Agents propose truce plan with airlines

New proposal mooted for 5% commission and 2% service charge, like in other countries.

Travel agents are considering a proposal that may help resolve their tiff with the airline industry over their commission.

"Airlines can give travel agents 5 per cent commission and another 2 per cent as service charge," said Praveen Chugh, vice-president of the Travel Agents Federation of India (TAFI).

Airlines had cut the commission of travel agents to 5 per cent from the earlier 7 per cent in a bid to cut costs. In reaction, agents took the airlines, Air India and Indian Airlines to court. The Bangalore High Court is currently hearing the matter.

Chugh said several countries in the world already had such a system in place. The matter is likely to be discussed at TAFI's international travel convention in Singapore on August 11-14. TAFI members include 75 per cent of the ticketing agents in the country.

Balbir Mayal, president of the TAFI also welcomed the idea. He added that all his attempts to discuss the matter had been rejected by the airline industry.

"Airlines say the matter is subjudice and thus, should not be discussed at all. This is not going to help resolve the tiff anyway."

Chansa Airlines General Manager (India) Warner Heesen said, "The matter is not just about commission. It is basically about helping agents earn their living. The airline industry needs to sit and discuss means to help sustain earnings of travel agents."

Heesen added that the matter was of immense concern as the no-frills airlines had found new means to sell their seats and had kept agents out of it. In a bid to compete, this has also forced other airlines to cut costs, making the cut in commission to 5 per cent imminent.

In case the likely proposal by TAFI sees the light of day, air travel may become slightly expensive for the end-consumers. They will be forced to bear an additional 2 per cent charge.