“MINISTRY/DGCA SHOULD NOT REMAIN A SILENT SPECTATOR”: IAAI
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The IATA Agents Association of India (IAAI), which has been fighting for the reinstatement of the agents’ commission system, addressed the issue once again through a letter written recently to the MoCA and demanding that the DGCA pay attention to the matter at hand.
“As unanimously decided at the AGM in March, IAAI had, through a letter dated 10 March 2014, urged the Secretary, MoCA to support the travel agent fraternity in India, as they intervened in the case of cargo agents in 2007. MoCA, in a reply letter dated 1 April 2014, reiterated that “commission is a part of FARE”, replicated that airlines should determine the quantum and no amount over and above the tariff can be allowed”. But the above letter is silent on the order issued favouring cargo agents.
Subsequently, IAAI had again approached the Ministry on 9 April 2014, categorically mentioning that the Ministry is deliberately silent on the subject representation– MoCA order dated 24 Aug 2007 which directed 5 per cent commission and adequate airway bill stock to all cargo agents by all the airlines. Since the law does not distinguish between cargo and passenger sales agents, the Ministry certainly can issue a similar order for passenger sales agents too, so that there is no discrimination between the two by the Ministry. Hence, they were once again requested to re-examine this point.
Further, as per Secretary’s order dated 16/09/2013, remuneration of the agent has to be included in the fare and nothing can be charged over and above the fare. If this is the legal position in India, then there has to be somebody to check whether this law is being complied with or not. Punitive action must be taken in case it is being violated; otherwise it becomes a mockery of law. This job is obviously the responsibility of the DGCA. But the DGCA is not doing anything in this regard despite our request and clear instructions contained in the Ministry’s letter forwarding the Secretary’s order dated 16/09/2013.
Zero commission policy denotes that the fare does not include any commission. This establishes that the airline is violating the law– firstly by not including remuneration as a part of the fare whereas the law requires them to do so and secondly, by allowing the agents to collect transaction fees or service charge over and above the fare, because otherwise the agent cannot survive.
Hence, the Ministry/DGCA should not remain a silent spectator and allow the airlines to violate the law with impunity. The airlines following zero commission system and 1 per cent commission must be immediately issued a show cause notice as to why action should not be taken against them for violating the provisions of the Aircraft Rules 1937 read with DGCA’s orders dated 05/03/2010, 17/12/2012 and Secretary’s order dated 17/09/2013.”
In another letter to the association, Biji Eapen, National President, IAAI said, “Our continuous fight for constitutional implementation of the Law is on, under our Writ Petition No: 25752/ 2013 filed in October before the Hon High Court of Kerala, whereby, we have prayed before the Hon Court to direct DGCA to implement, execute and enforce the Law and through IA with the prayer to direct Secretary MoCA to issue a letter similar to that issued in the matter of Cargo Agents dated 29 August 2007. The above case was last listed for hearing on 20 March 2014, but could not be taken up for hearing due to paucity of time and as the Hon. Judge directed for detailed hearing. And the DGCA filed the Counter Affidavit only on 11 April 2014.
Since the court is on vacation from 12 April to 20 May 2014, the case is now posted for hearing immediately after the vacation. Our legal counsel shall study the Counter Affidavit filed by the DGCA and shall take appropriate action accordingly.”