Commissions to unite associations?
The recent orders by the MoCA mandating commissions had provided some respite to the travel agents. However, the biggest challenge for the travel agent fraternity is to settle the quantum of commissions as directed in the orders with the respective airlin
VIVEK SETHI The three travel agents’ associations, namely, TAAI, TAFI and IAAI, are expected to play an important role in getting the commissions back.
Naturally, three different associations would think differently. However, the commissions could only be assured if these associations either collectively, or in their own ways, are able to determine a respectable quantum of commission with the air- lines. Fortunately, all associations are open to work jointly with any body that supports the cause of commissions to travel agents. But, the road is not simple and only time will tell, if they can jointly rewrite the history of agents’ commissions.
presents a status on strategic updates on TAAI, TAFI and IAAI, and how would they like to bring about the quantum:-
IAAI
As per Biji Eapen, President, IAAI; a major battle has been won, which establishes commissions as a legal right. “Now, the battle that is left is to determine commissions. These are apt conditions for the travel agents’ community to come together and collectively pitch for commissions above five per cent. We can gradually get even more than five per cent.”
In a recent press communiqué, IAAI again said, “The quantum of commission has to be decided with consultation between airlines and intermediaries taking into account various commercial factors such as the market conditions, cost of the infrastructure, establishments and the statutory definition of "tariff'. Legally, we have made claims to all airlines who have adopted zero commission/transaction fee system, or a very low commission coupled with trans- action fee, and have requested them to change over immediately to the earlier system of agency commission at 5 per cent (on gross fare), as was prevalent in India before November 2008.”
“Our delegation had met the Director General (DGCA) and Secretary, MoCA twice in October respectively and briefed the situation and shall be apprising the Civil Aviation Minister within a couple of days’ time, Further, we are re-processing the imminent case in the High Court of Kerala for a permanent solution and looking forward for a directive to the Regulator to execute and enforce the law, wherein on basis of MoCA orders, the Solicitor General of India (representing the Civil Aviation) had been asked to submit the Affidavit regarding compliance within three weeks. We will certainly appreciate if our esteemed associations, including TAAI and TAFI, could also join
We are open to work with any association that supports agents’ crusade for restoration of suitable commissions
hands to support our national move on this common cause. If we are all together, no power on earth can delay or refuse our right to commissions,” it added.
TAAI
“We have always stood and worked for travel agents. Commissions are a right, which has also been reflected in the recent orders of the MoCA. We will not leave any stone unturned to ensure that agents get adequate remuneration from airlines. The voluntary shutdown in May had sent across a clear message that the time has come and agents will not be appeased without adequate remuneration. After all, it’s not only the big agents, but scores of small and medium-sized agents, whose existence has been threat-
We are open to work with any travel association, who possess the same dedication to safeguards agents’ interests
ened by the zero- commission regime,” said Iqbal Mulla, President, TAAI.
“We are open to work with any association that supports the agents’ crusade for restoration of suitable commissions. However, we don’t stop, or write letters to claim credit, while our crusade is still on to get commissions back,” he added.
TAFI
As per Praveen Chugh, Vice President, TAFI, “We are glad that MoCA had directed that ‘Commission’, ‘ Transaction Fees’, ‘ Convenience Fees’, or any other terms used for the payment of remuneration to travel agents their services rendered by them are to be treated as ‘Commission’. The commissions should reflect in the tariff, and airlines should compensate the
If we are all together, no power on earth can delay or refuse our right to commissions
agents for costs the latter had incurred for selling the airlines tickets. I would like to submit here that the commissions so based must depend on the percentage, instead of being based on a flat-fee mode. The cost of air tickets varies and hence the agents should be compensated on basis of the percentage of the value of air-ticket.”
“Our association has been in overdrive, meeting various government agencies and airlines. The details of the meetings can’t be revealed at this point. However, we are shortly going to make some important developments known at an appropriate time. We are also open to work with any travel agents’ association, or travel agents who possess the same dedication to safeguards agents’ interests,” he added.