'Zero commission' practice illegal: DGCA

New Delhi: The Directorate General of Civil Aviation (DGCA) has termed the ‘zero commission’ practice followed by international airlines as illegal.
In its submission to the Competition Commission of India (CCI), in response to a complaint filed by a travel agents body, DGCA said travel agents should be compensated by the airlines directly by paying commission, which should be a part of the fare itself. “Since a large number of airlines took similar action at the same time, it looks like cartelisation,” DGCA said in its reply to CCI.According to DGCA, international airlines need to do away with the ‘zero commission system’, which leads to the charging of transaction fees from the passenger as compensation to the travel agent.
11/06/10 Business Standard

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Categories: Indian Aviation- In General Jun 2010