Grace for 5 months
hold talks with airlines to continue with the fortnightly payment system from November 1, 2012.
Confirming the announcement by IATA, Iqbal Mulla, President, TAAI said, “We were awaiting for the response from IATA for a long time and are really happy to receive a positive revert from their side. It’s nice to know that IATA has understood the problems faced by us and have supported us by extending the execution date for weekly settlement plan. For the next five months, we will educate our fellow members about the weekly payments system and how to manage business in the scenario. We understand that our partner airlines are facing turbulent times with business and revenues. We would like to hold fruitful discussions with them to come out with a win- win solution to avoid weekly settlement system in future.” On similar notes, Ajay Prakash, President, TAFI informed that the national carrier has indeed played a major part in rolling back the new settlement system. He said, “We are thankful to Air India for supporting and understanding our situation. It’s a relief for a major chunk of travel agents in India operating in small and mid- sized travel companies. Over the span of next five years, we need to revise the business model of a travel agency as our business is in sorry state due to tight credit situation in the market. We are just ‘ Rea - cting’ over the actions taken by the airlines but not acting ourselves. It’s time for the airlines and the agents to work together for common solutions. We are going to ask the airlines to encourage credit card usage and incentivise it for mutual benefits.”
However, according to Biji Eapen, President, IAAI, the five months are just ‘temporary waiting time’. He said, “IATA has just extended the date of implementation of weekly settlement programme. The five months are just grace period for travel fraternity to prepare for the inevitable. However, all the associations came under one umbrella and opposed the move completely. I’m sure the airlines would accept the non-implementation of this plan. IAAI has already filed another Writ Petition in the Madras High Court against the weekly settlement system and are expecting the verdict anytime in June. We will continue our fight against this new system and retain the fortnightly settlement system through legal means and ways.”