Chennai: SpiceJet Ltd is likely to get into a spat with travel agencies after it stopped the annual productivity commission. Other low-cost carriers (LCC) have not stopped this incentive. They only cut incentives of paying a regular commission on ticket sales and do not give a 15-day credit.
The LCCs make sales only in advance through deposits from agents. The deposit gets 1% interest which has been withdrawn. If the yearly sales target is met, then 3% productivity incentive is given.
Full cost carriers Air India Ltd and Jet Airways (India) Ltd have reduced productivity commission to one percent. Agents feel that SpiceJet wants travellers to book through websites and so they are going to stop selling tickets of such carriers.
SpiceJet denied the move and said the annual commission was only stopped and monthly ones continued. It said that a more attractive scheme for agents would be announced. It has 20 per cent market share in the domestic sector.
21/05/13 TruthDive
