AI agrees on additional 2% commission

TAAI’s meeting with Air India has yielded positive results for the IATA agents as the national carrier agrees to file additional commission of 2 per cent apart from the normal commission of 1 per cent.

Air India has led the way towards increasing agents’ livelihood and recognising one of their main distribution channels. Subsequent to an in-depth interaction with the Travel Agents Association of India (TAAI) and its suggestions made to the national carrier on March 14, 2017, the airline has announced a new assured incentive/PLB Scheme for the FY 2017-18. Air India will file additional commission of two per cent with BSP and the same will be deducted by agent as cut and pay as per BSP cycle. This will be apart from the normal IATA commission of one per cent. Sunil Kumar, President, TAAI, says, “We are happy that Air India heard TAAI and our proposal that they must remunerate all IATA agencies irrespective of their size. Our emphasis was to connect more agents with Air India. What’s the point if our national carrier is not actively sold directly by a large percentage of IATA agencies in India? Currently, most agencies are compelled to pick up tickets from an intermediary and not an airline. This decision by Air India is reflective of the national airline’s character, which is so important for every airline in its own country. TAAI is delighted to be doing this for our members.”

Jyoti Mayal, Managing Committee & Chairperson (Airline Council), TAAI, adds, “We appreciate Air India’s move to recognise and support each and every IATA agent. This flat incentive to all shall enhance the confidence of agents in the national carrier that has led the way by implementing suggestions from TAAI. Under the leadership of CMD Ashwani Lohani, we have seen Air India work closely with the travel fraternity – first by bringing in credit cards then web parity and now with a level playing field where every agent gets incentivised to sell Air India. I would now urge all IATA members to support our national carrier to make it a leading carrier in Indian skies. I want to see our national airline regain its glory and profitability. We at TAAI took this initiative with the airline to set standards in the industry.”

The incentives shall be calculated on basic fare for domestic and for international it will be calculated on Basic Fare + YQ. There is no target for the scheme and will be valid for all tickets sold within the territory of India by IATA agents registered in India. The scheme came into effect from April 1, 2017, for a period of one year till March 31, 2018. The travel validity is from April 1, 2017 with no end date.

Quick fact:
• AI PLB Scheme came into effect on April 1, 2017, for a period of one year till March 31, 2018

“This decision by Air India is reflective of the national airline’s character, which is so important for every airline in its own country.”

• Sunil Kumar, DDP Game Changer 2014 and President, TAAI

“I would now urge all IATA members to support our national carrier to make it a leading carrier in Indian skies”

• Jyoti Mayal, Managing Committee & Chairperson (Airline Council), TAAI