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Corporate tie-up with a Hotel by an Airline to avail rooms for its crew members


This Agreement made on this …… day of …………,  ….. between:

ABC Airlines,  having its Regional Office at ………………………………., hereinafter called as ‘Carrier’, (which  expression  shall,  unless repugnant  to the context and meaning thereof, include the  legal representatives of the Carrier their executors and  administrators of the FIRST PART) through its duly authorised representative and signatory, …………….., ………………………..


M/s. PQR Hotels Limited, a company incorporated under the Companies Act, 1956 and having its registered office at ……………………., hereinafter referred to as the “HOTEL” (which expression shall unless repugnant to the context or meaning thereof be deemed to include its successors in business and permitted assigns of the SECOND PART) through its duly authorised representative and signatory, ………………………….., ………………..

WHEREAS the HOTEL is the owner and is carrying on business of running and managing a 5 Star Delux Hotel under the name and style of ……………….. at ……………………..

Whereas the CARRIER desires to secure hotel accommodation for its crew members  and their family members (hereinafter referred to as ‘crew’)

AND WHEREAS the Hotel has agreed to provide the desired hotel accommodation and related facilities to the Crews of the CARRIER.

The “HOTEL” and the “CARRIER” shall be singularly referred to as party and collectively as parties.
IN WITNESSETH thereof the parties have agreed to the following:


1.         Term

1.1      This Agreement shall be valid for a term of one ….. years, commencing retrospectively w.e.f. ……………… and shall remain valid until ……………….. At the end of the initial term of one …… years, this Agreement may be renewed at terms and conditions to be agreed by both parties, provided intention to renew must be communicated by either party at least thirty (30) days prior to the expiry of this Agreement.

1.2           The HOTEL guarantees the availability of rooms (as per the schedule annexed to this agreement) required by the CARRIER throughout the term (including during peak period/months), in terms of Article 4.1 & 4.2 of the agreement.

1.3           The HOTEL shall use its best endeavours to ensure that all accommodation provided to the CARRIER’s Crews under this Agreement meets the required safety and security standards.

2.        Charges

2.1              The HOTEL agrees to provide rooms to the Crew at a rate of Rs. ……… (nett & non commissionable). This rate is exclusive of 12.5% Luxury Tax on the PUBLISHED RATE and ……..   ………… Value Added Tax (…VAT) on the special rate offered. The HOTEL further agrees that notwithstanding the number of rooms reserved by the CARRIER as provided in Article 4.1 herein, the HOTEL shall invoice CARRIER for only actual number of rooms occupied.

2.2              In case of any change in tax rate/structure in Government taxation policy, the CARRIER agrees to bear the difference of the taxes.

3.         Billing Procedure:

3.1              The HOTEL agrees to submit to the CARRIER’S representative, a fortnightly settlement of actual occupied rooms substantiated with all the original pertinent bills or documents which will be settled in ‘fifteen days’ from the date of receipt.

The crew billing will be done as under :
Room + Breakfast + Airport Transfer (per day) to The CARRIER.
All extras to be charged to the crewmembers directly on check out.

3.2              Except the charge for the rooms occupied by the crew, which shall be paid by the CARRIER in accordance with Article 3.3, the HOTEL shall directly bill all room charges, the cost of any meals or beverages, telephone expenses, incidental charges or amenities to the account of the individual crew member, employee or family member and such bill shall be presented by the Hotel for settlement to the individual at the time of checking out.

3.3              The CARRIER agrees to help the Hotel in recovering from the individual crew, employee or family member any unpaid sum due to the HOTEL by such crew, employee or family member. The CARRIER will not be held responsible in case of non-recovery of the said amount from the Crew.

3.4       The CARRIER agrees to provide Post Dated Cheques to the HOTEL for the
payment of crew allowance which the HOTEL will encash and pay crew at the time of check in with the amount advised by Flight Operations at the Airport.

4.         Room Reservation and Cancellation

4.1              The HOTEL agrees to reserve ……. air-conditioned single rooms with bath per day for all weekdays from Sunday to Thursday and …… air-conditioned single rooms with bath per day for Friday and Saturday for the crews of the CARRIER. Number of room requirements may change according to the winter and summer schedule. The CARRIER will inform the Hotel the said changes in required rooms, in writing before ….. months in advance from the date of change of Schedule. 

4.2              The HOTEL agrees to provide such number of rooms over and above the reserved … or …. rooms as the case may be (subject to the availability of the rooms) on the same conditions as agreed hereby in this agreement.

