For a safe passage

By Ajay Prakash
National General Secretary, Travel Agents Federation of India (TAFI) and CEO, Nomad Travels

The year gone by was an eventful one for TAFI - we got an approval for IATA agents to book railway tickets on the IRCTC website, we got recognition from the ministry of tourism (MoT) and the ministry of civil aviation and TAFI was invited for the Parliamentary Committee meeting on civil aviation. We opened our doors to 40,000-odd non-IATA agents and ETAA, which is probably the only and the most organised association of non-IATA agents in the country.

But the mother of all was when we managed to get an amendment to the governing IATA resolution 810i for India that now restricts airlines to arbitrarily cap an agent to zero or to an insignificant number of tickets as opposed to his normal entitlement. We also pushed this at the last Airline Passenger Joint Council (APJC) meeting that in turn passed it to the Passenger Agency Conference in Geneva in June when it was finally ratified.

But there are issues that need immediate attention. We have been trying to talk to low-cost carriers to reach an agreement because each airline has its own policies that aren't acceptable to us. TAFI has been pitching for a draft model agreement. An airline that starts business two months ago wants an agent to put down Rs 5-10 lakh as deposit instead of on a weekly or fortnightly basis that will help safeguard our members' money.

Fuel surcharge is yet another matter of concern and it has now reached Rs 1,500 for different routes. The airlines must mention the entire fare and the tax component of Rs 225 which goes to the Government of India. Governments all over the world have come down on this - the Office of Fare Trading in UK, Competition Commission in New Zealand - and have asked the airlines to advertise the total price. Also, our argument that fuel forms part of the fare have been further strengthened by the government's directive that airlines need to charge a service charge even on the 12.36 service tax that is levied on business class tickets.

Looking ahead, we would like to establish a greater rapport with the ministry so that whenever policies are formed and decisions are taken, the trade is also consulted. Unfortunately, there is no regulatory body for civil aviation in this country; the DGCA has abdicated all responsibilities on how business is conducted and all they do is licence airport, aircraft, pilots, etc. The Airport Economic Regulatory Authority, which is being envisaged by the Ministry of Civil Aviation, again only looks at charges to be levied by the airports. So we need to lobby with the government in combination with other associations to have some kind of a watchdog that would look at fair trade practices because between the MRTP and Competition Commission of India, the lines are very blurred - one is supposedly in limbo and the other is still to take off.

Also, the APJC needs to look at the Passenger Agency Sales Agreement - it is archaic and has no bearing on the way business is conducted today. We must also be consumer-oriented because there is little protection a passenger has in case of delays, airlines folding up, misconnections, loss of baggage, etc. We are talking to get into something, which some airlines are opposed to like the comprehensive insurance - Passenger Protection Plan - wherein a small fee is paid by the passenger per ticket which insures them against lapses on part of the airlines, travel agents and also the travel agents against the airlines.

It seems like a great idea and I don't understand why certain airlines have been opposing it. But one way or another, TAFI is committed to finding some sort of solution for its raison d'être - the passenger.