Letter issued on 8 Dec 2011 to Turkish Airlines against Zero Commission

Default, Letters — By on December 18, 2011 at 9:40 am

Mr. Adnan

Aykac General Manager – India Turkish Airlines Inc


V.L. Jaghannathan, Gen. Secretary

Sub: Commission Payment to Travel Agents R e f . t o D G C A O r d e r # AV.26012/2/2008-TE dtd. 5th March, 2010 & Case # WP ( C ) No. 21908 of 2011 with Hon High Court of Kerala

Dear Mr. Adnan Aykac,

In our opinion, the Law of the Land stands challenged by your Airlines. Such non-compliance with legal requirements, being an offence, is punishable with a term not exceeding 3 months or with fine not exceeding one lakh Rupees or with both vide DGCA circulars – subrules (2A) & (2B) of Rule 135, Category IV offence Such alleged offence assumes serious dimensions in view of the undertaking executed by your Airline before the DGCA that Indian Laws, rules, regulations and requirements shall be complied with vide DGCA circular AIC 9 of 2009 dated 30-10-2009 on Requirement for grant of Operating Airlines under Bilateral Air Service Agreement item 3 (x).

We note with resentment that M/s Turkish Airlines under your charge here in India, have declared to cut the commission from 5 % to 0 % to Travel Agents effective 1st January 2012 as a g a i n s t t h e p a yme n t o f commission expressly directed by the highest authority in India v i d e D G C A O r d e r # AV.26012/2/2008-TE dated 5th March, 2010.

We may, therefore, request commission @ 5% on gross fare, as is followed by other foreign Airlines here in India, be continued with effect from 1st January 2012.

Kindly note that the execution and statutory implementation of the DGCA Order dated 5th March 2010 is pending proceedings with Hon High Court of Kerala under WP ( C ) # 21908 of 2011, against the 16 airlines and hence, withdrawal of such ‘commission’ by your esteemed airlines may tantamount to contempt of Court. Should appropriate revised orders not be issued from your side within one week from date, we would be forced to take every possible remedy such as, but not limited to:

1. moving DGCA and judicial authority of the land to enforce lawful commission.

2. calling for awarding highest punishment to those Airlines that violate Indian Laws.

3. claiming liquidated damages from erring Airlines which arbitrarily deviate from contractual obligations.

for IAAI National Board

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