THE TRAVEL Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have jointly suggested a phased in implementation of IATA’s weekly remittance system, which was previously scheduled to take effect in November (TTG Asia e-Daily, June 8, 2012).
The two associations have proposed that the current fortnightly payment scheme be extended till June 30, 2013. For a one-year period thereafter, a 10-day billing cycle with a two-week credit period from the last day of sale will be implemented.
The weekly remittance system will finally be phased in from July 1, 2014 till June 30, 2015.
The joint proposal will be discussed with IATA at the upcoming World Passenger Symposium 2012 in Abu Dhabi this October.
Iqbal Mulla, president, TAAI, said: “Neither the airlines nor we can function or survive in isolation. Our discussion with the airlines has been fruitful and we are confident that our proposal will be unanimously accepted at the conference in Abu Dhabi.”
Ajay Prakash, president, TAFI, said: “The period of transition is necessary for the trade to adapt their business models around fund management and for clients to adjust to shorter credit tenure.”