As per a decision of Board of Airlines Representatives (BAR), an association of airlines operating in Bangladesh, the reduction will come into force from January 1, 2004.

But Association of Travel Agents of Bangladesh (Atab) has long been demanding not to cut the agency commission on ticket sales which it says would affect the business.

At a meeting, Chairman of BAR and Director (Marketing and Sales) of Biman Mahmoodur Rahman assured the travel agents of considering deferment of the decision for another year. He said he would raise the issue in next BAR meeting.

Atab President MA Muhaimin Saleh said the reduction of agency commission would put burden on labour passengers who constitute 70 per cent of the total international passengers from Bangladesh.

"Although nine per cent commission is existent, agents are offering 4-5 per cent discount to stay competitive in the market. If commission is reduced, agents could not offer the discount which will force the passengers to count extra money on airfare," he said.

Airlines and travel agency industry are still struggling to recover from incidents like September 11 attack on the US and war on Iraq and Afghanistan and if the agency commission is reduced the recovery will be halted in Bangladesh, he said.

Agency commission of seven per cent is only existent in European and American countries. Among the south Asian countries, only India maintains the agency commission level with the developed world, he said.

Travel agency industry in developed countries can survive with the rate due to vast market but the rate is not suitable in Bangladesh in view of small market size, he said. Foreign airlines will channel $7 million in excess due to the reduction.

"We are taking preparation to accept the reduced rate but we need another year to restructure our business. If execution of the reduced rate is deferred for one year we will have no objection," said Atab General Secretary Gulam Mustafa.

In spite of difference in nautical mile distance, airlines are charging higher fare for Dhaka-Jeddah ticket than Manila-Jeddah, he said urging airlines to rationalise fare, not reduce the agency commission.