National President Clarifies to all the issues raised by the Travel Agents

Biji Eapen President, IAAI

Dear Krishna Rao,

Greetings from IAAI. Thanks for your mail dated 23rd Dec 2011 regarding the issues pertaining to our travel trade. Let me take this opportunity to clarify and brief you on certain points you had mentioned. YES. As you have said rightly, we are stepping into 2012 with the herculean task of recovery from the man-made ravages of Comm ission, TAP, ADM, and 818g and now ending with the implicit Weekly payment.
It is said, “ Prevention is better than cure” but for Indian travel agents fraternity, we are trying to cure malaise, at a fatal stage. Our APJC and its deliberations / actions are believed to be so ‘privatized, privileged, if not secretive, the ordinary travel agents only feel the sting. You may remember, certain leaders defined the same “APJC” as a dummy body in the hands of IATA (or in the hands of certain vested interests ?). So where is the gravity and authenticity of our APJC ? Zero commission issue – Majority of our Travel agents are small and medium range agents and they have fallen victim to the commercial designs of certain vested interests who have burdened us with zero Commission. IAAI was for “commission” from 20th June 2008, whereas others stood for Transaction Fee up till end Nov 2008.

Based on the Kerala High Court order, IAAI was successful in getting DGCA order on 5th March 2010 mandating commission. While in implementation process, you are aware that on 14th Aug 2010, a Jt Secretary of MoCA t r i ed to ma k e an amendment to read commission as optional. YES. As you have said rightly, we are stepping into 2012 with the herculean task of recovery from the man-made ravages of Comm ission, TAP, ADM, and 818g and now ending with the implicit Weekly payment. Again, when deliberate delay noticed, IAAI approached Hon HC of Kerala with a Contempt of Court, to which DGCA issued a new order on 28th July 2011 stating commission as a commercial private agreement and ruled out their intervention. Understanding the gravity and impending danger which could have crippled the Indian travel trade, IAAI immediately on 1st September 2011, challenged this Order and filed a Writ of Certiorari praying the Hon court to call back the order and quash It is surprising and rather strange that, even though we had exposed this order to the entire travel fraternity, till date, the INDSUTRY is silent on the matter and there is no objection or a line of support to our efforts from any quarter !

Further IAAI had filed a Writ of Mandamus to enforce the commission as a statutory right and sent notices to all 16 respondent airlines, which will be heard from next week (Jan 2012). IAAI has also warned Turkish Airlines that in view of the a n t i c i p a t e d d e c i s i o n o n Commission, form the Court of Law the issue will be binding on them as well. Re TAAI’s case with CCI which you had referred, regret, no comments, as we are not a party to it. Reference to TAP- this was implemented through illegal process to circumvent the DGCA Order of 5th March 2010 and our beloved APJC had ratified it stating that “it was mandated by IATA head quarters for high tech and security reasons” . Cutting own hands by our so called saviors ! What a tragedy !!. Travel Agency commissioners are not to receive complaints. IATA resolutions 820e directs agents who consider that their commercial survival is threatened by a Member’s individual decision or is aggrieved by an impending amendment to its PSA Agreement has to approach TAC as per procedure set forth in Section 1.2. And the TAC (Res 820d), shall provide regular reports to PAPGJC, which India is also represented through Associations . Unless these procedures are followed, TAC will not act upon such matters. Reg Implementation of Res 818g – In Oct. 2009, PAConf/32 had, warned APJC-India that Res 818g will migrate instead 810i eff 1st June 2011 and directed APJC-In to formulate and propose procedural system conducive to local requirement before next PAConf. UFTAA had also warned all associations that 818g is linked with Res 800f and 800x for stringent financial policies. But at the APJCIn meeting held on 23 Aug 2010, a g e n t s ‘ r e p r e s e n t a t i v e s deliberately did not attend and by default, allowed airlines to continue the meeting and r e c omme n d PACo n f t o implement 818g eff 1st June 2011. (Please note that instead formulating a procedural system, recommendation was to retain and continue the 14 members in APJCIn and Chairmanship to Air India, whereas 818g allows 18 members and chairman to be elected amongst them – a very tactful decision to block IAAI entry into APJC!)
As you said, India is legally and exclusively under Res 818g effective from 1st June 2011 . APJC Agent Representatives had attended 2 APJC meetings under 818g (12th and 24th Aug 2011) but not reordered any protest or objections in both minutes. Hence, how they can they claim that India is still under 810i. ? If so, why not legally proceeded against IATA or the 3 Indian carriers- AI, 9W & IT for approaching PAConf. ? (Res 818g only permits an airline to approach PAConf directly)
Reg Weekly Payment system-According to circulars from APJC-In A g e n t memb e r s , we c a n understand that weekly payment system was one of their main agenda since TWO years. Res 818g,1.1.1.3 stipulates that if APJC fails to arrive at a decision after 2 years or in 4 consecutive meetings in a year, the airline can directly approach PAConf with their proposal. In India only 2 meeting were held after migrating to 818g eff from 1st June 2011. Further, vide Res 800x (2.3), changes to reporting and remittance should be recommended by the APJC of each country and Indian economic and financial conditions do not warrant such a situation. In spite of this procedural lapse, our Agents Representatives did not object! And, the emergency APJC meeting held on 24th Aug immediately after 12th Aug, without informing Members, is still mysterious and puzzling.
Objections raised by IAAI at PAConf was explicitly based on these legal and technical points, but got diluted due to tangential approach by other Associations

