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Travel agents look to DGCA for clarity on commission

Our Bureau

Hyderabad, June 22

The Travel Agents Association of India expects clarity on the issue of commission by the month-end with the intervention of the Direction General of civil Aviation (DGCA). “We have made a plea to the DGCA to intervene and got a positive response and hope that discussions with the airlines would follow with some understanding,” said Mr Rajji Rai, President of TAAI.

The DGCA had in its recent submission to the Competition Commission of India (CCI) termed the adoption of ‘zero commission' system by 13-14 airlines ‘illegal' in response to a complaint filed by the travel agents body. “It is illegal for airlines to adopt a zero per cent commission system which leads to charging of transaction fees from the passenger as a compensation by the agent,” the DGCA said in its submission to the CCI dated May 12.

The TAAI had filed a complaint with the CCI in February claiming that the action of the airlines to go to zero commission simultaneously was an act of cartelisation and monopolistic that is against fair business practices and, hence, illegal”.

To evaluate the petition, the CCI had sought the DGCA's opinion.

The DGCA has stated that commission needs to be paid by the airlines to agents and it cannot be replaced by transaction fee. This is a positive note in favour of TAAI's sustained efforts, Mr Rai told Business Line.

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