Airlines fly into turbulent weather

12 April,2009 07:30 AM IST |   |  Aditya Anand

With travel agents and airlines continuing to fight over differences, the only way to make sure you catch that flight to travel abroad might be by using the internet to book your ticket


With travel agents and airlines continuing to fight over differences, the only way to make sure you catch that flight to travel abroad might be by using the internet to book your ticket.

As the war between travel agents and foreign airlines over the issue of payment of commissions to the agents reached its 100th day, travel associations have decided to go on a hunger strike from next week and stop booking air-tickets. Over 5,000 travel agents across the country will participate in the strike that could significantly impact air travel.

Travel agents in India account for more than 85 per cent of any airline's ticket sale. The remainder 15 per cent are sold directly by carriers. While three to four per cent book tickets for international travel through the internet, a little over 15 per cent do the same for domestic travel.

Earlier this week, the Indian Travel Agents' Fraternity a platform of all travel agents in India created history by surrendering their Capping Letters of Singapore Airlines (that allows agents to officially sell air tickets). No travel agent in the country will now book Singapore Airlines ticket.

Rajinder Rai, president, Travel Agents Association of India (TAAI) said, "Singapore Airlines' unfair demand to cut commission and if required, pass on the commission cost to the customer in the form of a Transaction Fee has irked our community."

Vijay Mohan Rai, chairman, communications, TAAI said, "It is estimated that Singapore Airlines is losing around $1 million worth of business per day because of the boycott." During the last 100 days, airlines that have withdrawn commission include British Airways, Delta, Swiss Air, KLM and Lufthansa. These foreign carriers have moved to a zero commission model.

When contacted, C V Foo, Singapore Airlines, general manager said, "We are committed to continuing the dialogue process." The airline is aggressively promoting booking of tickets through the internet.

Last year, domestic carriers like Kingfisher, Air India and Jet Airways withdrew commissions to agents too, only to reinstateu00a0 it after travel agents threatened to stop ticket sales.$

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