Travel Agents give preference to National carriers over foreign airlines
Hyderabad|India|July'2009: In a major decision,
undertaken by the two of the premier travel agent bodies TAAI and TAFI has
announced that all agents will now sell “away” from the international
airlines and promote the Indian carriers. This decision comes in the wake
of offering support to the crisis hit Indian carrier – Air India as well
as to intensify the battle against the “zero commission” regime.
Travel agents will promote the Indian carriers with customers who wish to
fly abroad. Agents will continue their stir against Singapore Airlines (SIA)
and not sell SIA tickets. While tickets of other international airlines
will be available for sale with the travel agents, they would however
promote offers from Indian carriers only.
While Indian carriers would benefit with the support of these
associations, this would have a major indirect impact on the ticket sales
of International airlines, who are already reeling under the impact of the
global meltdown. The impact of the direct withdrawal of support (ban on
ticket sales) on SIA had far reaching effect on the airline – coupled with
the impact of the global meltdown SIA has registered a 72.5 % fall in its
ticket sales in 2009, compared to the first two quarters of 2008.
Thai Airlines has fortuitously benefited from the situation and 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.
“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 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).
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.
“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 supported
the request 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 matter
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.
Reachout's News Bureau
July' 2009
