INTERNATIONAL MAGAGAZINE AVIATION - TRAVEL - TOURISM - CARGO - HOSPITALITY - CAREER Vol 1 Issue 3 March 2010 Pages 20 Rs. 40 DGCA Chastises ZERO Airlines Commission denied to Travel Agents is now re-instated. Erring Foreign Airlines bridled-in. Euphoria among Travel Agent Community Staff Correspondent In an epoch making decision, Director General of Civil Aviation Dr. Nasim Zaidi has ruled that Airlines are bound to pay “Commission” to Travel Agents as per Indian and International regulations. The ruling came out as an Official Order dated Mar 5, 2010 following a Contempt of Court petition filed by IAAI (IATA Agents’ Association of India) with the High Court of Kerala. Travel Agents’ commission @ 9% was in force throughout the world which was reduced in 2005 to 5% on mutual agreement in India. Later in 2008, Airlines unilaterally decided to reduce the commission to “zero” and directed that Travel Agents collect from passengers a “Transaction Fee” of their choice over and above the gross ticket fare. Travel Agents protested claiming that commission was their legitimate right, approved and allowed by Law. They pointed out that “Transaction Fee” model would not suit Indian public since, by default, every passenger would opt for the lowest and cheapest fare and refrain from paying additional service fee, whatsoever. Voicing their dissent, IAAI led a nation-wide agitation against erring airlines which was duly supported by political parties. National leaders like Prof. KV Thomas, Ramesh Chennithala, Dr. Sebastian Paul, Prakash Karat, Sitaram Yechuri, Dr. M.K. Pandhe and others came out in the open in favour of Travel Agents. Ms. Brinda Karat MP raised the question in the Parliament and led travelagents delegations twice to meet Civil Aviation Minister Mr. Praful Patel, who, later, amended the Aircraft Rules to include “commission” as an integral part of “:Tariff”. National Carriers immediately budged and accepted to pay 3% commission. But, 16 Foreign Airlines, all big names, remained adamant. Singapore Airlines, Lufthansa, British Air were in the fore front. These Airlines were paying commission in many other countries without complaint but why in India they chose to break the law was anybody’s guess. In some advanced countries such as the US, Transaction Fee was accepted by Travel agents and Travel community involuntarily but to impose the same in India against the will of concerned parties was illogic and so unacceptable. Although Commission was virtually denied to Travel Agents, these Airlines had initialized a scheme termed PLB (Profit Linked Bonus) offering remuneration through select Big Players and Portals. The ploy was clear. Travel Agents throughout the length and breadth of the country will have to process ticket purchases through these favoured players who would in turn pass a meager part of the bonus to Travel Agents. Thus the “commission” denied to Travel Agents was technically paid to “favoured” big players and portals Agents who would P10 Operation success: IAAI regains commission for travel agents A Great Victory Engineered by IAAI The IATA Agents Association of India creates history in the Aviation industry by getting the Director General of Civil Aviation to pass an order declaring that “Commission cannot be replaced by Transaction Fee” and also directing the airlines to “ensure compliance of existing statutory provisions regarding determina- tion of tariff, including commission payable to Agents”, as per Indian Aircraft Rules. The IATA Agents Association of India (IAAI), in a bid to end the stalemate over the ‘Zero’ Commission issue that had lasted over 20 long months, filed a Contempt of Court suit, against Dr. Nasim Zaidi, Director General of Civil Aviation, for his failure to act on the order dated 13th July, 2009, from the Hon’ble High Court of Kerala in a writ petition filed by the IAAI. It is in response to this Contempt of Court notice that the Director General of Civil Aviation, passed an order on 5 th March 2010. Under advise to IAAI, the Assistant Solicitor General of India has been instructed, vide letter No.5/ 103/2010-IR of 11th March, 2010, to file the compliance report with the Hon’ble High Court of Kerala on 18 th March when the Contempt of Court Case has been posted for hearing. On being complimented on his Association’s historical achievement, Naresh Rajkotia Gen. Scty replied, “ Alas, if only the APJCIndia and the Agents Representatives in this Council had properly done the job expected of them, ‘Zero’ Commission would never have been implemented in India.” General 2 Pillow fight in American Airlines ?! American Airlines and its flight attendants’ union are in a pillow fight. The Association of Professional Flight Attendants says its members won’t sell an $8 pillow-and-blanket set unless the union agrees to those sales in negotiations. American Airlines staff says it’s not a contractual issue. The battle is over American Airline’s plan to discontinue providing free blankets and pillows to the passengers on domestic flights and some shorter international flights as of May 1. Instead, the airline will sell a blue fleece blanket and an inflatable pillow, with a coupon that can be used at a retail chain shop while shopping. APFA President Laura Glading wrote to American Airlines Executive Mark Burdette, saying that the airline had to negotiate with APFA if it wants flight attendants to make such sales aboard American’s flights. In any case, American airline has to get the union’s blanket approval, Glading told Burdette. “The company should immediately cease the implementation of the blanket and pillow sale initiative until this issue is resolved in negotiations and a tentative agreement has been ratified by the flight attendants,” Glading wrote. She pay, who may said federal law requires American to negotiate on including how much will go to the flight attendant makes the sale. She also said that the sales duties create “an unfair workload.” Gulf Air wasting millions on consultants: Blaming doing absolutely nothing while the airlines bleeds Gulf AirTrade unions have now accused the Gulf Air for wasting millions of dinars on consultancy firms and urged the Bahrain government to investigate the role of at least five companies that allegedly ‘did absolutely nothing’ while bleeding the airline dry. On the recommendations made by Gulf Air Trade Union (GATU), Chairman Mustafa Al Tooq in a meeting said that a parliamentary probe committee is going through the airline’s books. Al Tooq’s comments followed the announcement that the Bahrain Mumtalakat Holding Company - the Bahrain government’s investment branch - would be transferring ownership of Gulf Air to the government. Axe on tall Siva and Buddha statues near Airport The Airports Authority of India (AAI) has asked BK Birla Trust, developers of Birla Kanan near IGI Airport, New Delhi to reduce the height of the 80-feet Shiva statue by taking off its pedestal. According to the AAI, the statue is taller than the height specified in the no-objection certificate (NoC) issued to the Trust in 1993. It is reported that AAI has also asked the Trust to temporarily stop the work on the construction of a Buddha statue, slated to be 54 feet tall ,at Birla Kanan. Aviation Herald March 2010 General 3 A great relief to air travellers: only one accident for every 1.4 million flights in 2009 The International Air Transport Association (IATA) announced the aviation safety performance for 2009 showing that the year’s accident rate for western-built jet aircraft as the second lowest in aviation history. The 2009 global accident rate (measured in hull losses per million flights of western-built jet aircraft) was 0.71. That is equal to one accident for every 1.4 million flights. This is a significant improvement of the 0.81 rate recorded in 2008 (one accident for 1.2 million flights). The 2009 rate was the second lowest in aviation history, just above the 2006 rate of 0.65. Compared to 10 years ago, the accident rate has been cut 36% from the rate recorded in 2000. performed better than the global average of 0.71 • Asia-Pacific’s accident rate worsened to 0.86 in 2009 (compared to 0.58 in 2008) with three accidents involving carriers from the region. • The Middle East and North Africa region saw its accident rate rise to 3.32 (compared to 1.89 in 2008) with four accidents involving carriers from the region. fatalities,” said Giovanni Bisignani, Director General and CEO of IATA. 109 in 2008 • 18 fatal accidents (all aircraft types) compared to 23 in 2008 The following results were