Southern Africa’s Travel News Weekly
September 2 2009 I No. 2073
INSIDE
TRAVEL NEWS WEEKLY
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News
Feature
Agentzone
Hold on to your jobs!
SA visitors keen on OZ Page 9
A race to the finish...
Agent salaries
Sydney
Page 2
KQ’s Amazing chase
Page 10
Tarred with the same brush Smaller agencies stunned as an Iata financial flat R250k guarantee for agents in BSP ZA is proposed, reports Natalia Thomson
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ROPOSED changes to Iata’s financial guarantee requirements for agencies will have “far reaching” and “devastating” consequences for the local industry, say agents. Iata acknowledges that there are proposed changes to the SA BSP financial criteria, but that these are not yet approved. A spokesperson told TNW that airlines were proposing guarantees to guard against losses. Agencies writing to TNW confirm that in 2008, at least 23 agencies defaulted in BSP ZA. By June 2009, they say, a further 10 agencies have already defaulted. “We would like to move away from the current ‘nil guarantee’ system, which offers them no protection. The proposal tabled for the APJC (Agency Programme Joint Council), is for either a R250 000 or R500 000 guarantee to be applied across the board, with the size of the guarantee varying according to agents’ payment cycles,” said an Iata spokesperson. Airlines’ calls for a financial guarantee are justified, says Asata ceo, Robyn Christie. “We acknowledge that the market has changed, that we are operating under very different conditions and
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understand that the risk has increased. But being an Iata licence holder should not be seen as a penalty or barrier to entry. It should be seen as something that enhances an agency’s business.” Robyn says Asata acknowledges the current system has to change and that the APJC is working on a counter proposal taking into account agency feedback. “We are hoping to resolve this through constructive dialogue and it would not be appropriate for us to threaten a legal resolution. We simply don’t have the resources as an industry to keep taking that route when something doesn’t work in our favour.” The guarantee, agents say, is in direct contradiction to government efforts to promote BEE and small businesses. XL Astra Travel Pietermaritzburg’s Graham de Wit says the R250 000 guarantee has catastrophic implications for small agencies. “What with audit costs from R10 000 to R15 000 for a small agency and then having to find a bank guarantee for no less than R250 000, what agency can afford this at the present time where the economic downturn has yet to hit the industry in a significant way?” The new Iata guarantee
requirements, says SATC marketing manager, Evi Zacharias, will limit new entrants into the market. “We would be in favour of a flat guarantee across the board with a higher percentage discount dependent on the number of years the agent has been operating in the market place.” Says Mike Britton, Uniglobe Aerocity Travel in Edenvale: “It is difficult to accept that when you run a business well, you have to be tarred with the same brush as those who fail.” Mike says he has not had to provide guarantees to Iata for some time because he maintains a strong balance sheet and secure cash flow. “I do this not just for Iata, but for all my creditors and most importantly for myself. “If I am evaluated as an individual business, then I am well able to secure my cash sales on BSP.” It is possible agencies will benefit from reduced competition, while centralised ticketing offices will also benefit as agencies decide to abandon their individual Iata licences, he adds. “My personal view is that good credit control would work far better. I have seen cases where agencies, knowing they To page 2
A grand time with SIA Singapore Airlines is offering a special Thai Grand Festival fare valid until September 30 from R4 050 ex-Johannesburg and R4 550 ex-Cape Town excluding airport taxes, fuel and insurance surcharges. For more information, see Singapore Airlines’ pages on Travelinfo. Pictured here in true Thai spirit are (from left) Claudia de Azevedo, groups, reservations and ticketing officer; Kim Wessels, reservations and ticketing agent; Redi Motsa, reservations agent; and Crystal van Jaarsveld, reservations and ticketing officer Photo: Tijana Huysamen
Rwandair introduces JNB daylight flights Jeanette Phillips FROM August 17, Rwandair has switched from operating night-time Johannesburg flights to daylight flights. The switch also coincides with an increase in the airline’s Johannesburg flight schedule, now five times a week from the previous four. Flights now operate on Mondays, Wednesdays, Fridays, Saturdays and Sundays,
departing Kigali at 12h00, arriving in Johannesburg at 16h45. The return service departs Johannesburg on the same days at 18h30, arriving in Kigali at 23h15. Other Rwandair services with schedule changes from August 17 include flights to and from Nairobi, Kilimanjaro, Entebbe and Cyangugu (Rwanda). Flight frequencies have also increased to Cyangugu/ Kamembe. ■