Agents-optional rule may prove costly to flyers

New Delhi: In a move that may bring back the hefty Rs 250-5,000 transaction fee travel agents started charging about two years back when airlines stopped paying commission to them, the government on Thursday categorically ruled airlines are not bound to pay commission to agents. The aviation ministry has even advised Directorate General of Civil Aviation (DGCA) to amend its definition of tariff that currently includes commission as part of the overall fee structure.
Aviation ministry joint secretary Prashant Sukul wrote to DGCA on Thursday (vide letter number AV.26025/3/2009-A): There is no violation of any provision of the Aircraft Rules by foreign airlines if they do not pay commission to travel agents. Commission will form part of tariff only if it is paid, not otherwise. There is no express provision in the Aircraft Rules making it mandatory for the airlines to pay commission to agents.
Adding that airlines cannot be asked to pay commission only on the ground that commission figures in the definition of tariff, the ministry has advised DGCA to amend the definition of tariff making it clear that commission will form part of it if it is payable, not otherwise.
14/08/10 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Aug 2010