Legal Commission or Manipulated Remuneration ???

IAAI has sought travel fraternity and other stake holders opinion to consolidate its stand to fight for legal commission to be integral part of the fare from the airlines.

On 13th April 2015, IAAI had a third round of Meeting at Cochin with Jet Airways officials headed by Mr. Rajeev Nambiar (VP Sales), Mr. Ashok Bariman (VP-Legal ), Mr. V. Raja (Head S. India) & Mr. Muralidas Menon (GM Kerala) on the terms and modality of agency commission payment, IAAI being represented by Mr. Biji Eapen and Mr. Girish G. (President –Kerala State).

In the meeting Jet Airways Team proposed that they are ready to pay 3% commission on gross fare (base fare plus fuel surcharge) under the “OC” charge code and to be termed as “Agency Remuneration” instead of “Commission” provided IAAI should withdraw its pending case against 9W in Kerala High Court. (Writ Appeal No 275 of 2013, the Hon’ble Divisional Bench of Kerala High Court, had, through an Interim Order, banned AI & 9W from collecting “Transaction Fee” or any amount over and above the ticket fare as agreed by TAAI & TAFI to compensate reduction of 3 % to 1% commission effective July, 2013, and the case is pending hearing.)

On the contrary, IAAI had once again explained to Jet Airways team that the Aircraft Rules 1937, clause 137 paragraph 54(a) the DGCA directives dated 19th July 2009, states very clearly that the Agency remuneration is an integral part of the FARE which forms the “Tariff” and hence requested them to enhance the existing commission from 1% to 3% and also explained that, unless Commission is an integral part of the fare component, then the “tariff” quoted by Agents will have disparity with the Airline website sales.

But Jet Airways was adamant on indicating the remuneration as an OC charge and mentioned that they had certain barriers in enhancing the existing commission from 1% to 3% due to certain pricing policies and technical problems. To give your opinion, you may click here.