IAAI launches nationwide campaign to reinstate agency commission

The Appeal Memorandum will be submitted to Minister of Civil Aviation with the aim to have 5% agency commission reinstated

In order to resuscitate travel agencies, IAAI (IATA Agents Association of India) has initiating a nationwide e-signature campaign to galvanise the travel agents to sign an Appeal Memorandum to be submitted to the Minister of Civil Aviation, Government of India. Agencies can sign the appeal throughhttp://www.iaai.in/petition/petition.php.
According to a statement issued by IAAI, “As an unorganised sector, most travel agents and tour operators are out of the MSME ambit, neither benefited from banks nor got any bailouts from the government. The Industry lost sustainability, and many have vacated offices and are jobless.”
IAAI has argued that air ticketing is the primary source of income to travel agents, who consistently contribute over 60-75% of the overall business to the airlines. “Airline revenue is generated from passenger and cargo sales, both carried onboard the same aircraft – Passengers in the main deck and cargo on the lower deck. There is no commission to the ticketing agents. As a divergent stand, Airlines are paying 5% commission to accredited cargo agents,” the IAAI press statement says.
“We have requested all travel and tourism-related trade associations to forget differences and join hands to re-establish our legitimate rights in the aviation ecosystem, including ticket commission. Unitedly stand to re-establish travel agents legitimate rights for commission before the sunset. We are not for charity or bailouts. We want MoCA (Ministry of Civil Aviation) to implement and enforce the Law that mandates “commission” to travel agents,” says IAAI President, Biji Eapen.
The association further points that the Aircraft Rules 1937 and the regulatory orders from DGCA (05.03.2010) based on the Kerala High Court directives, and MoCA order of 16.09.2013 underline that commission is the only legal remuneration to travel agents. Ruled out that transaction fee, service fee and zero commission are illegal. Also, it had undoubtedly proclaimed that PLB could not replace commission.
It points that the appeal, under rule 135, requires that airlines determine Tariffs corroborating DGCA Order of 05.03.2010, mandating “commission” and displaying the ‘single consolidated fare’ with break-up for the consumers’ benefit and thereby instruct Airlines operating to and from India to pay 5% agency commission to travel agents.
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