Travel Agents Association of India (TAAI) has informed that the joint bank guarantee scheme has finally got the nod after intense perusal since the past 2 years. The scheme is pioneered by TAAI for over 20 years. This scheme was of immense benefit to TAAI membership which is well acknowledged by the airlines as well.
Pursuant to the discontinuance of the joint bank guarantee scheme about 2 years ago, TAAI made presentations to the APJC. It was during 2014 APJC meeting that the joint bank guarantee scheme was approved by APJC to be placed before PA Conference for its inclusion under the forms of “Financial Security”. Further, at the PA Conference held at San Diego during October 2014, both at the PAPGJC and at the PA Conference; presentations were made by TAAI to convince the PAPGJC & the PA Conference to include Joint Bank Guarantee as one of the options for agencies to offer as Financial Security to IATA which it did and voted in favour of the joint bank guarantee scheme.
The PA Conference resolution then suggested that the IATA Legal and APJC must review the draft agreement. Since some clauses in the draft agreement were not in line with TAAI’s presentation to determine the member liability, both associations were keen to have this agreement amended. After extensive deliberations, it was concluded that the joint bank guarantee scheme be resent to PA Conference for their final approval with the proposed agreement. During November 2015, IATA rolled out a mail ballot to PA Conference for the final approval of the Joint Bank Guarantee Scheme.
The PA Conference has approved the joint bank guarantee effective 1st January 2016. India is the first country in the world to offer joint bank guarantee scheme to TAAI members as an alternate mode of financial security to IATA.
