Mumbai: Air India and Jet Airways have cut travel agents’ commission to one per cent from the existing three per cent, as the airlines struggle with high debt and losses. Travel agents have opposed the cost-saving measure and urged the airlines to defer the move, which comes into effect from July 16.
At present, Air India spends about Rs 1,000 crore annually on distribution, which includes agent commission and fees for use of reservation systems and global distribution systems that hold ticket inventories. This is about six per cent of the Air India’s annual expense. Over 80 per cent of the airline’s tickets are sold through offline agents and portals. Both Air India and Jet Airways are trying to increase web sales to reduce distribution costs.
15/06/12 Business Standard
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment