The IATA Agents Association of India has come out against Emirates Airlines' decision to revise the IATA commission from 3 per cent to 1 per cent with effect from April 1.
In a resolution passed at the Kerala region’s AGM, the association has requested Emirates to withdraw the proposed reduction of commission and retain the present level at three per cent till the Kerala High Court delivers a verdict in this regard.
Biji Eapen, the association’s national president, pointed out that the present commission level of three per cent itself is hardly adequate to cover many of the overheads involved in running a travel agency, forcing most of the agencies either to surrender its IATA licence or to close down its offices.
The airlines decision, he said, has come as rude shock to the travel agents fraternity, as they are the prime strategic distribution channel for Emirates Airlines in India.
He recalled that Emirates had openly supported the Indian travel fraternity with five per cent commission on gross fare at a time when Air India and Jet Airways initiated ‘zero’ commission in India in November 2008. In turn, the Indian travel trade supported Emirates to dominate and grasp the highest market share in the Indian skies, he added.