SIA refuses to budge as agents continue boycott

Mumbai: SIngapore International Airlines (SIA) has decided to stick to its guns on its 'no-commission' stance to travel agents, even as the latter claim that the airline's sales have gone down by 80 per cent in the last fortnight. Around 2000 travel agents across the country are not selling the airline's tickets in protest against the decision not to pay any commission.
SIA, however, says it has not been impacted by the boycott. "There is no change in our zero commission stance," said Chai Woo Foo, General Manager, Singapore Airlines, India.
Foo, however, admits to loads being lower than last year on all routes. However, its outlook in India continues to be positive. There will be a temporary reduction of one flight per week from Delhi between January 22 to March 25 and two flights per week from Mumbai between January 27 to March 26. "But this is part of the overall network wide review to adjust the capacity in the short term to current demand; including flights to East Asia, Australia and Europe," he added.
Protesting the non-payment of a commission of 5 per cent on ticket sales by airlines to travel agents in India, around 2000 agents and online travel portals associated with agents associations like Travel Agents Federation of India (TAFI), Travel Agents Association of India (TAAI), IATA Agents Association of India (IAAI) among others decided to boycott sales of Singapore tickets in India from December 29.
While around 12 international airlines have taken the zero commission stance, the agents have decided to boycott Singapore Air since it is one of largest carriers operating into India and once it agrees to their demands, others are expected to fall in line.
The agents had stopped selling Jet Airways tickets last year, when three full service carriers — Jet, Kingfisher and Air India — had taken a similar stance of no commission to be paid to them. The boycott had made all three carriers change their stance and agree to pay a commission of 3 per cent on the total fare.
24/01/09 Geetanjali Shukla/Business Standard

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Categories: Foreign Jan 2009, Indian Aviation- In General Jan 2009