Reg the CCI directives on all three associations against the issue of Singapore Airlines, IAAI is again fighting alone. We are challenging the said CCI verdict at their apex body to establish the right of the Trade Organizations to fight for the survival of their members.
Reg ADMs,IATA Res 850m (1.2) directs that airlines and local representation of agents through APJC should formulate and streamline a procedural system for the ADMs in each country conducive to the local market, which never been an agenda in India. Even though on 10th Nov 2010, IATA-India wrote to the APJC member agents to submit their recommendations , but nothing has happened yet. ( majority of the ADMs can be curtailed through proper technological application of AIRIMP and SITA procedural system within the frame work of airlines and GDS companies. )
Your Questions, as Association members seeking clarification: -

• Several issues left unsolved till date– As said earlier, all these issues are of our beloved APJCIndia and purely man-made with reasons best known to them only. Solving an issue after its implementation is always risky and time consuming. Role of IAAI is to rescue the industry from an appalling situation as Agents are still being taken on a ride by fam trips and freebees
• High priority for the burning issue is very important-– need ability to identify the destructive objects and quick decisions to resolve the issue on priority.
• Are we moving in the right track in addressing all issues?-IAAI has its objectives and priorities in place and we are moving in the right direction. However it is for you to decide whether others are working at tandem or at cross purpose
• Differences and disunity among the a s soc i a t ions undermining our battle? –The greatest barrier to success is the fear of losing, goes an old proverb. It aptly suits and describes the current state of APJC-India with association leaderships locked in the grip of the fear of losing power. When the leadership in denial mode states, we are still under Res 810i and calls for unity, it is a reflection of weakness rather than confidence.
• Do we have any interference or resistance in resolving ?-Yes. Absolutely. A trade organization can achieve goals only when all members join together, we have always been saying give us the support and we will ensure things happen
• Differences among the agents’ fraternity still exist and no solutions have been found-Unity calls started on 1st DEC 2008 at DEL, followed at SIN on 12th Oct 2011 but de-railed on 23rd OCT at GOA, due IAAI did not subscribe to the fallacious claim that we are under 810i.
• What would be our further course of action to halt the weekly payment system? Come forward, join all hands together. Tr a d e As s o c i a t i o n me a n s memberships. Give us your whole hearted support Together, we can and will make a difference

In trade organizations Members are the leaders. Members empower a person / personalities to represent them in all aspects of that trade. Hence, decision is yours. It is your decision to make the travel industry a success. You, should decide the UNITY of all associations and the the FATE of travel fraternity in n your own hands.

In general, please note that the Year 2012 shall be for IAAI, ie, for the ordinary Indian Travel Agents fraternity and be rest assured that
IAAI is still fighting to reinstate commission retrospectively from 5th March 2010. · Steps are being taken to withhold the Weekly payment system in India. · Moving ahead to enhance remuneration to 5% commission on gross from all airlines . · Looking possibilities to minimize the disparities in airline web sale fares & GDS pricing .
IAAI is a trade organization by the Agents and for the Agents. IAAI have the commitment and dedication to the entire memberships as their elected leaders are also one amongst them. Be proud to be a part of this prestigious national move to restructure and recreate a new Travel Agents era with uniformity and equality for the welfare and wellbeing of the travel agents in India, at large.

Regards
Biji Eapen
National President – IAA

Read Letter from Krishna Rao