APPOINTMENT OF PASSENGER & CARGO GENERAL SALES AGENT
Pakistan International Airlines Cooperation Limited تدعو شركة الخطوط الجوية الباكستانية الدولية المحدودة إلى تقديم طلبات invites applications from reputable and financially من شركات / شركات ذات سمعة طيب ة وس ليمة م ن الناحي ة المالي ة لتعيي ن sound firms/ companies for appointment of Passenger وكيل للمبيعات العامة للمسافرين والبضائع في العراق. بالشارة إل ی طل ب Cargo General Sales Agent (GSA) in Iraq. With & تقديم العروض، يجب علی ھذه الشرکات / الش رکات اس تيفاء الح د الدن ی reference to the Request for proposal (RFP), Such من المتطلبات / الوثائق، وفقا للتفاصيل المتاح ة عل ی الموق ع اللک تروني: firms / companies must meet the minimum laid down www.piac.com.pk و requirements / documentation , as per the details .www.ppra.org.pk available on PIA website www.piac.com.pk and تحتفظ شركة الخطوط الجوية الباكس تانية الدولي ة المح دودة بح ق رف ض . www.ppra.org.pk أو قبول أي طلب؛ ومع ذلك، سيتم إبلغ السبب عند الرد الطلب. Pakistan International Airlines Corporation Limited reserves the right to reject or accept any or all application; however, the reason for the same will be يجوز للطراف المهتمة أن ترسل طلبه م م ع مق ترح كام ل (مجموع تين) .communicated on request للركاب والشحن GSA على العن وان الت الي م ن خلل البري د المس جل أو Interested parties may send their application along خدمة البريد السريع في غضون 30 يوما من تاري خ نش ر ھ ذا العلن ف ي & with complete proposal (two sets) for passenger مظاريف مختومة بشكل واضح مكتوب عله ا " تعيي ن GSA للع راق " Cargo GSA on the following address through و خلل ساعات العمل الرسمية. و سيتم فتح التطبيقات في الي وم الت الي ف ي registered mail or courier service within 30 days from الساعة 4 عصرا . يجب أن ترفق الطلبات نسخ من الوثائق كما ھو مذكور the date of publishing of this advertisement in sealed في طلب تقديم العروض، مت وفر عل ى المواق ع المش ار إليه ا أعله، ويج ب envelopes clearly marked as '' Appointment of GSA أن تكون باللغ ة النجليزي ة أو مترجم ة إل ى اللغ ة النجليزي ة. س وف تهم ل for Iraq'', during working hours. Applications will be الطلبات غير المكتملة. .opened on the next working day at 1600 hours Applications must accompany copies of documents as mentioned in the RFP, available on the above referred لي استفسار، يرجى التصال بالموقع أدناه. websites, and should be in ENGLISH or translated نائب المدير العام into ENGLISH. Incomplete applications shall not be )شؤون الوكالة( .entertained شركة الخطوط الجوية الباكستانية الدولية المحدودة For any query, please contact the undersigned. (ROOM NO. 202-A) PIA HEAD OFFICE BUILDING DEPUTY GENERAL MANAGER KARACHI AIRPORT – PAKISTAN (AGENCY AFFAIRS) E-Mail: [email protected] / phone: +922199044969 PAKISTAN INTERNATIONAL AIRLINES CORPORATION LIMITED (ROOM NO. 202-A) PIA HEAD OFFICE BUILDING KARACHI AIRPORT – PAKISTAN E-Mail: [email protected] / phone: +922199044969 REQUEST FOR PROPOSAL (RFP) FOR APPOINTMENT OF GSA IRAQ
i. Should be a locally registered firm / company and possess trading license for Travel Trade and should have minimum paid-up capital / investment required as per local laws. ii. Provision of last three (03) years Balance Sheet and Profit & Loss Account certified / audited by Chartered Accountancy or equivalent eligible firm as per local laws. All reports / documents submitted by a potential candidate must be in English. iii. Should have a turnover of USD five million or equivalent per annum pertaining to aviation / travel trade. iv. Should not have been in losses during the last 3 consecutive years. v. Should have minimum 03 years experience in the field of Passenger & Cargo Sales. Preference will be given to parties having a proven track record in the field of passenger & Cargo sales. vi. Should not be a GSA for any airline operating direct services including Code Share operation from that territory to Pakistan. vii. Should be a GSA of at least one major airline. Preference will be given to those having more than one GSA not operating to Pakistan from that territory as a PK competitor including Code Share arrangements. viii. Should be familiar with IATA / BSP / CASS or equivalent procedures in the territory. ix. Owners, Directors, Shareholders should not have been involved in default / bankruptcy proceedings or had a financial interest or a position of management in a defaulted IATA (in any other country) GSA / GSSA agency or any other firm/company. An affidavit to be submitted from the Attorney of the Company in this regard. x. Applicant should not have gone into any legal dispute in the past with PIAC. xi. Selected candidate will be required to have a sales office in NAJAF and should be easily accessible to general public. Preference will be given to applicants whose office is located on Ground Floor. xii. Should have sufficient qualified staff with ability of selling international air transportation. xiii. Applicable financial guarantees will be required upon appointment. xiv. Applicants who meet the selection criteria will be required to give Presentation of their Business Plan either at PIACL Head Office, Karachi or through video link, for which all expenses will be borne by the applicant. xv. Validity of GSA agreement will be for a period of five years. 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. xviii. Draft Agreement attached. FINANCIAL EVALUATION CRITERIA For in depth financial evaluation of Airline Agents, a revised criterion for selection of Agents is given below;
1) Financial statements including Annual Balance Sheet and Profit & Loss Statement for last 03 years will be required.
