IA agents to get tickets sans bank guarantee

The travel agent will have to continue with the existing procedures of tickets issuance, which involve indicating proof of having consumed the stock earlier issued to the agent.

Said Travel Agents Association of India (TAAI) chairman (airline council) Suresh Bathija: “This is a bold step, which will completely eliminate the cost involved to get a bank guarantee. Bank guarantee is normally at 25 per cent margin along with 3 per cent service fee every year. The bondage, the banks levy on travel agents will be free now.” Indian Airlines has decided to reduce the cost burden and return the bank guarantee as soon as screening of documents issued are over within three months. This is being done in view of clear record of the agent without any irregularity recorded within the last 12 consecutive months.

Sources in Indian Airlines further added: “In case any regularity is recorded prior to completion of screening, the airline would not be returning the bank guarantee. If any irregularity is recorded after returning the bank guarantee till the end of the current calendar year, the airline will be requiring the bank guarantee to be deposited with Indian Airlines for the next calendar year by end of December 2002.”

This has been possible because Indian Airlines has taken an insurance policy against defaults by agents. This insurance policy will cover sales made with effect from May 1, 2002. The premium of this policy is being borne by Indian Airlines from its own resources without passing on any expense to the agents. The source added: “However, in case this experiment does not work out, the airline may even revert to the old bank guarantee system or pass on the insurance premium to the agents. It is, therefore, in our mutual interest to ensure that this scheme is successful.” The domestic carrier has also made it mandatory to take a fidelity insurance for the employees working under the travel agents.

To make it more convenient, Indian Airlines has negotiated with Oriental Insurance to offer a fidelity insurance policy for the employees at a reduced rate. Oriental Insurance has also agreed to give a fire and burglary insurance policy for all the assets at the agency premises at reduced rates.