Travel agents seek implementation of commission by airlines

A tour operator says airlines had earlier stopped granting agency commission at a rate of 5% of ticket cost

Travel agents have demanded implementation of the latest Civil Aviation Ministry order declaring the charging of transaction fees by airlines illegal while allowing agency commission to be levied.

"We have given a letter to DGCA to implement the order of the Ministry. We will be approaching Kerala High Court also in an ongoing case and submit all necessary documents to seek implementation of the order," Biji Eapen, President of IATA Agents Association of India (IAAI), told a press conference here.

Subhash Goyal, President of Indian Association of Tour Operators (IATO), who was also present, said airlines had earlier stopped granting agency commission at a rate of 5% of the ticket cost.

"A minimum of five % commission is our legal entitlement and it should be reinstated (by the airlines)," Goyal said, adding that the amount collected after sales as transaction fees but not paid to the agents should also be given to them.

Goyal also alleged that 16 foreign airlines operating to and from India had earlier "disregarded" the Kerala High Court verdict upholding DGCA's order to pay commission to agents.

IAAI, IATO and other such bodies have been contending that the 'zero commission' and 'transaction fee' models, suggested by some airlines, were illegal in terms of the Aircraft Act.

The Ministry order, issued by Civil Aviation Secretary KN Srivastava last month, had said that all levies like 'transaction fees' or 'convenience fees' should be treated as commission.

"All these forms of levy of fees as remuneration to the intermediaries for the services rendered by them in issuing tickets to passengers on behalf of the airlines are permissible under the existing rules provided these are shown as tariff... And no amount will be collected from the consumers over and above this," the order had said.

Maintaining that DGCA cannot lay down the quantum of commission payable by airlines to agents, the Ministry had asked airlines to decide the issue in consultation with the intermediaries taking into account market conditions, costs to agents and other factors.