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