identified in 2009 • 685 fatalities compared to 502 in 2008 • 2.3 billion people flew safely on 35 million flights (27 million jet, 8 million turboprop) “Safety is the industry’s number one priority. Even in a decade during which airlines lost an average of US$5 billion per year, we still managed to improve our safety record. Last year, 2.3 billion people flew safely. But every fatality is a human tragedy that reminds us of the ultimate goal of zero accidents and zero • 19 accidents involving western built jet aircraft compared to 22 in 2008 • 90 accidents (all aircraft types, Eastern and Western built) compared to IATA member airlines outperformed the industry average with a western-built jet hull accident rate of 0.62. That rate is equal to one accident for every 1.6 million flights. In 2009 IATA marked an important milestone in aviation safety. From April 1, all IATA members were on the registry of the IATA Operational Safety Audit— a testimony to the commitment to the highest global standards for operational safety. IOSA is the global standard. Today 332 carriers are on the registry, including IATA’s 231 members. There are significant regional differences in the accident rate. • North Asia, Latin America and the Caribbean as well as the Commonwealth of Independent States (CIS) had zero western-built jet hull losses in 2009 • North America (0.41) and Europe (0.45) • Africa had an accident rate of 9.94, significantly higher than their 2008 rate of 2.12. Africa has once again the worst rate of the world. There were five Western-built jet hull losses with African carriers in 2009. African carriers are 2% of global traffic, but 26% of global western-built jet hull losses. Safety is a constant challenge. Having made aviation the safest way to travel, further improvements will come only with careful data analysis. The underlying safety risk trends are to be understood, not just from the handful of accidents each year, but by bringing together and analyzing data from millions of safe flights. Air India offers Ambulift for geriatric patients from Cochin International airport Geriatic patients and passengers using stretcher and wheelchair will be provided more comfort and safety at the international airport with the Air India launching a state-of-the-art devise, Ambulift in its Ground Handling Division. The Ambulift will be used to embark and disembark passengers on stretchers and wheelchairs. It will be highly helpful for the geriatric patients who cannot climb the step ladder. The passenger-cabin in Ambulift is fully air conditioned with a first aid kit and oxygen cylinder. It has a fullyautomatic transmission system for a jerk -free movement. Ambulift can be operated on all types of aircraft. Aviation Herald March 2010 Editorial 4 Editorial Publisher Boss. P. B Executive Editor H. V. D. Prasad Correspondents New Delhi Ms. Divyajit Kaur Chawla Abudhabi Ajith Marath South Africa Ms. Ranjana Parmar London Bibin Simon Advisory Board Birger Backman Belgium William Tan Singapore Dr. Diwan Parag New Delhi Lay-out Milan Jose AVIATION HERALD ATN Aviation News & Tourism Publictions India Pvt. Ltd. Vth Floor, Vallamattom Estate Ravipuram, Cochin - 682 015 Kerala, India. For every truth there is an eye some where to see it. For every truth there is a court somewhere to judge it. For every judgement there is an authority somewhere to implement it This is what has happened in India. Past 18 months witnessed a long tireless hard work and the strenuous all-round fight to regain what is lost to lakhs of families, who always looked up for the small commission they received when sold the air tickets, during the years behind. This remuneration for the work done rather than the socalled benefits was curtailed in 2008. The long nationwide war fought on the lands of Haryana, Uttar Pradesh, Madya Pradesh , Maharashtra ,Andhra Pradesh, Bihar, Orissa, Karnataka, Tamilnadu and Kerala ,from where it was engineered, lasted for 18 months. All not for few persons, but for the whole country. It was for the present and future travel fraternity. The war waged began , led and gained by IATA Agents Association of India(IAAI) –of the travel agents, by the agents and for the agents. It was on the basis of Kerala High Court verdict , followed by a contempt of court move from IAAI, the Directorate General of Civil Aviation decided to release an order to all airlines to pay commission to travel agents on the tickets sold by them. It is nothing but a paradise regained. The brave men, living then and now , who struggled here, have consecrated it, far above their poor power to add or detract. The travel world will little note, nor long remember what they say here, but it can never forget what they did here. It is for the living travel fraternity, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for the travel community of India to be dedicated to the great task remaining before them for the air travel industry. H.V.D.PRASAD EXECUTIVE EDITOR AWARD FOR OUTSTANDING PERFORMANCE Speedwings Aviation Academy,Cochin , bagged ,an Award of Excellence in the field of Aviation Studies from ITDI, Distance Learning Division of IATA Montreal . India stands first with 27% of global student enrollments of which SPEEDWINGS’ contribution has been substantial and continuous since 1995. Speedwings is the only Authorized Training Institute that offers widest range of courses covering Travel & Tourism, Cargo and Aviation Studies in India. Tel: 91-484-3117789/ 4022205 Website: www.atnindia.org E-mail: editor@atninia.org marketing@atnindia.org All rights reserved. Reproduction in any manner, electronics or otherwise, in whole or in part without prior written permission is prohibited. Biji Eapen, CEO of Speedwings, after receiving the award from Guido Gianasso, VP Human Capital, IATA Caanda. Aviation Herald March 2010 IAAI 5 Travel Agents, beware – New Virus from APJC “Ticketing Authority Process” will sabotage Travel Agency System-Airlines to arbitrarily fix ticket stock limits of Travel Agents-Technique of Airlines to enslave Travel Agents in ploy and nail by Travel agents. It is the same of ordinary Travel agents. failed ghost of “Transaction Fee” “Travel agents cannot be at the mercy of reappearing in another form. Airlines, there must be clear mandates. Otherwise it is brutal Totalitarianism in So far, BSP was fixing ticket capping Airline Industry” lamented a Travel agent based on the turn over and insurance desolately. IAAI, the only Travel agents’ guaranty offered by Travel agents association which is not yet admitted whereby Travel agents exercised into APJC has vowed to take the lead leverage to fix their limits. With the new fight as with Agency commission issue. system each Airline can decide whether to admit a Travel agent or to refuse and “It is a do or die situation for Travel agents to fix limits arbitrarily. Whim and fancy of once again after zero commission” said The move has to be opposed with tooth big player Airlines would decide the fate a spokesperson of IAAI. Ticketing Authority Process authorizes airlines to admit, refuse or limit ticket stock of individual Travel agents wef april 1, 2010. Such a ruling from IATA cannot have surfaced in India without the approval of APJC India. Two major Travel Agents’ Associations within APJC which are to be the voice and defence of Travel agents are feared to be taking sides of airlines to nail the coffin of Travel agency system in India. Jubilation in Chennai Travel Circle DGCA’s orders based on the Kerala High Court order following Writ Petitions and the subsequent Contempt of Court Case No.186/ 2010 filed by IAAI for re-instating IATA travel agency commission received loud cheers in Chennai . IAAI’s National President Biji Eapen was accorded a ceremonial welcome and a standing ovation at Hotel Ambassador Pallava gathering called by the Travel Fraternity of Tamil Nadu on Monday, 15th march 2010. The whole gathering was charged with merriment as almost all Travel Agents locked in together for a long time since. IAAI was commented heartily for having moved justice through Writ Petition before High Court of Kerala against adamant foreign airlines that denied commission. 