The Air Cargo Agents Association of India (ACAAI) – Southern Region Council successfully hosted its 3rd annual “Airlines Night” on Friday, November 21, 2005 in Chennai.
The event was a significant success, affirming the strong solidarity and camaraderie within the Chennai air cargo community. It saw active participation of 82 Airlines, General Sales Agents (GSAs) and GSSAs, alongside its member 50 IATA agents. The gathering celebrated the vital partnership between airlines and IATA agents who work tirelessly to ensure the delivery of best-in-class air cargo products and services.
Fostering trust through face-to-face interaction
Mr Prashant Nair, President of the Board of Airline Representatives (BAR), highlighted the strategic importance of bringing the entire airfreight ecosystem—airlines, GSAs and agents—together under one roof.
“While we typically collaborate offline or remotely, face-to-face interaction is vital,” Mr Nair stressed. “It paves the way for a better understanding of each other’s operations and allows us to find new ways to strengthen our working relationship based on mutual trust.”
Focus on exporters and advocating for tax relief
Mr Unnikrishnan, Director General of the Federation of Indian Export Organisations (FIEO), attended as a special invitee. He conveyed the export community’s gratitude for the air freight sector’s essential role in export promotion.
He advocated for more competitive air freight rates and argued that lower costs would provide manufacturers with better lead times and the ability to secure more orders, ultimately resulting in higher air cargo loads—a “win-win” scenario for all.
Crucially, he acknowledged the negative impact of the 18% Goods and Services Tax (GST), specifically citing the inverted tax structure on air freight. He pledged to work with government authorities toward its withdrawal.
Addressing industry challenges
Mr Dinesh Krishnan, Chairman (Southern Region) of ACAAI, the host, emphasised that these events are designed to facilitate service optimisation in the logistics industry. He stressed the need for the sector to remain relevant to the needs of the EXIM (Export-Import) trade rather than being driven solely by the internal perceptions of market demands.
“IATA agents and Airlines/GSAs have a special relationship built over decades of mutual respect and shared responsibility as a critical component of the nation’s economic development, which we continue to nurture,” Mr Krishnan said.
However, he also highlighted the serious challenges currently hindering the growth of IATA agents, which include:
* The burden of the GST on air freight.
* Demands for Bank Guarantees by individual airlines.
* Restrictions on the issuance of Airway Bills to IATA agents.
He noted that these unresolved issues severely impact the agents’ capacity to expand their services to the larger EXIM community and secure the competitive air freight rates and reliable delivery schedules that exporters demand.
The event concluded with a networking fellowship and dinner, allowing attendees to discuss common issues and foster a collaborative environment aimed at reducing stress and complexity in the air cargo sector, an ACAAI communique highlighted.