Airblue – Blues
Yesterday this image caught my attention when rounding the Hotel Metropole. It seems that quite a few travel agents are very serious about sending a strong statement to AirBlue over their tussle regarding the way AirBlue ticket pricing
The News, 24th June 2008: Travel Agents Association of Pakistan (TAAP) on Monday vowed to maintain the embargo on the sale of Airblue tickets fearing that any relaxation will encourage other carriers to reduce their commissions as well. In a general body meeting held here, members of the association said the private airline since June 3, 2008, increased fuel surcharge but decreased travelling fare, which is used to calculate fixed margin of agents who in reprisal stopped selling its tickets. “An airline calculates its fare structure on basis of total expenditure including fuel surcharge and travel agents earn commission on that fare value,” said Tahir Sheikh, Regional Chairman TAAP. “And on this commission we pay withholding tax to government.” He said change in mechanism to calculate commission has not only reduced profitability of travel agents but decision will cost government taxes. TAAP claimed that its members paid Rs240 million to government in taxes on sale of Air Blue tickets.