The recent development of airlines reversing their decision on zero commissions (ie, Jet and Kingfisher) implemented in November 2008 is a huge victory for the agent fraternity. If one has to consider the global scenario, India is the only country (after Japan) to reverse the airline’s decision on commission structures.
Sharing his views on the same, Rajji Rai, President, TAAI mentioned, “This success with both airlines substantiates our stand and commitment to our members, that we will get more than we expect. This will be true, as agents used to get commission on just the net fare earlier, as against the new 3 per cent win on the gross fare, which also includes the fuel surcharge and other taxes (unlike before) excluding Government imposed taxes.”
Though the finer aspects are still being worked out, the current agreement definitely works in favour of an agent, as the fuel surcharges are among the highest components in an airfare.
Elaborating on the situation, Sampath Kumar, Managing Director, Visa Tours and Travel and Chairman – Legal and industry affairs, TAFI said, |