Cash crunch coming up ahead
Credit is a fact of life in this industry. Gurinder S
Bhatia, Secretary, IATA Agents Association of India, says corporate clients usually pay after one or two months. Agents often compete with each other to extend more credit to corporate clients. “So now, we will have to make bigger investments to pay airlines on time,” he adds.
Also, as Madhav Oza, Director, Blue Star Air Travel Services adds, “The accounting procedures will increase the work load and cash flows will get badly affected.” Earlier statements were prepared fortnightly, but now agents have to be on their toes to ensure that payments are made on time.
Airlines should be more agent- friendly, as over 80 per cent of International bookings and 40-45 per cent domestic bookings are done through travel agents in India, says Oza. “Offer transparent deals to the agents. Basic fares should include fuel surcharge, offer commensurate remuneration to agents.” he sums up.
Agents compete with each other to extend more credit to their corporate clients Agents have to be on their toes to ensure that payments are made on time