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Travel agents fret over airline unpaid dues

Accuse International Air Transport Association of being biased towards airlines; claim collectively lost Rs 100 crore in Kingfisher Airlines bankruptcy.

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It's not just the employees and creditors who suffer when airlines go bankrupt or suffer losses, travel agents too face the brunt.

With Kingfisher Airlines going bust and many other airlines facing turbulent times, several travel agents who book tickets for commission have lost huge amount of money. 

The International Air Transport Association (IATA) chief Tony Tyler found this out as he had to face ire of 250 travel agents, who accused the international travel body of leaving them in lurch while being biased towards the airlines. 

IATA is a trade association for the world's airlines, representing some 260 airlines, or 83% of the total air traffic.

Tyler, who is on India tour was attending a seminar on ' Future aviation trends' organised by Travel Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI). 

The agents are aggrieved that there was no assurance of getting their money back in case of a failure on part of the airline in not honouring their commitments or getting bankrupt. 

The agents claim that they collectively lost over Rs 100 crore due to Kingfisher Airlines closure.

“In case, there is any failure on part of agents in honoring their liabilities, they are punished by IATA. However, there are no such measures if airline fails to honour its commitment. It is not an equal playing field.” said Sunil Kumar, president, TAAI. 

Jay Bhatia, chairman, Tourism Council, and a TAAI member said, “If IATA can not allow us level- playing field, then what is its use. Why should we be even part of it.” 

Similar volley of questions were thrown at Tyler by several other members.

Tyler said, “Airlines are also making losses due to agents' failures (in honoring of their commitment). IATA plays an important role in helping the agents to deal with so many airlines under a common platform.”

Not satisfied with the replies, when the murmurs and questions from the audience continued for a long time, Yeoh Hoy Chin, regional director, (financial and distribution services, IATA Asia Pacific) had to intervene. 

“The talks with airlines keep happening. I too have a heart and it is not that you (agents) are ignored and we are surely looking into problems faced by you. ”

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