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Six major Indian travel agent associations have announced that they will embark on a boycott on the sale of Singapore Airlines tickets until the airline reinstates their commissions.
Following failed negotiations with the Singaporean carrier, Travel Agents Federation of India (TAFI), Travel Agents Association of India (TAAI), IATA Agents Association of India (IAAI), Association of Domestic Tour Operators in India (ADTOI) and Enterprising Travel Association of India (ETAA) have all stopped selling the tickets indefinitely.
“We are going to send out a strong message to every foreign carrier, currently working on zero commissions, to either pay us commissions or Quit India,” said Rajji Rai, TAAI President.
“If the national legacy carriers have agreed upon the decision, the foreign carriers should follow suit immediately.”
The moves come after similar action against Indian carriers saw the three major airlines of Air India, Jet Airways and Kingfisher airlines rescinding their June 2008 decision to abolish commissions.
A spokesperson for Singapore Airlines said to The Economic Times, “We haven’t changed our earlier decision (of not paying commission) and are not going to fulfil the demands of agents in any condition. The company is sticking to its earlier transaction fee model.”
But the paper also reports that Singapore Airlines’ country manager has supposedly left India for Singapore to discuss the issue with top executives at head office.
Quote:
While the agents wait, they’re celebrating the reinstatement of 3% commission from domestic carriers.
“The decision to reinstate commission by the Indian carriers should also send out a strong signal to all the foreign carriers that it is next to impossible for any airline to effectively do business in India without the support of the agents,” said Ajay Prakash, TAFI National General Secretary.
16 airlines, out of the 63 international carriers which operate in India, have withdrawn commissions including major European carriers Air France, KLM, Swiss, Lufthansa, and US carriers like Continental, Northwest and American Airlines.
In India, it is estimated that 85% of tickets are sold through travel agents, while most of the remaining are sold through the airline’s individual sites.
Following failed negotiations with the Singaporean carrier, Travel Agents Federation of India (TAFI), Travel Agents Association of India (TAAI), IATA Agents Association of India (IAAI), Association of Domestic Tour Operators in India (ADTOI) and Enterprising Travel Association of India (ETAA) have all stopped selling the tickets indefinitely.
“We are going to send out a strong message to every foreign carrier, currently working on zero commissions, to either pay us commissions or Quit India,” said Rajji Rai, TAAI President.
“If the national legacy carriers have agreed upon the decision, the foreign carriers should follow suit immediately.”
The moves come after similar action against Indian carriers saw the three major airlines of Air India, Jet Airways and Kingfisher airlines rescinding their June 2008 decision to abolish commissions.
A spokesperson for Singapore Airlines said to The Economic Times, “We haven’t changed our earlier decision (of not paying commission) and are not going to fulfil the demands of agents in any condition. The company is sticking to its earlier transaction fee model.”
But the paper also reports that Singapore Airlines’ country manager has supposedly left India for Singapore to discuss the issue with top executives at head office.
Quote:
While the agents wait, they’re celebrating the reinstatement of 3% commission from domestic carriers.
“The decision to reinstate commission by the Indian carriers should also send out a strong signal to all the foreign carriers that it is next to impossible for any airline to effectively do business in India without the support of the agents,” said Ajay Prakash, TAFI National General Secretary.
16 airlines, out of the 63 international carriers which operate in India, have withdrawn commissions including major European carriers Air France, KLM, Swiss, Lufthansa, and US carriers like Continental, Northwest and American Airlines.
In India, it is estimated that 85% of tickets are sold through travel agents, while most of the remaining are sold through the airline’s individual sites.