Low-cost carrier SpiceJet Ltd has discontinued the annual productivity commission, joining the list of airlines that have reduced agent incentives. Unlike full service airlines, low-cost carriers (LCCs), including SpiceJet, do not pay a regular commission on all ticket sales and also do not give a 15-day credit to agents to remit the sales amount.
Typically, LCCs collect advance deposits from agents releasing inventory worth that amount. The agents are paid one percent deposit incentive and also productivity commission of one to three percent if the agency meets the sales target. SpiceJet has withdrawn the annual productivity commission, leading to a fear among the agents that other airlines too will follow suit.
Air India Ltd and Jet Airways (India) Ltd have reduced commission to one percent, while European airlines do not pay regular commission.
18/05/13 Aneesh Phadnis/Business Standard