4.3              The HOTEL warrants to ensure the number of rooms reserved shall be available immediately upon Crew arrival to the HOTEL according to the arrival and departure timings and any other specifications requested by the CARRIER. In addition, the HOTEL shall ensure that all facilities, benefits and discounts agreed upon, as detailed in Clauses 5 shall be available at all times during the term of this Agreement.

4.4              In case of failure to make the guaranteed rooms available to the CARRIER, the Hotel agrees to arrange accommodations for Crew at another Hotel providing equal or better facilities than the Hotel and shall reimburse the CARRIER for amounts paid by the CARRIER for such other accommodations in excess of the charges specified in Article 2.

4.5              In the event that the CARRIER reduces or has to cancel the number of required rooms for a timetable or any part thereof, as a result of operational or technical irregularities, schedule changes or causes beyond its control, the CARRIER agrees shall notify the HOTEL at the earliest.

4.6              The HOTEL agrees not to hold the CARRIER liable for the non payments due to cancellation of any reservation by the CARRIER if the CARRIER notifies the said cancellation at-least 24 hours before the planned arrival of the crew members.

5.         Room allocation, facilities and value added services

5.1               The Cabin Crew will be housed in our deluxe room and the Captian & Co-Pilot will be upgraded to the next best category of room (Executive)/ Deluxe suite.

5.2               The Hotel shall allow immediate family members of a crew to utilize the same room occupied by the said crew at no additional charge. However, the applicable taxes on double occupancy will be charged to the crew on direct payment.

5.3               The HOTEL shall cross-reference the room number to the name of the individual crew and refrain from making such numbers available to any person by telephone.  (However, in order to allow immediate contact with the crew, special and confidential arrangements may be agreed upon between the HOTEL and The CARRIER).

5.4               The Hotel shall keep the rooms and the water, electric and air-conditioning systems and bathroom facilities in clean and normal functioning conditions.

5.5               The Hotel will provide all facilities of the Hotel, such as the Swimming Pool, sauna, steam and gymnasium except massage and service related facilities free of charge to the Crew.

5.6               The Hotel shall provide its regular hotel and restaurant services, including wake-up services to all crew wishing to avail themselves of these services.

5.7               The Hotel shall provide the crew a fruit basket and one large (1 ltr.) and one small (500 ml) mineral water bottle per day.

5.8               The Hotel shall provide complimentary breakfast to all Crew Members at the 24 hours open Coffee Shop – La Brasserie (timing 07:00 to 10:30 hrs.).

5.9               The Hotel agrees to allow 20% discount on Food & Beverage in all the Restaurants & Bars except EAU Bar Lounge.

5.10            The Hotel agrees to allow 20% discount on long distance calls. Local calls made by the Crew members within Delhi will be complimentary.

5.11            The hotel agrees to allow 20% discount on Laundry.  Laundry for one set of uniform for the Crew would be complimentary on each stay (four pieces).

5.12            The Hotel agrees to allow 20% discount at the Beauty Parlour and Babar Shop.

5.13            The Hotel agrees to allow complimentary entry to the EAU Bar Lounge for Crew members during their stay.

5.14            The Hotel agrees to allow the complimentary use of crew lounge.

5.15            The Hotel agrees to provide complimentary to and from airport transfers in a deluxe Air-conditioned Coach to the crew.

5.16            The Hotel also agrees to provide exclusive express check-in area at the Lobby level for the crew only.

5.17            Crew Sickness:
In case of sickness of a crew accommodated in the Hotel, the Hotel shall immediately the Hotel shall arrange for the treatment of such crew, and report the same to the CARRIER at the earliest. The expenses on medical treatment incurred by Hotel will be charged to the CARRIER.

6.         Termination 
6.1              Termination with cause
This Agreement may be terminated immediately and without notice in the event either party
(a)   is in default under this Agreement which is not cured within fourteen days after Notice of such default to the defaulting party, or
(b)   makes an assignment for the benefit of creditors, or
(c)    becomes insolvent, or
(d)  files a voluntary petition for bankruptcy, or
(e)   acquiesces to any involuntary bankruptcy petition, or
(f)     is adjudicated as a bankrupt, or
(g)   ceases to do business .
(h)   If due to an enactment or issue or amendment to any legislation, rule, notification or order by any judicial / quasi judicial body or  local authority frustrating the intent of this agreement or making it unlawful for the business to carry, the agreement shall be terminated and neither party shall be liable to the other for any damages thereof.

6.2              Termination without cause
Notwithstanding Article 6.1 above, either party may terminate this Agreement at any time for no reason whatsoever, by giving the other thirty(30) days written notice.

