http://www.travelbizmonitor.com/tra...iers-trying-to-bail-out-with-help-of-goi-7367
Travel Biz Monitor, 10 Jul 2009
Travel agents ‘sell away’ from zero commission to offer full support to national carriers trying to bail out with help of GoI
According to a press release from Travel Agents Federation of India (TAFI), with the ongoing fight on the zero commission issue between the travel agents fraternity and Singapore Airlines (SIA) not resulting in any solutions,
in a major show of solidarity most travel agents across India have now refused to sell tickets for SIA. The matter had also been taken up by the Directorate General of Civil Aviation (DGCA), which in turn had issued an ultimatum to SIA and other airlines which have abolished commission to explain the rationale behind their actions.
On the other hand airlines like Jet Airways, Kingfisher Airlines and Air India have come out in support of the travel federations and have re-instated their commissions. Moreover, airlines from Hong Kong and China are also espousing the agents cause. In a recent development travel agents have thus decided to sell away from foreign carriers as the agent-airline relationship seems to have been struck at its root. They will henceforth promote Indian carriers like Air India, who are trying to bail themselves out with help from the Government of India (GoI). The travel agents community has decided to support the national carriers.
“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 will help Air India to improve its bottomline,” said Pradip Lulla, President, Travel Agents Federation of India (TAFI). 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 downright unacceptable for foreign carriers who enter our country to hike their profits, exploit the local parties involved and dictate terms to them. We won’t stand for it. Rather, we’ll do business with Indian carriers now,” added Lulla.
“It is heartening to note that the DGCA has taken cognizance of the mater 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,” stated Ajay Prakash, National General Secretary, TAFI.
Compared to the first two quarters of 2008, SIA has registered a 72.5 per cent fall in ticket sales in 2009. Though it is partly because of the global slump, withdrawal of agents’ support has also contributed considerably towards this unfavorable trend. At the same time, others like Thai Airlines have fortunately benefited from the feud. They are now the leading carriers from India for flights bound to South East Asia and Australia. Also, Cathay Pacific Airlines now lead in ticket sales to the US especially sectors to San Francisco Airport (SFO) and Los Angeles (LA) as Singapore Airlines sees its revenues on this route whittling down to a two per cent vis-à-vis 2008.
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Latest @ Singapore News Alternative:
1. Idling ships clog up Singapore shores
2. India Civil Aviation Authority Issue Ultimatum To SIA To Explain Commission Row
3. Heat On ST Aerospace Building Up Over Immigrant Workers In It's American Unit
4. Taiwan trade center in Singapore gets green light
5. David Widjaja was murdered, says lawyer
6. Travel agents decide to help Indian carriers with zero commission after dispute with SIA remains unresolved
7. Tiger Airway's Flight Cancellation Leave Travellers Stranded & Fuming
.
Travel Biz Monitor, 10 Jul 2009
Travel agents ‘sell away’ from zero commission to offer full support to national carriers trying to bail out with help of GoI
According to a press release from Travel Agents Federation of India (TAFI), with the ongoing fight on the zero commission issue between the travel agents fraternity and Singapore Airlines (SIA) not resulting in any solutions,
in a major show of solidarity most travel agents across India have now refused to sell tickets for SIA. The matter had also been taken up by the Directorate General of Civil Aviation (DGCA), which in turn had issued an ultimatum to SIA and other airlines which have abolished commission to explain the rationale behind their actions.
On the other hand airlines like Jet Airways, Kingfisher Airlines and Air India have come out in support of the travel federations and have re-instated their commissions. Moreover, airlines from Hong Kong and China are also espousing the agents cause. In a recent development travel agents have thus decided to sell away from foreign carriers as the agent-airline relationship seems to have been struck at its root. They will henceforth promote Indian carriers like Air India, who are trying to bail themselves out with help from the Government of India (GoI). The travel agents community has decided to support the national carriers.
“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 will help Air India to improve its bottomline,” said Pradip Lulla, President, Travel Agents Federation of India (TAFI). 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 downright unacceptable for foreign carriers who enter our country to hike their profits, exploit the local parties involved and dictate terms to them. We won’t stand for it. Rather, we’ll do business with Indian carriers now,” added Lulla.
“It is heartening to note that the DGCA has taken cognizance of the mater 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,” stated Ajay Prakash, National General Secretary, TAFI.
Compared to the first two quarters of 2008, SIA has registered a 72.5 per cent fall in ticket sales in 2009. Though it is partly because of the global slump, withdrawal of agents’ support has also contributed considerably towards this unfavorable trend. At the same time, others like Thai Airlines have fortunately benefited from the feud. They are now the leading carriers from India for flights bound to South East Asia and Australia. Also, Cathay Pacific Airlines now lead in ticket sales to the US especially sectors to San Francisco Airport (SFO) and Los Angeles (LA) as Singapore Airlines sees its revenues on this route whittling down to a two per cent vis-à-vis 2008.
------------------------
Latest @ Singapore News Alternative:
1. Idling ships clog up Singapore shores
2. India Civil Aviation Authority Issue Ultimatum To SIA To Explain Commission Row
3. Heat On ST Aerospace Building Up Over Immigrant Workers In It's American Unit
4. Taiwan trade center in Singapore gets green light
5. David Widjaja was murdered, says lawyer
6. Travel agents decide to help Indian carriers with zero commission after dispute with SIA remains unresolved
7. Tiger Airway's Flight Cancellation Leave Travellers Stranded & Fuming
.
