IAAI issues appeal to IATA Accredited Agents in India

Alledges that certain vested interests had approached, negotiated with the airlines for zero commission, reduction of commission and transaction fee implementation

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IATA Agents Association of India (IAAI) has through its Press Release has issued an appeal to IATA Travel Agents as below:

An Appeal to IATA Accredited Agents in India :

For the sake of transparency and in the interest of Travel Trade, we would like to share certain facts and developments, with you.

FIA in their latest Appeal filed on 6th February 2013 under Aircraft Act 3B with Secretary, MoCA against the DGCA order of 17th Dec 2012, has stated that : 

  • Travel Agents are an important part of the distribution set up for an airline
  • There are over 20,000 travel agents (approx) spread over India who help sell airline inventory efficiently
  • Travel Agents consistently contribute over 60-75% (approximately) of the overall business to the airlines

 

When these Indian Carriers openly admit their dependency, acceptance and reliability on agents, how they can ignore or neglect the traditional travel agents? As such, how can they reject / negate agents’ plea for fair remuneration?

On the other hand, see the stand taken by our own associations, which regretfully, is at variance at best or contradictory at the worst:

Ø  While IAAI is trying to establish commission @ 5% as per the National law, certain vested interests had approached, negotiated with these airlines for zero commission, reduction of commission and transaction fee implementation.

Ø  At the Meeting held on 18th March 2011 by DGCA in compliance to Kerala High Court order, IAAI had insisted for 5% commission, but TAFI opined quantum of commission should be decided by airline and agents together. (DGCA Minutes and their subsequent Affidavits refers).

Ø  AI & 9W claimed that reduction of commission to 1% and TF implementation was insisted by TAAI & TAFI.  

Ø  Joint submissions by TAAI & TAFI, to airlines requesting the airlines to pay remuneration under any name whatsoever convenient , initially 3% ,later 6% and now ending with the ‘catastrophically failed private negotiation’ on 2nd April 2013 with Jet airways……….

 

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