Airlines have reduced commission payable to travel agents arbitrarily, creating a situation that is driving travel agents out of business. Indian carriers such as Air India and Jet Airways recently announced the reduction of commission of IATA Agents to one per cent. We presume that they are influenced by foreign carriers who are operating in and out of the country.
The Ministry of Finance has issued a notification in April 2012 that the relationship between airlines and agents are governed by the Indian Contract Act. This act clearly suggests that there must be ‘consideration’ from the principal to the agent. It is time that there must be a national policy which governs the aspect of remuneration payable by the airlines to the agents in India.
Most of the airlines have discontinued the practice of receiving payments through credit cards from travel agents and this is strangulating the business of a travel agent. Foreign airlines are selling cheaper tickets from their website than available in open market through travel agents. Benefit of reduced commission is also not passed on to the air traveller and airlines are pocketing this reduced commission. Therefore, we request the Government to look into the matter and consider our request for minimum of five per cent commission on the total airfare.
