‘Re­duce ex­ist­ing taxes’

TravTalk - India - - Cruises -

Ad­dress­ing the press­ing is­sue of FDI, he adds, “Yes, FDI will help, but only partly and in short term. Due to ac­cu­mu­lated losses of 4-5 years, our air­lines have slipped into deep fi­nan­cial cri­sis. It will cer­tainly bring them im­me­di­ate re­lief if they can get an in­vestor to in­fuse some funds with a view to re­pay­ing their loans and en­abling them to con­tinue their op­er­a­tions in an un­in­ter­rupted man­ner. How­ever, in the longer run, the air­lines have to learn to man­age their op­er­a­tions in a more pro­fes­sional and cost ef­fec­tive man­ner, and de­vise ways and means to en­sure that the fares are at rea­son­able lev­els rel­a­tive to the cost of op­er­a­tion. As carteli­sa­tion is not per­mis­si­ble, each air­line will have to de­vise its own strat­egy to over­come this dif­fi­cult sit­u­a­tion.”

Air con­nec­tiv­ity will con­tinue to be es­sen­tial for eco­nomic progress of the coun­try. Eapen sug­gests that the Govern­ment should look into the prob­lems faced by the sec­tor sym­pa­thet­i­cally and do what­ever it can to save it from be­com­ing sick. “The Govern­ment should avoid any new tax­a­tion in the air travel sec­tor. Ef­fort should be made to re­duce even the ex­ist­ing taxes.”

The as­so­ci­a­tion is ex­tremely un­happy about the re­duc­tion in com­mis­sions for the agents. The pend­ing cases on com­mis­sion – the zero com­mis­sion by 16 for­eign air­lines is­sue and the re­duc­tion of com­mis­sion from 3 to 1 per cent by Air In­dia and Jet Air­ways, which were pend­ing be­fore the Ker­ala High Court, stands the hear­ing com­pleted last week of Oc­to­ber and now re­served for an or­der. With re­gard to weekly pay­ment is­sue, the re­view pe­ti­tion filed by four IAAI mem­bers from Chen­nai was dis­missed due to a few re­stric­tions in time limit.

“Our ad­vice to the Travel Agent is to know their strength to fight for their rights. They are still in the dark and not aware of many rules and reg­u­la­tions, which favour them. There are many coun­tries in the world where the pay­ment pat­tern pe­riod is still fort­nightly and oth­ers where the pay­ment pe­riod to IATA is one month. Un­be­liev­able isn’t it. We have suc­cumbed too eas­ily,” says Kuku S. Ku­mar, Di­rec­tor-North­ern Re­gion, IAAI.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.