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Jet Airways agrees to give three per cent commission to agents on gross fare

Jet Airways has agreed to pay three per cent commission to agents on the gross fare of international and domestic tickets. The move to pay three per cent commission does not include its low cost subsidiary, JetLite. The decision was taken after a closed door meeting held yesterday in Mumbai among officials of Air India, Kingfisher Airlines, Jet Airways and the representatives of the six major travel trade associations: TAAI, TAFI, IATO, ADTOI, IAAI and ETAA. The agenda of the meeting was to discuss the revival of the commission system in place of the Transaction Fee model.

According to sources Kingfisher Airlines is expected to revert back with their stance on the issue today, while Air India is expected to give its reply day after tomorrow. Prior to the zero commission regime, which came in to effect from the first of last month, agents were paid five per cent commission on the base fare. Confirming the decision of Jet Airways to pay three per cent commission, Rajji Rai, President TAAI, said that Naresh Goyal, Chairman, Jet Airways had been kind to offer three per cent commission and to respect the interests of the travel agents. He informed that Goyal had called up during the meeting to convey the decision. Sudheer Raghavan, Chief Commercial Officer and Sonu Kriplani, Vice President, Passenger Sales (India) of Jet Airways were present at the meeting. Rai further added that Kingfisher Airlines would revert today as the airline representatives wanted to ask their bosses, while Air India would reply after two days as the top officials were out of station.

Pradip Lulla, Acting President, TAFI said, "Due to the agency commission issue, we had withdrawn support to Jet Airways (including JetLite) and had stopped ticket sales from the fourth of this month. Jet Airways and Kingfisher now have agreed in-principle to pay three per cent commission on the gross value of the tickets." He further said, "The Transaction Fee model is not valid for Indian trade industry, thus it was not appropriate to work on it. We are now redirecting our model to a commission based one. I am sure the travel trade will now heave a sigh of relief, after receiving confirmations from both the leading Full Service Carriers."

Referring to the meeting, Biji Eapen, President, IAAI said, “It is creating history of sorts that Jet Airways has agreed to our demands.” He thanked all six associations, OTAs, entrepreneurs, consolidators and travel industry for extending their support to this cause. He further pointed that the three per cent commission which has been offered on the gross fare on domestic tickets is better than what the agents earned currently. On the international tickets he felt that the three per cent commission was less, when one considered the fuel surcharge. “Although we have declared full support to Jet Airways products, we will continue our strike against other airlines,” added Eapen.

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