SpiceJet restores agent commission

Low-cost airline SpiceJet Ltd has restored its agents’ commission, days after withdrawing it. The airline informed travel agents on Monday it was restoring productivity-linked bonus (PLB) with effect from May 1.

“The decision to withdraw the PLB was taken hoping that (the) civil aviation ministry will come up with a solution for travel agents’ remuneration as guided by the Supreme Court. As there has been no solution till now, SpiceJet has decided to reinstate the withdrawn PLB effective May 1,” the airline said.  

“This means the earlier incentive components will continue. After the ministry’s pending decision on transaction fees, SpiceJet would come up with a comprehensive incentive which will be mutually beneficial,” it added.  

Unlike full-service airlines, low-cost carriers (LCCs) don’t pay regular commission on all ticket sales and do not give 15-day credit to agents to remit the sales amount. LCCs collect advance deposits from agents releasing inventory worth that amount. they are paid one per cent deposit incentive and productivity commission of one-three per cent if the sales target is met. SpiceJet had withdrawn the commission. This led to protests from travel agents who feared that other airlines too will follow suit.