2) These documents must be audited accounts by a Chartered Accountancy or equivalent eligible firm and should be in English. Where accounts are not in English, a certified English translation must accompany the Accounts sent for evaluation.
3) While evaluating financial position of the applicants, points will be awarded under following financial heads;
Shareholder’s Equity: Equity size of all the applicants will be compared. Liquidity Position: Current ratio (Proportion of Current Assets to Current Liabilities) of all applicants will be compared. Asset Management: Assets Turnover ratio (Total Sales/Total Assets) of all applicants will be compared. Profitability Margin: Net Profit Margin (Net Profit/Total Sales, in percentage) of all applicants will be compared.
4) Points will be awarded to the applicants on the basis of the following formula:-
Shareholder’s Equity in PKR FROM TO POINTS 1.00 50 Million 0.50 51 Million 100 Million 0.75 101 Million 150 Million 1.00 151 Million 200 Million 1.25 201 Million 250 Million 1.50 251 Million 300 Million 1.75 301 Million + 2.00
Current Ratios FROM TO POINTS 0.01 0.49 0.20 0.50 0.99 0.40 1.00 1.49 0.60 1.50 1.99 0.80 2.00 + 1.00
Asset Turnover FROM TO POINTS 0.01 0.49 0.20 0.50 0.99 0.40 1.00 1.49 0.60 1.50 1.99 0.80 2.00 + 1.00
Net Profit Margin FROM TO POINTS 1% 5% 0.20 6% 10% 0.40 11% 15% 0.60 16% 20% 0.80 21% + 1.00
DRAFT GENERAL SALES AGENCY AGREEMENT
This General Sales Agency Agreement is made on this ______of ______between PAKISTAN INTERNATIONAL AIRLINES CORPORATION LIMITED incorporated under PIACL Act of 1956 and it has Head Office at Karachi, Pakistan (hereinafter referred to as “PIA” or the “Principal”) of the one part and M/s ______whose registered office is at ______(hereinafter referred to as the “GSA” of the other part) (the GSA and the Principal being hereinafter referred to as the “Parties” and each of them being a “Party”), hereby agree to the following:
ARTICLE – 1
APPOINTMENT OF GENERAL SALES AGENT
The Principal hereby appoints M/s ______as its General Sales Agent for passenger & Cargo sales in ______(hereinafter referred to as the “Territory”) to the extent of and in accordance with the terms and conditions contained in this Agreement.
ARTICLE – 2
SEPARATION OF FUNCTIONS:
The GSA shall not be accredited, or have a location approved as an IATA Agent in any country including in whole or in part in the Territory for which it is appointed by the Principal under this Agreement. In the event that the GSA applies for accreditation as an IATA Agent in that country, it shall immediately notify the Principal. Acquiring IATA accreditation is a disqualification, therefore, this Agreement shall be terminated forthwith without any liability against the Principal. Such termination shall be without prejudice to any outstanding liabilities accrued and arising hereunder between the Parties hereto.
ARTICLE – 3 VALIDITY/TERMINATION: 1. The validity of this agreement will be for five years and shall be in force from ______till ______unless earlier terminated by either Party. 2. This Agreement will be extendable on mutually satisfactory terms. 3. This Agreement may be terminated at any time by either Party at its option by giving to the other Party 90 day’s written notice through registered mail. 4. The termination of the Agreement shall be without prejudice to any outstanding liabilities accrued and arising hereunder between the Parties.
