Airline travel agents to fight back with selective bookings

Mumbai: With full-fare domestic airlines deciding to scrap agent commissions, travel agents are getting ready to fight back, and plan to label such carriers as “least preferred”, where they will book tickets only if another option is not available.
State-owned National Aviation Co. of India Ltd or Nacil, Jet Airways India Ltd and Kingfisher Airlines Ltd have decided to scrap from 1 October the 5% commission on basic fares, which is before taxes and surcharges, that they pay to travel agents as part of efforts to cut costs. That will dry up the widest revenue stream for agents—about 90% of their business is from airline bookings, mostly for corporate clients.
“There is nothing to prevent our members from deciding to accord ‘least preferred airline’ status to any carrier,” said Ajay Prakash, national general secretary of Travel Agents’ Federation of India (Tafi). “If any airline thinks the only way to survive is to eliminate its agent network, they should wait and see what will happen to them when agents decide to withdraw their support.”
C.V. Prasad, president of the Travel Agents’ Association of India (Taai), said on Friday that he is in a “crucial meeting” to decide on a strategy to combat the scrapping of the commission. He could not be reached on phone later.
Tafi and Taai, which together represent about one million employees working with travel agencies, are exploring legal options and discussing ways to tide over the situation.
29/06/08 P.R. Sanjai/Livemint

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Categories: Indian Aviation- In General Jun 2008