Perspective

IAAI questions APJC credibility

By Biji Eapen

Today, our travel industry is facing acute problems like bank/insurance guarantee programmes, ADMs, void/no-show charges, automatic cancellation of reservations on time limit, unhealthy and discriminative PLB policies, ending up with the move to zero commission.

IAAI is the only national association representing IATA-accredited travel agents in India with membership limited to them; the members of TAAI and TAFI include tour operators, non-IATA agents, hotels, taxi operators, forex, GSA, GDS, etc. We feel that it is our legitimate right to call upon all IATA-accredited agents to wake up and understand the depth of disaster we are facing because of the attitude and vested interests of fellow beings holding control of the Indian travel network.

The bane of the travel industry in India is that certain groups with vested interest are lobbying and controlling the Indian aviation segments and are dictating the mandate of the IATA agents in India through APJC-India, IWG, JALWAG, etc from 2000 onwards. The following will illustrate the facts and hidden danger being faced by the IATA-accredited travel agents in India:

• The financial criteria implemented in 2001 by the so-called APJC-India was described by the Indian Court of Law as "discriminative" and later quashed by the Travel Agency Commissioner-Area 3
• The amendment to IATA Resolution 810 (i) nominating agent members in APJC proposed by the chairman of APJC-India was forfeited by TAAI and TAFI through false declaration at PAPGJC, and hence the same forfeited at PA Conf in June 2006
• When all IATA agents' proposal for insurance is channeled through their respective associations, two consolidators in India were granted permission through APJC to execute insurance guarantee directly, above Rs 150 crore collectively, which was a gross violation of all the norms and beyond the power conferred upon APJC-India.
• Denying IAAI's membership to APJC-India, IWG, JALWAG, etc restricts the legal entity and rights of the IATA-accredited travel agents in India and affects the freedom, justice and equality required for a healthy business environment. Few agents, who under-utilised the quantum of insured guarantee amount, are restricted for any voluntary enhancement whereas certain multi-located agents whose productivity exceeded are permitted to make additional endorsement for excess utilisation.
• In subsequent years up to 2006, no APJC-India meeting convened due lack of quorum.
• The IWG decisions taken under APJC were taken with ulterior motives and the IATA-accredited travel agents in India were totally cheated by the impudent insurance premium and the implementation procedures. Particularly, the domestic insurance premium has been fixed at one per cent with Rs 10,000 per agent location irrespective of productivity and liability limitations to accommodate certain 'interested people' whereas international premium was only 0.5 per cent.
• The negative attitude towards IAAI's agenda item tabled at the 30th PA Conf held in June 2007 for implementing IATA Resolution 814 in India instead of the present 810(i), which is being adopted in most of the countries for a healthy aviation business environment.
• Lately, when the three national associations (TAAI, IAAI & TAFI) are equal participants in the Industry Credit Risk Insurance Scheme, how was a core committee formed on June 14, 2006 without our equal partnership and which ultimately led to a dubious increase of 0.25 per cent premium (from 0.5 per cent to 0.75 per cent when the default percentage is less than 0.1 per cent) for the international insurance.
• IATA had confirmed its neutrality in APJC India formation and repeated its confirmation on non-involvement in the commercial activities of insurance schemes and deal and requested the associations to directly negotiate on premiums.
• It is interesting that IAAI managed to obtain a share of commission for the insurance transactions done through IAAI even at the lowest premium rate of 0.5 per cent.

We at IAAI believe that IATA, airlines and agents are an integral part of the aviation industry and the integrity, sincerity, co-operation and the mutual trust will mould the industry to a new aviation era to establish our legitimate rights including commission on air tickets. The agents' curse is the indifference and lack of unity amongst us. This is being exploited by the vested interest for their benefits.

The need of the hour is your support to our cause of making fuel surcharge commissionable by using tax code 'Q' instead of 'YQ/YR', process of getting 50 per cent share on refund/penalty amount and service taxes to be applicable to all tickets issued by agent/airline/web site to have uniformity in taxation. For our survival and to achieve this goal, we request every IATA-accredited agent to give their support in the form of membership, intellectual and physical involvement in our joint efforts to clean up the travel environment and form a family of exclusive IATA-accredited agents.

The writer is president of IAAI. He speaks on behalf of the IAAI National Management Committee