Travel Agents Association Of India (TAAI) has informed that PA Conference has approved the Joint Bank Guarantee Scheme and will be effective from January 1, 2016. “We are now delighted to inform you that through mail ballot, PA Conference has approved the Joint Bank Guarantee effective 1st January 2016. We are the first country in the world to offer Joint Bank Guarantee Scheme to our members as an alternate mode of financial security to IATA. This historic accomplishment is a big success,” TAAI said in a statement issued.
Pursuant to the discontinuance of the Joint Bank Guarantee Scheme about 2 years ago, TAAI made presentations to the APJC. Thanks to the support of TAFI and the Airline Members, it was during 2014 APJC meeting that the Joint Bank Guarantee Scheme was approved by APJC to be placed before PA Conference for its inclusion under the forms of “Financial Security”. Further, at the PA Conference held at San Diego during October 2014, both at the PAPGJC and at the PA Conference; presentations were made by TAAI to convince the PAPGJC & the PA Conference to include Joint Bank Guarantee as one of the options for agencies to offer as Financial Security to IATA which it did and voted in favour of the Joint Bank Guarantee Scheme.
The PA Conference resolution then suggested that the IATA Legal and APJC must review the draft agreement. Since some clauses in the draft agreement were not in line with our presentation to determine the member liability, both associations were keen to have this agreement amended. After extensive deliberations, it was concluded that the Joint Bank Guarantee Scheme be resent to PA Conference for their final approval with the proposed agreement. During November 2015, IATA rolled out a mail ballot to PA Conference for the final approval of the Joint Bank Guarantee Scheme.
