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India Civil Aviation Want SIA To Explain

makapaaa

Alfrescian (Inf)
Asset
<TABLE id=msgUN border=0 cellSpacing=3 cellPadding=0 width="100%"><TBODY><TR><TD id=msgUNsubj vAlign=top>
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Coffeeshop Chit Chat - India Civil Aviation Want SIA To Explain</TD><TD id=msgunetc noWrap align=right>
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Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>SingaporeNewsAlternative.blogspot.com (snablogspot) <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>10:44 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 1) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>16751.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>India Civil Aviation Authority Orders SIA To Explain On Commission Row
http://www.travelbizmonitor.com/travel-agents-sell-away-from-zero-commission-to-offer-full-support-to-national-carriers-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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scroobal

Alfrescian
Loyal
SIA has long since found out that Nouveu Riche demand brand rather than price in India. Caste conscious and newly arrived Indians would like to tell their neighbours that its SIA, BA, Qantas etc.

If price was the main factor, no agents will protest in the first place as SIA is always more expensive than Thai Airways etc.

SIA did the same thing to Singapore travel agents about 10 years ago as it was a captive market.
 
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