KARACHI: As you are aware that due to the ongoing crisis of COVID-19, travel Industry in the world was the first business victim of the virus as abrupt travel restrictions caused the closure of almost all Airports and cancellation of millions of air tickets, umrah pilgrimage, tours, corporate and other traveling across the globe.
Travel/tourism sector facing colossal financial losses and are at much higher risk of closure/bankruptcy where hundreds of thousands of jobs are in danger because of predatory, unilateral and unfair policies adopted by IATA and the Airlines.
Summary of the issues that directly impact the travel/tourism sector amid COVID-19 as under:
Airlines pressurizing agencies to make fortnightly payments on 6th April 2020 without deducting refunds.
The payment date suggested by IATA – 6th April 2020 is not humanly possible in view of extension in Lockdown till 14th April 2020 by the Government and heavy recoveries pending due to business closure, as authorities are penalizing to companies who do not follow the government directives of a business closure.
TAAP has requested IATA to revise their payments schedule minus all refunds until the 20th of April 2020 (considering that lockdown is not extended) At least One Week As & When Businesses Are Functional All Over Pakistan).
Unlawful suspension of refunds functions by Airlines. / Forcing reissuance of tickets instead of providing refunds.
IATA airlines have unlawfully suspended the Auto refund option of claiming a refund from Airlines through the system (which means travel agencies cannot claim the amount rightfully owed to them and the customers by the airlines).
Travel/tour operators are under heavy pressure from their clients and passengers for a full refund of their un-utilized tickets and tour packages.
Airlines insistence on reissuance of tickets instead of cash refunds is against the Pakistani consumer’s rights as it does not consider the fact that many passengers do not desire to travel this summer due to the fear of COVID-19. This option of Airlines is not acceptable because such tickets payment has been made by the Travel & tour operators.
All IATA airlines operating in Pakistan may be directed to immediately release full amounts of their refunds of all un-utilized air tickets booked without deducting any cancellation/charges/fees/local & other taxes, as the flight cancellation by Airlines under force majeure and not by passengers.
IF refunds are not adjusted at this stage it will result in drastic money outflow from Pakistan, which does not belong to these Airlines. The relevant authority may be requested to put a restriction on any remittances by the airlines from Pakistan to their parent countries until the refund is adjusted as requested above as this money actually belongs to Pakistani Businesses (Travel Agencies etc.) and Passengers.
IATA asking for Financial Assistance from the Government for Airlines, ignoring Travel Agents
IATA has approached the Government of Pakistan for financial assistance for Airlines in terms of loans and grants completely ignoring the Distribution Network (i.e. Travel Agencies), the real pillar of the Airlines. The travel/tourism sector who sells 90% of travel and generates business for airlines is more deserving of financial relief from the GOP.
