A directive by the Directorate General of Civil Aviation (DGCA) has asked several international airlines to restore the system of paying travel agents a commission, thereby solving a long-standing problem for agents who were collecting a fee for sale of tickets from passengers.
The transaction fee which was to be collected from passengers ranged from Rs. 750 to Rs. 7,000 depending on the class of travel (varying for economy, business and first class).
The DGCA directive dated March 5, 2010, ruled out zero commission in India and passed the order to this effect. DGCA has directed all the airlines that had gone to zero commission that they must reconsider this decision, and in consultation with agents decide on a commission that has to be paid to them.
Claiming it to be a big victory for the travel agents fraternity, Rajji Rai, President of Travel Agents Association of India (TAAI), which spearheaded the campaign against the airlines for their refusal to pay the commission, told The Hindu that “we still have to meet with the airlines to thrash out the commission payable to us. The meeting will happen early next week and we are very comfortable if the commission goes back to pre-November 2008 levels of 5 per cent, although the rate has to be negotiated.”
International airlines operating in India which had gone over to zero commission from November 2008 include KLM Royal Dutch Airlines, North West Airlines, Air France, Qatar Airways, Singapore Airlines, Silk Air, Lufthansa, Air Canada, Continental Airlines and Japan Airlines. Austrian Airlines joined the group in January 2009 and Delta Airlines and British Airways joined in April 2009.
