Indian Mood :: Travel News :: Air India agrees on 3% agent commissions effective Dec 26, 2008

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Air India agrees on 3% agent commissions effective Dec 26, 2008

Post Jet Airways’ and Kingfisher Airlines’ decision to pay agents three per cent commission on the ticket’s gross fare, Air India also agreed on the same today, for its domestic as well as international flights. “According to the letter that we received from Air India today, travel agents will now get three per cent commission on gross fare from the airlines, effective from December 26, 2008”, said Rajii Rai, President, Travel Agents Association of India (TAAI). Explaining the structure of this commission in detail, Pradip Lulla, Acting President, Travel Agents Federation of India (TAFI) said, “Air India has agreed on three per cent basic fare plus three per cent fuel charge, which excludes Government taxes and congestion fee.”

Talking about the trade’s ongoing negotiations with other airlines, Anil Kalsi, Chairman, Northern Region, TAAI told Travel Biz Monitor that Singapore Airlines is undergoing discussions to consider commissions. A Singapore Airlines official when asked about the same, said, “This is not the right time to comment, as the decision is yet to be taken.”

With regard to the latest development on the agents’ commission front, Ajay Prakash, National General Secretary, TAFI opined, “All the top three carriers of India have agreed upon three per cent commission. This should be a strong message to international carriers that travel agents act as an important sales channel for airlines in India.” Adding to this view, Kalsi said, “We are sure that the other airlines will not be difficult to convince, considering the fact that the main airlines have agreed on the commission structure.”

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