they feel it is only adding to the cost. They are looking at other travel options as well,” said Mr Lulla. Currently, transaction fee reflecting under O/C category in the ticket for economy class is Rs 350 and Rs 500 for business class on domestic routes. For international, it is Rs 1,200 for economy and Rs 2,500 for business. Airlines will stop paying commission to travel agents from Nov 1 More Stories on : Airlines | Corporate Disputes
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