Friday, April 25, 2014

AAI orders probe into revenue share from merchandising

New Delhi: The Airports Authority of India (AAI) has initiated an inquiry into a complaint filed against AVA Merchandising Solutions Pvt Ltd, a Delhi-based company that provides in-flight shopping, advertisements and customer loyalty programmes to various airlines.
The contract between AAI and AVA Merchandising Solutions, under which the latter has set up collection centers at around 30 AAI airports in the country against which it is required to share with the state-owned airport operator an amount of Rs 3 lakh or 13 per cent of its gross turnover on a monthly basis, whichever is higher. The complaint, filed by a former employee of AVA Merchandising, a copy of which is with The Indian Express, alleges under-reporting of sales by the firm that has resulted in a loss in the revenue share for AAI.
An AAI Vigilance Department official confirmed that an investigation has been ordered on the basis of the complaint forwarded to it. “An inquiry has been ordered and allegations made in the complaint are being verified, both internally and externally,” the official said. The official added that a preliminary investigation report on the issue is in the process of being filed.
25/04/14 Indian Express
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