38 Travel agencies instantly took membership of IAAI and pledged to work together further on. All those who gathered at the meeting have unanimously voiced their opinion that only IAAI should be entrusted and given the mandate to negotiate with the Airlines on the quantum of commission. They also demanded that IAAI should be a part of the APJC-India playing a vital role to safe guard the interest of the IATA travel agents fraternity of India. Jubilant Members are seen celebrating the historic achievement. Aviation Herald March 2010 IAAI 6 Exclusive Interview with Biji Eapen, National President IAAI, after winning the 18 months long fight for Agency Commission Congratulations! It was IAAI and your hard work and persistence that enabled you to keep your promise to the Travel Fraternity. Yes, we were able to fulfill our promise to make commission legal and get a ruling from DGCA that “Commission cannot be replaced by Transaction Fee”. Though we tried for legislation through Parliament in Dec, 2008, due no support from other Associations, we were forced to opt legal remedy. It took more than a year ‘Service Fee’ is a Western culture. How did this concept get introduced into India? And why it took almost two years to settle the issue ? Oh .no!. The issue is not settled yet. Only one part. As I understand, it started on 22nd February 2007, with Lufthansa organizing a workshop on “New Remuneration Schemes for Travel Agencies” at the Oberoi, New Delhi, on behalf of the Star Alliance Group. Interestingly, for the first time in history, three separate WELCOME speeches were made – by - LH Country Manager and the Presidents of TAAI & TAFI. Later, they all began advocating “TF” module as a better system of remuneration and making presentation on its merits and also went to the extent of signing an Agreement with the Airlines for the TF module at the SM Centre on 12 th Sep’08. IAAI’s Writ Petition against NACIL for retention of 5% commission failed in Oct 2008 in the Kerala High Court just because the TAAI & TAFI Presidents ignored our request to counter NACIL’s affidavit which stated that both TAAI & TAFI, as the largest Travel Trade Associations had accepted and signed for TF. Also a group of vested interests like no-to-zero questioned the terms and legality of Aircraft Rule 135 and disseminated wrong interpretation of IATA Resolutions to misguide the ordinary travel agents. At the DGCA Meeting on 7th Sept 2009, an airline official openly stated that it was only the Travel Agents Associations who had approached them for the implementation of Transaction Fee module, Net fares and IT fares and that they are dealing with approx 80 Agents all over the country. Last week at Park Hotel, Delhi, on 9h March, TAAI had entertained the Star Alliance Team.– LH, CO, SQ, and LX for a ‘rare’ interactive session and presented mementos to these ‘Zero’ Airlines.. When other Associations had advocated Transaction Fee why did IAAI oppose? Transaction Fee is illegal and not mentioned in any IATA Resolution as a substitute for Commission. . Since the Commission denied to the Agent is not being reduced from the fare by the airlines, the Transaction Fee charged by the Agent would become an additional burden to the traveling public. More over, this will deprive tax revenue to the Government beside leading to monopolization and cartelization. How can the airlines monopolize / cartelize ? Today, Lufthansa owns LX and OS. KL owns AF & NW. Therefore, these two airlines can, today, take decisions on behalf of 6 airlines that operate into India and dictate terms that will affect the Industry. The enticing of AI by LH to join the Star Alliance Group is an example. It was not to enhance the network so much as to gain leverage in India. With the takeover of OS, Lufthansa has become the largest carrier in Europe. And, in India, LH with its affiliates Swiss and Austrian, the group now operates 67 weekly flights to seven destinations in India from four European gateways- Frankfurt, Munich, Zurich & Vienna. Through these four hubs, they are offering the largest number of onward connections to Europe and to the United States. Now, do you realize to what levels these foreign airlines have overshadowed the operations of NACIL, Jet and Kingfisher? When Jet and Kingfisher tried pooling of routes and reservations, it was termed as cartelization. When these foreign airlines are pooling their resources within India why no one is terming it as ‘cartelization’?? Our National Carrier is in dire straits today. How much has this cartelization and the Open Sky Policy contributed towards its financial crunch ? Quite a lot. Though the Open Sky Policy boosted our Indian Aviation Industry, certain controls & regulations should have been necessarily established. Bilateral Agreements generally place both parties at par and most countries have protected their National interests. It is high time that India also flexed its muscles and restricted mergers and alliances among foreign carriers operating into India so as to give protection to all Indian carriers similarly. There are many IATA Resolutions that grant such exceptions and exemptions to USA & Europe. It is very obviously clear now that our Policy has to be revamped keeping the National interests in mind. Can you specify any particular areas that need to be looked into immediately? Based on Exhibits P3 & 4 of IAAI’s Writ Petition, DGCA has set up a Monitory System to oversee and ensure airlines’ compliance of the provisions of Rule 135. But no representation from the Travel Trade Associations has been given to also monitor the airlines’ pricing, taxation and distribution channels and ensure that they are within the framework of IATA an in relation to the Indian Economic conditions and conducive to the Indian Travel Trade. Yes, Sir! I understand the magnitude and the gravity. It is clear that there are many discriminatory policies and regulations in the Aviation Rules. So far, you have spoken like an airline person. Can you identify any other areas that affect the Airline/Agency partnership prima facie? Yes. A simple example – LH is the main stakeholder in Amadeus and proposes to charge Travel Agents Euro 4.90 per booking globally except in USA fearing competition there. This is yet another area of the Airline Industry that the airlines are monopolizing. Lufthansa & Singapore Airlines are having Zero commission in Indian market and discriminate by publishing web pricings that are 5-10% lower than the market prices thus stealing the share of the agents. They have discriminative policies even within the agents - OTAs and certain favoured agents, numbering less than 20 Agents totally, are given very special “Deal Codes” which enable them to get 7-9% commission or discounts on the market prices with the facility of an ‘upfront cut & pay’ system. The 5% commission denied to the agents, not being deducted from the published fare, does not also benefit the traveling public and accumulates ultimately in the airline coffers. Since the upfront cut & pay system does not fall under the purview of the Service Tax Rules, the Government itself is losing crores of Rupees in Tax Revenues. When airlines are reducing their business relations to just some limited agents, what will be the effect on the ordinary agents and the resulting impact on the Indian economic conditions? The impact and damage on ordinary agents will be irrevocable. Look at LH -.they had closed their GSA and 4 direct sales offices in India. And, as quoted by a foreign carrier at the last meeting with DGCA, they were “quite happy working with just 80 agents out of 2965 IATA Agents in India with the Productivity Linked Bonus (PLB) scheme . In effect, 95% of the ordinary ‘unfavoured’ agents are either forced to buy their tickets through the favoured agents & OTAs who are controlling the market with their favoured remuneration pattern from the airlines. This hidden and wicked agenda is to create consolidation leading to monopolization and cartelization. The modus operandi of the airlines with special deals codes facilitating a ‘cut & pay’ (front end commission) which in turns helps them to achieve PLB ( back-end) .In other words, create consolidation with their favoured agent by giving them a huge price advantage over the rest. The new formulae of controlling ticket stock with the airlines from April 2010, is another step in this direction to full fill their grand game plant of killing the small and medium agents across the country. All these would not have been possible by any airlines without the active support of certain associations who control APJC-India as all matters concerning travel agents have to go through this IATA created body. How about the merger and alliances of agents as suggested certain airlines in the present scenario ? Focusing on the airlines mergers and strengthening of their bottom line, these foreign airlines are advising Indian agents to make a choice – run the business single handedly or enjoy benefit from mergers and alliances. In other words, 95% agents become sub-agents to their favoured agents /consolidators or close down the business! In such a situation, what do you suggest as an immediate remedial measure? IATA Resolutions very clearly stipulate that Accredited Agents should issue and sell only from their stock of tickets. But, with the present Airline system of paying ‘Productivity Linked Bonuses’ on volume sales, the ordinary IATA Agent is competitively at a disadvantage and, for fear of losing the client, is forced to buy the ticket from a consolidator. The IATA Agent must be educated not to give in to this ‘robbing Peter to pay Paul’ tactics of the airlines and desist from buying tickets from favoured Agents with PLBs to keep his client from straying. Each IATA Agent should decide that he will only use Aviation Herald March 2010 IAAI his own IATA validation and identification for ticketing. If this is done, these airlines will come down to the agency doors to fulfill IATA’s dream of an “airline/agent partnership” Consolidation is a common phenomena well accepted all over the world. Could you clarify on what ground IAAI stands against this common business policy ? Well the answer is simple. IAAI is not against “Consolidation” business. We are only against the mode of practice and policies in the Indian consolidation concept. As you have said, consolidation is common in many European and Western countries and dominates the Market. But, the very concept of ‘consolidation’ is to consolidate business through “up-front purchase” . In other words, it is an advance purchase of tickets in millions/billions and stocked and sold through their own outlets at whatever the prices that may be deemed as a competitive price in the Market. Apart from the profit that they make in this manner, at the end of the year, they may be adorned with an additional “performance linked bonuses” too. But in India, such bulk stock of tickets are not purchased in advance. Your team had fought for the benefit of the entire IATA Agents in getting back commission in India. Apart from your mentioned dream of airline/agents partnership, will IAAI be delivering any other source of income to the Indian travels agents. Good question. Like I had said earlier, our first priority is to educate the agents to have pride in the fact that they are IATA Accredited Agents and use their own identities. Agents would be trained to expand their scope of service to their clients by offering to book hotels, car rentals, tours, etc. which would fetch them additional income by way of commission. Foreseeing these situations, IAAI has developed i-Top8, the online Portal for the travel agent that gives equality of income to all the Travel Agents irrespective of size. Their individual sales are channeled and funneled through i-Top8 to emerge as a single source of immense volume that will beget them favoured rates from the airlines. Commercially, E-tours & Trawelltag Insurance programmes have already been integrated into I-Top8 to provide equal and maximum percentage of commission to the network users. B2B and B2C models are available to cater to the requirement of the Member Agents. There are still many more burning issues in the day-to-day functioning of the Travel Agencies that need to be sorted out. Especially, the discriminative financial guarantee system prevailing in India, insurance guarantee and premiums, transition to IATA Res 818g instead 810(i) on a wider prospective, etc. Issues like ADMs, GDS abuse & ‘No Show’ charges, though it all mooted by certain travel trade associations, were kept on the back burners in order deal with the Commission issue. We will not divert to any other segments till these are sorted out. To go back to the DGCA Order of 5th March –the ‘quantum’ of Commission has to be sorted out between the Airlines & the Agents. What is the preferred percentage that Agents are looking at forward to? In this respect IAAI, on behalf of our members, may submit that “commission” be re-instated at the same level it was stopped at in October, 2008.. NACIL had committed 5% commission on gross ticket fare irrevocably till April, 2009, and should be the logical and reasonable benchmark.- a status quo . 7 The Indian Carriers, with networks made up of 60% domestic & 40% International operations, have been paying us 3% on gross ticket fare. Travel Agents accepted this rate of Commission since Service Tax on domestic ticket sales are is 5.6% whereas on international sectors, it is 10.3% in India. Considering this tax gradient between domestic & international, the rate of commission on international sectors alone would remain at 8% whereas for an international ticket sold on a foreign airline, the rate of Service Tax would be 10.3% plus the TDS as per Govt. norms. It is also to be noted that gross fare is considered as also including fuel surcharge as recommended by IATA. . Further, several International Airlines that did not opt for “Zero” Commission had fuel surcharge included into the gross fare. We can safely consider this the accepted practice of all airlines operating in India. Based on the above facts and figures, we, at IAAI, demand 5% on the gross fare , inclusive of Fuel Surcharge, effective from 5th March, 2010. Considering the Global recession that has been plaguing everyone and the frequent fluctuations in the ATF prices, we, at IAAI, consider it as only .humane not to insist on a retrospective claim for Commission. However, this request is without prejudice to our privileges and rights to ask for higher rates as and when warranted by situational variations. We did promise to get back Commission - and, Commission at 9% is definitely possible, but, only if all IATA Travel Agent in India support us with their Memberships as, we are committed to the welfare and well-being of all Travel Agents and a healthy partnership with Airlines. Aviation Herald March 2010 AVILATION Air India to Washington with a smile Air India will soon start daily operations between Indian cities and Washington with stopover in Milan, Italy.The decision to start a daily flight connecting Delhi and Kolkata with Washington via Milan follows the successful launch of Air India’s New Delhi-New York-Washington since December last year. 8 Air India creates history by operating 22 all women crew flights Daily direct flight from Mumbai to Johannesburg Jet Airways is to launch its first flight to Africa for the 2010 FIFA World Cup. The daily direct service from Mumbai to Johannesburg will come into effect from 14th April. With a large number of people of Indian origin living in and/or working in South Africa, as well as its emergence as a leading business destination and wealth of tourist attractions, the new route opens up an untapped potential for India.Johannesburg will be the twenty-second destination in Jet Airways’ international network. Flight 9W 242 will depart Mumbai at 0205 hrs, arriving in Johannesburg at 0735 hrs. On the return leg, flight 9W 241 will depart Johannesburg at 1100 hrs, arriving in Mumbai at 2330 hrs. Return Economy fares from various Indian cities start from INR 35,595 (approx £490) while return Première (Business) Class fares start from INR 116,020 (approx £1,600). Kingfisher launching 7 new international routes Government of India has granted Kingfisher the permission to operate on seven new international routes.The new international routes are: 1.New Delhi – London – New Delhi 2.New Delhi – Hong Kong – New Delhi 3. New Delhi – Bangkok – New Delhi 4. New Delhi – Dubai – New Delhi 5. Mumbai – Colombo- Mumbai 6. Mumbai – Bangkok- Mumbai 7. Mumbai – Dubai – Mumbai “I am delighted to announce that Kingfisher Airlines will soon be commencing flights from New Delhi to London Heathrow along with six other new international routes. The launch of these new flights will further enhance the international route network of Kingfisher Airlines,said Dr.Vijay Mallya, Chairman&CEO of Kingfisher Airlines Tiger Airways extends to Kochi, Trivandrum & Trichy Singapore’s budget carrier Tiger Airways is planning to start its operation to Kochi ,Trivandrum and Trichy, in addition to the present destinations to Chennai and Bangalore. Tiger Airways, which is one-third owned by Singapore Airlines, operates flights to 33 destinations across 11 countries and territories in Asia and Australia from bases in Singapore and the Australian cities of Melbourne and Adelaide. National carrier Air India created history when the first all-women crew non-stop