ARTICLE – 4 BANK GUARANTEE a) GSA will be required to submit absolute unconditional/irrevocable bank guarantee on PIA approved format so that PIA can encash it at any time, on account of any default
equivalent to 35 days average territory sales based on fortnightly reporting or equivalent to 20 days average territory sales based on weekly reporting. PIA may further require to furnish any additional cash guarantee to cover whole or part of the term of the agreement. No interest/profit will be payable on return of the cash guarantee. b) Bank Guarantee will be reviewed on six monthly basis and adjusted accordingly. For proper coverage of PIA’s exposure, additional or increased bank guarantee will be obtained, if required. Failure to comply with the request for an increased cash/bank guarantee within 15 days, will permit the Principal to terminate the Agreement forthwith under the termination article. c) Bank Guarantees shall be valid for entire period of the Agreement with six months additional validity after term of the agreement. In case of termination, Bank/Cash Guarantee will be returned only after adjustment of all outstanding invoices / amounts / discrepancies. In case of termination of Agreement by either Party, Bank Guarantee shall be retained by the Principal for at least one year to adjust any discrepancies / Debit Memos arising there from.
ARTICLE – 5
DUTIES & RESPONSIBILITIES OF GSA:
The GSA shall perform on behalf of the Principal, the following functions:
1. Provide and operate at least one (or such higher number as may be agreed between the Parties from time to time) fully equipped reservations and ticketing office in the Territory for passenger and cargo sales identifiable as the Principal’s office(s) according to PIACL’s brand image guidelines as made available to the GSA in sufficient time before the equipment and furnishing of such office(s). 2. Make reservations and issue passenger tickets strictly in accordance with the Principal’s laid down procedures and rules as communicated by the Principal to the GSA in writing with reasonable notice of any change, and with applicable IATA/BSP or equivalent Regulations. 3. Provide trained staff to handle the functions of reservation and ticketing of passengers & cargo. 4. Allocate ____% budget of the sales for advertisement/promotion of sales.
5. Achieve reasonable sales targets as may be set by PIACL taking into consideration prevailing market conditions.. 6. Issue passenger tickets / Miscellaneous Charges Orders (MCOs) as appropriate in connection with all sales made on behalf of the Principal. 7. Be responsible for all the sales of all Agents in the Territory for the purpose of allowing sales and for the financial coverage and in case of any default of Agent. 8. Maintain liaison with relevant regulatory authorities and government agencies such as the General Civil Aviation Authority, airport authorities, Central Bank of
Iraq, Tax Department, the national carriers and handling agent on behalf of the Principal.
STAFF
GSA will provide minimum:
i) ____ Reservation & Ticketing Staff
ii) ____ Sales Promotion Officer
iii) ____ Cargo Sales Officer
iv) 01 Secretary / Assistants for PIA Country Manager
Any employee /staff hired by GSA, if terminated, the lay-off/litigation/compensation costs will be borne by the GSA. PIA will not bear any cost in this regard.
OFFICE
Following will be provided by the GSA:
a. A fully furnished/equipped Ticketing & Reservation office in the Territory (Najaf, Iraq) for PIACL Sales/Reservation/Ticketing and booking of cargo at a business place easily accessible to the general public preferably on ground floor. b. Provision of exclusive fully furnished proper offices for Country Manager, Finance Manager, their Assistants, one Record Room and one Meeting Room. c. Rentals/utilities, communication cost (internet/mobile/telephone and system connectivity) of offices will be borne by the GSA. d. Provision of one 1800-2400 CC Car for Country Manager. Related expenses (Registration / maintenance / repairs / insurance etc. to be borne by the GSA). e. GSA will assist and process in issuance of visas for PIA employees (Pakistan based and locally hired) including for PIACL officials visiting station. f. Assistant and facilitate in all matter related to business events, seminars, press briefings, familiarization trips etc. g. All items provided as per this Article shall remain the property of the GSA and shall be returned to the GSA at the time of termination of the Agreement.
ARTICLE – 6
DOCUMENTS:
Airway Bills and MCOs required by the GSA in connection with the sale of transportation herein shall be supplied free of charge by the Principal, provided always that:
1. Such documents shall remain absolute property of the Principal. 2. GSA shall be responsible for the safe custody, care and proper use of such documents.
