The Government of India, Ministry of Civil Aviation- Office of the Director General of Civil Aviation – DGCA has issued an “ORDER” dated 06th Mar ’10, mandating all Airlines operating to / from and within India to pay a FAIR commission to their Accredited Travel Agents. This is as per the current rules and laws of this country as also in accordance with various IATA Resolutions and Agreements. This “Order” has come about due to a protracted battle between Airlines and Travel Agents of this country which began nearly a decade back, when Airlines unilaterally began reducing commissions forcing leading Travel Agents Associations or individual Travel Agents to knock on the doors of various Courts in different parts of the country.

TAFI – Travel Agents Federation of India and TAAI – Travel Agents Associations of India decided to go to court in 2005 to get their legitimate and fair dues from the Airlines. In early 2008 the Karnataka High Court directed the DGCA to look into the matter in all fairness and pass an appropriate order. The DGCA began looking into the matter only in early 2009, but what is more significant is that without waiting for a proper guidance from DGCA, in late 2008 and early 2009 some leading foreign airlines unilaterally decided to totally abolish agency commission and instead advocated introduction of “Transaction Fees” by wrongly interpreting the IATA resolutions to their advantage and recommended that Travel Agents should instead begin collecting from the travelers, a fee for issuance of air tickets, and continue which has never been found illegal by DGCA.

Almost all Travel and Tourism Associations requested the airlines to give a fair Commission which in their opinion was the most appropriate form of remuneration for the work they do on behalf of airlines. IAAI - IATA Agents Association of India too worked in its own ways by even going to the Courts once again in 2009 this time the Kerala High Court, which ruled in the agents favour and set a time limit of 04 months for DGCA to deliver. Since no decision was made in the allotted time, IAAI further went to the extent of filing a Contempt of Court case against DGCA and 16 odd foreign Airlines when it found the Government body dragging its feet, resulting in DGCA passing an Order giving relief to travel agents, however, did not quantify the relief and left it for joint negotiations between travel agents and airlines.

The result we have today, is the culmination of a hard fought battle over several years which was done by Travel Agents against the Airlines not only to protect their own interests but also to ensure that Agents are not used as a medium by the airlines to indirectly pass on costs to the air Travelers. This Order will only bring more joy to the traveler by way of transparency and getting an air ticket at the published price.

Some of the airlines have suddenly withdrawn the ticket stock from many accredited agents around the country much against the earlier assurances given by IATA-India and the existing agreements between the agents and airlines. This is bound to have a cascading effect on small and medium travel agents and lead to askewed market situation where ticketing power is controlled by a handful of big agents or consolidators, leading to a reduction in competition and translating into higher fares for the travelling public.


The Travel Agents Fraternity has resolved to first reason with the airlines and if that does not produce the desired results, to once again approach the Courts and the DGCA for relief.

Issued by

TAAI, TAFI, IAAI, IATO, ADTOI, ETAA
MUMBAI