29 March 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 : http://uk.mc511.mail.yahoo.com/mc/compose?to=president@iaai.in, http://uk.mc511.mail.yahoo.com/mc/compose?to=ceo@iaai.in, http://uk.mc511.mail.yahoo.com/mc/compose?to=hdq@iaai.in | http://www.iaai.in/
IAAI/319-10/BE/TAP

29 March 2010

An open letter to TAAI & TAFI

To: Mr. Rajjinder Rai, President – TAAI

Mr. Pradeep Lulla, President – TAFI

Dear Presidents

Ticketing Authority Process

TAP heralds a do-or-die situation for Travel Agents even before the misery called “Zero Commission” has been fully sorted out. You would agree that TAP would sadly destabilize Airlines-Agents relationship and thus rewrite IATA’s fundamental principles. Each BSP Airline will set its own limits, unilaterally leading to cartelization and monopolization.

How issues such as TAP & Zero Commission which are stark diversions from IATA’s founding policy covering Agents’ interests escaped discussions or approval in APJC-India is pretty intriguing.

DGCA Order & Quantum of commission

As directed by our Legal Counsel, in order to meet the Court’s statutory requirements, IAAI, as Petitioners, has requested the 16 Respondent Airlines to reinstate Commission at “status quo ante” ie. at 5% which was being paid till 31st October, 2008 with the addition of Fuel Surcharge to the Gross fare, so as to maintain the continuity for the present. The DGCA and the Ministry of Civil Aviation have been advised accordingly.

We have also categorically notified these Airlines that this is only an interim arrangement and that, depending on the Industry requirements as per the Mandates, the Fraternity retains the right to negotiate for a higher percentage of Commission.

Present situation

It appears that the Airlines are now buying time stating that they have to get HO approval for reinstating Commission. On the other side, IATA is rushing through the implementation of TAP with only a 3-week notice. Agents have already started getting notices from certain Airlines about the revoking of their ticketing authority.

I seek your views on the matter. In my humble opinion, Travel Agents and the Agents’ Associations should together fight these issues tooth and nail. Hence, we need to resist jointly to be invincible.

Should you feel comfortable, you are most welcome to Kochi for talks on these issues and to have the same implemented following imminent verdict of the Hon. High Court of Kerala that awaits DGCA’s Compliance Report through Asst Solicitor General of India.

Yours faithfully

On behalf of the IAAI Director Board

Biji Eapen

President
Association by the agents for the agents