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  • The IATA Agents Association of India’s fifth biennial convention, ICON 2013

    Published on March 8, 2013

    The IATA Agents Association of India’s (IAAI) fifth biennial convention, ICON 2013, was held at The Retreat Hotel, Mumbai from March 1-3, 2013. ICON 2013 was attended by Government of India,officials and distinguished IAAI members from all over India.The Indian Travel Agent community is passing through a turbulent period.

    The reduction in Agency commission , Transaction feemodule, impending weekly payment system, disparity in airfares, direct marketing by Airlines etc are challenging the very existence and survival of the ordinary travel agent.The concern about this information was raised by Salvadore Saldanha (S.V. Airlinks) Director /Hon.Treasurer-National Managing Committte Member, IAAI. Besides,Chetan Momaya-M..C.IAAI-Maharashtra state said,” Despite mpressive economic upsurge and performance , Indian Travel Agent is facing persisting and never-ending challenges of equity, sustainability and  eludingopportunities. Upholding the Indian Aircraft Act and Rules , IAAI is  fighting in the legal forums forenforcing the legitimate rights of small and medium sized Agents in India and to legally endorse the Regulatory system.

    Speaking about ICON 2013, Biji Eapen (Chairman and CEO of Speedwings Aviation Academy), National President, IAAI, said, “IAAI is purely a travel trade association and our biennial conventions are focused on educating members to face industry challenges. Today, our ideology and conventional activities are well recognised by many traditional agents in Mumbai and ICON 2013 will be an added value to this commercial city.”

    The theme of the Convention is ‘Emerging Challenges and Opportunities in Aviation Industry’. The main business session is ‘ASHA: Agents’ Seminar on Handling Adversities’. This session will have detailed white-paper presentation on adversities such as zero commission, transaction fee, weekly payment, web parity, ADMs and APJC based on facts and figures. ICON 2013 will attend by approximately 700 delegates from India and abroad, informed Naresh Rajkotia (Madhuram Travels), Reception Committee Chairman, ICON 2013.

    Speaking about the theme, Kuku S Kumar (Managing Director, Travelmate India), National Managing Committee Member, IAAI, said, “By challenges we mean extinction, identity loss, significance of IATA in our lives, a big question mark for small and medium agents – ‘What is the significance of IATA if a recognised IATA agent does not have their own ticket stock? Begging airlines for ad hoc capping each time after the capping of two tickets given to an agent. That too only by a few of them. No commissions, no earnings. On the other hand, exploitation by consolidators who set their own limits for doing business with them per fortnight. When limit is full, all business is transacted through cash. No further credit at their will. This inflicts loss of opportunity many times. Of course, not to forget the sword of weekly payments hanging on our heads that has been deferred only for a short time? These are the challenges before us that we must address before we become history.”

    Talking about the theme,to our correspondent Sachin,H S Chawla (Owner, Speed Air) National Managing Committee Member, IAAI, said, “After the recent Supreme Court judgment on the transaction fee issue, once again rightful remuneration for the agents by way of commission is the burning issue for the industry. Other issues like Weekly Payment, TAP, ADMs and an upcoming challenge that is still unknown to agents, i.e. New Distribution Capability as proposed by IATA are still there and the fight for survival and justice continues. During ICON 2013, we will try to spell out some solutions and action plans for the industry. We need to prepare ourselves to face these challenges as a united team.”

    Rajendra Churiwala, Director, Eastern Region – National Board, IAAI said, “Presently, the travel trade is passing through a very critical phase, particularly for travel agents. Revenues from allied travel-related services have shrunk. Today Principal (Airline) is undercutting its agents by offering tickets on their websites at a low fare, than being offered to agents through GDS. Some airlines are offering even 10-20 per cent lower. Recent judgment of the Supreme Court is a salt on the wound. Should agents work without any remuneration? Unfortunately, neither the judiciary nor Civil Aviation Authorities (DGCA, Ministry of Civil Aviation) is bothered about travel agents. The present situation is due to egos and perhaps personal gains of a few individual leading two National Agents Association. They have time and again served the cause of airlines by bringing down or supporting the reduction of commission from nine to seven to five to three per cent. Two Associations went to Air India and Jet Airways to reduce the commission from three per cent to one  per cent. Now these Associations are asking for commission under Indian Aircraft Act 1935. It is high time the three NationalAssociations came together and fought in one voice to regaincommission. Unity can lead to achieve everything that was lost. Sinkthe personal ego and work for survival of common agents of India.

    Airlines should have a realistic approach, even today 80 per cent and in some cases it is 95 per cent of tickets sold by agents. It is in their interest to protect the agents.”

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