28th April, 2010

IATA AGENTS ASSOCIATION OF INDIA
Central Secretariat
39/6800, C-3, 5th floor, Vallamattam Estate, Ravipuram, Cochin-682 015

Tel : 0484 3117789 / 4022205 email : president@iaai.in, ceo@iaai.in, hdq@iaai.in | www.iaai.in

IAAI/420-10/NB/TAP

28th April, 2010

TRAVEL AGENTS TAKEN FOR A RIDE BY ASSOCIATIONS

Have we, the Travel Agents of India, been sold out today by Members of our own Fraternity?????

The very recent communications received from TAAI & TAFI regarding the APJC-India meeting held on 19th April 2010, proves that the Indian travel community had been sold out by our own Associations. This Representative Authorities, believed to be our SAVIOURS, have apparently become our TERMINATORS.

While the IAAI was instrumental to make Commission our legitimate right through the DGCA Order of 5th March, 2010, the vested interests through BSP-India introduced “TAP’ on 8th of March, 2010, effective from 1st April. Though IAAI had requested TAAI & TAFI to confirm whether TAP was discussed at APJC meeting, prior to such implementation, they never responded, whereas IATA India confirmed that same was not tabled since APJC had not held a Meeting after Aug 2009.

Finally, APJC-India met on 19th April, 2010, and the Agents were represented by M/s RajjiRai, Sunil Kumar, Iqbal Mulla & Sanjay Data from TAAI and Pradeep Lulla, Ajay Prakash, Sampath Kumar & Zakkir Ahmed from TAFI.

Quoting below the APJC report circulated by TAAI on 22nd April 2010 : “TAAI placed on record our strong objections on the implementation of TAP without due debate and consideration at the APJC meeting . IATA India, responded stating that there was not enough time to do so, and added that this matter in any case does not come under the purview of APJC. It was however debated by TAAI that a ZERO CAPPING by any Airline cannot be implemented when an Agency is accredited by IATA and Financials as advised by IATA duly submitted. There must be a reasonable capping given to every IATA Agency. IATA maintained that this subject cannot be discussed and the appeal from the Agency associations would be only recorded’.

Now, read together the TAFI circular dated 26th April : “The scope of what may be discussed at an APJC meeting is rather restricted and all the issues which impact the very survival of agents, like commissions and ticket stock entitlement on all airlines, etc., are out of bounds and cannot be discussed.” Re TAP, it reports : “IATA responded it was done to meet the highest standards of legal compliance as mandated by their Head Office and therefore did not require discussion prior to implementation”. Report continues: “TAFI and TAAI also questioned the relevance of IATA accreditation and the General Concurrence Agreement”

The intriguing questions are:

Ø What was the urgency for ‘short of time’ to table TAP on APJC ? to implement TAP?

Ø Whose interest did this urgency serve??

Ø Why the matter does not come under the purview of APJC ???

Ø Why IATA maintained that this subject cannot be discussed ????

Ø Highest standard of legal compliances – in whose interest ??????

Ø Relevance of IATA accreditation & General Concurrence Agreement ???????

Even though, the words ’Commission’ or ‘General Concurrence’ do not fall under the APJC purview, without an amendment or its concurrence, no airline can violate or make a breach of contract to the existing PSAA. Res. 824 is contractual and the Financial Guarantee mandates ticket capping of all Member airlines operating in its jurisdiction. Res 810(i) empowers APJC-India to monitor and control accreditation and retention of agents. Hence, it is mandatory, that changes in the terms of the Contract must be accepted by both Parties. One of the Parties of the agreement cannot alter any Contractual terms or procedures unilaterally – it has to have the written concurrence of the other Party.

Now look at the urgency. To safeguard the interests of certain Zero airlines and who may be mandated by their Headquarters, TAP was introduced immediately on 8th March, 2010, just 3 days after the DGCA Order of 5th March, 2010 ! Of course, APJC cannot stop ‘TAP’. But, it is only an optional facility for airlines to appoint agents under a Statement of General Concurrence vide Res 878 & 820

But here in India, our objection is very simple: The implementation of TAP by IATA BSP-India on 1st April 2010, was procedurally wrong, unilateral, arbitrary and illegal as per the same Resolutions 878 & 820. Instead of identifying and reporting the PROCEDURAL IRREGULARITIES & FAILURES to the higher Authorities for an urgent remedial action, the Agent Representatives of APJC-India willingly supported and ratified the airline move!

These being the factual realities, one has to objectively ask a painful question:

Ø Are our Trade Representatives who participated in the APJC meeting ignorant of the IATA Resolutions and its interpretations or incompetent to put up a logical defense on our behalf ?

ALTERNATIVELY

Ø Have we been totally sold out???

Dear All – the option is yours. Look at the facts and discern the TRUTH. We have been pointing this out since 2002. Now it is a question of survival. The dominating vested interests started with Zero commission, followed with TAP and could soon introduce weekly payments, withdrawal of Insurance Guarantee system, and so on.

This is clearly a pre-planned Agenda and a routine procedure so that the ordinary Agents can always be taken on a ride with 5-star parties, FAM Trips or sponsored family Conventions in foreign countries. Time is very short. Please think seriously and understand the gravity of the situation. This is the last call. Please support us if you want to have your own identity and SURVIVE as an IATA Travel Agent.

With regards

for IAAI National Board

Biji Eapen Naresh Rajkotia D.L. Jaghannathan

President Gen. Secretary Treasurer