IAAI to hike members to 2,000 by 2014
In its recently concluded AGM in Chennai, the IATA Agents Association of India (IAAI) has decided to increase its membership strength to 2,000 by this year. In an interview with , Biji Eapen, President, IAAI, elaborates on the outcome of the Annual Genera
The Eleventh Annual General Meeting of IAAI has put serious emphasis on increasing its membership to intensify the ongoing fight for 5 per cent commission. According to Eapen, the requirement of including commission as IAAI’s agenda is driven by the fact that it is an integral part of tariff as per the definition of Tariff (Rule 3 (54A) of the Aircraft Rules; IATA Resolution 824.9; DGCA Order dated March 5, 2010 and the fresh advisory based on it on December 17, 2012. It should also be pertinent to refer to the Supreme Court Order of January 23, 2013, terming Transaction Fee as illegal; Public Circular from DGCA on February 13, warning against additional payment over and above the ticket fare; and the MoCA Order of September 16, 2013. “It has been clarified that words ‘commission’, ‘transaction fee’ or ‘service charges’ for levying of fees as remuneration to intermediaries for the services rendered by them for issuing tickets to passengers on behalf of the airlines are permissible under the existing rules, provided these are shown as part of tariff within the definition of tariff. No amount will be collected from the consumers over and above this,” Eapen explained.
Eapen also pointed out that as per the MoCA Order dated September 16, 2013, Rule 135(1) requires airlines to determine tariff which by definition includes commission. Rule 135 (2) requires airlines to display a 'single consolidated fare' and give its break-up also for consumer's benefit. “It is clear that the statutory position under Rule 135 clearly requires airlines to determine tariff in accordance with law, including commission payable to agents,” he underlined.
“Facts that justify our demand for 5 per cent commission are: As on October 31, 2008, the commission prevailed was 5 per cent. Agent’s commission is remuneration per piece of work, which should be remunerated as ‘cut and pay’ and not to be reimbursed on monthly or yearly basis,” said Eapen.
Questioned on the present membership strength of IAAI and its impact on all policy-makers, Eapen clarified, “We have membership strength of 1,083 as of March 2014. The tragedy is that exclusivity in any association is less than 40 per cent. Many agents have memberships in all three associations, and many in two. It is overlapping within the three associations (TAAI, TAFI and IAAI).” He also asserted that IAAI is the only trade association fighting relentlessly for commission and against weekly payment. Eapen appeared to be disappointed about the unity move among various travel agents’ associations. “On many occasions, we tried for alliance amongst all the three associations. Now it seems practically impossible. We believe that criticism can make an association healthy,” he stressed.
He also admitted that besides the members of the agents’ associations, there are several agents across the country who keenly follow the efforts of IAAI. However, many of these agents, who want IAAI to get back their rights, are delaying to take decision of joining the association. However, IAAI will intensify its membership drive in the days to come.
“We will take the overall membership to cross 2,000 before December 31, 2014. We are planning to focus on virgin states like Punjab, Rajasthan, Madhya Pradesh, Himachal Pradesh and Bihar”, supplemented Aveek Ghosh, NC - Membership Development, IAAI.