|
Round one to Indian agents |
|
|
DGCA ruling nixes zero com push in India
By Anand and Madhura Katti
MUMBAI India’s Director General of Civil Aviation (DGCA) has ruled in favour of travel agents in the long-running battle between the agency community and 16 airlines pushing for zero commission in the country.
In an order released on March 12 through the High Court of Kerala, the DGCA ruled that travel agency commission was lawful under Indian and International Air Transport Association (IATA) rules, could not be replaced by transaction fees, and had to be an integral part of airlines’ tariffs.
The DGCA has asked the 16 airlines to reply by March 18 and contact its office if they needed clarification. It however refrained from specifying commission levels, saying it would leave this to airlines and agents to determine.
The ruling came in response to a contempt of court case filed on February 15 by the IATA Agents Association of India (IAAI) when the July 13, 2009 verdict of the Kerala High Court was not implemented within the stipulated four-month deadline. The court had instructed the DGCA to rule on the matter.
IAAI president Biji Eapen said: “We thank DGCA for setting an example and passing the order on the legality of commissions for travel agents. We’re glad our commissions will be restored.”
The battle for commissions has been raging since 2008 when 16 airlines moved to zero. Air India, Jet Airways and Kingfisher Airlines reverted to three per cent commission after a December 2008 agent boycott.
Singapore Airlines (SIA) and SilkAir have however been boycotted since December 27, 2008. Great India Tour Company chairman EM Najeeb said: “My company has lost (around) US$1 million by not selling SIA/SilkAir.”
India Association of Tour Operators president Vijay Thakur said: “Through this historic order, the DGCA ensures that even the smallest agent can also survive.”
|
