Is AI being made a scapegoat by others as it announces 1% commission from July 16?Default, Featured — By admin on June 21, 2012 at 8:28 am
After IATA, the global trade body representing the interest of airlines, felt compelled to defer the implementation of WPS to November 1, 2012, in India, a lot of behind-thescene hobnobbing are expected to take place amongst those advocating Weekly Payment Settlement plan. It is rumoured that several international carriers, especially those who have stopped paying agency commission, and Indian carriers who had stopped paying ticketing commission but reinstated it after agents across India had opposed the move, have been trying to piggyback the national carrier towards achieving their agenda of ‘zero’ commission and Weekly Payment System in India. Rumoured to be a reactionary move, the national carrier has announced plan of further reducing the commission to 1 per cent from the current 3 per cent commission that it is paying to the agents from July 16, 2012. The move is expected to largely benefit every other carriers operating in and out of India but the Air India.
Always standing by the national carrier, the Indian agents are now feeling betrayed by the national carrier. Air India gets 90 per cent of its booking through the travel agents. In the aftermath of recent pilot strike, the travel agents across India helped the carrier get back to the pre-strike level of domestic operation within a month. However repeated attempt to undermine agencies is expected to divert chunk of their business to carriers paying commission. And this does not augur well for the national carrier, which is looking for a turnaround in its fortune, nor does it for agents as thousand of them will have to close shops if WPS and ‘zero’ commission find their in India.