Excerpts from MoCA orders

It is clearly stated here that that the term ‘ Commission’, ‘ Transaction Fees’, ‘Convenience Fees’, or any other terms used for the purpose means the same, i.e. payment of remuneration to the intermediaries for the services rendered by them and therefore, all these terms are treated as ‘Commission’, mentioned in the existing Rule 135 of Aircraft Rules, 1937 as a part of tariff to be determined by airlines. All these forms of levy of fees as remuneration to be the intermediaries for the services rendered by them for issuing tickets to passengers on behalf of the airlines are services permissible under the existing rules provided these are shown as part of Tariff within the definition of Tariff and no amount will be collected from the consumers over and above this.

Further, Rule 135 ( 1) requires airlines to determine the tariff which by definition includes commissions. Rule 135 (2) requires airlines to display a single consolidated fare and give its break up also for the consumer’s benefit. It is clear that the statutory position under Rule 135 ( n) clearly requires airlines to determine tariff in accordance with law, including commissions payable to agents. The existing law requires airlines to display total fare and its components.

However, it is made very clear that as per the rules, DGCA cannot lay down quantum of commissions payable by airlines to agents. It is entirely up to the airlines to take a decision in this regard in consultation with intermediaries taking in to account various commercial factors such as the market conditions, the cost of the intermediary’s establishment, etc & statutory definition of tariff.