Wednesday, January 20, 2016

Air India defers decision on bank guarantee by cargo agents

Chennai: Air India has deferred the decision to insist on bank guarantee from air cargo agents to carry on board cargo booked by them.

This decision was taken following an internal discussion and also due to stiff resistance from the agents, according to sources.

Last week, the national carrier said that it fixed the bank guarantee amount depending up on last six months’ productivity with an average of three fortnights’ productivity. Air India decided to insist on a bank guarantee after an agent in south defaulted. The carrier wanted bank guarantee from agents who had already provided one to International Air Transport Association (IATA) to ensure that in case of any default, it can be invoked by the carrier.
19/01/16 TE Raja Simhan/Business Line
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