6.3              The termination or expiration of this Agreement shall not affect any rights or obligations accrued on the date of the termination or expiration.

7.         Force Majeure
            Neither party shall be liable to the other party for any breach, delay or failure to perform any or all of its obligations under this Agreement where such breach, delay or failure is caused by force majeure whose definition includes war, riot, acts of God, Government regulations or directions, or any other cause or causes which is beyond the reasonable control of either party, whether similar to any of the foregoing or not, PROVIDED however that if either party is or is likely to be affected by any such cause, it will immediately notify the other party of the occurrence of the relevant event and will use all reasonable endeavours to overcome or mitigate the effects thereof.

8.         Applicable Law

This Agreement shall be construed, interpreted, governed and applied in accordance with the laws, regulations, ordinances or the like applicable in India and shall be subject to the exclusive jurisdiction of the Courts at Delhi alone.

9.                  Notices

Any notice, statement or demand, required to be given under this Agreement, shall be in writing, delivered personally or sent by registered post or by courier service, addressed as the case may be to The CARRIER at its Regional office and to the Hotel  at its registered office or to such other addresses as the CARRIER or HOTEL  may designate, provided each shall notify the other Party of such a change in writing, delivered personally or by registered post or by courier service.  All notices, statements or demands shall be acknowledged by The CARRIER or  HOTEL, as the case may be, within TWO (2) days of receiving the same.

            All notices shall be forwarded to the following address:


To the HOTEL:
10.       Arbitration
10.1          Any dispute or difference arising out of or in connection with this Agreement which cannot be settled amicably between the Parties shall be finally settled by Arbitration in accordance with this Article.

10.2          The Arbitration shall be conducted in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996, as amended from time to time. The venue for Arbitration shall be New Delhi and the proceedings shall be in the English language.

10.3          The parties will refer the disputes and differences to arbitration of two arbitrators one to be appointed by each party and both the arbitrators shall appoint a presiding arbitrator, whose award shall be final and binding on the said parties.

10.4          The term and provisions of this Agreement shall not limit, restrict prevent or in any way hinder either of the parties hereto from applying for and obtaining any interim or conservatory measures through any competent court of law.

10.5          The Parties shall continue to perform the duties with due diligence, not withstanding the fact that a dispute has been referred to arbitration, or any difference or dispute has arisen.

11.       General Matters

11.1     Amendment

Any other subject not included in this Agreement shall be discussed mutually whenever it is deemed necessary. The authorised representatives of the CARRIER and the HOTEL shall conduct such discussion. Upon both parties agreeing to the additional matters, all amendments or modifications of this Agreement shall only be valid if made in writing & is signed by and on behalf of the CARRIER and the  HOTEL.

11.3          Assignment
Unless otherwise agreed to in writing by the other party, none of the parties hereto shall assign or transfer all or any of its rights, obligations or benefits hereunder to any third party.

11.4          Severability
In the event any term or provision herein contained is held to be invalid or unenforceable by any court of competent jurisdiction, the invalidity or unenforceability of any such term or provision shall in no way affect any other term of provision herein contained.

11.5          Execution In Counterparts - This Agreement shall be executed in two (2) counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

11.6          Invalidity And Unenforceability - In the event that any one or more of the phrases, sentences, clauses or paragraphs contained in this Agreement shall be declared invalid by a final and unappealable order, decree or judgement of a Court, this Agreement shall be construed as if such phrases, sentences, clauses or paragraphs, had not been inserted in this Agreement and otherwise the construction and interpretation of this Agreement shall not be effected. Should such deletions or amendments create an undue hardship upon the parties or constitute a substantial deviation from the general intent of the parties as reflected in this Agreement, then the Parties shall negotiate, in good faith, a legally acceptable substitute of the phrases, sentences, clauses or paragraphs which are found to be legally inoperable.

11.7          Waiver - The waiver of any of the terms and conditions of this Agreement on any occasions shall not be deemed a waiver of such terms and conditions on any future occasion(s).

11.8          Consent - Whenever in this Agreement the consent or approval of either Party is required, such consent or approval shall, in the absence of any express stipulation to the contrary herein, mean the prior consent or approval and shall be in writing and shall be duly executed by an authorised officer of Party Concerned, granting such consent or approval and shall not be unreasonably withheld.

IN WITNESS WHEREOF, the parties have executed and hereto affixed their signatures on the date as herein below respectively indicated.

For & on Behalf of                                           For & on Behalf of
ABC AIRLINES                                              PQR HOTELS LTD.

.....................................                                      ……………………….
General Manager                                           General Manager