‘Our suggestion fell on deaf ears’

Ajay Prakash, President, TAFI, recalls his meeting with Ministry of Civil Aviation over the Jet Airways fiasco where he had suggested having an insurance cover for the travel agents to protect them against airline failure.

Hazel Jain

After the Jet Airways issue, the situation surfaces again, as Go First airlines goes for insolvency and the trade scampers to get its money back. “It’s an extremely unfortunate development,” says Ajay Prakash, President, Travel Agents Federation of India (TAFI).

“Domestic tourism was booming and to have this development suddenly dropped on us puts us back. In the immediate aftermath airfares will jump. You will see other airlines rushing to increase fares. as this is the peak holiday season. There are crores of rupees of our members stuck at the moment with Go First. The government directive notwithstanding, airlines are required to make refunds within clear timelines. If this money only goes back to the agent login, it’s pointless. It has to come back to the agent as actual money and the airlines has not clarified this,” he exclaims.

Prakash has, therefore, written to Kaushik Khona, CEO, Go First, requesting that the refunds for cancelled flights be shown as direct credit to the agents’ bank accounts, rather than a credit shell. He writes, “Hundreds of travel agents have placed substantial deposits with your airline in a credit shell to be used for immediate and future bookings, and which currently remain unutilised. Passengers whose flights have been cancelled have already begun calling their agents and clamouring for refunds. You will appreciate that the agents have already paid you for such tickets and it is not possible for them to refund the money until it is received from your airline. It is, therefore, our earnest request that the refunds be effected as a direct credit to the agents’ bank accounts, rather than being placed in a credit shell. Rest assured, if you do this, the entire travel agent fraternity will stand by you and completely support your airline as soon as it takes off again.”

Prakash adds, “We understand that the government is trying to prop up the airline. But the immediate cash crunch, which is landing and parking charges, will have to be paid by the airline. It’s a grim but fluid situation. We just hope there is no recurrence of the Jet Airways fiasco. We had had a meeting with the Civil Aviation Minister in December 2021 where we had put forward a suggestion that the government consider making insurance against airline failure a mandatory requirement.”

TAFI had sent three reminders to the ministry, but that suggestion still has not found any traction. “This is a scenario, which will repeat itself. Airlines by their very nature are on shaky wicket. It’s a risky business. Unlike the agents, who need to give a guarantee, airlines don’t,” he complains.