Travel agents want airlines to restore commission

Travel agents in India on Monday demanded of 16 airlines that they reinstate commission following a Directorate General of Civil Aviation (DGCA) order to restore the system of paying travel agents a commission, a senior industry official said.

"We are going to approach all 16 airlines including Air India, to reach an amicable solution over payment of commission to IATA-accredited agents in the country," Travel Agents Association of India's President, Rajinder Rai, said.

Nearly 2,000 IATA-accredited agents across the country are engaged in selling 85 per cent of airline tickets.

A battle between airlines and travel agents began nearly a decade back, when airlines unilaterally began reducing commissions forcing leading travel agents associations and individual travel agents to knock on the doors of courts in different parts of the country.

At a meeting of some of the travel agents associations, the future course of action with regard to the DGCA order directing all airlines in India to pay commission to IATA-accredited agents in the country, was discussed, Rai said.

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.

In its order issued on March 6, DGCA mandated all airlines operating to and from and within India to pay a fair commission to their accredited travel agents. This is as per the current rules and laws of this country as also in accordance with various IATA resolutions and agreements, Rai said.

Travel Agents Federation of India (TAFI) and Travel Agents Associations of India (TAAI) went to Court in 2005 to get their legitimate and fair dues from the airlines.

In early 2008, the Karnataka High Court directed the DGCA to look into the matter in all fairness and pass an appropriate order.

Almost all travel and tourism associations requested the airlines to give a fair commission which in their opinion was the most appropriate form of remuneration for the work they do on behalf of airlines.

The travel agents fraternity is not in an agitated mood, but if the issue does not resolve, they would approach the courts and the DGCA for relief, Rai said.