In an unprecedented move, the Directorate General of Civil Aviation (DGCA) passed an order dated March 11, 2010 to re-instate agency commissions to all IATA-accredited travel agents. With this order, all trade associations feel that their stand has been vindicated. It is however interesting to note that the expectation of the new commission structure varies a lot. While TAAI seems satisfied with a five per cent commission on gross, TAFI feels that nine per cent on gross from international airlines and five per cent from domestic airlines is acceptable. IATO envisions seven to nine per cent on gross and ADTOI will settle at five per cent on gross. IAAI will be satisfied with no less than nine per cent on gross for both domestic and international sectors, it seems.
This order as been passed by DGCA in response to the IATA Agents Association of India’s (IAAI) Contempt of Court Case filed on February 8, 2010 under reference of Kerala High Court no: 186/2010, against Ministry of Civil Aviation (MoCA), DGCA and 16 zero commission airlines. On March 4, 2010 the Kerala High Court had issued a notice to DGCA, as per |