Domestic airlines appear bracing for a discount war with their decision to increase travel agent commission besides offering productivity and sector-linked bonuses.
Indian Airlines, Jet Airways and Air Sahara, in an attempt to increase their market share are offering lucrative commission rates, which the agents are passing down to the consumers as discounts with the onset of the lean season.
While Air Sahara is offering a commission rate of around 14 per cent, (including basic commission plus sector linked and productivity-linked bonus), Jet offers a composite commission of 11 per cent, which includes a 2 per cent bonus (valid up to July 15) and a 4 per cent incentive (valid up to August 31) on the basic fare.
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Indian Airlines is offering a 5 per cent commission along with a flat incentive which ranges from Rs 150 to Rs 300 depending on the sector.
A senior executive at Jet Airways said,