Travel agents extend boycott of Singapore Airlines
07 Apr 2009
Taking further their 100-day-old battle against Singapore Airlines over its 'zero commission' policy, Travel Agents Association of India, the largest travel association in India, along with the Travel Agents Federation of India (TAFI), on Tuesday announced that all travel agents in the country have decided to surrender their 'capping letters' of Singapore Airlines.
The capping letter is a document given by the airlines authorising the agent to book tickets on their flights. To begin with, TAAI office-bearers will surrender these to Singapore Airlines offices on Wednesday, followed by the capping letters of all the other members during the course of the week.
The other members have already submitted the capping letters to their respective TAAI chapters for eventual surrender to Singapore Airlines. This means that no travel agent in the country can now book a Singapore Airlines ticket.
Under the airline's zero commission structure, travel agents booking Singapore Airlines tickets would not be given any commission at all. This, according to the associations, is a blow for the travel agents, who are already operating on wafer-thin margins.
Travel agents across the country almost immediately decided to boycott Singapore Airlines unless the airline goes back to the earlier commission structure. It is estimated that the impact of the standoff on Singapore airlines has already resulted in lose of several hundred crore of business for it, with further loses likely due to the fresh development.
Rajinder Rai, president of the TAAI, said, ''Singapore Airlines' unfair demand to cut the commission and if required pass on the commission cost to the customer in the form of a transaction fee has irked the travel agent community. Our stand against Singapore Airlines has only toughened and will continue to remain so until Singapore Airlines revokes its position. With a simple reversal of their decision, Singapore Airlines can convert the situation into a win-win for all stakeholders – the customer, the airline industry, travel agents and the airline itself, which has and continues to suffer huge losses of revenue.''
Following the airline's recommendation would result in a higher ticket cost for the traveller. Keeping the customer interest as well the established practices in India in mind, the price of the ticket should include all commissions and not passed on to the customer, the agencies feel.
Other international airlines which have followed the Singapore Airlines model have also lost heavily, the association says.
In a meeting held in New Delhi on Monday, TAAI and TAFI decided to continue withdrawal of tickets of Singapore Airlines and surrender their ticket stock to the airline. Starting today, the members of TAAI and TAFI will write a mandate and submit it to their respective chapters across the country.
''We will be completing 100 days of the withdrawal from selling Singapore Airlines' tickets on the seventh of this month and we will continue to do the same till we achieve results. Our target is to collect surrender letters from 75-80 per cent of our members and personally submit them at Singapore Airlines' office,'' said Rai.
