The move will result in a saving of three per cent overriding the commission currently payable to GSAs. The commission is not applicable in the case of consolidators who do bulk bookings.

The exercise will be done in stages after a cost benefit analysis is carried out. The present GSAs will also be eligible for consideration. A release said that the appointment of consolidators would result in the airline marketing net fares apart from getting a wider market access. Air India will appoint more than one consolidator in each territory to ensure that unreasonable premiums are not charged from the consumer.

The decision to do away with the practice of GSAs signals a shift in Air India's marketing techniques which are being changed in tune with the current competitiveenvironment.

In an attempt to minimise the role of travel agents, the airline has been striking direct deals with corporates. Travel industry source said that this could be part of the airline's effort to gear up for a scenario where commission charges will cease to exist.

An official of the Travel Agents Association of India (TAAI) has said that if the airline appoints consolidators in the metros, it would lead to a clash with travel agents. Air India has been heavily dependent on GSAs in markets where it does not have significant presence in the form offices etc. GSAS have been appointed by international airlines to secure business from IATA and non-IATA agents in markets where agency networks were yet to get automated and they needed financial security to cover risks. With the automation of the airline industry, many global airlines have done away with the GSAs and are opting for multiple channel distribution.