Date:12/06/2004 URL: http://www.thehindubusinessline.com/2004/06/12/stories/2004061202620600.htm

Back Cut in commission: Travel agents to meet global airlines on June 22

Our Bureau

The airlines justify the reduction by stating that the decision reflects a change in the market conditions.

New Delhi , June 11

THE meeting between travel agents and leading foreign airlines on airlines' decision to cut back on the commission payable to the agents is scheduled to be held again on June 22 to take a final view on the issue.

After the meeting on Friday, the President of the Travel Agents Association of India, Mr Balbir Mayal, said that both sides have agreed to put forward their viewpoints on the issue.

"We tried to explain to the airlines that such a move is not possible in India. The situation here is different from the West. This cannot happen here," Mr Mayal said.

At least seven leading airlines, including British Airways, Lufthansa, Air France and Austrian had recently notified the travel agents about their decision to reduce the commissions from seven per cent to five per cent from September 1.

The airlines justify the reduction by stating that the decision reflects a change in the market conditions and was consistent with the industry's strategy to manage their cost base. International airlines point to the fact that globally carriers are reducing their remunerations to agents.

However, the Travel Agents Federation of India (TAFI) has termed today's meeting as a failure. "We have only one demand. The airlines should withdraw its decision to cut back on commission. Since they are not willing to do that, the talks have failed," a TAFI spokesman said.

The travel agents body is to hold a national body meeting on Monday to decide on the future course of action. "We need to find a way on how to achieve what is required. The move of the airlines may not affect the passenger but people in the travel industry will be without jobs," the spokesman said.