The airline is undergoing formal bankruptcy, reorganisation and liquidation.

Travel Agents Association of India (TAAI) has urged the Ministry of Civil Aviation to direct International Air Transport Association (IATA) to ensure all refunds are processed by Alitalia, and not place it under suspension as per the IATA-BSP rules announcement made by the airline. According to an announcement made by the airline, flights departing on October 15, 2021, shall not be sold and have been placed under Extraordinary Administration from August 25, 2021, by the Ministry of Economic Development in Italy. The airline is undergoing formal bankruptcy, reorganisation and liquidation.

“No Credit Shells shall be acceptable and all refunds should be refunded back in cash into the bank accounts of Accredited Member Agents immediately. Taking prompt cognisance of the issue, TAAI is in touch with the highest echelons in the Government of India, especially the ones dealing with the subject, sensitising them about the need of taking immediate measures and stern steps to protect the interest of the Indian travel agent’s fraternity, stakeholders dealing directly and indirectly with the airlines, and above all the people of India,” said Jyoti Mayal, President, TAAI.

“IATA and the Government have been urged to obtain financial security deposits and/ or alternative security in the interim, thereby safeguarding the funds of the Indian travellers/ agents. The same should be applicable to all airlines, their GSAs/ representative companies, who are responsible for all airline operations/ liaison and handling in India,” informed Jay Bhatia, Vice President of the nodal association.

“IATA has been requested, to ensure sufficient financial corpus held in escrow, from the airline until all outstanding with accredited member agencies and travellers is settled by Alitalia. Further, it must be strictly ensured and no payouts to the airline, through BSP should be effected since only refunds shall be transacted. The outstanding from the Airline is expected to be in crores of Rupees,” said Bettaiah Lokesh, Honorray Secretary-General, TAAI. 

TAAI reassures its stand and commitment, to its members and the Indian travel and tourism fraternity, that it will do its best to safeguard the interest of each and every member of the trade be it, travel agents/ tour operators, citizens of India and all stakeholders by protecting their interest with the help of the Government of India and IATA.