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| Agents "sell away" from foreign airlines - offer full support to National Carriers |
| Announcement / Corporate Jul 09, 2009, 20:06 IST |
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What started off as a skirmish between Singapore Airlines (SIA) and the Indian Travel Agents at the end of the last year, is still going on as a battle for rights as other parties get involved.
Since January, 2009, the anguished calls of travel agents who had been demanding their due commission from SIA, have gone unheeded, but the matter is getting heated up. In a major show of solidarity, most agents across India refuse to sell tickets for Singapore Airlines now.
Despite their earlier disputes with the Travel Agents, airlines like Jet Airways, Kingfisher and Air India, have come out in support of the travel federations and have re-instated their commissions. In fact, airlines from Hong Kong and China are also espousing the agents’ cause.
Travel agents, thus, have decided to sell away from foreign carriers as the agent-airline relationship seems to have been struck at its root. They will henceforth promote Indian carriers like Air India, who are trying to bail themselves out with help from the Government. The Travel Agents community has decided to support the National Carriers.
“It is downright unacceptable that some foreign carriers have gone to Zero commission with an intention to cut their vital arm of distribution and not to remunerate agents their rightful commissions and have entered our country with the sole purpose of generating maximum profits, which they repatriate back to their own countries. We are not willing to tolerate this in unjust approach, we prefer instead to do business with Indian carriers now and support them in their crunch time at this critical juncture. I am requesting each member of TAAI and other associations to promote our National Carriers and extend maximum support to them for their revival, as during zero crises these very carriers stood by us for our survival” says Rajji Rai, President, Travel Agents Association of India (TAAI),
“It is also our duty to extend all support and give maximum possible assistance to AIR INDIA in order to improve their profits and bottom-line”added Mr. Rai.
In a reciprocal gesture, the travel agents have been rooting for a bailout package for airlines, particularly Air India, hit by the global economic downturn.
“Discussions are on with senior officials of the national carriers and the CMD of Air India has been most pro-active in his approach and has expressed his willingness to consider any constructive proposal from the Travel agents which would help Air India,” informs Pradip Lulla, President, Travel Agents Federation of India (TAFI).
Both Associations have also taken the matter up with the Directorate-General of Civil Aviation (DGCA), which in turn has issued an ultimatum to SIA and other airlines which have abolished commission to explain the rationale behind their actions.
“It is heartening to note that the DGCA has taken cognizance of the mater and has directed the foreign airlines to adhere to the law of the land. We are not asking for a bailout, merely a protection of our basic right to livelihood,” states Ajay Prakash, National General Secretary of TAFI
On the other hand, SIA finds itself in the eye of a hostile storm. Compared to the first two quarters of 2008, SIA has registered a 72.5 per cent fall in ticket sales in 2009. Though this is partly because of the global slump, the withdrawal of agents’ support has also contributed considerably towards this unfavorable trend.
At the same time, others like Thai Airlines have fortuitously benefited from the feud. They are now the leading carriers from India for flights bound to South East Asia and Australia. Also, Cathay Airlines now lead in ticket sales to the US especially sectors to SFO and LA as Singapore Airlines sees its revenues on this route whittling down to a measly 2 per cent vis-à-vis 2008.
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