As the national President of the IAAI, Eapen always preferred to take a stand that is consistent on issues and never hesitated to go to any extent to get his stand vindicated. On the airline commission issue, on the ticket refund issue during the first phase of the Covid-19, etc., Eapen and the IAAI was the first trade association to take the legal course for the public cause and the cause of the trade.
With the privatisation of the airline system in the country is now complete, and the airports are also getting privatised slowly and steadily with favourable policies of the government, Eapen feels that it is high time the travel trade in the country get their acts together and join forces to commence a national campaign to get their long-pending and legitimate demand for ticket commission re-established.
While the trade and industry are fighting a survival game in the light of the Covid-19, Eapen feels that it’s now or never for the industry and therefore, the trade as a whole has to get their acts together and stand upright for a legitimate and rightful place in the aviation ecosystem.
IAAI will be launching a national signature campaign soon to press their demand for the airline commission to be re-established. “We don't want any sympathy. We only ask the government and its regulators to implement and enforce the law that mandates commission to travel agents. Our mission is to save the industry where no one is deprived of law,” Eapen said.
Being one at the forefront of the fight in the regulatory system and the legal system on the commission issue over the decade, Eapen feels it is IAAI’s primary duty to take the responsibility and become the “collective voice” of the industry.
“Travel agents represented and sold airline tickets and were remunerated with the commission, like cargo agents, LIC agents, and petroleum dealers. Unfortunately, the vested interests discriminately circumvented regulatory orders to indemnify ticketing agents,” he says.
Airline revenue is generated from passenger and cargo sales, and both are carried in the passenger cabin and cargo compartments, respectively, onboard the same aircraft. When airlines are paying commission to accredited cargo agents, they are looking the other way when it comes to ticketing agents. Cargo agents are paid a 5 per cent commission through MoCA intervention and directed to provide air waybill stock to all accredited agents in India, Eapen says.
While statutory and regulatory rules are supporting agents' commission, because of the lack of unity in the trade, airlines continue to call the shots while the regulators look the other way round. Eapen cites the Aircraft Act 1934 and Aircraft Rules of 1937 to establish his argument.
“After Kerala High Court passed an order in favour of the IAAI, DGCA has passed Order No. AV. 26012/2/2008-TE in March 2010 mandating 'commission' as the legal remuneration to travel agents and categorically ruled out that zero commission, transaction fee and net fares as illegal in India, and mentioned that PLB could not be replaced as commission,” he says. DGCA had even issued notices to over a dozen airlines for nonimplementation of the order. But, “the vested interests” played the spoilsport, Eapen observed.
IAAI will be launching a national e-signature campaign and the same will be presented to the government calling for urgent action. “Through the campaign, we want to urge upon the government to implement and enforce the statutory position under rule 135, which requires airlines to determine Tariffs corroborating DGCA Order No AV 26012/2/2008-TE of 05.03.2010, mandating 'commission' and displaying the single consolidated fare' with break-up for the consumer's benefit, thereby instructing airlines operating from and within India to pay 5 per cent agency commission to travel agents.”
Read more