flight from Mumbai to New York was flagged off by Madhavan Nambiar, Secretary, Civil Aviation of India. Flight AI 141 was the first of the 22 all-women crew flights operated by Air India across its domestic and international network, to mark International Women’s Day. Capt. Rashmi Miranda and Capt. Sunita Narula were the Commanders on AI 141, along with Capt. Swati Rawal and Capt. Neha Kulkarni as First Officers. Ms Harpreet A De. Singh, Head-QMS carried out a Line Observation Safety Audit. The flight was despatched by Ms. Nandita Deshpande and the Load and Trim Sheet was prepared by Ms. Ferzin Kuruvilla. The duration of this flight is approximately 14 hours and was operated with two sets of crew. Women Pilots, Flight Despatchers, Aircraft Maintenance Engineers, Safety and Quality Auditors, Cabin Crew, Doctors, Technical Officers, Stimulator Maintenance Engineers, Ground Instructors for training pilots etc. all form the part of a highly skilled, technically proficient team of women in Air India. Air India has a large contingent of 136 women pilots flying its fleet of wide and narrow body aircraft on international and domestic routes. Women constitute nearly 19 per cent of the total workforce of NACIL. Air India women crew also operated five other flights on international sectors. These were the Airbus on the Mumbai – Jeddah sector operated by Capt. M Bedi and Capt. Sonia, the Airbus A310 flights AI 815/816 on the Hyderabad-DammamChennai sectors flown by Capt. Trisha Mohan and Capt. Thanmai Papagari, and flights IC 573/574 on the Chennai – Colombo – Chennai route operated by Capt. Deepa and Capt. Sonia Jain. President Obama signs Travel Promotion Act in US As the President Obama signs the Travel Industry Act in the coming two weeks, a Tourism Promotion Organization will come into operation for the benefit of the whole travel industry in United States. Major activity of the Organisation would be to gradually transform the country into a tourism destination and create an awareness among the visitors on the security policies .As one among eight Americans’ job depends on travel, this statute becomes historic. The Act creates a public-private partnership campaign to aggressively market the U.S. as a premier travel destination overseas, with the goal of increasing the number of international visitors into the country. The funding will mainly come from the $10 fee charged to visitors from countries included in the Visa Waiver Program and the matching program . The Travel Promotion act will encourage more international travel and can boost restaurants’ performance, which will spur job growth and help to grow the economy.The National Restaurant Association has long supported legislation to help attract more international visitors and establish the United States as a travel destination. Purchase web tickets and get 10% discount from Air India Passengers purchasing tickets through the Air India website for travel on Air India flights are in for a bonanza. A 10 per cent discount will be applicable on the basic fare component of Economy Class tickets purchased through the Air India website www.airindia.in. The discount is valid from March 9, 2010 till April 30, 2010, for international flights originating from India as well as for Air India’s domestic flights. What’s more, the discount will apply on tickets bought under all fare categories of Economy Class. Outbound travel will have to commence on or before April 30, 2010. The discount will not apply for travel on Air India’s code share flights. Aviation Herald March 2010 Travel 10 UFTAA held BIT 2010 in Milan, Italy BIT 2010 was where 100 buyers from the most dynamic Southeast Asian markets and 200 Tour Operators and Travel Agencies, representing the supply-side from more than 140 countries met for effective network and B2B incoming and outgoing business. 100 UFTAA Travel Agents have participated from countries like Bhutan, Brunei, Cambodia, China, India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, Nepal, Philippine, Singapore, Sri Lanka, Thailand, Timor East and Vietnam. From P1 DGCA Chastises ZERO Airlines assume chunk of it. Travel Agents were to work out business; Airlines’ cronies were to dictate and gain. Some ambitious Travel Associations advocated “Transaction Fee” in place of Commission and diluted the movement to regain commission. If only these deviant Associations that are members of APJC India (Agency Promotion Joint Council, the official body consisting of Airlines & Travel Associations regulating accreditation & retention of IATA Travel Agents) had diligently opposed TF, Travel Agents would never have lost their lawful Commission. Despite setbacks from partner association, IAAI proceeded with the struggle all alone. A writ petition filed by IAAI with the High Court of Kerala challenging nonpayment of commission was accepted on file and the High Court directed DGCA to have the law enforced with the erring Foreign Airlines. DGCA conducted impartial investigation of the case and a reasonable hearing was offered to both the Airlines and Travel Agents. Foreign Airlines did not remain idle, they flexed all their muscles. Pressure tactics through every possible source flowed in. Embassies of their respective countries got indulged. Even Competition Commission of India was forced to serve show cause notice on agitating Travel Agents as to why penal action under CC Act should not be taken against them for boycotting certain airlines causing cartelization that would affect Competition Spirit which is all what CC Act is about. Seeing no end to the issue, IAAI finally filed Contempt of Court case against the DGCA and 16 “Zero” Airlines for not respecting National Law as directed by the Hon HC. After two consecutive extensions for time, DGCA has finally presented before the HC that needful Order is issued to the defendant Airlines and the Industry at large. In their submission before the Hon, HC of Kerala, DGCA has categorically stated that Travel Agents’ commission: ¾ ¾ ¾ Is Lawful as per Indian and International (IATA) rules Cannot be replaced by Transaction Fee Has to be integral part of Airlines’ Tariff Status quo is ordered thus in Airline circles. However the quantum of commission, which is not within the pursuit of DGCA, is to be decided between the Airlines and Travel Agents. DGCA has also heeded to another demand of IAAI to set up a monitoring mechanism to ensure compliance of the Aircraft rules by Airlines. A regulatory body that will oversee and enforce rules and regulations by and between Airlines, Travel Agents, Passengers and Cargo Agencies is in the making by DGCA which is yet another victory of IAAI and its members in bringing fairness and order in the Aviation sector in India. Aviation Herald March 2010 Travel 11 Tourism Malaysia 2010 With the holiday season kicking off in April, Malaysia Tourism Promotion Board officials along with 20 tour operators from Kuala Lumpur were in India during the first week of March 2010. The team was led by the Malaysian Tourism Director Manoharan and Deputy Director (South Asia Desk) Salman Ahmed, making all efforts to attract more tourists to their nation under the programme ‘Tourism Malaysia’. Tourism Malaysia has set a target of attracting 6.5 lakh tourists from India in 2010, a growth of 10 per cent over 2009.With this in mind Tourism Malaysia road shows were conducted in Cochin, Bangalore, Calcutta, Mumbai and New Delhi. Aviation Herald March 2010 Tourism 12 EXCLUSIVE INTERVIEW SALMAN AHMED,DEPUTY DIRECTOR OF MALAYSIA TOURISM HAD GIVEN TO AVIATION HERALD AT COCHIN Visa-on-arrival facility for Indians is still under consideration ists from India and the rates are very nominal .We have entered into a tie-up with Air Asia airlines and they offer unbelievable discounts. In the second phase, present road shows in the bigger cities will be extend to the smaller towns also Tourists Salman Ahmed, in many countries lion share of their national revenue comes from the tourism industry. What is the contribution Malaysian tourism industry offers to your country? Malaysia has emerged as a popular destination for corporate incentive trips and conference destinati ons. Total tourism revenue of Malaysia amounts to 53362.7 million Malaysian Ringgits. Last year 23.6 million tourists worldwide visited Malaysia.Tourism industrycontributes around 25% of the country’s total revenue. Every year we have 6-7% growth in the tourist in-flow to the country. The number of tourists visited Malaysia has been increased from 22.05 million to 23.5 million in 2009.We expect 