Following the announcement of withdrawal of support of Singapore Airlines by all major travel trade associations namely: TAAI, IAAI, TAFI, ETAA, IATO and ADTOI, these associations have now decided to withdraw support to SilkAir, which is a subsidiary of Singapore Airlines from January 1, 2009. Biji Eapen, President, IATA Agents Association of India (IAAI), informed that the decision was taken jointly by these travel associations in view of non-compliance in paying five per cent commission to agents.
Travel trade associations are pressing for their demand of five per cent commission from international airlines, as agents have to pay 1.2 per cent Service Tax to the government on international tickets, while they have to pay 0.6 per cent Service Tax on domestic tickets. |