International Airlines to cut agents' commissions from April 1

MUMBAI: International carriers will from April 1, cut a globally mandated commission to travel agents to 1% from 3%.

The latest to inform travel agents of this move was Gulf carrier Emirates. The commission is mandated by the International Air Transport Association, a global lobbying body.

"We do understand that this move may require a change in your business model, but we hope that together we will emerge better and bigger," the airline said in a letter to agents.

Most airlines--including India's IATA members Jet Airways and Air India--have in the last several months informed agents in India of the cut. The one remaining is Cathay Pacific, said a source close to the development.

The move is part of airlines' efforts in the last several years to make commission more linked to productivity of the agents. There is a productivity linked incentive of about 2% that is still given to agents over and above the fixed commission.a's biggest brick and mortar travel agents.

While consolidators--those who sell inventory to smaller agents-- like Riya arent impacted by this, agents in smaller towns may take a hit in their margins.

There will however be no impact on ticket prices, industry experts said.