56 million tourists from around the world in 2010. How can you compare the tourism position during the global slow-down period with the present revival time after October 2009 ? Tourism is picking up very fast in our country. The rapid growth in the infrastructure, the development of tourists attraction locations, transportation facility and the serene beauty of Malaysia, especially the blending of city life and nature’s beauty in the outskirts ,attract tourists worldwide. The increase in the number of visitors is really tremendous and unexpected. The Logo, the theme park, shopping centres and beaches offer unforgettable moments to every visitor. Would you please explain what are your new projects to attract tourists from various countries including India? People from 197 countries visit Malaysia. Tourism department is organising road shows in many countries. Now we have organised road shows in Kochi, Bangalore, Calcutta,Mumbai and Delhi. We are offering special packages to tour- from few other countries enjoy the visa-on-arrival facility that stimulates the visitors flow to Malaysia. The plea for this facility to the Indian tourists was constantly brought to your notice, but still unheard and not responded positively? Don’t you think that extending this facility to Indian tourists will help to increase the volume of visitors from this country? Visa is not necessary for travellers coming from certain countries. For those who require visa, three types of visas can be obtained, whichever is applicable: single entry, multiple entry or transit visa. Visas have to be applied for in advance but the final decision for allowance of entry is at the discretion of the Immigration Officer at the entry point. Ofcourse we have not fully rejected the proposal to extend this visa-on-arrival facility to some more countries. In fact this visa –onarrival facility was introduced to many countries but was compelled to discontinue it when many visitors tried to abuse the facility and tried not to return to their country. To any country this will create social, economic and safety head aches. Tourists from certain under developed countries, reaching Malaysia, seen it a fertile land for their economic and career growth and over stayed .This has led the government to withdraw the facility to certain countries. You may be aware of the fact that only few travel agents in India are permitted to visa applica tion processing. All IATA accredited travel agents in India are not given this facility .In fact if this facility is extended to all accredited agents and formalities are lessened ,your country can also enjoy more number of tourists. See, there is only one or two airlines from India to Malaysia. What are your plans to provide more facilities including lowest air fares for Indian tourists to reach your country? Kuala Lumpur, the capital city of the Federation of Malaysia, is centrally located on the West coast of Peninsular Malaysia. Covering an area of 94 square Getting to Kuala Lumpur is easy, with over 40 international airlines - including Malaysia Airlines - serving the city’s new state-of-the art KL international Airport (KLIA) at Sepang. In addition to Malaysia Airlines, domestic routes are also served by Air Asia, Pelangi Air, Singapore Airlines and Royal Brunei Airlines. We have tie-up with the AirArabia which has come forward to fly at a very low fare. Many are using this advantage to enjoy Malyasia. In fact we are working on extending AirArabia to all cities in India. Q: Almost all countries announce their tourism as the best. What makes Malaysian tourism different from other countries? Our country with 27 million population is characterized with its peaceful living. There is no war and no terrorism. Every one appreciates the high level of tolerance . Malaysia can accommodate all races, creed and religion. Our govt. is not shaky. It is potential and stable. The high level of blending of modern and rural lives and upholding of traditions are something that makes our country different. That is why tourism exhibits rapid growth. miles, it lies approximately 21.7 miles from the coast. AN ONLINE PORTAL Developed BY the Agents - FOR the Agents Be a Partner & Enjoy collective Benefits IATA TRAVELAGENTS’ OWN PORTAL Contact: hdq@iaai.in IATA TRAVEL AGENTS ASSOCIATION OF INDIA Aviation Herald March 2010 Tourism 13 Exciting medical tourism services with cost effective ‘Laparoscopic Gastric Banding’, in India Medical tourism offers Laparoscopic Gastric Banding in India at discounted price coupled with excellent vacation packages. Medical Tourism or the idea of visiting to a new destination for health treatment and visiting some favourite tourist places at the same time sounds very relaxing and refreshing. Health Tourism or medical tourism is a concept where a patient travels to another country for medical treatment in order to save costs or to get treatment faster or even to avail better medical facilities. Most patients from Europe, USA and UK travel to developing countries such as India for treatment because India besides offering low economic budget for treatment also offers a good holiday package. India is one of the best place for medical treatment or any other health care solution. Every year thousand of visitors come to India from around the world just for their medical check up and relaxation. Medical tourism is fast emerging as a big opportunity for India with its low cost advantage, high quality healthcare pro- Kerala Promoting Spiritual Tourism: a journey of mind, body and spirit Rejuvenation to the body and soul is what any tourist love to possess,if it is at their reach.Kerala has been attracting lots of people who are interested in what many tour operators would love to call ‘spiritual tourism’. ‘Spiritual tourism’ comprises of all that’s provided to tourists who come to Kerala seeking ‘inner peace’ and a relief from their busy, materialistic life. Many are the companies that have come up in Kerala in recent times providing packages that suit such tourists. Reports suggest that this has become the need of the hour with so many tourists taking to Kerala with such intentions and plans. There are few tour promoters who arrange excellent spiritual tours that include visiting holy places and part of health tourism like yoga and meditation.On several occasions all these are given as a package. viders and an English speaking populace. Laparoscopic gastric banding in India is provided by cosmetic surgeons of Mumbai and Chennai at centers offering long-term patient manage ment to help patients take control of their excess fat. its the amount of food one can eat by making them feel full after eating small amounts of food. After surgery, the doctor can adjust the band to make food pass more slowly or quickly through the digestive system. In Laparoscopic Gastric Banding, a band is placed around part of the stomach to create a small pouch. This reduces the urge to eat between meals. It is one of the more common Bariatric procedures because it does not require removal of any part of the digestive tract. Laparoscopic gastric banding is a surgery to help with weight loss. The band lim- Laparoscopic gastric banding surgery is done using a tiny camera that is placed in patient’s belly. Bermuda after Indian tourists Large opportunity in the Indian market for outbound tourism has attracted a delegation from Bermuda to explore the ways to lure Indian tourists to island. The delegation is headed by their Tourism Minister Dr. Ewart Brown. His intention is to meet officials from various sectors including Hospitality, Film and Tourism industry. At present 75% of the visitors are from North America. “The purpose of our visit is to put Bermuda on the radar with respect to tourism and to explore business links between Bermuda and India. For this we will meet officials from sectors like Finance, Health, Hospitality and Film Industry to promote Bermuda in India,” Brown said. Moon Tourism possible in 2020 Moon tourism is not a dream for this generation and the time to take tour operations to moon would not be an impossible task in the coming years. Commercial spaceships could be taking travellers to the moon by 2020 under new proposals set by the Obama administration. The “historic decision” to devote $6 billion over the next five years to commercial spaceflight could create 5,000 jobs in the US and help NASA to avoid paying billions of dollars to the space station. NASA currently pays about $51 million a seat to send astronauts to space on Russian spacecraft. But first the