“‘IAAI challenged Jet Airways move to implement Transaction Fee”
The recent decision of Jet Airways to introduce Transaction Fee of 3.5% under OC code from 1st January 2018, was challenged by IAAI. In a letter to Jet Airways chairman Naresh Goyal, IAAI National President Biji Eapen strongly wrote that :
We fail to understand why the Travel Agent is being victimized & penalized when he has been the backbone of your business. Agents who have over the years taken care of your sales & marketing, generating thousands of crores of Rupees worth of business by risking huge amounts in the Market, maintaining well-manned offices, canvassing for clients and servicing all their travel requirements, obtaining overdrafts to make the airline payments and paying interests at high rates on such borrowings. Look at our own perspective –whether commission or TF, whatever nomenclature, the amount of 3.5% will be collected/paid by the customer and not by any airlines. Aircraft rules defines commission as an integral part of the fare and liable to pay only 5% GST whereas TF is illegal, 18% GST and both airline can put a sunset date and also passenger can deny service charges . We have notified Jet Airways that their unilateral decision is in violation of the DGCA's order dated 17.12.2012 banning transaction fee and Secretary Civil Aviation's order dated 13.09.2013 upholding the same and totally against the Hon SC order of 23rd January 2013 which directs airlines to totally refrain from collecting transaction fees. And, it not only flouting the National Law, but also instigating and prompting the Travel Agents, for their own survival, to violate the Government Regulations by forcing them to collect additional service charges from passengers in a disguised form of TF. Also, we have taken up the matter with all concerned authorities and the matter shall be referred to the upcoming hearing at Hon Supreme Court of India , which is expected to be by mid Janauary 2018. Hence, IAAI, in a statement signed by National President Biji Eapen , General Secretary HS Chawla and National treasurer Devendra Ghule requested JET AIWAYS to reconsider the decision to implement “Transaction Fee” and to reinstate Agency commission to a standard rate at 3.5%, enable the entire travel agents fraternity to wholeheartedly support JET Airways.News By : Biji Eapen - IAAI National President | Posted On: December 31 2017
