The airline is undergoing formal bankruptcy, reorganisation and liquidation.
The announcement made by the Alitalia states that flights departing October 15th, 2021 will not be sold and has been placed under extraordinary administration from August 25th, 2021 by the Ministry of Economic Development in Italy.
The Travel Agents Association of India (TAAI), one of India’s premier and largest travel trade associations, has urged ministry of civil aviation (MoCA) to direct IATA to ensure all refunds are processed by the airline and not place it under suspension as per the IATA-BSP rules.
Jyoti Mayal, President – TAAI, in its communication to MoCA, stated that, no credit shells will be acceptable and all refunds should be made in cash into the bank accounts of accredited member agents immediately.
Taking prompt cognizance of the issue, TAAI is in touch with the highest echelons in the government of India, especially the ones dealing on the subject, to make them aware about the need of taking immediate measures and stern steps to protect the interest of the Indian travel agent fraternity and stakeholders dealing directly and indirectly with the airline.
Jay Bhatia, Vice President of the nodal association, informed that IATA and the government have been urged to obtain financial security deposit and/or alternative security in the interim, thereby safe guarding the funds of the Indian travellers/agents. The same should be applicable to all airlines, their GSA’s/representatives, who are responsible for all airline operations/ liaison and handling in India.
IATA has been requested, to ensure sufficient financial corpus is held in escrow, from the airline until all due payments with accredited member agencies and travellers is settled by Alitalia.
The outstandings from the airline is expected to be in millions of rupees, stated Bettaiah Lokesh, Hon. Secretary General, TAAI
Hon. Treasurer, Shreeram Patel, stated that the association has requested MoCA to issue an instant notification to the citizens of India to come forward and claim refunds.
Mayal reiterated that travellers and travel agents are the ones always facing the brunt and challenges. She urged the MoCA to open a window to interact with the association on regular intervals and prepare policies protecting interest of the Indian citizens.