Airways, Kingfisher and Air India have decided not to levy any transaction fee on air tickets from tomorrow. It would result in cheap air tickets from the airline office or website but customers have to pay Rs 350-Rs 10,000 more if they purchase tickets from travel agent. The representatives of all leading air carrier held a meeting with Travel Agents Federation of India (TAFI) and apprised them about the decision.

TAFI, General Secretary, Ajay Prakash said that agents would levy the transaction fee in lieu of the 5 per cent commission. Earlier, air lines had stopped to pay 5 percent commission since November 1, 2008. The decision would affect the business of travel agents and adversely affect their margin. Agents account for 85 per cent of the total airline ticket sales and airlines can save considerable amount by stopping commission and levying it through travel agents. The decision may lead to many job loses among people affiliated with travel agencies.

Meanwhile, government is pressurizing the aviation companies to reduce air fare in line with falling jet fuel prices. It has asked them to share benefits with people by making air travel cheaper.