ETW Staff – Mumbai
Ministry of Civil Aviation (MoCA) has vindicated IAAI’s (IATA Agents Association of India) stand on commission. K N Shrivastava, secretary – MoCA, Government of India, has ruled that airlines are bound to pay commission to travel agents as per Rule 135 of Indian Aircraft Rules 1937. The ruling came out as an official order highlighting the continuity of the order dated March 5, 2010 and disposed the appeal filed by Federation of Indian Airlines (FIA) on transaction fee.
Shrivastava clearly stated that the quantum of commission has to be decided mutually by the principal and the agent. The airlines currently give five per cent commission to the cargo agents. Many airlines give five to nine per cent commission in various other countries.