(8/30/2004)
The Association of Indonesian Tour and Travel Agents (ASITA) and Air Asia have entered into a formal agreement for the development of tourism between Malaysia and Indonesia.
The agreement was signed this week by the Chairman of ASITA, Ben Sukma, and the Country Director for Indonesia of Air Asia, Abdul Nasser Abu Kassim.
The joint cooperation agreement specifies that:
• Air Asia will only appoint agents in Indonesia who are officially licensed by the Indonesian Government and are ASITA members.
• Agents appointed by Air Asia in Indonesia must be Internet connected.
• Indonesian Travel Agents wishing to sell Air Asia must apply to the airline by paying a guarantee of Rp. 20 million (approximately US$ 2,222) and include a letter of recommendation from ASITA.
• Air Asia will pay their appointed Indonesian agents a commission on all ticket sales of 5%.
• ASITA agrees to assist Air Asia in promoting all the Indonesian destinations served by the airline.
The cooperation agreement has a validity of one year and can be renewed on the agreement of both parties.
ASITA has negotiated the commission agreement with Air Asia as a means of assuring that the advent of low cost airlines in the region does not automatically mean that the role of travel agents in making travel arrangements will be eliminated.
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