IAAI sends notice to airlines to pay five per cent agency commission on gross

Mumbai: Following the recent order passed by the Directorate General of Civil Aviation (DGCA) to re-instate agency commissions, IATA Agents Associations of India (IAAI) issued a written notice on March 27, 2010 to all 16 international carriers following zero commission asking for five per cent commission on gross. The Association however, has specified that the five per cent commission is only an interim arrangement. The percentage can change depending on the industry requirements and travel fraternity retains the right to negotiate for a higher percentage of commission as well.
Biji Eapen, President, IAAI said, “Since DGCA has passed the order, it is mandatory for all the 16 international carriers to start paying agency commission at the earliest. We are expecting response from the airlines within a week. If they fail to respond we will decide on further course of action.” Tarun Yadav, Chairman – Northern Region, IAAI added, “We have zeroed in for five per cent agency commission including taxes and YQ and have excluded government and airport taxes. However, five per cent is only a temporary figure which may increase depending on the need and negotiations among the travel fraternity.”
As reported by TravelBiz Monitor in its previous issue, the expectations of reinstated agency commission structure varies from association to association. When contacted Rajji Rai, President TAAI stated that the Association is pushing for nine per cent agency commission.
31/03/10 Anita Jain/Travel Biz Monitor

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Categories: Indian Aviation- In General Mar 2010