AI travel agents open to waiving commission

New Delhi: The Travel Agents Association of India says its 2,400 active, allied and associate members may agree to waive the commission charged on Air India tickets booked by agents if the loss-making airline asks for this. The move could save AI about Rs 300 crore (Rs 3 billion) annually.
"If Air India asks us to charge zero commission on tickets issued by us, we could do that to support the airline, provided I get a nod from my board," Taai president Rajji Rai told Business Standard.
On every Air India ticket booked by agents, the airline pays 3 per cent of the ticket cost as commission. The airlines earns around Rs 10,000 crore (Rs 100 billion) a year from ticket bookings.
"We pay Rs 275 crore (Rs 2.75 billion) to Rs 300 crore (Rs 3 billion) as commission amount for booking our tickets," said AI spokesperson Jitendra Bhargava. But, he said, the airline has not decided anything on requesting the travel agents association on waiving the commission.
10/08/09 Mihir Mishra/PTI/Rediff

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Categories: NACIL Aug 2009