Air travel agents threaten to block sale of tickets

The stand-off between international carriers and travel agents over commission rate cuts intensified today with 2,000 travel agents from across the country reiterating their threat to block ticketing services of some carriers.

Starting April 1, 2005, travel agents will stop selling tickets of Air-India and go slow on the sale of tickets of all international carriers that cut the commission rates. Air-India has decided to cut commission to agents from 7 to 5 per cent. Other international airlines operating in the country are also expected to follow suit, according to industry sources.

While Air-India plans to effect the rate cut from April 1, other airlines are expected to do the same during the month. The threat by the travel agents comes at the beginning of the out-bound travel season.

This is the second time in less than a year that the travel agents are at loggerhead with airlines over commission. Sources said the travel agents plan to block ticket sales of Air-India Express, when it is launched.

"Though we have invited the airline for talks before taking such a step, we are prepared to stop selling tickets if the management decides to go ahead with the commission cut," said Rajinder Rai, chairman, Travel Agents Association of India (TAAI).

Saying that the commission cut is not justified during this boom period, Rai said, "We are not averse to the airlines reducing our commissions, but all we need is enough time to let the agent community prepare for such an event."

Last year in June, the travel agents had locked horns with international carriers, when some of them, including Lufthansa, had announced cuts. Agents in June last year had also threatened to cancel ticketing services to international airlines if they went ahead with the commission cuts.

Subsequently, the airlines withdrew their plans. "Our commissions have already dropped in value terms with air fares dropping to record lows," said Balbir Mayal, president, TAAI. A Delhi-London ticket that used to cost around Rs 50,000 last year, is now priced at around Rs 15,000. We cannot survive in such conditions and have to take such tough stands or perish," said Balbir Mayal, president, Travel Agents Association of India (TAAI).