I read with much consternation the report about Serendipity Worldwide Group’s (SWG) outrageous ADM liability from one airline. But more outrageous was the response of Iata. According to the report, SWG must put up a guarantee prior to the dispute process.
Earlier this year Alexandre de Juniac, ceo of Iata, stated that airlines owed travellers US$35bn (R576bn) in refunds. “Passengers have the right to get their money. They paid for a service that cannot be delivered. And in normal circumstances, repayment would not be an issue. But these are not normal circumstances. If airlines refund the $35bn immediately, that will be the end of many airlines. And with that an enormous number of jobs will also disappear.” He then pleads: “Airlines need time. We are reaching out to them to create a structure for managing a voucher system that will be good for consumers, agents and the airlines.”
Here we have a 25-year-old reputable travel business in a similar situation to which Iata finds itself (cash flow). Iata reaches out to its “agent partners” to assist the airline industry. But then it imposes its draconian rules on the very partners they expect relief from, by placing unrealistic demands on those they expect help from.
Iata is well aware that hardly a travel agent anywhere in the world would have earned any income since February, yet it expects agents to find the wherewithal to finance guarantees that are outrageous. With pending disputes which may be successful (for the agent), they still expect guarantees to be lodged. Surely what’s good for the goose is good for the gander. But not, it seems in Iata’s one-sided view! Do they have no shame after stating “these are not normal circumstances”?
Allan Wolman
ceo, XL Rosebank Travel
