IAAI demands five per cent commission on gross fare from JetLite, AI Express, SpiceJet, IndiGo and GoAir

New Delhi: The IATA Agents Association of India (IAAI) last week sent a letter to JetLite asking the airline to start paying five per cent commission on gross fare to travel agents from December 1, 2010. A similar letter was sent this week to Air India (AI) Express, SpiceJet, IndiGo and GoAir. The letter has been sent by IAAI Central National Board to the Managing Directors of the above mentioned Low Cost Carriers (LCCs), as well as to Bar Council of India (BCI) for its records.
This decision of asking domestic Low Cost Carriers (LCCs) to pay five per cent commission on gross fare was agreed upon by the Association members at its biennial convention (ICON 2010) held last month at Le Meridien, Kochi, where the commission issue took centre stage. The reason, according to IAAI, for asking LCCs to start paying commissions at five per cent on gross fare is that the Aircraft Rule No 135 of the Indian Aircraft Act 1934 and various rules made under it do not differentiate between LCCs and Full Service Carriers (FSCs). IAAI has also made the demand based on the order passed by Directorate General of Civil Aviation (DGCA) on March 5, 2010 for airlines to pay commission to travel agents, as well as Kerala High Court’s directive to DGCA on October 14, 2010 to enforce payment of commission to travel agents.
20/11/10 Anish V Punnackattu/TravelBizMonitor

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Categories: Air India Budget Nov 2010, GoAir Nov 2010, Indigo Airlines Nov 2010, Jetlite Nov 2010, spicejet Nov 2010