TAAI against ‘Zero Commission’ policy

Hyderabad: Travel operators in the country are feeling the heat of the decision to adopt a `Zero Commission’ policy that has been taken up by a portion of the airline industry. To this effect, the Travel Agents Association of India (TAAI), in a meeting at a city hotel, spoke out against the implementation of the policy by three big players in the domestic sector.
The three organisations, namely, NACIL (Air India/Indian Airlines), Jet Airways and Kingfisher Airlines, had announced to adopt the Zero Commission approach, effective October 1, 2008, a move that was adopted by 11 foreign airlines thereafter. At this juncture, a joint council of the travel agents of India was formed, which decided to withdraw support from Jet Airways on December 4, 2008. The decision to withdraw support was extended to Singapore Airlines, one of the largest operators in Asia, which was followed by issuance of memoranda and meetings with authorities of the Singapore Airlines.Today’s meet, incidentally, was on the 37th day of the withdrawal of support to Singapore Airlines.
According to TAAI president Rajinder Rai, the cut in commission would implicate rising costs for the average traveller, since the travel agents would then be compelled to charge for executing the transaction.
According to TAAI treasurer Iqbal Mulla, “Approximately 41 million jobs are at stake, as a result of the Zero Commission decision. The decision will have an adverse effect on allied sectors like tourism and hospitality.”
04/02/09 ExpressBuzz

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Categories: Indian Aviation- In General Feb 2009