Air India axes commissions

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Starting October 1, Air India will reduce commissions from nine to seven percent. Agents fear that other airlines will shortly follow suit. A spokesperson of Air India told TravelWeekly East the decision followed a joint agreement by the Board of Airline Representatives (BAR). The Travel Agents Association of India (TAAI) has asked Air India to defer the date. TAAI chairman, northern chapter, Kavi Kohli told TWE: “This is not acceptable. The matter was not discussed with TAAI. After all, we are travel partners with airlines.” According to sources, Air India has agreed to defer this to early November although AI was not willing to confirm the decision at press time. A travel agent said: “Timing is most important. The reduction in commission comes half way through the financial year. This will force us to renegotiate deals with corporates.” Traditionally, travel agencies in India have been banking on airline commissions as the main or only source of revenue.

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