The battle between travel agents in the country and western airlines over agent commission has taken a new turn with the Travel Agents Federation of India (TAFI), a representative body of agents, threatening to take legal recourse to stop airlines from bringing down agent commission. |
TAFI, today launched a nationwide strike to protest the action taken by a section of airlines, which they claimed would jeopardise livelihood of thousands of people related directly and indirectly with the trade. |
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According to the agents, the move also violates number of protocols. Firstly, it says no revision in commission can take place according to the IATA Handbook resolution 810 (I) in the middle of the year. |
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"Any change has to be made at the beginning of the year," Tarakeshwar Singh, spokesperson of TAFI, said. |
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Secondly, it says the airlines must apply before Union ministry of civil aviation to ratify the changes. The airlines which include British Airways Air France, KLM, Swiss Air among others, have not done it. |
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Moreover, they are yet to bring up the issue to the joint body of agents and airlines, Agency Programme Joint Council (APJC) which must ratify any change in commission structure. |
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"We are in a very strong legal wicket as airlines decision are completely arbitrary and unilateral," Anil Punjabi, chairman (East), TAFI, said. |
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It can be recalled that west bound airlines had reduced commission from nine per cent to seven per cent after 9/11 attack on the pretext of saving the industry from the doldrums. Now they are demanding to bring it down to five per cent. |
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In later stage, they plan to bring it down to zero. Airlines intimidated their decision to agents earlier this month. The change is set to take place from September 1. |
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Interestingly, eastern airlines like Thai Airways, Singapore Airlines, Royal Brunei, Japan Airlines are continuing with old commission structure. In some case, it is above nine per cent, sources said. |
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The west bound international carriers are trying to get around the travel agents and looking at direct sales via internet and others. |
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TAFI contested that the practise of western country could not be replicated here as travel agents provide number of associated service free of cost. |
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