The great fee battle

India verdict watched by agents in region MUMBAI/HONG KONG The ball is now in the court of India civil aviation authority to enforce a court order for airlines to pay commissions, with the Ministry of Civil Aviation drafting suggested penalties for airlines that refuse to comply.

This may force airlines to comply at last. Thus far, the 16 airlines that have gone zero have ignored circulars by the Directorate-General of Civil Aviation (DGCA) to comply in full to amendments made to India’s Aircraft Rule which agents interpret as an order for commissions to be paid. The issue came to a legal head when the Kerala High Court on July 13 issued orders to the ministry and DGCA to do so.

Travel Agents Association of India president Rajinder Rai said: “On behalf of all associations, we request DGCA to kindly implement it at the earliest.”

DGCA director, Dr Nasim Zaid, told TTG Asia: “I am aware of the Kerala High Court judgment. We are presently studying the matter and we’ll take appropriate decision in accordance.”

Indian agents’ steadfast fight to regain their dues is being watched closely by agents elsewhere. Hong Kong agents, fighting a similar battle, are seeking a precedent, given their similar legal grounding as former British colonies. Chairman of the Society of IATA Passenger Agents (SIPA) Francis Bagaman said: “The victory of Indian agents is a good lesson. (Hong Kong legislator for the tourism industry) Paul Tse will advise us on the legal aspect of the issue and we will continue to pursue avenues against zero commission.”

Source: - www.ttgasia.com

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