Annual General Body Meeting of IAAI Maharashtra State identifies problems

The Annual General Body Meeting of IAAI Maharashtra State Unit was conducted on 20^th July 2017 at the Hotel Mirador, Andheri East, Mumbai.

The AGM unequivocally declared that the present day maladies being faced by the Travel Agents Fraternity was set off by the downfall of the National Carrier that had started in 2004 and was eventually hastened from end-2008 when Air India implemented “zero commission” (within India) to please it’s Grand Masters – the Star Alliance Group. By parliamentary intervention, 3% commission was reinstated and the Aircraft Rules 1937 – Rule 134 (54A) was amended to read “commission as an integral part of the fare which forms the tariff”.

In June 2012, Air India again reduced 3% commission to 1% in and directed Travel Agents to compensate losses by collecting transaction fees from the travelling public. This directive of AI was against the DGCA Order of 5^th March 2010 which mandates “commission’ as the legal remuneration to agents. Though Indian the economic and financial situations do not warrant any weekly payment system, our National Carrier played the vital role to curtail the Travel Agents’ credit facilities.

On the other hand, when Air India reduced commission to zero, Emirates offered 5% on the gross fare and the entire Indian Travel community openly supported them. And, thus, a carrier from the Middle East has become more powerful than the National Carrier by holding a dominant   position and operating with 185 flights from per week from different parts of India destined to Dubai and beyond.

Whereas, for our National Carrier, the situation has deteriorated to such an extent because of the huge debt accumulated due to continuous losses over the years that the Government of India has decided on an ‘in principle’ disinvestment in order make Air India stronger.

In an internal communication to the airline’s employees, Air India Chairman and Managing Director Ashwani Lohani, said that the ‘in principle’ disinvestment by the government is a “win-win solution”. Mr. Lohani went on to tell the employees to ‘gird up their loins’ and work together to tide over the problems and rebuild Air India to regain its place as one of the leading airlines in the world – a true ‘Maharaja’.

The AGM collectively looks forward to Air India reversing its anti- Travel Agent policies and becoming a role model. Air India can only ensure the operation of a flight from one airport to another. But the aircraft seats have to be filled by the traditional Travel Agents only as Air India’s web sale volume is very marginal.

Under the new GST Regime, Travel Agents can survive only with commission as mandated by IATA Resolution 824 (Para 9) and the DGCA Order of 05 March 2010. It will be suicidal to depend on service charges as it may have to be separately invoiced.

Hence, the AGM unanimously decided to demand 5% commission on gross fare and in turn the entire Travel Agents Community will wholeheartedly support Air India to regain its name and brand and will make the ‘Maharaja’ fly high as in the glorious past.