Steep agent fee on air tickets from tomorrow

New Delhi: With airlines deciding not to pay travel agents commission on ticket sales, travel agencies have decided to levy a transaction fee of Rs 350 to Rs 500 on domestic tickets sold by them.
For international flights, agents will be levying Rs 2,500 per ticket for economy class; Rs 5,000 for business and Rs 10,000 for each first class ticket to all parts of the world.
"Some issues are yet to be resolved with the airlines because of which we want the move to be deferred. There must also be a remuneration arrangement between us and the airline, and not just between us and the passenger. Agents have not been provided training for the new system. And finally, the public has not been provided any education about this fees. If airlines stop commissions and agents are still not ready to collect the fee, there will be chaos from Saturday," warned TAAI president Rajinder Rai.
However, the loss-making Indian airlines are in no mood to extend the date. For the travelling public that still books tickets via agents, there could be a double whammy in store — they will have to pay a steep fee and also get caught in the crossfire between adamant airlines and unprepared agents. "There is no plan to reduce these charges," said Rai while admitting there could be a "huge turmoil" in the market.
Travel agents point out that a majority of their sale is on credit while they pay airlines within a fixed period. On their part, airlines point an accusing finger at the hefty fee structure proposed by the agents.
31/10/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Oct 2008