AI move to withdraw agency commission draws flak

As part of its cost-cutting initiative in the wake of surging international crude and air turbine fuel prices, national air-carrier Air India plans to withdraw five per cent agency commission from October 1.
However, the move may make travel by Air India costlier as travel agents would then charge a transaction fee from passengers to compensate for the withdrawn commission.
"It has become necessary to review the remuneration pattern offered to our travel trade partners," an Air India circular dated June 20 and addressed to various travel bodies, said.
Accordingly, National Aviation Company of India (NACIL) will be reducing the existing standard agency commission from 5 per cent to zero per cent on all domestic and international tickets, the circular stated.
The travel agents' body, Iata Agents' Association of India (IAAI) however has protested the move, claiming that it would not only lead to high fares but also massive unemployment.
23/06/08 Press Trust of India/Business Standard

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Categories: NACIL Jun 2008