companies want to establish a safety record with many unmanned launches. Aviation Herald March 2010 Cargo 14 A warehouse for cargo and logistics will transform Delhi, to an international cargo hub The Planning Commission had recommended that Delhi be developed as an international air cargo hub. The GMR Group, which operates Delhi and the Hyderabad international airports, has decided to set up a warehousing facility near the airport at Delhi, this year. The establishment of such a facility near the Delhi International airport has been a long-standing demand of the freight forwarding community. The facility that exists today is a small one operated by the local chapter of the Air Cargo Agents Association of India (ACAAI). GMR has a similar setup in Hyderabad. The demand for the establishment of a cargo village has been gaining momentum ever since the Delhi airport was handed over by the Government-run Airports Authority of India (AAI) to GMR, the private operators. The manner in which GMR has been running the Hyderabad airport has earned it laurels and therefore reason enough for the demand to have become stronger. What has, perhaps pushed the airport operator to embark on plans to start the warehousing facility is the recommendation of the Planning Commission.More on the lines of a cargo village, the Delhi one – the plans for which have been drawn up for execution from plex has 4,346 sq m. Managed by a joint venture between the GMR Hyderabad International Airport Limited and the UK-based Menzies, the cargo section has a hi-tech facility capable of handling 100,000 tonnes annually. around September this year – will be built on more than100,000 sq metres. The airport operators hope that Delhi’s facilities would be better than those available at Hyderabad. Hyderabad’s international air cargo complex spans an area of 10 acres. Of this, three acres have been allocated for cargo processing and storage. Of the total area of 14,330sqm,the international air cargo complex is on 6,610 sq m while The Planning Commission is the Government of India institution that formulates the country’s Five-Year Plans and is entrusted “to make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation’s requirement,” which states setting up of dedicated air cargo villages, as is the norm worldwide. These cargo villages around major airports would have an integrated cargo infrastructure and would be single window setups to provide forward and backward linkages. While the airport-based cargo villages could be managed by the airport operator, the off-airport villages could be developed by logistics operators. Aviation Herald March 2010 IATA 15 IATA Authorized Training Centers in India IAAI Delhi branch rekindled with new blood At the AGM of Delhi State held on 27 February 2010, Salvadore Saldanha, officiating as the Returning Officer, announced that the following members were elected unopposed through as new office bearer for the next two years. President Ms. Surinder Kumar Travelmate India Pvt. Ltd. Secretary Gurinder Singh Bhatia Travel Experts Treasurer Gurusahib Singh Sethi Sahibji Travels & Tours (P) Ltd. Vice-President Ashutosh Sharma– Sadhana Travel Services Committee Memebers Coronation Travels Pvt. Ltd Vinod Gupa (IPP) Committee Member) Prima Travels Pvt. Ltd. Dhruv Malhotra) Committee Member MKM Air Travels Pvt. Ltd. Dev Roop Soni– Harjit Singh Chawla Member National Committee Speedair Surinder Kumar President Gurinder Singh Bhatia Secretary Gurusahib Singh Sethi Treasurer Harjit Singh Chawla Member National Committee Aviation Herald March 2010 IATA 16 IATA Authorised Training Centres’ (ATCs) workshop & sessions at Cochin A national meeting of IATA authorised training centres was held on March Gianasso, Amitabh Khosla, Alberto Bazzanand Eshwari Ramamurthy. 5&6,2009, at Hotel Taj Malabar, Cochin.The team led by Guido Gianasso was Two-day programme at Cochin had effective interactive sessions on IATA consisted of a professional group of ten IATA executives from Geneva, Mon- strategy planning and highly professional sessions on sales & marketing and De- treal, Switzerland and India, including Adelia Candido, Eve Marie, Karren, Inna livery of Training. Around 50 authorised training centres participated from all parts Popova, Gurjit Gill, Guido of India. IATA Training and Development Institute is the leading provider of global aviation training solutions andprofessional development programmes, supporting and promoting industry standards worldwide. IATA Authorised Training Centres (ATCs) are independent training facilities that are authorised to teach IATA courses in the fields of travel and tourism, cargo, airports, airlines and civil aviation. Authorisation is granted based on demonstrated instructional expertise as well as the institution’s overall ability to provide quality training. ATCs recruit and train students, while examinations are organised and supervised by the IATA local coordinator located in the country or region. In addition, ATCs distribute the IATA distance learning courses within their own country. Few of the courses on distance education are : IATA International Travel & Tourism Training Programme,ÀÛÊÜ IATA-FIATA International Cargo Training Programme and IATA Aviation Training Programme. Aviation Herald March 2010 Hospitality 17 Business Lobby concept redefined : an innovative idea from Marriott’s courtyard hotels touch screen packed with local information, maps, weather, and news, business and sports headlines. Guests can navigate using the touch screen to find restaurants, local attractions and print directions to their destination with a single touch. Courtyard hotels that feature the new lobby concept have seen significant increase in guest satisfaction scores above the brand average. Guests describe the new lobby as “upscale” and “innovative.” Courtyard by Marriott offers a refreshing environment that helps guests stay connected, productive and balanced. Intuitive services and design accommodate guests’ needs for choice and control. With more than 860 locations in 30 countries, Courtyard is Marriott’s largest brand; 200 additional Courtyard by Marriott hotels will open around the world over the next three years. An element of the new lobby that is very popular with guests is the exclusive, highly interactive GoBoard Technology, a 55-inch LCD Hotel costs are reduced to the minimum by sharing flats in London The first international Spa Training Academy in Kerala, “SpaED Spa Academy” opened in Kodungallur in Thrissur district. Promoted by the Spa Management Consortium, Spaveda, the Academy will be conducting a six month long hands-on training in Spa Therapy and Management including two months internship in leading spas which is much in demand in the booming tourism industry in the country and abroad. The lobby’s contemporary and sophisticated new design features vivid contrasting colors including blue, green, orange and red. The traditional front desk has been replaced with separate welcome pedestals to create more personal and private interactions when guests check in. Flexible seating options range from a communal table for larger group interactions, to more private media booths with high-definition televisions, as well as a more intimate, semi-enclosed lounge area. Dining in Courtyard hotels has also been completely redesigned ;– eat, drink, Studios92 now release lowered prices on their CPS flat -shares near tube stations Manor House and Finsbury Park in zone 2 in North London. CPS Apartments provide the perfect accommodation for a traveller who needs a break from the noise and the stressful tempo in the very core of London, since they are located just a few minutes away by the underground. Moreover, all the rooms are newly refurbished and offer very high standard which makes them a great option when First International Spa Training Academy opens in Kerala In an effort to meet the demand for trained professionals in the field, the Academy’s promoters have roped in the best trainers in the industry in India and abroad to impart the required skills for the industry. have felt the need for appropriately trained professionals who are dedicated to the industry’s This is also an avenue to be explored in the tourism industry for aspiring youngsters as this holds many possibilities in the future. The courses are tailored to equip the students for the international market with huge potential in the tourism sector .The SpaEd programmes cover subjects connect, offering casual, flexible seating; easier access to food and higher quality, healthier