PPRA Rules Query

Client Query 095:- Hi, hope all is well at your end. Wanted to discuss that Pakistan International Airlines (PIA) appoints General Sales Agents (GSA) for selling air tickets. These appointments are made at foreign stations. Following is minimum requirement to become a GSA: I. should be a locally registered firm / company and possess trading license as per local laws for Travel Trade / Cargo Sales Services. ii. Should be a reputed entity in the Aviation Industry. iii. Provision of last three (03) years Balance Sheet and Profit & Loss Account certified by Chartered Accountancy or equivalent eligible firm as per local laws. All reports / documents submitted by a potential candidate must be in English. iv. Should have a minimum turnover of USD five million or equivalent per annum for on-line station and USD two million per annum for off-line station. v. Should not be a GSA for any airline operating direct services including Code Share operation from that territory to Pakistan. vi. Should not have been in losses during the last 3 consecutive years. vii. Should have minimum 03 years experience in the respective filed of Passenger and Cargo Sales, as the case may be. Preference will be given to parties having a proven track record in the relevant field. viii. Should be familiar with IATA/BSP/CASS procedures or equivalent in the territory. ix. Applicant for Passenger GSA should not be an IATA approved Passenger Sales Agent. IATA Sales Agent may apply subject to relinquishment of their accreditation if appointed as GSA. However, there is no such binding for Cargo GSSA. x. Owners, Directors, Share Holders should not have been involved in default / bankruptcy proceedings or had a financial interest or a position of management in a defaulted IATA or GSA / GSSA agency or any other firm/company. xi. Applicant should not have gone into any legal dispute in the past with PIA. xii. Office premises should be easily accessible to general public. xiii. Should have sufficient qualified staff with ability of selling international air transportation Passenger / Cargo. Moreover, DGR certification for cargo staff is mandatory in the case of Cargo GSSA appointment. xiv. The applicant should have minimum paid-up capital / investment required under local laws. xv. Applicable financial guarantees will be required upon appointment. xvi. Company’s legal documentation and profile must be submitted along with the application. xvii. Any additional documents / information, if so required, will be intimated prior to the appointment. Meeting the above requirements, applications are short-listed and financial evaluation is carried out. Site visit is conducted for final selection. Upto 3% Overriding Commission is bargained and the Agent charges a Service Fee of upto 7%.

 

Bilal Asim, UK

 

Answer:- Thank you very much for writing to us. As per your query, after going through the detailed information, it is clarified that Public Procurement law, rules and regulations are applicable on selection of General Sale Agents (GSA) which are registered firms / companies for providing above specified services to PIA.

If you wish to inquire anything else you may set up an appointment with our extremely competent team of lawyers and visit our office which is located at GF-13, Tower A, The Centaurus, Islamabad, Pakistan.

You can also reach us at 0092-300-5075993

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