Spat: Travel agents lash out at foreign airlines

Unilateral changes in pricing, payment mechanism anger travel agents.

KARACHI: The Travel Agents Association of Pakistan (TAAP) lashed out at foreign airlines on Tuesday for unilaterally changing the Billing Settlement Plan (BSP), a globally accepted manual to guide agent-carrier relationship.

In a statement, the association called for intervention by Prime Minister Nawaz Sharif, insisting that inaction would lead to closure of many travel agencies.

It also criticised the Civil Aviation Authority (CAA) for its failure to check the predatory pricing practices of foreign carriers that is hurting the already fragile domestic travel and tourism industry.

“This is a battle for our survival,” said the CEO of a Karachi-based travel agency. “These airlines are doing everything in their power to cut us out by subsidising passengers who use their web portals.”

TAAP’s relations with International Air Transport Association (IATA)-backed airlines soured after an inconclusive meeting over the payment schedule for tickets.

Travel agents selling tickets for the foreign carriers normally deposit payments with the airlines 15 to 29 days after the transaction. “The airlines wanted that period to be reduced to 7 to 10 days but we didn’t agree,” said TAAP office bearer.

Both sides are part of the Airline Passengers Joint Committee which includes Middle East-based carriers and others along with the travel agents.

According to TAAP, instead of taking them into confidence, the airlines have submitted changes in the BSP with IATA.

“We have held meetings but nothing conclusive came out of them. There are a lot of pending issues, which these airlines need to sort out,” the TAAP official.

For instance, he pointed out, the airlines have been changing air travel fare without approval by the CAA.

The TAAP has sought permanent representation in the board of CAA in respect to forming policies, especially to give input on the new draft of the aviation policy.

Published in The Express Tribune, March 5^th, 2014.

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