August 12, 2011

IATA AGENTS ASSOCIATION OF INDIA

Central Secretariat
IAAI Bhavan, 39/4012- K & L, Karimpatta Road, Pallimukku, Cochin-682 016

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

IAAI/216-11/NB/COMM/CIR

August 12, 2011

To : All IAAI Members & Trade Associates

Sub : Update on Airlines Commission issue – Contempt of Court case

Dear Members & Trade Associates,

As you are aware that Hon High Court of Kerala is proceeding with the Contempt of Court case against Dr. Nasim Zaidi, Secretary, MoCA and Mr. Bharat Bushan, DGCA and the case is now posted for hearing on 12th August 2011.

In a recent dramatic twisting, DGCA on 28th July 2011 passed an Order stating that the commission is a commercial matter between Airlines and Agents and DGCA as a regulator cannot intervene in such commercial agreements ( order enclosed for reference). A convenient mockery of LAW to support certain foreign Airlines and possibly for a technical escape from the contempt of Court.

The Court directive is to enforce and implement Exhibit 7, the IAAI letter to DGCA demanding 5% commission based on the Order of 5th March 2010 retrospective from 5.3.10. The futile explanation to read commission as “optional”, the airline-agent Meet held on 18th March 2011 (another replica of 19.11.20009 Meeting), subsequently seeking opinion from Solicitor General of India (after 14 months ) ending with above DGCA order of 28 July 2011 shows the intent to undermine or circumvent the very DGCA Order of 5th March 2010. A shameful subversive act from the regulatory authorities.

The Order on 5th March 2010 is a STATUTORY ORDER protecting the statutory rights of the travel agents in India mandating commission as the rightful means of remuneration and ruled out Transaction Fee module. Indian Aircraft Act of 1934 and Aircraft Rules 1937 – sub rule 54a defines “commission” as an integral part of FARE which forms the “tariff”.

Under such, we at IAAI, as a Trade Organization, will not allow anybody to alter or hammer the National Law. The DGCA Order of 28th July 2011 is illogical, illegal, unilateral, arbitrary and biased.

Hence, challenging the DGCA Order of 28 July 2011, IAAI had filed a special Writ petition under Article 226 of the Constitution of India on 4th Aug 11 at the HC of Kerala with following prayers:

1. Writ of CERTIORARI praying the Hon Court to call for the records and quash the order of 28th July 2011

2. Writ of MANDAMUS praying the Hon. Court to enforce and implement the DGCA Order dated 5th MAR 2010 as a STATUTORY RIGHT by the law of the land.

Hon High Court of Kerala admitted the Writ Petition ( W.P. (C) No. 21908 of 2011 ) on 11th August 2011 and issued directions to send urgent notices to the respondents DGCA, MoCA & IATA today, on 12th Aug 11.

Hope the proceedings will be over soon. Once again we re-affirm that IAAI is committed and dedicated to the welfare of the Travel Agents Fraternity.

With regards,

for IAAI National Board

Biji Eapen V.L. Jaghannathan S. Saldanha

National President Gen. Secretary National Treasurer