Air-India has agreed, in principle, that the difference between commission payable to non-IATA travel agents and their IATA-approved counterparts will not be higher than four per cent. Sources said the understanding was reached at a meeting between the airline and representatives of travel agents on Wednesday.

The marketing strategies adopted by international airlines have been the sore point between the travel agents and the airlines operating out of India for the last five years.

The bone of contention has been the `productivity-linked bonus' introduced by many airlines which operate through their preferred agents. The bonus, based on production and paid over and above the normal commission, often exceeds 15 per cent for the higher slabs while IATA-approved agents operate at a fixed commission ofnine per cent.

Discussing the problem at a press conference organised by the Travel Agents Association of India here on Friday, Savinder S Rekhi, the vice-president of the association, said, "Often an agent will assume the PLB that he might earn and give special discount to his favoured customers."

There has been a continuous dialogue between the TAAI and the airlines in the last five years to resolve the issue. Some TAAI members said on conditions of anonymity: "Air India is often the trend-setter in these matters. If it has agreed to limit the PLB the other airlines are likely to follow suit." The TAAI is an organisation of IATA-approved travel agents. Earlier, TAAI president Neeraj Ghei told reporters: "Mushrooming travel agents and marketing strategies followed by certain airlines have created imbalances in the market. The policy of having preferred agents does not give the customer an unbiased product as these agents deal with the ticketing of one airline only, while the IATA-approved agents offerbookings with all airlines." There are certain norms for a travel agent to be approved by the IATA. The proccess takes around eight to 10 months to be completed. During this period, the IATA conducts investigations on the applicant. There are around 1,100 IATA-approved agents in India, 600 of whom are members of TAAI.