DGCA told to sort out travel agent commission issue

MUMBAI: Domestic travel agents, which have been demanding commission from foreign airlines, have managed to draw the government�s attention.

Civil Aviation minister Praful Patel on Tuesday asked the Directorate General of Civil Aviation (DGCA) to look into the matter, a person privy to the development said. He said the DGCA might ask both parties to explain their case.

Earlier, members of six associations, including the Travel Agents� Association of India (TAAI), Travel Agents Federation of India (TAFI) and the IATA Agents Association of India (IAAI), met Mr Patel in New Delhi. TAAI president Rajii Rai told ET: �We have urged Mr Patel to restore our commission.�

Most airlines stopped paying 5% commission from November last year forcing agents to shift to a fixed-transaction fee on every ticket purchased. From December, however, the fixed-transaction fee, which was in the range of Rs 350-2,500 a ticket, was also discontinued.

Later, all domestic carriers agreed to pay 3% commission to travel agents from December. But foreign airlines have not been paying anything to travel agents.

Typically, travel agents and online portals account for more than 85% of airlines\' ticket sales, while the remaining 15% are sold directly by the carriers. There are about 50,000 travel agents in the country.