Tag Archives: National President

During its AGM held in Thiruvananthapuram, the members of the IATA Agents Association of India (IAAI) unanimously decided to withdraw their support to Emirates Airlines. Speaking about this move, Biji Eapen, National President, IAAI, says, “In case of non-adherence to regulatory requirements, we have decided not to sell or promote Emirates or any of its ancillary services  from April 1, 2017 onwards.” The association had earlier written a letter to Emirates requesting it to withhold its proposed reduction of commission from April 1, 2017 and retain the present level of commission  at three per cent gross or more till the Kerala High Court verdict. Eapen adds, “Our case WP25752/2013 and WA1136/2015 in the Hon High Court of Kerala for implementation, execution, and enforcement of DGCA Order March 5, 2010 is now scheduled for division bench hearing on May 25, 2017.”

Biji Eapen, National President, IATA Agents Association of India (IAAI), has written a letter to Emirates addressed to its Vice President – India & Nepal, Essa Sulaiman Ahmad, requesting him to reconsider the airline’s decision to cut agency commission. The letter reads, ‘…the proposed action clearly contradicts your statement in the opening paragraph of the referred letter – that the travel agents are your “prime strategic distribution channel.” Especially as it is only their market support over the years that has placed Emirates in a dominant position above the national carrier.’ The letter then outlines the hardships that agents go through to sell Emirates, ‘Agents have over the years taken care of your sales and marketing, generating thousands of crores of rupees worth of business by risking huge amounts in the market, maintaining well-manned offices, canvassing for clients and servicing all their travel requirements, obtaining overdrafts to make the airline payments and paying interests at high rates on such borrowings.’

A torchbearer for the eroding agency commissions in India, Biji Eapen, National President, IATA Agents Association of India (IAAI) reacts sharply to the news. He says, “Needless to say, this has come as a rude shock to the accredited travel agents fraternity in India as it is solely their market support that has placed Emirates above the national carrier in the Indian skies. The matter is being discussed with our National Management Committee and a formal request will be sent to Emirates to retract its decision.”

Reacting to the announcement made by Emirates, Sunil Kumar, National President, Travel Agents Association of India (TAAI) says, “Not only is this an unfair move but also a move that has come at the wrong time. Travel agents have always supported Emirates in a big way by promoting them to their customers. As a result of this move, Emirates will lose its edge as agents will now move to other airlines. After all, why would anyone want to push a product that doesn’t give them any benefit? So, this move will not only hurt the agents but also the airline. The airline has also timed it badly as agents had already committed to a price structure for future bookings beyond April 2017. This abrupt announcement will hurt the agents a lot as the main season starts from April onwards. We were still recovering from demonetisation when this is announced. The team at TAAI is currently discussing what the association’s response to Emirates should be.”

In an effort to safeguard the interests of its members from the prevailing challenging market conditions and present them with a new revenue model, the IATA Agents Association of India (IAAI) will launch an exclusive portal that will enable each of its members to become a consolidator. Titled ‘I-TOP’ which stands for Indian Travel Agents Own Portal, the program will be launched shortly. This was announced at its Annual General Body Meeting of IAAI Maharashtra State unit held in Mumbai recently. Biji Eapen, National President, IAAI National Board, said, “It is a first portal of its kind in the history of the aviation world created solely for the agents, by the agents. It has sophisticated technology and enhanced innovative processing modules. It has been enriched with facilities for the user to work as an individual or a consolidator and operate through GDS platforms and also the internet to meet the present challenges and competitions in the Industry with B2B, B2C and B2D facilities including the new NDC process.”

IATA-accredited travel agents all over India will soon be receiving invoices from IATA for the annual additional amount of $360 towards usage of the 2-tier BSP Link Access that is being implemented effective January 1, 2017. IAAI has contended that, though it is required under IATA Res. 818g, the new BSP Link charges in India have not been listed through the agenda and neither discussed or approved nor recommended by the APJC-India as per the IATA procedures. Hence IATA’s decision to charge $30 per month is totally illegal, arbitrary and unacceptable to the Indian Travel Agents Fraternity, said Biji Eapen, National President, IAAI National Board in an official release. Eapen affirms that IAAI will go “the whole nine yards” and attempt to get a reversal on this unwarranted action by IATA. On November 15, IAAI has communicated to the IATA Regional Director at Singapore requesting to take suggested actions immediately. The Government of India authorities and Ministry are also being alerted and notified on this subject matter. IAAI has been the only Travel Trade Association that has risen to the occasion on behalf of the IATA-accredited Travel Agents in India – as in the matter of getting the Rs.20 lakhs Minimum Guarantee withdrawn in 2002, in getting the High Court of Kerala and the DGCA to issue Orders mandating Travel Agency commission, in getting IATA to invoke force majeure for the BSP payment by Tamil Nadu Travel Agents during the thunderstorm calamity in Nov/Dec 2015 and, recently, in retaining the Insurance Guarantee system actively as the only alternative to the Joint Bank Guarantee system.

The Travel Agents Association of India (TAAI) has decided to create a government liaison committee to facilitate detailed interaction with the government and suggest reforms for the industry. The team led by National President, Sunil Kumar, met Dr Mahesh Sharma, Minister of State for Culture and Tourism (Independent Charge) and Civil Aviation in New Delhi on January 29. Kumar said, “The government’s role in India on aviation practices, particularly, between airlines and agencies has been extremely limited. We discussed a lot of issues and have requested him to ensure that the government plays an important role to establish healthy industry practices including remuneration that must be provided to the agencies. We also talked about forming a round-table of agency representatives and airlines led by the government to resolve decisions on the marketing practices.”