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Nina Varghese

CHENNAI, May 17

INDIAN Airlines plans to delink the issuance of tickets from the bank guarantee given by travel agents. If this comes through, travel agents can sell on Indian Airlines to the maximum of their potential without restrictions.

Earlier, agents were constrained to limit their sales to the extent of their bank guarantee. The agents will, however, have to indicate proof of having used up the ticket stock issued earlier.

If this initiative works out, the airline has also decided to return the bank guarantee to the agents as soon as the screening of documents issued up to the end of April is over. A circular to travel agents states that this is likely to take another three months. The bank guarantee will be returned only if there is no irregularity. In the case of any irregularity, the airline will not return the bank guarantee.

This initiative by Indian Airlines has been made possible because the airline has taken an insurance policy against default by agents. The premium for this policy has been borne by the airline from its own resources without passing on any of expense to the agents.

In case the experiment does not work out, the airline will revert to the old system of bank guarantees or pass on the insurance premium to the agents.

The airline's circular states ``we have had to subrogate our rights of recovery of dues to the insurance company and, therefore, before we are in a position to return your bank guarantee or remove the restriction on maximum number of documents to be issued to you, we would require you to sign a supplementary agreement with Indian Airlines''.

The agents are also required to take fidelity insurance for their employees. Indian Airlines has negotiated with Oriental Insurance to offer the agents fidelity insurance policy for its employees at a reduced rate.

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