Roshni B.. (For justice and dignity) 24 February 2011

Why babus don't fly cheap

Travel agents allegedly offer free tickets to government employees after asking them to submit official bills of their flight fares as per IATA rates

If you believe that sarkari babus should be content with their ample pay packages, perks and other facilities from the government, think again. They have other modes of earning as well. Official tours are not only free, but also give them an opportunity to make some quick money, which is naturally not accounted for.

MiD DAY has learnt that government affiliated travel agents in Delhi lure the babus into either booking their tickets on International Air Transport Association (IATA) rates (three to four times higher than the market fares) and offer a free ticket for a companion, or give them tickets at market price issuing them a bill for IATA fares. The money difference is refunded to the babus by the agent but only after keeping their cuts.

In a reply to a recent RTI plea, Air India said that as government employees have time constraints and require flexible and least restrictive fares, they always opt for IATA fares. "IATA fares are governed by IATA regulations and fixed tariff rules. They can be used for travel on any airline operating between origin and destination, are flexible, have nil or minimal restrictions and seats are always guaranteed at these fares in view of their high levels," the reply said.

However when MiD DAY contacted a government accredited travel agent, posing as a government official whose trip to Bangkok has been approved, he had a different story to tell. After seeking a few details, an agent of Balmer Lawrie, the travel company, sitting at Udyog Bhawan said: "We can offer you a great deal if you are interested. We will provide you a ticket for one of your family members also and that too free of cost for the same destination. But you will have to book the ticket at IATA fares, which is generally two to three times higher than the market price. There would be no mention of the additional ticket anywhere in the bill."

When MiD DAY refused the complementary ticket, the agent immediately offered the reporter a new deal. "If you don't want to take anyone along with you, we can help you in making a quick buck. We will book you a ticket at the market fare and issue you a bill of IATA rates. You can get it reimbursed from the government. We will charge you a commission for the same." He refused to divulge the exact percentage of commission which he was going to keep for it.

One of the private agents on request of anonymity explained, "The government accredited travel agents make the most out of the sarkari trips. They get high commission if they book the tickets on IATA fares. Even if they give an additional ticket free of cost, they manage to make huge commission. Relatively, when they book tickets on market fare, they manage to make less commission but that also work a profitable deal for them."

Jagjit Singh Walia, the RTI applicant said, "This is really sad to see sarkari babus wasting government money. The government don't pay for their family members. Government must take cognizance of this and act immediately. This would help the government save crores of rupees every year."

3.3 billion
Expected no. of air travellers worldwide by 2014

Fare enough?
International Civil Aviation Organization (ICAO) and IATA played a significant role in formulating rules and regulation for worldwide civil aviation transportation, including fares. Over the years, as air travel became more and more the preferred mode of transport and as traffic grew, airlines started more point to point operations and competition led to the creation of market fares peculiar to each airline. These were differentiated from the IATA fares in so far as being restrictive in nature, non-interlinable, with stringent cancellation and refund rules etc. In India market fares came to existence in mid 1994 on account of increased operations of foreign carriers and consequently, increased competition. The market fares are primarily indicative of the capability of the market to pay for the particular sector. They are subject to frequent changes depending on the demand/supply ration, competitors' schedules and activities, seasonality, flight positions etc