In an attempt to make the tariff system more transparent for consumers, international airliners led by Air India are all set to introduce the net fare system from April 1.
As per the new system, the fare published on the ticket will be the amount the traveller has to pay the airlines. Earlier, the published fare printed on the ticket was far higher than the actual amount an airline received from the travel agents.
In essence, the discount amount will now be built in or factored into the fares printed on the ticket unlike previously when the difference between the published fare and the net fare, which was not known to the passengers, was the discount component. The travel agent will be entitled to a flat 7 per cent commission on the net fare.
Confirming the development, an Air India spokesperson said,
