BANGALORE: Giving in to pressure from travel agents’ associations, full-service carrier Jet Airways on Monday agreed to shell out 3% commission on gross fares to travel agents.
The decision is being put into effect immediately.
Jet seems to have buckled under the pressure from travel agents, who had stopped booking Jet tickets from December 4.
According to Travel Agents’ Association of India (TAAI) president Rajji Rai, the airline suffered huge revenue losses due to agents pulling back support. Jet’s daily sales had dropped by as much as 75%, he claimed.
A statement issued by Jet on Monday said, “Jet Airways has agreed to pay 3% commission on gross fare (defined as basic fare plus fuel surcharge) of domestic and international tickets sold in India.”
Jet’s low-cost subsidiary JetLite, though, will continue with the transaction fee model.
Full service carriers — Jet, Kingfisher Airlines and Air India — and the travel industry have locked horns over the commission issue since November 1, when the 5% commission was pulled back.
Transaction fee, which was supposed to replace commission, did not work out because of its complicated nature and resistance from the government, which felt it was very high.
Rai said the travel trade associations are now in discussion with Kingfisher Airlines and Air India to reinstate commission.
“We appreciate Jet’s move. It means that it (Jet) understands our point of view. Tonight, we will get Vijay Mallya’s (Kingfisher Airlines) response. He is in London. We will then talk to Air India,” Rai said.
He denied that travel agents are planning to boycott either Kingfisher or Air India.
“We do not want the airlines to bleed. We want to move with peace and not violence,” said Rai.
He, however, said that travel agents were steadfast on their demand for commission, which if removed would wipe out a large of their earning.
“There is a very small minority, which is unhappy with just 3% commission (instead of 5%), but by and large, we are happy,” said Rai.
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