CCI imposes Rs 1 lakh fine each on 3 travel associations

The airline industry has decided to do away with commissions to travel agents.

Written by Agencies | New Delhi | Published:October 10, 2011 9:19 pm

Anti-monopoly watchdog CCI today imposed a fine of Rs 1 lakh each on three travel associations — TAFI,TAAI and IAAI — for violating various provisions of the Competition Act.

“A penalty of Rs 1 lakh each is imposed on Travel Agents Federation of India (TAFI) and Travel Agents Association of India (TAAI) and IATA Agents Association of India (IAAI),” Competition Commission of India (CCI) said in its order. The CCI,in its cease and desist order,also asked the three associations to refrain from indulging in such anti- competitive practice in future.

“It has been fully established that the opposite parties,namely TAFUI,TAAI and IAAI by giving a call for boycott against Singapore Airlines have contravened the provisions of Section 3 (1) the Act,” the CCI said.

The section pertains to abuse of dominant position by market players.

The case pertains to a complaint by Uniglobe Mod Travels in October 2009,following a dispute between travel agents and some airlines,like SIA and Lufthansa,over payment of commission.

Globally,the airline industry has decided to do away with commissions to travel agents,while compensating them on the basis of the volume of tickets they sell.

Following the dispute,TAFI had expelled Uniglobe,as the the company had continued to sell tickets of Singapore Airlines despite the association’s objections. Uniglobe was also accused of not complying with the rules and directives of the association.

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