DGCA holds meet of foreign airlines, travel agents

The tussle between foreign airlines operating in the country and travel agents over commission payments seems to be coming to a resolution with the DGCA today holding a meeting of their representatives to finalise the government's stand on the issue.

The meeting came against the backdrop of a Kerala High Court directive to ensure commissions for the agents from this month-end. Also, the Karnataka High Court wanted the foreign airlines to explain their position regarding the global norms of the issue, including that decided by the International Air Transport Association (IATA).

While the airlines have been insisting on the 'zero commission' concept which is now in vogue in most of the western nations, travel agents have been arguing that no commission payment would starve small and medium agencies which are already hit by the economic meltdown and sharp decline in air travel.

At the meeting attended by representatives of 16 airlines and three major travel agents' organisations, the DGCA decided to approach the government's legal department to seek approval of its stand, official sources said.

All major foreign carriers, including Lufthansa, Singapore Airlines and British Airways, were represented in the meeting. Since late last year, these foreign airlines had introduced zero per cent commission, which was being opposed by travel agents.