Travel agents' association opposes Air India's transaction fee move

CHENNAI: An association of travel agents has opposed national carrier Air India's proposal to levy a transaction fee on passengers besides scaling down their commission amount with effect from July 16.

The IATA Agents Association of India ( IAAI) said the new fee ranging between Rs 225 to Rs 6,500 per ticket in domestic and international sectors was "illegal" and "overburdens" the passengers.

IAAI General Secretary V L Jaghannathan told reporters here that the transaction fare had been declared "illegal" by the DGCA in 2010.

He said Air India had directed the agents to charge transaction fees from the passenger in lieu of inbuilt commission to them.

"The proposal to levy the transaction fees is illegal and overburdens the passenger. As a national carrier, Air India should lead by example," he said adding otherwise it would pave the way for private operators to take a cue from Air India.

The Air India management had also revised the agents' commission to one per cent from three per cent, prompting the association to move the court.

According to the transaction fee model, the rates worked out to Rs 225 and Rs 325 per ticket in the Economy and Business classes, respectively in the Domestic route and ranged between Rs 775 and Rs 6500 in two sectors in the Internatioal routes.

The members sought to take legal recourse if their pleas with the national carrier failed to yield results.