Travel agents across India could face negative implications on business operations if Lufthansa’s Distribution Cost Charge (DCC) comes into effect tomorrow (September 1), said a report.

The Lufthansa Group, which comprises Lufthansa, Austrian Airlines, Brussels Airlines and Swiss International Airlines, recently revealed plans to increase its profitability by including a surcharge (i.e DCC) of €16 ($17.8) on every ticket issued by a booking channel using global distribution system (GDS). The new charge, however, would not be added to flight tickets purchased using the individual airline’s website.

The Iata Agents Association of India (IAAI) has sent out a circular to all Iata Accredited Travel Agents across the country urging them to take a stand against Lufthansa’s upcoming DCC, claiming it will “drive the final nail in the travel agents’ coffin” if implemented, said a report in Travel Impact Newswire.

A member of the Star Alliance Group, the world's largest global airline alliance, the Lufthansa Group will also have dominance over the other Star Alliance Members, forcing them to follow suit. This would mean that all airlines operating in India, including the national carrier, would eventually enforce similar surcharges.

In opposition to the airline group’s commercial strategy, the circular said, “IAAI will not allow any foreign airlines to dominate and dictate terms in the Indian skies and implement their vested policies on Indian soil,” indirectly calling for a boycott of all the airlines that back the DCC and for the travelling public to support those airlines that work with travel agents, the report said.