menu options for breakfast; and light evening fare, including snacks, cocktails, wine and beer so guests can unwind. Coffee lovers can also enjoy freshly brewed Starbucks coffee. The Marke, a 24/7 shop for snacks, beverages and sundries, is always open for late-night cravings or the toothpaste you forgot to pack. Guests can connect to free WiFi and there are ample electrical outlets throughout the lobby to power digital devices. The business library features several complimentary computer terminals, along with a free printer and separate computer stations dedicated solely to printing airline boarding passes and checking flight status. needing to stay comfortable to an affordable rate even for a longer period. Dino Johnson, Manager of Studios92 claims that ‘staying in a flatshare is one of the most popular options for mid or long-term stays in London’. These self-contained apartments have all TV and telephone in each room, together with fully equipped kitchens which make it easy to cook. Very advantageous for the price conscious traveller or big families! varying from therapeutic aspects, wellness and relaxation to housekeeping, grooming and spa management skills. The courses are initially for students with science background and for professionals with a paramedical or alternative medical qualification such as BAMS, BHMS, BPT and BP.Ed .The certificates are accredited with internationally recognized Spa Training certifications. Aviation Herald March 2010 Career & Education 18 Standard Ground Handling Agreements (SGHA) Nicy Elizabeth Francis Ground operation at the station level, encompasses a number of administrative and operational functions related to the servicing of a parked aircraft on arrival and its preparation for departure. It may be self-contained within the airline or outsourced to Ground Service Provider (GSPs), depending on the agreement between the parties and that is mainly known as Standard Ground Handling Agreeme The Standard IATA procedures were designed for two reasons:- Any difference from the standard text agrees to between the parties are to be recorded in Annex B formatted in accordance with this procedures. The IATA Standard Ground Handling Agreement can be used as a Bilateral Agreement or a Reciprocal Agreement by the “the carrier” or “the handling company. I. The Main Agreement the handling services required. XTo standardize the format of the ground handling agreement. The Main Agreement is one of three parts of the Standard Ground Handling Agreement. The Main Agreement of the SGHA is a “standard” document, emphasizing more on legal & administrative rules for the agreement, comprising 11 articles. What constitutes “Standard”? The word “standard” in the title SGHA means that the agreement cannot be modified. XProvision of services XFair practices XSubcontracting of services X Carrier’s representation XStandard of work “A Ground Handling Agreement is a standard ground handling agreement when, and only when , the wording of its Main Agreement & its Annex A corresponds, without any alteration whatsoever, to the text published in AHM 810 ( Airport Handling Manual)”. The SGHA is made up of 3 parts:- X Remuneration XAccounting & settlement XLiability & indemnity X Arbitration XStamp duties, registration XTo specify all functions of (1)The Main Agreement (2)Annex A (3)Annex B While the Main Agreement & Annex A are standard and cannot be altered, the third component of the SGHA, Annex B, can be amended and adapted to suit the needs of all parties . fees X Duration. Modification & termination II. Annex A Annex A is like a menu of all the available services which must be performed to make handling complete. It is a full catalogue of every service which could possibly be demanded of a handling company by an airline. The first part of Annex A is a glossary containing definitions of the terms used in the document to eliminate or reduce, the possibility of am- biguous interpretations. Annex A is split into eight sections, which are divided into sub-sections :- X Passenger services X Ramp services Xcargo & mail services Xflight operation services X Representation, Adminis- XSpecial Handling Charges tration & supervision X Passenger services X Ramp services XLoadcontrol, communications & flight operations XCargo & mail services XSupport services X Security XAircraft maintenance Out of the eight sections, “Representation, Administration & supervision” permits an airline to hire an handling agent to act as its station manager in a given location. The “Passenger Services” includes the arrival & departure service at airport : (a) Check travel documents for the flight concerned (b) Enter required passenger and/or travel document information into carriers and/ or government system. The “Security services” throughout the handling at airport. III. Annex B The third & last component of the Standard Ground Handling Agreement, Annex B, is different from the Main Agreement & Annex A and can be modified according to the local requirements.. Annex B is often considered to be the ‘real agreement’, as it is the actual contract of agreement relating to ground handling. It describes in details exactly which services are to be rendered by the handling company at a particular location(s). In addition to the standard header lines, Annex B will also indicate the process of amendments, modifications and alterations. It is prepared with paragraphs and sub-paragraphs to avoid any ambiguity and allows full flexibility to record all the details of the agreement to the satisfaction of both parties Annex B mainly contains the Handling Services & Charges, which includes the basic and special handling charges. XBasic Handling Charges is composed of is composed of X technical landing Xferry flights The Simplified Procedure The simplified procedure replaces the various “Main Agreement” & Annex A created by numerous parts of parties all over the world with a unique master set of “Main Agreement” & “Annex A”. The unique master set is entitled AHM810 & is published in the IATA Airport Handling Manual. Users need no longer to prepare a Main Agreement & Annex A. All they have to do is to create Annex B in the traditional manner & have to include standard working ( known as a preamble ) indicating that these Annex B are governed by the provisions of the SGHA published by the IATA. The Preamble is to make sure that the Annex B is prepared duly in accordance and conformity with the Main Agreement & Annex A of the SGHA of the current year as published by the Internati onal Air Transport Association The use of the simplified procedure is neither compulsory nor mandatory. Rather, it is a suggested alternative. It is available for all users who wish to reduce the huge amount of paper associated with the more traditional approach to the SGHA. Advantages associated with the simplified procedure: 1. Time & effort are saved, as a result of the elimination of locally created & held ‘umbrella’ document. 2. Both parties will save money because of the reduction in typing, paper, mailing fees & file space needed to accommodate the simplified procedure. 3. The integrity (i.e.: honesty & entirety) of the document is guaranteed. 4. The document is instantly available 5. Tampering & potential errors are eliminated. The Main Agreement & Annex A are signed by top management once in every five year, on average whereas, Annex B changes more frequent and are handled and signed by the middle management. Regardless of which agreement is used, the full form or the simplified procedure, it is extremely important for each airline to maintain a central inventory which will detail the status of all of its current agreements. Such an inventory is extremely useful in alerting the airline to the dates when annexes must be renewed & updated. Nicy Elizabeth Francis is a student pursuing PG Diploma in Airline & Airport Handling Management at Speedwings Aviation Academy, pioneers in IATA aviation courses. Nicy has also passed “IATA Shipping Perishable Cargo “ and now continuing specialization in “IATA Ground Operation Management” based on AHM2009. Her schooling was in Nirmala Higher Secondary School, Aluva before her graduation in Tourism from Aquinas College, EdaKochi. Aviation Herald March 2010 IATA 15 Printed and published by P.B.BOSS ,on behalf of P.B.Boss and printed at Cherrys Printers, Kaloor, Cochin-682 017,Kerala and published at Aviation News & Tourism Publication India Pvt.Ltd, Vallamattom Estate, Ravipuram,Cochin-682 015. Editor-H.V.D. Prasad.*Responsible for selection of news under PRB Act