The IATA Agents Association of India (IAAI) has expressed some concerns of the new National Civil Aviation Policy (NCAP). According to IAAI, the policy is silent on many aspects and segments of airline operations like fare structuring, safety & security, standard and quality of airport/ground handling services, etc. that are in violation of relevant Indian Aircraft Rules and IATA Resolutions.
This has led to lack of quality and losses being incurred by the travelers and the Passenger Travel Agents alike, deprivation of Travel Agency Commission, apart from causing huge losses of Revenue to the Government of India by way of Service Tax and Income Tax evasions, IAAI opines.
IAAI’s Committees that deal with the Government, IATA & Industry Affairs have identified the various factors that are the root causes and drawn up a comprehensive list of certain suggestions to rectify the same from which some of the prime ones are listed below:
a) Minimizing and standardizing ATF prices all over India enabling airlines to economically benefit with enhanced payload.
b) Enforcement of the statutory right under Aircraft Rules – each passenger can carry a checked-baggage free of cost.
c) Restrict usage of IATA Tax codes YQ or YR for fuel charge – Airline when required to show operating fuel under “fuel surcharge” must only use tax code “Q” enable same to merge with base fare on ticketing. Usage of fuel price under YQ and YR” will allow airline to evade and deprive agent’s commission and government taxes.
d) Regulatory Audit and Monitoring to tighten the Safety & Security requirements under Aircraft Act 1934 and Aircraft Rules 2003, on carriage of dangerous goods in passenger carry-on and check-baggage.
e) Standard and skilled quality services at airport are a vital factor for developing Tourism. The scope of ground training requirements detailed in Section 8 of the CAR (Civil Aviation Requirements) should be amended to incorporate all categories of services in the ground operation services must be technically qualified with IATA certification categorically in their respective nature of jobs, employed by an airline or ground handing company or agent
f) Regulatory control over airport fees and taxes – Illegal collection of ‘convenience fees’ by LCCs
g) Fare capping requirement on all domestic segments to control fare hikes and seasonal pricing with Regulatory control so as to sustain domestic tourism
h) Economic viability and sustainability of LCCs vis-à-vis apex fares and other financials – Counter guarantee from the Aircraft Operator
i) Regulatory control on LCCs not to charge fares higher than those of the FSCs operating on the same route
j) Agents’ Remuneration – Implementation and execution of the statutory right under Aircraft Rules 1937, Travel Agency Commission having been defined as an integral part of the fare which forms the airline tariff
k) Formation of a Regulatory Committee with Aviation Industry experts / stakeholders to monitor scheduled airline operations
Madhava Reddy, Chairman-IAAI Ad Hoc Committee for AP, and Co-Chairman, Padhi Srinivas, met with Ashok Gajapati Raju, apprised the Minister for Civil Aviation of IAAI’s findings during the discussions and handed over a formal request for incorporation of the suggested changes into the new NCAP impressing on the urgent need to address the issues.
In the coming week, H.S. Chawla and Jagdeep Bhagat, IAAI Director & President of the Northern Region respectively, in a follow-up action, would be meeting with Jayant Sinha, Minister of State for Civil Aviation, Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation and M. Sathiyavathy, Director General, DGCA, in New Delhi for further discussions on the matter.
