Disastrous Weekly Payment haunts Travel Agents

Associations turn Assassins – Protectors turn Destructors

Several Associations play mute game in self interest. One sided regulations imposed by Airlines benefit select large Travel Agents and drowns medium and small Agents.

Genocide awaits majority of Agents. Surviving Select Agents hand-in-glove with Airlines could plunder Airlines
coffers. In the pretext of profit making, profiteering flourish.

Starting June 2012, Travel Agents will have to settle sales dues with Airlines on a weekly basis. This far it was fortnightly; this far it was monitored by BSP and Agents remuneration was specific, transparent and proper. Efficiently designed IATA resolutions had guarded the interests of Travel Agents who were virtual sales outlets of Airlines. New order thwarts the system and practice established painstakingly over ages by IATA. Migration to IATA Resolution 818(g) has brought in the doom.

IATA had defined such migration quite cautiously by insisting on the approval of Agents’ Community in effecting the change. Joint decision by Airlines and Travel Agents in India (APJC-In) was mandatory to effect the migration. Masked Association-heads of Travel Agents consciously, though not conscientiously  stayed away from the meeting thus letting Airlines to pass the migration resolution. “We are against Migration”, they shouted from their house tops while closeting themselves up on the meeting table. Misguiding Guides; disaster for their ranks. All this is when the Agents are still fighting to recover their lawful rights of commission. A writ of mandamus and another related one of certiorari run current with the Hon. High Court of Kerala. Not only did these Associations stray far from embarking on legal remedies in the interest of their members but they did nothing possible in insulating the Agents against crack-down by Airlines that followed in the forms of Zero commission, bank guarantee limitation, ticket stock withdrawal, penalty imposition on reservation cancellation (ADMs) and so on. contd … page 2 Masked Association-heads of Travel Agents consciously, though not conscientiously stayed away from the meeting thus letting Airlines to pass the migration resolution. “We are against Migration”, they shouted from their house tops while closeting themselves up on the meeting table. Misguiding Guides; disaster for their ranks. It is anybody’s guess that shortened credit facilities has a consequent cost and so must be exercised with restraint. IATA regulations have made it explicit as well. Alteration of current payment system therefore can be thought to be changed only if the fiscal and financial situation of a country so warrants. In India, such a situation is far off and uncalled for. Further, such changes cannot be one sided and need to be endorsed by both parties, the Airlines and the Travels Agents unanimously. In the event of disagreement, it follows that the change cannot be validated precisely. What actually transpired in camera was that the resolution was passed through two hurriedly convened meetings of the Joint Council when IATA stipulation calls for four meetings in the event of disagreement.

Behind of shadow play by Agent Associations absenting from discussions instead of opposing it thereat, the ploy was bared when three Indian carriers presented the issue before PAConf of IATA for approval of migration to weekly payment. The move was opposed by one Pro-agent Association IAAI that is not allowed entry into APJC-In. At the Singapore meet of PAConf, this Association was allowed a presentation of facts in defense of agents’ rights.

While weekly payment pose severe hardship and financial loss that would prompt close of business, the resulting benefits go into the big business houses who spearhead the Associations as well. Apparently a cartel by and between Airlines and such select Travel Agents is bared which perpetrates anticompetitive trends in the Travel Industry. Any such situation is carefully warded off in India by the anti-trust and anti-competition laws. The warring Agents have already preferred complaints wi t h t h e Comp e t i t i o n Authority alerting the disastrous developments. All said and done, migration to Res 818(g) that imposes weekly payment controls on Travel Agents takes effect as from June 2012. A large group of grieving Agents is busy resisting the move lawfully in self-defense. Every possible effort goes in defending their rights and privileges, Apart from instituting civil suits with appropriate courts challenging the migration, agents also seek the support of national heads of the nation to ward off antitrade activities fomented by Airlines in their self interest and which are imp a s s i v e l y a p p r o v e d b y monopoly-seeking business houses. “Act now or Die” seems to be the spell of Travel Agents all over India who had been serving the Airlines, passengers and cargo movers promptly and efficiently under free and fair trade conditions approved on transnational levels by IATA. Self interests have crept into businesses in many forms as monopolistic, oligopolistic and restrictive practices which sadly serve private interests of As s o c i a t i o n h e a d s wh o conveniently but covertly approve the same. Name of the game is no more “survival of the fittest”, there is a subtle twist here; it is better “survival of the fattest”.