3. GSA shall send to the Principal on regular basis, a monthly statement showing the MCO and other documents stock it holds for the Principal and also make available the same for monthly inspection if desired by the Principal or its duly authorized representative. 4. GSA shall be responsible on the termination of this Agreement, for the return to Principal, within 3 days, of all the Principal’s Traffic Documents held by the GSA.
5. GSA shall not sell, validate or issue a traffic document of the Principal for transportation solely on any other carrier unless authorized in writing by the Principal.
ARTICLE – 7
REMUNERATION OF GSA:
A. Passenger Sales
i. GSA will be entitled to charge a passenger service fee (YR) up to 7% (not applicable incase of commissionable fares) over and above applicable net/net base fare on GSA counter sales. (PSF level will be subject to change by the Principal providing at least 30 days’ notice).
ii. GSA shall be entitled up to 3% overriding commission (ORC) on net/net passenger sales in the Territory. (Net/Net sales = gross sales minus all taxes / incentives / refunds / commission / service charges / interline and other surcharges as applicable in the Territory).
iii. Payment of agreed ORC will be allowed at source after settlement of any discrepancies. B. Cargo Sales
i. GSA will be entitled to charge sales and service commission up to 5% over and above applicable net / net cargo rate for the GSA’s own sales. (Commission level will be subject to change by the Principal providing at least 30 days’ notice). ii. GSA will be entitled up to 2% overriding commission (ORC) on net/net cargo sales in the designated territory. (net/net sales = gross sales minus commission / taxes / incentives / refunds / service charges / storage / scanning / other surcharges as applicable in the Territory). iii. Payment of agreed ORC will be allowed at source
. ARTICLE – 8
ACCOUNTING AND SETTLEMENT:
The GSA shall submit sales reports and remittances on a fortnightly basis in the following manner:
a. For sales done from 1-15 of the month, sales report and payment to be remitted to the Principal not later than last day of the same month.
b. For sales done from 16th to last day of the month, sales report and payment to be remitted to the Principal not later than 15thday of the following month.
i. All monies collected by the GSA for transportation sold including any commission withheld by the GSA are the property of the Principal until satisfactorily accounted for to the Principal. The GSA shall not use such monies to engage directly or indirectly in any transactions which are intended to obtain for the GSA any advantage additional to his commission.
ii. Disbursements made on behalf of the Principal, including without limitation refunds, any waivers authorized by the Principal and applicable service fees charged in accordance with paragraph (i) of Article 7 (Passenger) and paragraph (i) of Article 7 (Cargo), together with commission (both sales and service commission and ORC) entitlements may be deducted from the total amount due to the Principal.
iii. The GSA shall submit to the Principal a monthly statement of sales and disbursements made on behalf of the Principal under this Agreement, within 15 days of the end of the month in which those transactions are made. The statement shall be in the format provided by the Principal, at the time this Agreement is executed and subject to the terms and conditions advised by the Principal and agreed by the GSA; provided that the format, terms and conditions may be subsequently amended from time to time with the concurrence of the parties.
ARTICLE – 9
INFORMATION REPORTS:
The GSA shall make the Principal aware of all relevant information of which it becomes aware and of which it has reason to believe the Principal is not aware concerning local laws, regulations and restrictions affecting the passage of aircraft, passengers and air cargo including those relating to taxes, customs, immigration, currency and health, and shall promptly advise any alterations thereto.
ARTICLE – 10
DESIGNATION OF AGENCY:
The GSA shall be entitled to describe itself as agent of the Principal at its place(s) of business and on commercial documents, advertisements, notices, publications, letterheads and similar items but shall in all cases qualify such description by prefixing the words “general sales” to each reference to “agent”.
ARTICLE – 11
DIRECTORY INSERTION AND PUBLICITY:
1. The GSA shall if so requested arrange for the insertion in appropriate telephone and other directories of the name of the Principal with the local address of the GSA. It may include its own name as general sales agent, if it so wishes. Any charge for such entries shall, when inserted at the Principal’s request, shall be payable by GSA.
2. The GSA shall, as far as is practicable, arrange adequate display boards showing the name of PIA at Airports and other prominent places in the GSA’s Territory.
ARTICLE – 12 INDEMNITIES:
Except for the negligence or misconduct on the part of the GSA, Principal shall indemnify GSA and hold GSA harmless against any claims proceedings, costs, losses, damages, charges and expenses which the GSA may sustain, incur or pay by reason of any service rendered by the GSA under and in accordance with the terms of this Agreement and which were not expressly anticipated by this Agreement, including without limitation any claims by customers of the Principal in connection with the services rendered by the Principal.
