Travel agents threaten boycott of air ticket sales

Mumbai/New Delhi: A large section of travel agents is threatening to boycott ticket sales of the country’s largest private airline Jet Airways (India) Ltd and Germany’s Deutsche Lufthansa AG from 1 October, as the carriers plan to abolish the existing 5% commission from 1 November.
This is apparently the unanimous position of all associations representing travel agents, though two associations have not announced a boycott and a third has announced a staggered boycott schedule of some airlines. Jet Airways and Lufthansa are in focus because they were the first to stop commissions.
In India, 85% of airline tickets are sold through agents. But in line with international practice, Indian airlines have decided to stop paying commissions to reduce costs as they face a likely combined loss of $2 billion (about Rs9,100 crore) this fiscal year.
The Travel Agents’ Federation of India, or Tafi, and the Travel Agents’ Association of India, or Taai, have not announced an official boycott. Taai, in fact, says it is in dialogue with airlines to introduce a transaction fee. The two associations jointly claim to represent about 80% of around 2,800 agents who are accredited to the International Air Transport Association, or Iata.
14/09/09 P.R. Sanjai and Regina Anthony/Livemint

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Categories: Indian Aviation- In General Sep 2008