The GSA shall indemnify the Principal and hold the Principal harmless against any claims proceedings, costs, losses, damages, charges and expenses which the Principal may sustain, incur or pay by reason of any negligence or willful misconduct on the part of the GSA.
ARTICLE - 13 ARBITRATION:
In the event of any dispute concerning the interpretation or application of this Agreement or concerning any rights or obligations arising therefrom, and no amicable settlement can be reached, such dispute shall be referred to and finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce.
ARTICLE - 14 WARRANTY:
The GSA shall not give any warranty in the name of the Principal except where the same shall have been authorized by the Principal.
ARTICLE - 15
LEGAL PROCEEDINGS:
The GSA shall not take legal proceedings in the name of the Principal without the consent in writing of the Principal nor shall it without such consent defend, settle, release, or discontinue any action or other legal proceedings or otherwise prejudicially affect the interests of the Principal.
ARTICLE - 16
ACCEPTANCE OF OTHER APPOINTMENTS:
The GSA shall not accept any new appointments as Passenger/Cargo General Sales Agent for any other carrier that operates direct flights from the Territory to Pakistan and is a direct competitor of the Principal without the prior written consent of the Principal, which consent shall not be withheld unreasonably.
ARTICLE - 17 DEFAULTS:
If the GSA at any time defaults in observing or performing any of the provisions of this Agreement or becomes the subject of bankruptcy proceedings or makes an assignment for the benefit of, or enters into any arrangement with its creditors, or goes into liquidation, or suffers any of its goods to be taken in execution or ceases to be in business for the purpose of the sale of air transportation, this agreement may, at the sole option of the Principal and notwithstanding the provisions of any other Article of this Agreement, be terminated forthwith and the Principal may forthwith take possession of any documents or other property of the Principal that is in the possession of the GSA. GSA will be liable for any outstanding amounts in default and will be liable for recovery and payment to the Principal.
ARTICLE - 18 APPLICABLE LAW:
This Agreement shall be interpreted in accordance with the laws of Islamic Republic of Pakistan.
ARTICLE - 19 CONFIDENTIALITY:
The parties hereto shall take all practical measures to ensure that information concerning each other’s business results and activities are not revealed to any third party without the consent of the party concerned.
ARTICLE - 20
NOTICES AND REQUESTS:
Any notice or other communication required or permitted including any demand for arbitration to be given herein shall be sufficient if sent by courier letter, by one party to the other, as follows:-
If to the Principal:
Director Marketing Pakistan International Airlines Corporation Limited P.I.A.C.L Building Quaid-e-Azam International Airport Karachi – Pakistan e-mail: [email protected], [email protected] Phone: +92-21-99043636, +92-21-99044969 Fax: +92-21-99242346
If to the GSA: ______
ARTICLE - 21
RESERVATION AND TICKETING CODE OF CONDUCT: The GSA shall be under an obligation to make the reservations and issue tickets strictly in accordance with the Code for Computer Reservation System provided from time to time by the Principal.
ARTICLE - 22 WAIVER:
Failure by either party at any time to enforce any of the provisions of this Agreement shall not be construed as a waiver by such party of such provisions or in any way affect the validity of this Agreement or any part thereof.
ARTICLE - 23 FORCE MAJEURE
Should any circumstances arise beyond the control of the principal or the general sales agent which make it impossible for either party to proceed with or fulfill its obligations under this agreement, the affected party shall immediately notify the other party of the circumstances and the foreseen consequences in writing. For purposes of clarity, the following will be considered as circumstances of force majeure: fire, flood, strikes, earthquake, war, or any other event clearly and absolutely outside of the control of the party claiming force majeure. The parties will thereupon mutually agree upon the action to be taken
ARTICLE - 24
OTHER AGREEMENTS SUPERSEDED:
This agreement shall supersede any and all prior agreements and amendments thereon, if any, between the parties hereto concerning the sale of air transportation offered by
PAKISTAN INTERNATIONAL AIRLINES CORPORATION LIMITED except with respect to all liabilities as may exist as at the date hereof.
IN WITNESS HEREOF the parties hereto through their duly authorized officials have set their respective hands on these presents on the date and year first mentioned herein above.
Executed in two copies, all in English language.
SIGNED ON BEHALF OF: SIGNED ON BEHALF OF: PAKISTAN INTERNATIONAL AIRLINES CORPORATION LIMITED
……………………………….. ……………………………………… Witness: Witness:
______Name: Name: Address Address:
Witness: Witness:
______Name: Name: Address: Address: