MEMORANDUM
PAC/Meet/224
To:
All Members, Passenger Agency Conference
Accredited Representatives
From:
Director, FDS Operations
Date:
28 August 2013
Subject:
“PASSENGER WEEK 2013”
PASSENGER AGENCY CONFERENCE
36th Meeting of the Passenger Agency Conference (PAConf/36)
Dublin, Ireland, 29 and 30 October 2013
CALL OF MEETING
NOTICE OF MEETING
PAConf/36 was convened by Memorandum PAC/Meet/223 of 25 July 2013. This transmittal
contains the initial Agenda Documentation. A further transmittal is scheduled to be published on
27 September 2013.
The 36th Passenger Agency Conference (PAConf/36) will be held at the Convention Centre,
Dublin, Ireland. The Conference will commence at 09.00 hours on Tuesday, 29 October 2013
and is expected to last through to 12.30 hours on Wednesday, 30 October 2013.
Meetings of the Passenger Agency Conference Steering Group (PSG) and the Passenger Agency
Programme Global Joint Council (PAPGJC) will also take place during the week.
Below is the schedule of meetings:
Event
PSG/85
PAPGJC/19
PAConf/36
PAConf/36
PSG/85 (contd)
Date
Monday 28 October
Monday 28 October
Tuesday 29 October
Wednesday 30 October
Wednesday 30 October
Participation
PSG members only
PAPGJC members only
All IATA Member Airlines
All IATA Member Airlines
PSG members only
Working hours
09.00-10.00
11.00-18.00
09.00-18.00
09.00-12.30
Immediately
following the close
of PAConf/36
The full schedule of industry events for the week is given in the “Pax-Week” programme enclosed.
International Air Transport Association
Route de l'Aeroport 33
PO Box 416
CH - 1215 Geneva 15 Airport
Switzerland
Tel: +41 22 770 2731
Fax: +41 22 770 2896
www.iata.org
MEETING SITE
All the above meetings will be held at:
The Convention Centre Dublin
Dublin
Ireland
Refer to: http://www.theccd.ie/
ACCREDITATION OF REPRESENTATIVES AND ALTERNATES
Your attention is drawn to Article V of the Provisions establishing procedures for the
accreditation of representatives and alternates to the Passenger Agency Conference. Our
list of registered representatives and alternates is shown at Attachment ‘A’.
In order to avoid confusion as to voting rights, please ensure that your accreditation is in
order. If you wish to change your company’s accreditation particulars, kindly use the
attached accreditation forms (Attachments ‘B’ and ‘C’) and return them without delay to the
IATA Geneva office at the address indicated on the form.
IMPORTANT
If any of the information shown is incorrect, please notify this office immediately. IATA has
not received completed accreditation forms for those names highlighted in grey. Members
are requested to complete the appropriate form and return it as soon as possible to Janet
Mekkaoui (mekkaouij@iata.org , fax +41 22 770 2631). Please note that without an
accreditation form you may NOT VOTE.
AGENDA ITEMS
Agenda items should be addressed to the Secretary of the Passenger Agency Conference,
care of mekkaouij@iata.org . Members are invited to set out proposals in accordance with
the model shown in Attachment ‘D’. Submissions in standard word format, in original copy
and single spaced, would be appreciated since that simplified the task of producing the
agenda.
Kindly ensure that submissions are in adequate detail including, where appropriate,
suggested resolution amendments. All proposals will be assumed to be for normal
effectiveness of 1 June 2014 unless otherwise requested.
DEADLINES
The timetable for the submission of agenda items is:
2nd Transmittal
Papers required by:
Publication date:
20 September
27 September
RESTRUCTURING OF PACONF AGENDA
The PAConf Steering Group (PSG), at its 83rd meeting held on 10-12 July 2013, approved a
proposal to restructure the PAConf agenda by posting routine reports that require no
PAConf action to a dedicated web site. Full details of the new format are to be found in
Agenda Item A7.
PACONF REGISTRATION
Running in parallel to the industry meetings is the third IATA World Passenger Symposium
(WPS) during the period 29-31 October – the premier “must attend” event in the aviation
industry. Last year the event attracted some 650 delegates from the entire value chain who
reported a satisfaction rate of 94%.
This year's event will look at the journey through the eyes of the customer. It will focus on
the customer experience from shopping for air travel to the actual ground experience.
You will hear first-hand the latest news on NDC (New Distribution Capability) as well as
progress on the new programs which will impact the passenger airport experience.
Bring your big ideas along with hundreds of strategic minds and industry leaders to enhance
the travel supply chain!
Register now and benefit from an early bird rate!
To view the preliminary agenda, refer to: http://www.iata.org/events/passengersymposium/Documents/world-passenger-symposium2013-preliminary-agenda.pdf
REGISTRATION PROCESS: STEP-BY-STEP
Registrations for the industry meetings which are taking place during the World Passenger
Symposium are now open.
As in the past, attendance at the industry meetings is free of charge for member airlines.
However, there is a charge for participation in any of the symposium events (and the option
to attend the cocktail reception and/or gala dinner).
To register please click on the link below:
https://ems.resrunner.com/IATAwps
If you only plan to attend one or more of the industry meetings, choose:
“Industry Meetings only” (discount code I13IMOC – no charge will be applied for attending
industry meetings only. Note: the charge initially displayed will be removed once the
promotional code is entered and applied. Additional fees will apply if attending cocktail
reception and/or Gala Dinner.)
If you want to attend both the event and the industry meetings choose:
“Industry Meetings and WPS” (discount code I13WPSIMD)
Please make sure you enter your discount code I13WPSIMD at the payment phase to take
advantage of the US$750.00 rate (excluding the 23% VAT).
If you have selected only the industry meetings without any of the paid for options the total
reflected will be 0.00 therefore no payment required. However, you may be asked for your
credit card details as a guarantee for your hotel reservation.
HOTEL ACCOMMODATION
(You can book your hotel while registering online, or go back online after you have
registered)
Clarion
Excise Walk, IFSC
Dublin 1, Co. Dublin
+353 (1) 433 8800
http://clarionhotelifsc.com/
€ 160 single and € 170 double/twin
The Marker
Grand Canal Square,
Grand Canal Dock,
Dublin 2
+353 (1) 687 5100
http://www.themarkerhoteldublin.com/
€ 180 single and € 200 double/twin
Maldron Hotel Cardiff Lane
Cardiff Lane,
Sir John Rogersons Quay,
Dublin 2,
Ireland,
+353 (1) 643 9500
http://maldronhotelcardifflane.com/
€ 155 single and € 165 double/twin
Gibson Hotel
Point Village
Dublin 1
+353 (1) 681 5000
http://www.thegibsonhotel.ie/
€ 160 single and € 175 double/twin
All hotel rates include buffet breakfast, wireless internet and VAT.
Reservation cut-off and cancellation date is 2 October 2013. After this date, reservations
and changes will be accepted on a space/rate available basis.
VISAS
Members are strongly advised to check visa requirements for entry into Ireland and, if
necessary, obtain a visa at least two months before the date of the Conference. If
required, a letter of invitation can be requested at the time of registering attendance
using the online registration tool.
I very much look forward to seeing you in Dublin during the Passenger Week of
events.
Javier Gallego Alonso
Director, FDS Operations
Attachments: 
Attachment ‘A’
PASSENGER AGENCY CONFERENCE ACCREDITED REPRESENTATIVES
On file with the Secretary as at 28 August 2013
Status
Airline Airline Trading Name
Code
First Name/ Last Name
Job Title
Email Address
AC
JP
Adria Airways
Anamarija Kovač
Manager, IATA Affairs/Training anamarija.kovac@adria.si
Comm
AC
A3
Aegean Airlines S.A.
Michael Kouveliotis
Finance Director
mkouveli@aegianair.com
AL
A3
Aegean Airlines S.A.
Stephanos Sadopoulos
Sales Manager Southern
Greece
stephanos.sadopoulos@aegeanair.com
EI
Aer Lingus
Marie O'Connor
Passenger Sales Services
Manager
marie.oconnor@aerlingus.com
AC
SU
Aeroflot
Alexander Khilchenko
Director of Sales Dept.
akhiltchenko@aeroflot.ru
AC
AR
Aerolíneas Argentinas Marta Chiban
BSP Travel Agencies
Management
mchiban@aerolineas.com.ar
AL
AR
Aerolineas Argentinas Jorge Rizzuto
BSP Accounting Coordinator
jrizzuto@aerolineas.com.ar
AC
AM
Aeromexico
Patricia Piza Villagrana
Director, Revenue Accounting
ppiza@aeromexico.com.mx
P5
Aero Republica (Aero
Republica SA)
VV
Aerosvit Airlines
Julia Gerasymchuk
Head of Intl Organizations
Group
julia.gerasymchuk@aerosvit.com
8U
Afriqiyah Airways
Mohamed Elmeshkhy
Organizatons and Intl.
Relations Manager
melmeshkhy@afriqiyah.aero
ZI
Aigle Azur
Sabrina Roulland
PA to CEO
s.roulland@aigle-azur.fr
AC
AH
Air Algérie
Karim Nemra
Distribution Manager
sdvnk@airalgerie.dz
AL
AH
Air Algérie
Dalil Brahimi
Head of Agency Services
sdrtbd@airalgerie.dz
AC
4L
Air Astana
Peter Foster
President
peter.foster@airastana.com
AL
4L
Air Astana
Ibrahim Canliel
VP Marketing & Sales
ibrahim.canliel@airastana.com
AL
KC
Air Astana
Richard Ledger
Director Sales Worldwide
richard.ledger@airastana.com
UU
Air Austral
Fabrice Adam
Marketing Manager
fadam@air-austral.com
BT
Air Baltic
Svetlana Abashkina
Manager Revenue Accounting
saa@airbaltic.lv
AB
Air Berlin
Thorsten Scherzer
SVP Distribution
thorsten.scherzer@airberlin.com
AL
AC
Air Canada
Robert Boulert
General Passenger Sales
Manager
robert.boulert@aircanada.ca
AC
AC
Air Canada
Susan Clements
Director, Agency Sales
susan.clements@aircanada.ca
AC
CA
Air China Limited
Xu Xin
Director of Sales Mgmt,
Revenue Acctg Dept.
xuxin@airchina.com
AL
CA
Air China Limited
Yanqiu Shi
Sales Audit Assistant
shiyanqiu@airchina.com
XK
Air Corsica
Isabelle Guyot-Jeanne
Directrice Commercial
isjeanne@aircorsica.com
AC
UX
Air Europa
Jose Maria Hoyos Alda
Deputy Managing Director
jmhoyos@air-europa.com
AL
UX
Air Europa
Isabel Vives March
Accounting & Admin. Manager
ivives@air-europa.com
AC
AF
Air France
Rodolphe Lenoir
Director Global Distribution
rolenoir@airfrance.fr
AL
AF
Air France
Helene Millet
Senior Manager Distribution
hearnaudmillet@airfrance.fr
AC
AI/IC
Air India
Pankaj Srivastava
General Manager - Marketing
pankaj.srivastava@airindia.in
AL
AI/IC
Air India (NACIL)
Padmini Balsekar
Dy. Manager-Tariffs
Indaffairs@airindia.in
JS
Air Koryo
Sin Guk Bo
AC
NX
Air Macau
Guo Ping
General Manager Revenue
Management
guoping@airmacau.com.mo
AL
NX
Air Macau
Ivan Ng
Asst. Mgr Revenue
Management
ivanng@airmacau.com.mo
MD
Air Madagascar
Annie Rasamaro
Sales Regulations Dept.
Annie.Rasamaro@airmadagascar.com
QM
Air Malawi
Gertrude Nyirenda
Revenue Accounts Manager
nyirenda-g@airmalawi.com
AC
KM
Air Malta
Tonio Farrugia
General Manager, Commercial tonio-joseph.farrugia@airmalta.com
Agreements
AC
MK
Air Mauritius
Dinesh Laljee
Revenue Accountant
9U
Air Moldova
SW
Air Namibia
Helena Kapiya
AC
NZ
Air New Zealand
Jason O'Connell
Industry Relations Manager
jason.oconnell@airnz.co.nz
AL
NZ
Air New Zealand
Annemarie Williams
Revenue Risk Manager
annemarie.williams@airnz.co.nz
AC
PX
Air Niugini
Dominic Kaumu
Dpty General Manager Sales
dkaumu@airniugini.com.pg
AC
PX
Air Niugini
John Polume
Pricing, Agency & Interline
Manager
jpolume@airniugini.com.pg
AC
YW
Air Nostrum
Miguel Falcon Martin
Industry Affairs Director
mfalcon@airnostrum.es
gaca@silibank.com
dlaljee@airmauritius.com
info@airmoldova.md
helena.kapiya@airnamibia.aero
AC
AP
Air One SpA
Giorgio Callegari
Executive VP
callegari.giorgio@alitalia.it
AC
FJ
Air Pacific
Shobna Krishna
Manager Financial Planning &
Analysis
shobna.krishna@airpacific.com
AL
FJ
Air Pacific
Janesh Kumar
Revenue Acccountant
janesh.kumar@airpacific.com
HM
Air Seychelles
Agnes Pillay
Pricing Manager
apillay@airseychelles.com
VT
Air Tahiti
Patrick Martineau
Commercial Director
direction.generale@airtahiti.pf
TN
Air Tahiti Nui
TS
Air Transat
George Petsikas
Director GIA
gpetsikas@airtransat.com
AC
NF
Air Vanuatu
Joseph Laloyer
CEO & Managing Director
jlaloyer@airvanuatu.com
AL
NF
Air Vanuatu
Floyd Smith
GM - Sales & Marketing
fsmith@airvanuatu.com
UM
Air Zimbabwe
SB
Aircalin
4Z
Airlink
AC
AS
Alaska Airlines
Sharla Gibson
Manager, Sabre Support
sharla.gibson@alaskaair.com
AC
AZ
Alitalia
Adolfo Ceccarini
Head of GDS Relations
ceccarini.adolfo@alitalia.it
AL
AZ
Alitalia
Anna Rita Coletta
GDS Relations
coletta.anna.rita@alitalia.it
UJ
AlMasria Universal
Airlines
Ms. Shereen Farid
Communications & Intl. Affairs
Manager
shereen@almasriaairlines.com
NH
All Nippon Airways
Taku Okuno
Sales Strategy & Promotion,
Marketing & Sales Planning
t.okuno@ana.co.jp
AL
AC
fly@airtahitinui.pf
amakamure@airzimbabwe.aero
Jean-Louis Le Démézet Fares & Regulations Supervisor jlld@aircalin.nc
dev@flyairlink.com
AL
NH
All Nippon Airways
Sawako Oda
Assistant Manager, Marketing & s.oda@ana.co.jp
Sales Planning
AL
NH
All Nippon Airways
Atsushi Yabuki
Deputy Director, Marketing &
Sales Planning
yabuki@ana.co.jp
AL
NH
All Nippon Airways
Takeru Okamoto
Senior Manager
takeru@ana.co.jp
K4
ALS
Shakeel Khan
Commercial Director
shakeel@als.co.ke
AC
AA
American Airlines
H. Paige Blunt
Manager - Travel Agency
Services
Paige.Blunt@aa.com
AC
W3
Arik Air
Trevor Henry
AVP – Global Sales &
Distribution
Trevor.henry@arikair.com
AC
IZ
Arkia Israeli Airlines
Ltd.
Philip Berman
IATA Representative
philipb@arkia.co.il
U8
Armavia
OZ
Asiana Airlines Inc.
KK
Atlasjet International Airways
AC
OS
Austrian Airlines
Werner Kropf
Specialised Employee Rev.
Accounting
Werner.kropf@austrian.com
AC
AV
Avianca
Juan Ricardo Castillio
Director Ventas Internacional
jrcastillo@avianca.com
AL
AV
Avianca
Agustin Arango
General Director Europe
aarango@avianca.es
AC
J2
Azerbaijan Airlines
opr@azal.az
AC
JA
B & H Airlines
bkasumagic@bhairlines.ba
BN
Bahrain Air
PG
Bangkok Airways Co., Prote Setsuwan
Ltd.
AC
AC
a.matevosyan@u8.am
B.S. Kim
A. Aziz Alshaer
Manager, International Affairs
Team
bumskim@flyasiana.com
m.hepyuksel@atlasjet.com
Sr Mgr Secretariat Corporate
Affairs & Govt Relations
aalshaer@bahrainair.net
VP Marketing
prote@bangkokair.com
AC
B2
Belavia - Belarusian
Airlines
Irina Kochetkova
IATA Affairs Co-ordinator at B2 irene.kochetkova@belavia.by
LZ
BelleAir
AC
BG
Biman
Mohammad Shah
Newaz
AL
BG
Biman
Dr. Md Shafiqur Rahman General Manager Marketing &
Sales
NT
Binter Canarias
taleman@bintercanarias.es
BV
Blue Panorama
claudia.pappagallo@bluepanorama.com
KF
Blue1
tom.christides@blue1.fi
AC
BD
bmi
Huw Hopkins
Manager, Industry &
Government Affairs
Huw.Hopkins@flybmi.com
AC
BA
British Airways
Martin Ryan
Manager GDS & Payment
Cards
martin.ryan@ba.com
AC
SN
Brussels Airlines
Nadia Gerard
Manager Aeropolitical,
Facilitation & Interline
ngerard@brusselsairlines.com
AC
FB
Bulgaria Air
Mr Pavlov
CEO of Hemus Air & Bulgaria
Air
grisha@air.bg; ceo@air.bg;
AC
BW
Caribbean Airlines
Ms. Nirmala Ramai
Executive Director, Airports
Nirmala.ramai@caribbean-airlines.com
AL
BW
Caribbean Airlines
Wayne Henry
Executive Manager, Revenue
Accounting
Wayne.henry@caribbean-airlines.com
V3
Carpatair
AC
CX
Cathay Pacific
Clarence Tai
General Manager Sales &
Distribution
clarence_tai@cathaypacific.com
AL
CX
Cathay Pacific
Airways
Helen Sum
Assistant Manager, Agency
Distribution
helen_sum@cathaypacific.com
XK
CCM Airlines
Mrs Isabelle GuyotJeanne
IATA Contact
isjeanne@aircorsica.com
r.vasili@flybelleair.com
Director Marketing & Sales
dmsbiman@bdbiman.com
gmsales@bdbiman.com
paula.ardelean@carpatair.com
CI
China Airlines
Michael Lo
VP Passenger Marketing &
Sales
Michael_lo@china-airlines.com
AC
MU
China Eastern
Yiqiang Liu
Manager IATA Affairs
yqliu@ce-air.com
AC
CZ
China Southern
Airlines
Weijun Dong
Manager, Revenue Accounting dongwj@csair.com
AL
CZ
China Southern
Airlines
Yang Tian
Asst. Manager, Sales
QI
Cimber Sterling
Lene Sejr Shulman
Revenue Accounting Assistant lss@cimber.dk
WX
CityJet
damian.manly@cityjet.com
MN
Comair Ltd.
susan.vandryst@comair.co.za
DE
Condor (Condor Flugdienst GmbH)
holger.goese@condor.com
DF
Condor Berlin
Holger Goese
Contract Manager
CS
Continental
Micronesia
Susan Beichley
Senior Director, Revenue Accounting & Analysis
CM
Copa Airlines
Luis Zelaya
Director, Revenue Accounting
SS
Corsair
OU
Croatia Airlines
AL
AC
tianyang@csair.com
holger.goese@condor.com
lzelaya@copaair.com
c.pavee@corsairfly.com
Lana Stimac
IATA Affairs Training Manager
iata.affairs@croatiaairlines.hr
lana.stimac@croatiaairlines.hr
CU
Cubana
Elisa Gonzalez
Assistant Tariff Manager
elisa.gonzalez@cubana.avianet.cu
AC
CY
Cyprus Airways
Christos Agapiou
Commercial Manager
cagapiou@cyprusair.com
AL
CY
Cyprus Airways
Maria Saparilla
Head of Product & Revenue
Management
msaparilla@cyprusair.com
OK
Czech Airlines
Mr. Jiri Marek
VP for Marketing & Sales
jiri1.marek@czechairlines.com
AC
DL
Delta Air Lines
Tim Lotter
Manager, Intl. Sales
Development
tim.lotter@delta.com
AL
DL
Delta Air Lines
Armin Venencie
General Manager, Sales &
Distribution EMEA
armin.w.venencie@delta.com
D9
Donavia
Olev Dyshkant
Head of Marketing
marketing@aeroflot-don.ru
AC
KA
Dragonair
Clarence Tai
General Manager Sales &
Distribution
clarence_tai@cathaypacific.com
AL
KA
Dragonair
Helen Sum
Assistant Manager, Agency
Distribution
helen_sum@cathaypacific.com
AC
MS
Egyptair
Tamer Gebril
Manager Industry Affairs
industry_aff@egyptair.com.eg
AC
LY
El Al
Daniel Saadon
General Manager, Israel
Branch
dannys@elal.co.il
AL
LY
El Al
Linda Grinfeld
Manager IATA & Tariffs
Linda@elal.co.il
AC
EK
Emirates
Claus Basse
Manager Industry Affairs
Claus.asse@emirates.com
AL
EK
Emirates
Richard Pearl
Industry Affairs Superintendent richard.pearl@emirates.com
OV
Estonian Air
AC
ET
Ethiopian Airlines
Rahel Assefa
Director Passenger Revenue & rahela@ethiopianairlines.com
Capacity Management
AC
EY
Etihad Airways
Daniel Hailu
Manager Industry Affairs
dhailu@etihad.ae
ALT
EY
Etihad Airways
Fathi Atti
Head of Government Affairs
fatti@etihad.ae
YU
Euroatlantic Airways
QY
European Air Transport
frances.tay@dhl.com
EW
Eurowings
BR
EVA Air
Julienne Cheng
Manager
Juliennecheng@evaair.com
AY
Finnair
Arja Sundberg
Manager Industry Affairs
arja.sundberg@finnair.com
BE
flybe
FH
Freebird Airlines
Veronique Guevel
Contracts Manager
veronique@freebirdairlines.com
AC
GA
Garuda
Mr. Sukamdo
Senior Manager Distribution
sukamdo@garuda-indonesia.com
AL
GA
Garuda
Hartono Hadiwiyoto
Marketing Analyst
h.hadiwiyoto@garuda-indonesia.com
A9
Georgian Airways
Lia Naskidashvili
Head of Intl. Relations
lia@georgian-airways.com
AR
GF
Gulf Air
Dr. Amr Junaid
Snr Manager Sales Steering &
Distribution
Amr.junaid@gulfair.com
AL
GF
Gulf Air
Naveen Bhatty
Manager, STNME JV and
Distribution Support
naveen.bhatty@gulfair.com
AC
HR
Hahn Air Lines
Katharina Becker
Director Legal Dept.
k.becker@hahnair.com
AL
HR
Hahn Air Lines
Jörg Troester
SVP Corporate Strategy
j.troester@hahnair.com
HU
Hainan Airlrines
HA
Hawaiian Airlines
Dan Burruss
Sr. Director Intl. Sales
UO
Hong Kong Express
Airways
Wayne Wang
Asst. to President cum Director waynewang@hkairlines.com
AC
IB
Iberia
Oscar Sobejano
Interline Manager
osobejano@iberia.es
AC
FI
Icelandair
Anita Knutsdottir
Pricing & Tariffs
ak@icelandair.is
AC
chen-l@hnair.com
dan.burruss@hawaiianair.com
AL
FI
Icelandair
Anna Gudrun
Tomasdottir
Manager Ticketing
agt@icelandair.is
7i
Insel Air
Secretariat Insel Air
D6
Inter Air
AC
IR
Iran Air
Javad Nazemof
AL
IR
Iran Air
Mrs. Shirin Madadi Yekta Senior Manager Commercial
Agreements & AIP Secretary
EP
Iran Aseman Airlines
6H
Israir Airlines and Tourism Ltd
AC
JL
Japan Airlines
Toru Hayashi
Director, Intl Passenger Sales & Toru1.hayashi@jal.com
Promotion
AC
JU
JAT Airways
Milica Zaninovic
Manager Agency Affairs
zaninovicm@jat.com
AL
JU
JAT
Dragana Djuranovich
Revenue Accounting
djuranovicd@jat.com
J9
Jazeera Airways
AC
9W
Jet Airways
Anthony D'SA
Sr General Manager
adesa@jetairways.com
AL
9W
Jet Airways
Ms Sonu Kripalani
VP India Sales
skripalani@jetairways.com
J9
JetBlue
joanna.geraghty@jetblue.com
S2
Jet Lite
nkardassis@jetairways.com
R5
Jordan Aviation
Airlines
Zuahir Khashman
R5
Jordan Aviation
Airlines
Assad Nammari
management@fly-inselair.com
vnathan@interair.co.za
General Director, Marketing
and Commercial Agreements
nazemof@iranair.com
sh.madadi@iranair.com
fekri@iaa.ir
antonio.fernandes@jazeeraairways.com
VP Passenger Service
zuhair@jordanaviation.jo
nammari@jordanaviation.jo
5N
JSC Nordavia Regional Airlines
martin.isler@luxairgroup.lu
AC
KQ
Kenya Airways
Agnes Wasai Kwanya
Manager Interline & Tariffs
agnes.kwanya@kenya-airways.com
AC
IT
Kingfisher Airlines
Manoj Chacko
Executive VP (Commercial)
manoj.chacko@flykingfisher.com
AL
IT
Kingfisher Airlines
Raj Andrade
VP Alliances & Codeshare
raj.andrade@flykingfisher.com
Y9
Kish Airlines
AC
KL
KLM
Johan Lodewijckx
Manager, IATA and Industry
Affairs
johan.lodewijckx@klm.com
AC
KE
Korean Air
Sang Kun Lee
General Manager
leeky@koreanair.com
AL
KE
Korean Air
Joo Yeon Lee
Manager
leejooyeon@koreanair.com
KU
Kuwait Airways
LR
LACSA
AC
TM
LAM - Linhas Aéreas
de Moçambique
Claudio Banze
General Sales Manager
cbanze@lam.co.mz
AL
TM
LAM - Linhas Aéreas
de Moçambique
Sergio Govene
Reservations Manaager
sgovene@lam.co.mz
AC
LA
Lan Airlines
Pilar Chavez
Director, Commercial Projects
Pilar.chavez@lan.com
4M
Lan Argentina
LP
Lan Perú
XL
LanEcuador
mario.zamora@taca.com
agustin.agraz@lan.com
NG
Lauda Air
LN
Libyan Airlines
AL
LO
LOT
Elizabeth Dmowska
IATA Rules and Regulations
Adviser
e.dmowska@lot.pl
AC
LH
Lufthansa
Johannes Ernst
Agency Manager, Passenger
Traffic
johannes.ernst@dlh.de
AL
LH
Lufthansa
Nathali Hartkopf
Gen. Mgr. Business
Associations R Alliance Sales
nathali.hartkopf@dlh.de
LG
Luxair
Vice President, Marketing &
Sales
martin.isler@luxairgroup.lu
W5
Mahan Air
AC
MH
Malaysia Airlines
Germal Singh Khera
AL
MH
Malaysia Airlines
Johanna Ezreen Othman Government & Industry
Relations, Manager
TF
Malmö Aviation AB
AC
ME
MEA
Rabih Azar
Head of Industry Affairs
AL
ME
MEA
Salim Kharrat
I/C of Agency and Procedures/ kharrats@mea.com.lb
Cargo Tariffs
IG
Meridiana
AC
OM
MIAT
Gurbadam Baljindondog Senior Manager, Sales
gurbadam@miat.com
AL
OM
MIAT
Tserendagva Jamts
Sales Manager
tserendagva@miat.com
AL
OM
MIAT
Jamtsai Dorj
Senior Manager, Tariffs &
Pricing
jamtsai@miat.com
t.tajouri@ln.aero
international@mahanairlines.com
General Manager Govt. &
Industry Relations
germal@mas.com.my
ezreen@mas.com.my
bjorn.lundberg@malmoaviation.se
ind.aff@mea.com.lb
monica.riccomi@meridianafly.com
YM
Montenegro Airlines
Mladenka Vuykmirovic
mladenka@mgx.me
BJ
Nouvelair Tunisie
AR
OA
Olympic Air
Anastasios Mais
Commercial Development
Director
a.mais@olympicair.com
AL
OA
Olympic Air
Mrs. Efharis Zervou
Pricing & Interline Manager
e.zervou@olympicair.com
WY
Oman Air
8Q
Onur Air
Nasuh Cetin
AC
PR
Philippine Airlines
Maria Socorro Gonzaga Senior Assistant Vice
President, External Affairs
acor_gonzaga@pal.com.ph
AL
PR
Philippine Airlines
Arnel Vibar
arnel_vibar@pal.com.ph
PC
Pegasus Airlines
NI
PGA - Portugália Airlines
AC
PK
PIA
Saleem Raza Bhutto
General Manager Industry
Affairs
khiiupk@piac.aero
AL
PK
PIA
Feyaz Ali Shah
Manager Agency Affairs
khisapk@piac.aero
PU
PLUNA
Rodolfo Braselli
Customer Services Department clientes@flypluna.com
Representative
PW
Precision Air
AC
QF
Qantas
Dayle Vaughan
Agency Programme Manager
daylevaughan@qantas.com.au
AL
QF
Qantas
Paul Alacqua
Manager Distribution
Operations
palacqua@qantas.com.au
AC
QR
Qatar Airways
Rajeev Chopra
Manager, Outstations Business rajeevc@qatarairways.com.qa
Finance
mohamed.hamdi@nouvelair.com.tn
akalsaid@oas.com.om
Domestic Network Manager
Manager, Industry Affairs
ncetin@onurair.com.tr
mustafa.hesapcioglu@flypgs.com
pmwikitawe@precisionairtz.com
AL
QR
Qatar Airways
FV
Rossiya Airlines OJSC
AT
Royal Air Maroc
BI
Royal Brunei
AC
RJ
Royal Jordanian
AbdulQader Kailani
Head of Sales Department
AL
RJ
Royal Jordanian
Munir Alqasem
Manager IATA, Interline & GSA munir.qassem@rj.com
AC
SA
SAA
George Edwin Mellett
Head of Revenue Accounting
georgeMellett@flysaa.com
AL
SA
SAA
Raylene Saggeus
Manager Revenue Protection
raylenesaggeus@flysaa.com
FA
Safair
Costa Vouros
VP Standards & Compliance
cvouros@safair.co.za
SK
SAS
Häkan Olsson
Director
hakan.olsson@sas.dk
SP
SATA Air Acores
AC
SV
Saudi Arabian Airlines Abdulellah A. Alquthami Mgr Travel Agency Affairs
aquthami@saudiairlines.com
AL
SV
Saudi Arabian Airlines AbdulRahman AlHamadi Fin Sec Mgr Fin BSP Prog
aalhammadi@saudiairlines.com.sa
SC
Shandong Airlines
HUI Li
Sales Department
xsc@shandongair.com.cn
FM
Shanghai Airlines
CUI Bo
General Manager’s Office
zjb@ceair.com
ZH
Shenzhen Airlines
SQ
SIA
AC
AC
AC
Vilas Gonsalves
Manager Revenue MIS
vgonsalves@qatarairways.com.qa
Jamila Merimi
Senior Manager Pricing &
Revenue Management
mhabachi@royalairmaroc.com
cihanafj@rba.com.bn
abdulqader.kailani@rj.com
j00095@shenzhenair.com
Lee Ser Yi
VP Corporate Sales &
Distribution
Seryi_lee@singaporeair.com.sg
AL
SQ
SIA
Gina Goh
Head Distribution
Gina_goh@singaporeair.com.sg
S7
Siberia Airlines
3U
Sichuan Airlines
MI
Silkair
ZY
SKY Airlines
JZ
Skyways (Avia Express Sweden AB)
XZ
South African Express Airways
AC
UL
SriLankan
Srimanthaka
Senanayake
Manager International Relations srimanthakas@srilankan.aero
AL
UL
SriLankan
Yasmin Majeed
Industry Affairs Manager
yasminm@srilankan.aero
AC
SD
Sudan Airways
Samia Elzein
Head of Industry Affairs Unit
samia@sudanair.com
XQ
Sun Express
meral.gezer@sunexpress.com
PY
Surinam Airways
slm@slm.firm.sr
AC
LX
SWISS
Jeannette Steiner
Manager, Fare Audit
jeannette.steiner@swiss.com
AL
LX
SWISS
Veronique Jordan
Manager, Sales Accounting
jov@swiss.com
AL
RB
Syrianair
Fajer Ali
Manager, Interntional Affairs
fajer.ali@syriaair.com
DT
TAAG Angola Airlines Antonio Bartolomeu
Antonio.bartolomeu@flytaag.com
TA
TACA
raul.aragon@taca.com
ajy0804@163.com
alper.unal@skyairlines.net
wmakkink@flysax.com
VR
TACV Cabo Verde
Airlines
JJ
TAM Linhas Aereas
PZ
Agency Sales Analyst
EQ
TAM - Transportes
Hanna Rambo
Aéreos del Mercosur
Sociedad Anónima
TAME - Linea Aerea del Ecuador
AC
TP
TAP - Air Portugal
Ana Paula Canada
Portugal Sales Director
pcanada@tap.pt
AL
TP
TAP - Air Portugal
Maria Teresa Lopes
Finance Director
tlopes@tap.pt
AC
RO
TAROM S.A.
Daniela Chiriac
Distribution Manager
dana.chiriac@tarom.ro
AL
RO
TAROM S.A.
Cristina Catrina
Distribution Deputy Manager
cristina.catrina@tarom.ro
AC
TG
Thai Airways
Kriangkrai Manomaiphan Director Area Thailand, IndoChina & Myanmar
AC
TK
Turkish Airlines (THY) Okan Öksüz
Agency Affairs Manager
ooksuz@thy.com
AL
TK
Turkish Airlines (THY) Ece Kafkasli
Agency Affairs Specialist
ekafkasli@thy.com
AC
UN
Transaero
Igor Grigorian
Director, Foreign Relations
Department
spa@transaero.ru
GS
Tianjin Airlines
XU Jiabin
Manager/Sales Center
Jb_xu@hnair.net
GE
TransAsia Airways
Lucas Chuang
VP Strategic Office & CIO
lucaschuang@tna.com.tw
AC
X3
TUIfly
Reinhold Heinz
Head of Interface, Financial
Reporting
Reinhold.heinz@tuifly.com
AL
X3
TUIfly
Gunnar Krauss
Director of Finance
Gunnar.krauss@tuifly.com
AC
TU
Tunis Air
Ridha Cheikhrouhou
General Director
ridha.cheikhrouhou@tunisair.com.tn
AC
David Fernandez
Corporate Planning Manager
dfernandes@tacv.aero
paulo.castello@tam.com.br
helpdesk.tarifas@tam.com.br
paulestia@tame.com.ec
Kriangkrai.m@thaiairways.com
AL
TU
Tunis Air
Mrs. Ilhem Ben Slimane Agency Service Manager
ilhem.benslimane@tunisair.com.tn
AL
PS
Ukraine International
Airlines
Olena Mykhaylova
Head of Pricing Distribution
mykhaylova.elena@ps.kiev.ua
AL
PS
Ukraine International
Airlines
Simon Bundle
bundle.simon@ps.kiev.ua
AC
UA
United Air Lines
Olga Camacho
Vice-President Network
Development & Revenue
Management
MD Finance & Accounting
AL
UA
United Air Lines
Kevin Brown
Senior Manager, Revenue
Accounting, Transatlantic
kevin.p.brown@united.com
AC
US
US Airways
Shelly A. Sterling
Regional Manager, Global
Offline Sales
shelly.sterling@usairways.com
AC
UT
UT Air
Natalia Polinovskaya
Leading Manager, Revenue
Department
natalia.polinovskaya@utair.ru
AL
UT
UT Air
Asiya Madyarova
International Aviation
Organizations Coordinator
asiya.madyarova@utair.ru
AC
VN
Vietnam Airlines
Mr. VU Nguyen Khoi
Dty Director – Marketing &
Sales Dept.
khoivn@vietnamairlines.com
AL
VN
Vietnam Airlines
Mr. Tran Minh Hoan
GM – Tariffs & Ticketing
hoantm@vietnamairlines.com
AL
VN
Vietnam Airlines
Mrs. Tran Thi Trang
Dty GM Tariffs & Ticketing
trangtt@vietnamairlines.com
AL
VN
Vietnam Airlines
Mrs. Vu Thi Uyen
Dty GM Tariffs & Ticketing
uyenvt@vietnamairlines.com
AC
VS
Virgin Atlantic
Angela Lochlin
Manager Revenue Acct Svcs
angela.lochlin@fly.virgin.com
AC
VA
Virgin Australia
Simon Pitt
Manager, Revenue
simon.pitt@virginaustralia.com
XF
Vladivostok Air JSC
office@vladavia.ru
Y4
Volaris
miguel.alba@volaris.com.mx
VI
Volga-Dnepr Airlines
olga.camacho@united.com
AL
G3
VRG Linhas Aeras
WI
White Airways SA
WF
Wideroe
MF
Xiamen Airlines
ZHENG Qionghu
Passenger Sales Dept.
Ps_market@xiamenair.com.ch
IY
YEMENIA
Mukhtar Al Haidari
Director Revenue Accounting
mukhtar.alhaidary@yemenia.com
AR = Accredited Representative
AL = Appointed Alternate
Helder Jesus
Quality Manager
helder.jesus@flywhite.com
salessupport@wideroe.no
Attachment ‘B’
ACCREDITATION OF REPRESENTATIVE
Passenger Agency Conference
of the
International Air Transport Association
In accordance with the Provisions for the Conduct of the IATA Traffic Conferences and particularly Section V thereof,
.....................................................................................................................
(name of carrier)
being a voting Member of the Passenger Agency Conference hereby appoints and accredits as its representative to
the Passenger Agency Conference
........................................................................................................................
(name)
........................................................................................................................
(title)
.......................................................................................................................
(e-mail address)
2.
It is hereby certified that the said appointee meets the requirements of, and has full power and authority to act
in accordance with the first paragraph of Section V of the Provisions which reads:
"Each voting member shall accredit in writing to the Secretary one representative to each Traffic Conference.
Each appointment of such accredited representative shall be duly executed by the Chief Executive of the
Member, and shall certify that the appointee has full power and authority to bind the appointing Member on
any matter properly before the Traffic Conference, and that the appointee has full power and authority to
designate an alternate to act in his place and stead and to delegate to such alternate such power and
authority to bind the appointing Member.”
3.
The foregoing appointment will remain in effect until revoked by written notice.
Name .................................................................................Date ...................................................................
(to be signed by the Chief Executive of the Member)
Title ...................................................................................
Please complete all Information and send directly to Janet Mekkaoui
E-mail : mekkaouij@iata.org or Fax : +41 22 770 26 31
www.iata.org
International Air Transport Association
Route de l'Aeroport 33
PO Box 416
CH - 1215 Geneva 15 Airport
Switzerland
Tel: +41 22 770 2772
Fax: +41 22 770 2631
Attachment ‘C’
APPOINTMENT OF ALTERNATE
To Accredited Representative
Passenger Agency Conference
Of The
International Air Transport Association
In accordance with the Provisions for the Conduct of the IATA Traffic Conferences and particularly Section V thereof,
................................................................................................................................... being the duly Accredited
(name)
Representative of .................................................................................................................................................
(name of carrier)
hereby appoints as his/her alternate
..................................................................................
(name)
...............................................................................
(title)
........................................................................................................................
(e-mail address)
2.
It is hereby certified that the said Accredited Representative delegates to his/her alternate the power and
authority to act on Passenger Agency Conference matters as required by the second paragraph of Section V
of the Provisions which reads:
"A duly accredited representative may appoint as alternate to act in his place and stead at any meeting a
responsible employee of such Member, provided that no such person shall be recognised as the alternate of
a representative unless there is on file with the Secretary, or is presented at the time a written designation,
signed by such representative, delegating to such person the power and authority of such representative to
act on Traffic Conference matters; provided further that in the case of two of more Members being engaged
in such joint operations, the alternate may be an employee of any such Member engaged in such joint
operations. Such designation of an alternate shall be valid until revoked or replaced by another
designation”.
3.
The foregoing appointment will remain in effect until revoked by written notice.
Name .................................................................................................. Date .........................................................
(to be signed by the Accredited Representative of the Member)
Title
............................................................................
Please complete all Information and send directly to Janet Mekkaoui
E-mail : mekkaouij@iata.org or Fax : +41 22 770 26 31 International Air Transport Association
www.iata.org
Route de l'Aeroport 33
PO Box 416
CH - 1215 Geneva 15 Airport
Switzerland
Tel: +41 22 770 2772
Fax: +41 22 770 2631
Attachment 'D'
This sheet shows what should be included in any submission to the Passenger Agency
Conference. The inclusion of the following details will help the Conference to
understand the proposal properly and to reach an accurate conclusion.
Agenda Item:
Revision No.:
Date:
Page:
0
1 of 1
RESOLUTION XXX - NAME OF RESOLUTION
Submitted by (a Member)
BACKGROUND/PROBLEM
Approximate left-hand margin
Approximate right-hand margin
PROPOSED SOLUTION
SUGGESTED RESOLUTION AMENDMENT (IF APPLICABLE)
EFFECTIVENESS
[ ] Normal effectiveness of 1 June 2014
[ ] Expedited effectiveness of 1 January 2014
Agenda Item:
Revision No.:
Date:
Page:
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PASSENGER AGENCY CONFERENCE AGENDA SUBJECT OUTLINE
Submitted by the Secretary
A – ADMINISTRATIVE MATTERS
Item
A1
A2
A3
A4
A5
A6
A7
A8
Subject
Comment
1stT
No paper
1stT
1stT
1stT
1stT
1stT
Passenger Agency Conference Agenda Outline
Opening of Conference – Chairman’s Introduction
Examination of Credentials
Competition Law Compliance
Approval of Minutes of Previous Meeting
Report from Senior Vice President, IDFS
Restructuring of the PAConf Agenda
Comments on the PAConf Agenda
G – GROUP REPORTS
Item
G1
G1.1
G2
G2.1
Subject
Comment
Report of the Passenger Agency Conference Steering Group
(PSG)
Vacancies on the PSG
Report of the Passenger Agency Programme Global Joint
Council (PAPGJC)
Vacancies on the PAPGJC
1stT
R – REVISIONS TO THE AGENCY PROGRAMME
Item
R1
R1.1
R1.2
R1.3
R1.4
R1.5
R2
R3
R4
R5
R6
Subject
Comment
Editorial Changes to Passenger Agency Resolutions
Editorial Amendment to Resolution 824r
Editorial Amendment to Resolution 818g
Editorial Amendments to Resolutions 818g and 832
Editorial Amendment to Resolution 810z
Editorial Amendment to Resolution 810d
Annual Reviews and Consequences of Non-compliance
Airlines’ Web Sales Financial Securities
Interpretation and Hierarchy of Sources
Amendments to Resolution 820e
Local Financial Criteria
st
1stT = sent out in 1 transmittal
OS1 = onsites sent out on (date)
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
nd
2ndT = sent out in 2 transmittal
OS2 = onsites sent out on (date)
Agenda Item:
Revision No.:
Date:
Page:
R7
R8
R9
R10
R11
R12
R13
R14
R15
R16
R17
R18
R19
R20
R21
R22
R23
R24
R25
R26
R27
R28
R29
R30
R31
R32
R33
Airline Bilateral Guarantees
Financial Security Policy
New BSP Charging Model
Requirement to Sign Provisional PSAA
Resolution 800a – Application Form for Accreditation as an
IATA Passenger Sales Agent
APJC Membership
Editorial Amendments to Resolution 832
ADMs – Alignment with BSPlink
Amendment to Definition of STD
Resolutions 800o, 818a and 842
Non-BSP Countries moved to Resolution 800
Definition of Latin America in Resolution 866
Definition of South West Pacific
Definition of ATA in Resolution 866
Resolution 850m – Issue and Processing of ADMs
Expiry of Resolution 810d
Addition to Resolution 818g (Attachment C) for Remittance
Date - India
Number of Irregularities to Trigger Default in India
Reduction in BSP Processing Times – BSP New Zealand
Change of Remittance Frequency - Pakistan
Reduction of Credit Period – BSP Indonesia
Change in Remittance Frequency and Local Financial Criteria
– BSP Spain
Remittance Frequency
Customer Contact Information
Change in Remittance Frequency – BSP Romania/Moldova
Introduction of VMFR Scheme in BSP Poland
Instructions to Agents in the Event of Airline Suspension
st
1stT = sent out in 1 transmittal
OS1 = onsites sent out on (date)
A1
0
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2 of 4
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
nd
2ndT = sent out in 2 transmittal
OS2 = onsites sent out on (date)
Agenda Item:
Revision No.:
Date:
Page:
A1
0
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RZ – APJC SUBMISSIONS REQUIRING ACTION
Item
RZ1
RZ2
RZ3
RZ4
RZ5
RZ6
RZ7
RZ8
RZ9
RZ10
RZ11
RZ12
RZ13
RZ14
RZ15
RZ16
RZ17
RZ18
RZ19
RZ20
RZ21
RZ22
RZ23
RZ24
RZ25
Subject
Comment
Minor Error Rule – Argentina, Paraguay and Uruguay
Change to Local Financial Criteria - Argentina
Change to Local Financial Criteria - Bangladesh
Change to Reporting Calendar - Bolivia
Change to Local Financial Criteria - Bolivia
Change to Local Financial Criteria - Brazil
Change to Local Financial Criteria - Chile
Change to Local Financial Criteria - China
Change to Local Financial Criteria – Hong Kong and Macau
Change to Local Financial Criteria – Hong Kong and Macau
Change to Local Financial Criteria - India
Change to Local Financial Criteria - Korea
Change to Local Financial Criteria - Malaysia
Change to Local Financial Criteria - Morocco
Change to Local Financial Criteria - Pakistan
Change to Local Financial Criteria - Paraguay
Change in BSP Calendar - Peru
Change to Local Financial Criteria - Peru
Change to Local Financial Criteria - Poland
Change to Local Financial Criteria - Singapore
Change to Local Financial Criteria – Sri Lanka
Change to Local Financial Criteria – Switzerland/Liechtenstein
Change to Local Financial Criteria - Uruguay
Change to Local Financial Criteria - Venezuela
Change to Local Financial Criteria – Italy
st
1stT = sent out in 1 transmittal
OS1 = onsites sent out on (date)
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
1stT
nd
2ndT = sent out in 2 transmittal
OS2 = onsites sent out on (date)
Agenda Item:
Revision No.:
Date:
Page:
A1
0
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T – TECHNICAL
Item
T1
T2
T3
T6
Subject
Comment
Effectiveness Status of Resolutions Adopted at PAConf/34 and
by Mail Vote
Status of New BSPs
Status of Agency Investigation Panels (AIPs)
Office of the Travel Agency Commissioner
nd
2 T
nd
2 T
nd
2 T
nd
2 T
C – CLOSING ITEMS
Item
C1
C1.1
C2
C3
C4
Subject
Comment
Any Other Business
Effectiveness Dates of Resolutions Adopted
Election of Conference Officers
Date and Place of Next Meeting
st
1stT = sent out in 1 transmittal
OS1 = onsites sent out on (date)
nd
2ndT = sent out in 2 transmittal
OS2 = onsites sent out on (date)
Agenda Item:
Revision No.:
Date:
Page:
A3
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EXAMINATION OF CREDENTIALS
Submitted by the Secretary
Membership of PAConf is open to all Members. The current list of Accredited
Representatives and Alternates to the Passenger Agency Conference on file with the
Secretary is shown under Attachment 'A' of the 1st Transmittal. Any person wishing
to vote at the Conference must have submitted to the Secretary a duly completed
'Accreditation' or 'Appointment of Alternate' form as shown at Attachments 'B' and 'C'
of that Memorandum.
The list was correct up to the date of issuance. If any of the information shown
requires updating, please notify this office immediately. The names which are
shaded in grey have notified accreditation but the relevant accreditation forms have
not yet been received. In these instances, Members are asked to complete and
return to the Secretariat the forms mentioned above as soon as possible.
Proposed Action
Delegates to ensure their credentials are in order.
Agenda Item:
Revision No.:
Date:
Page:
A4
0
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COMPETITION LAW COMPLIANCE
Submitted by the Secretary
In order to ensure attendees at IATA meetings fully comply with applicable EU and
US competition laws, the following message is always included in the agenda of all
IATA meetings, whether airline only or joint with travel agents:
"This meeting is being conducted in compliance with the Provisions for the
Conduct of the IATA Traffic Conferences. Pursuant thereto, this meeting will not
discuss or take action to develop fares or charges, not will it discuss or take action on
remuneration levels of any intermediaries engaged in the sale of passenger air
transportation. This meeting also has no authority to discuss or reach agreement on
the allocation of markets, the division or sharing of traffic or revenues, or the number
of flights or capacity to be offered in any market. Delegates are cautioned that any
discussion regarding such matters, or concerning any other competitively sensitive
topics outside the scope of the agenda, either on the floor or off, is strictly prohibited."
Proposed Action
PAConf to note this item.
Agenda Item:
Revision No.:
Date:
Page:
A5
0
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APPROVAL OF MINUTES OF PREVIOUS MEETING
Submitted by the Secretary
The Minutes of PAConf/35 (Abu Dhabi, 15 and 16 October 2012) were published on
19 November 2012 under cover of Memorandum PAC/Meet/222.
The Resolutions adopted at PAConf/35 were circulated on 1 November 2012 under
cover of Memorandum PAC/Reso/565 (expedited) and on 12 November 2012 under
cover of PAC/Reso/566 (normal effectiveness).
Proposed Action
Conference is invited to approve the Minutes of PAConf/35.
Agenda Item:
Revision No.:
Date:
Page:
REPORT FROM SENIOR VICE PRESIDENT FDS
Submitted by the Secretary
This report will be presented at Conference.
A6
0
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1 of 1
Agenda Item:
Revision No.:
Date:
Page:
A7
0
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RESTRUCTURING OF THE PACONF AGENDA
Submitted by the Secretary
In 2002, PAConf adopted a new format for its agenda which remains in place today.
It is structured around the following categories:
A items
Administrative Items, including
• Opening of Meeting
• Examination of Credentials
• Approval of Minutes
G items
Group Reports, including
• PSG Report
• PAPGJC Report
• APJC Reports
R items
Revisions to the Agency Programme, including
• Amendments to resolutions
• Members submissions to Conference
• Updates on specific issues and/or markets (e.g. India/Israel)
• Policy issues
• Changes to fees and charges
T items
Technical Items, including
• Agency Accreditation reports
• Effectiveness Status of resolutions adopted
• Status of new BSPs/AIPs
• Product updates (e.g. ID Card)
• Report from the Travel Agency Commissioners
C items
Closing Items, including
• Any Other Business Items
• Effectiveness Dates of Resolutions Adopted
• Election of Conference Officers
• Date/place of next meeting
Agenda Item:
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Since then, there have been considerable changes in the way in which the
Programme operates. Now that all BSP countries have migrated to Resolution 818g,
each country/ area has established an APJC and each APJC is required to provide
an annual report to Conference. Thus, last year, 85 APJCs submitted a report using
a standard reporting template. In addition, Conference dealt with ten routine
technical reports submitted under the ‘T’ items. Together, of the 525 pages of
agenda papers sent out in the 1st and 2nd transmittals, an average of 70% dealt with
G and T items, or routine reports requiring no action.
PAConf/35 Agenda 2012
Total Pages
1st transmittal
2nd transmittal
G / T Items
245
280
G/T items as % of agenda
151 / 0
62%
158 / 69
81%
Conference is responsible for making decisions on any changes to Local Financial
Criteria (LFC) or Remittance Frequency (RF).
Very often, these changes come
through as proposals from the APJC but can also be a Member submission.
If there is no action required of Conference, the APJC reports are simply noted.
However, it is time consuming having physically to go through the reports one by one
and because of the sheer number, difficult to spot those reports that require action.
RESTRUCTURE OF CONFERENCE AGENDA
To reinvigorate the Conference, make PAConf more focused on the business of the
day and assist Members in dealing with items requiring action, a proposal was put to
PSG/83 in July to introduce a new format for the agenda by:
•
•
•
Posting all information items and any reports simply for noting to a web site
that can be freely accessed by PAConf members and PAPGJC Agent
Representatives
Streamlining the agenda to include A, R and C items only
Incorporating two new sections under the R items for ‘Changes to Local
Financial Criteria’ and ‘Changes to Remittance Frequency’
It is believed that this restructuring will have a positive impact on the quality and
relevance of the Conference, as it would have the following benefits:
•
•
•
•
•
Allow more focus on business issues and items that require Conference
action
Enhance attendance at Conference by Members
Present members with a more efficient and focused agenda
Remove time-consuming attention on routine or informational matters
Make it clearer which items require action
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___________________________________________________________________
•
•
Reduce reliance on paper/printed material
Enable more dynamic presentation of informational material via the website
APJC REPORTING FORMAT
A copy of the reporting template used last year is shown at Attachment ‘A’. Much of
this information can be removed and presented in a consolidated and dynamic
format:
•
Remittance Frequency
•
Default information
•
Other APJC information
This would enable greater detail to be shared, providing Members with the ability to
drill down and tailor the information to their own needs. It would provide consistency
in the way information is presented, as it would be generated from a common central
source and presented in a standard format.
Proposed Action
PSG/83 supported the proposed revised format for the Conference agenda and its
introduction at PAConf/36 in October this year.
The link to the web site for collecting G and T reports and information will be provided
with the next transmittal and a demonstration of the new site given at the meeting.
Agenda Item:
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___________________________________________________________________
APJC REPORTING TEMPLATE 2012
REPORT OF APJC – XXX
Council Activity since PAConf/34
Meeting
Date held
Key Issues dealt with and outcome:
Number
Composition – No. airlines ______/ No. agents ______
Codes of airline members:
Agents:
Changes to locally agreed criteria that require Conference action:
Remittance Frequency:
 Weekly
 Twice Monthly
 Monthly  Other, please state___________
Date Local Financial Criteria last Changed:
Is VMFR Available in this market?
 Yes
 No
BSP Related Information
Defaults:
Jan-Dec 2011:
Number:
Currency:
Default amount:
Recovered:
Amt. Outstanding:
_______________________
_______________________
_______________________
_______________________
_______________________
YTD 2012:
_______________________
_______________________
_______________________
_______________________
_______________________
Other information of interest to PAConf:
Report Reviewed and Approved by Council Chairman:
(Name of APJC Chairman)
(Date report approved)
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REPORT OF THE PASSENGER AGENCY CONFERENCE STEERING GROUP (PSG)
Submitted by the Secretary
Since PAConf/35 in October 2012, PSG has met in full session on two occasions – PSG/82 held
in March 2013 and PSG/83 in July 2013.
In addition, PSG met on two further occasions. The first was a special one-day meeting held on
6 February 2013 in Geneva to address recent airline failures and their effect on the BSP. The
meeting also took the opportunity to discuss BSP Israel and problems arising from an airline
bankruptcy due to the special conditions of the antitrust permit to operate the BSP in that
country.
The second occasion was a conference call on 3 July 2013 to discuss a particular situation that
had arisen in BSP Sri Lanka with the move to weekly remittance effective 1 July 2013.
Below is a summary of the actions taken by PSG/82 and PSG/83:
•
•
Reviewed and endorsed the following proposals onto the Conference agenda:
o A7 – Restructuring of the PAConf Agenda
o R2 – Annual Reviews and Consequences of Non-compliance
o R3 – Airlines’ Web Sales Financial Securities
o R6 – Local Financial Criteria
o R7 – Airline Bilateral Guarantees
o R11 – Resolutions 800a – Application Form
o R13 – Editorial Amendments to Resolution 832
o R15 – Amendment to Definition of STD
o R18 – Definition of Latin America in Resolution 866
o R19 – Definition of South West Pacific
o R20 – Definition of ATA in Resolution 866
Reviewed and provided input on the following agenda items:
o R4 – Interpretation and Hierarchy of Sources
o R5 – Amendments to Resolution 820e
o R8 – Financial Security Policy
o R10 – Requirement to sign Provisional PSAA
o R14 – ADMs – Alignment with BSPlink
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o
o
o
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R16 – Resolutions 800o, 818a and 842
R21 – Resolution 850m – Issue and Processing of ADMs
R29 – Remittance Frequency
R30 – Customer Contact Information
•
Received presentations relating to IATA’s Strengthening ISS (SISS) Project, NewGen ISS,
IATA Customer Satisfaction Survey, NDC, EMD, New Charging Model, IATA Restructuring,
IDFS Scorecard, ISS DPC Strategy.
•
Reviewed the agendas of the Passenger Agency Programme Global Joint Council
(PAPGJC) and provided PSG feedback to the PAPGJC meetings where necessary.
Endorsed the formal establishment of an Agent-Airline Forum (AAF) as a working group
under the PAPGJC to address areas of common interest.
•
Considered a number of submissions relating to the efficiency and improvement of the TAC
programme.
•
Provided guidance to IATA Management on the development of a number of internal
policies and procedures covering Protecting ISS Airline Funds from Airline Bankruptcies,
Information on Industry Bank Guarantees, PCI DSS Requirements, Status of New BSPs.
•
Monitored developments in individual markets of concern to PSG including Cyprus, Greece,
Egypt, Israel, Ukraine, Sri Lanka, France, Spain, India.
•
Reviewed a total of 17 Mail Votes prior to presentation for voting by PAConf Members. A
full report on the mail votes conducted will be provided in the 2nd transmittal.
The next meeting (PSG/84) will be held on 23 and 24 September 2013.
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EDITORIAL CHANGES TO PASSENGER AGENCY RESOLUTIONS
Submitted by the Secretary
Papers R1.1 through R1.5 reflect a number of minor amendments required to the resolutions
that are purely editorial in nature. The main reasons for the amendments are:
•
•
•
•
To correct a cross-reference
To delete outdated text
To carry through amendments agreed at a previous PAConf
To clarify the intent of the text
Proposed Action
PAConf is asked to agree the changes proposed in items R1.1 through R1.5.
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EDITORIAL AMENDMENT TO RESOLUTION 824r
Submitted by the Secretary
Amend typographical error in Resolution 824r as shown below:
1.1.3
Inability to Process
Notwithstanding the provisions of 1.1.2 above if a Member is unable to process a refund on
partly used traffic documents within the proscribed prescribed time-frame, the reasons will be
communicated to the Agent by the Carriers.
Proposed Action
Conference to endorse the above amendment.
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EDITORIAL AMENDMENT TO RESOLUTION 818g
Delete incorrect apostrophe in Resolution 818g, Attachment ‘A’ Section 1.6.2 as shown below:
1.6.2 Frequency of Remittance
The Conference shall establish the standard frequency of Agents' Remittances under such
BSP. The Remittance Date will be communicated to all agent's participating in each BSP.
Proposed Action
Conference to endorse the above amendment.
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EDITORIAL AMENDMENTS TO RESOLUTIONS 818g and 832
Amend typing error in Resolutions 818g and 832:
Resolution 818g:
1.1.1(a)(i) monies for sales made by an Agent, where the ticket is issued by the BSP Airline on
behalf of the Agent and reported using the facility of the BSP, shall be deemed due buy by the
Agent to the BSP Airline and shall be settled in accordance with the provisions of this section in
the same way as if the Agent had issued an STD.
Resolution 832g:
1.1.1(a)(i) monies for sales made by an Agent, where the ticket is issued by the BSP Airline on
behalf of the Agent and reported using the facility of the BSP, shall be deemed due buy by the
Agent to the BSP Airline and shall be settled in accordance with the provisions of this section in
the same way as if the Agent had issued an STD.
Proposed Action
Conference to endorse the above amendment.
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EDITORIAL AMENDMENT TO RESOLUTION 810z
Amend reference to outdated resolutions as shown below:
RESOLUTION 810z
EXTENSION OF AGENCY PROGRAMME IN THE PEOPLE'S REPUBLIC OF CHINA
PAC3(28)810z(People's
Republic of China)
Expiry: Indefinite
Type: B
WHEREAS Resolutions 810c 818g, 820e and 824c govern the relationship
Members and Approved Agents in the People's Republic of China, and
between
IATA
WHEREAS pursuant to Resolution 810c 818g, the Agency Programme for the People's
Republic of China has been established by the Passenger Agency Conference with
delegated authority over specified provisions of the IATA Agency Programme, and
Proposed Action
Conference to endorse the above amendment.
Agenda Item:
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EDITORIAL AMENDMENT TO RESOLUTION 810d
Amend reference to outdated resolutions as shown below:
RESOLUTION 810d
DOMESTIC AGENCY PROGRAMME IN INDIA
PAC3(40)810d(India)
Expiry: Indefinite
Type: B
WHEREAS Resolution 810i 818g governs the relationship between IATA Members and
Approved Agents in India, and
WHEREAS pursuant to Resolution 810i 818g, the Agency Programme for India has
been established by the Passenger Agency Conference with delegated authority over
specified provisions of the IATA Agency Programme, and
Proposed Action
Conference to endorse the above amendment.
Agenda Item:
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ANNUAL REVIEWS AND CONSEQUENCES OF NON-COMPLIANCE
Submitted by PSG
Following the comments of the Travel Agency Commissioner in a recent case, the below
proposal seeks to clarify the obligations of an Agent when IATA has determined that it no longer
satisfies the applicable financial criteria specified in the Handbook.
Proposed Solution
Amend Resolution 818g, Section 2 - Qualifications for Accreditation:
Reviews and Consequences of Non Compliance
2.2.1 When IATA determines that an Agent no longer satisfies the applicable financial criteria
incorporated in the Handbook, IATA shall immediately inform the Agent in writing of conditions
as are deemed appropriate to be complied with by the Agent by a specified date including, but
not limited to, the provision of a Financial Security. This date shall be no earlier than 30 days
and no later than 60 30 days from the date of such written notification.
Proposed Action
This proposal was reviewed by PSG/83 and endorsed to Conference.
PAConf to adopt the changes to Resolution 818g shown above.
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AIRLINES’ WEB SALES FINANCIAL SECURITIES
Submitted by PSG
Background
Currently Airline’s own web sales ticketed by them on behalf of Accredited Agents are
processed by the BSP in accordance with Resolution 850, Attachment ‘A’. Sub-paragraph 4.1
of Resolution 850, Attachment ‘A’ identifies a requirement that in the event of an agency default,
where the Financial Security is called upon to cover the shortfall, such security in the first
instance shall be allocated to cover BSP core sales and any residual amount will be used to
cover web sales reported by BSP Airlines.
Problem
It is believed that sub-paragraph 4.1 segregates the core BSP sales and web sales reported by
an individual Airline and therefore should be deleted to give it parity to settlement of Financial
Security in the event of defaults. PAConf to note, that both core BSP sales and web sales
pertain to IATA Agents who may be required by BSP to provide a Financial Security to cover the
Agents’ total cash sales at risk. Prior to these sales being reported through web sales, Agents’
sales were reported as core BSP sales. It is also important to note that the Financial Security
required to be provided by Agent includes Airline Web sales. Therefore, why should there be
any disparity in the settlement of Financial Securities in the event of defaults? PAConf should
also note that the most important reason for BSP Airlines to report web sales is the incentive of
reduced GDS costs. This restriction is not at all justified to the more than 16 IATA Members
who currently report web sales worldwide.
Proposed Solution
Based on the above justification, PSG endorsed a proposal to delete Resolution 850,
Attachment ‘A’ and to rely on the existing provision of Resolution 818g, Attachment ‘A’,
paragraph 1.1.1(a)(i):
“1.1.1(a)(i) monies for sales made by an Agent, where the ticket is issued by the BSP
Airline on behalf of the Agent and reported using the facility of the BSP, shall be deemed
due by the Agent to the BSP Airline and shall be settled in accordance with the
provisions of this section in the same way as if the Agent had issued an STD.”
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Proposed Action
Conference is requested to adopt the above amendment, as set out in Attachment ‘A’, with an
expedited effectiveness date of 01 January 2014.
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Delete all text in Attachment ‘A’ to Resolution 850 and replace with the following:
RESOLUTION 850
Attachment ‘A’
(Intentionally left blank.)
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INTERPRETATION AND HIERARCHY OF SOURCES
Submitted by IATA Legal Services
In response to a number of decisions issued by the Travel Agency Commissioners, IATA Legal
Services has concluded that guidance must be provided to the Commissioners concerning the
hierarchy of sources in the Passenger Agency Programme in the form of Resolution 010 of the
Passenger Agency Conference. If adopted, the proposed Resolution 010 will be legally binding
on the Travel Agency Commissioners, who are bound by the provisions of applicable
Resolutions and may only make findings of fact and conclusions in accordance with those
Resolutions. (See Resolution 820e Section 2.7.)
The proposed Resolution 010 will formalize the hierarchy of sources of rights and obligations in
connection with the Sales Agency Programme as follows:
•
•
•
1st
2nd
3rd
•
•
4th
5th
•
6th
any Applicable Law;
the form of the PSAA embodied in Resolution 824;
any contractual document specifically executed by the Agent and by IATA, acting
on behalf of the Carriers;
all other Resolutions of the Passenger Agency Conference;
any Local Criteria, or any local practice, rule or standard approved by the
Passenger Agency Conference; and
any and all applicable rules and other provisions included in the BSP Manual for
Agents.
Additionally, the proposed Resolution 010 will serve to provide guidance to Agents seeking
review of a decision of the Agency Administrator.
Proposed Action
Conference to adopt Resolution 010 as shown in Attachment ‘A’ for expedited effectiveness of 1
January 2014.
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RESOLUTION 010
INTERPRETATION AND HIERARCHY OF RULES PERTAINING TO THE SALES AGENCY
PROGRAMME
PAC1(50) 010 (except USA)
PAC2(50) 010
PAC3(50) 010
Expiry: Indefinite
Type: B
WHEREAS Resolution 824 provides for a form of Passenger Sales Agency Agreement to be
adopted and implemented by the Agency Administrator;
WHEREAS Section 2 of Resolution 824 stipulates the Rules, Resolutions and other provisions
deemed to be incorporated by reference in the said Passenger Sales Agency Agreement;
WHEREAS Resolution 824, as well as said Rules, Resolutions and other provisions may be
amended from time to time by the Conference;
WHEREAS the Conference wishes to clarify the rules of interpretation and the hierarchy that
applies to such Rules, Resolutions and other provisions;
WHEREBY it is hereby RESOLVED as follows:
1. DEFINITIONS
the definitions of terms and expressions used in this Resolution are contained in Resolution
866.
2. APPLICATION
this Resolution applies, unless an express contrary intention appears, to all Rules, Resolutions
and other provisions of the Agency Programme, whether enacted before or after the
commencement of this Resolution.
3. AUTHORITY OF CONFERENCE
3.1 the authority to enact, amend or repeal any of the Rules, Resolutions or other provisions
incorporated in the Passenger Sales Agency Agreement lies exclusively with the Conference.
The Agency Administrator, IATA, the Carriers, the Airlines, the Agents and the Travel Agency
Commissioners are all bound by the decisions of the Conference regarding the Agency
Programme.
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3.2 notwithstanding the above, the Conference may, from time to time, delegate by Resolution
power to IATA, to the ISS Management, or to the Agency Administrator, (as well as delegate to
the Agency Programme Joint Council the power to make recommendations to the Conference)
including, without limitation, that the Conference has delegated to the Agency Administrator the
responsibility and power to manage the Agency Programme in accordance with the Members’
rules and resolutions, as well as the autonomy to act in extraordinary circumstances. Any such
delegation of power shall be deemed to include such ancillary power as is reasonably
necessary to enable the relevant person or entity to act. Where a power is conferred to adopt
rules or provisions or to set standards, the power shall be construed as including a power to
repeal, amend or vary the rules, provisions or standards and the power to make others.
4. HIERARCHY OF SOURCES
4.1 the following hierarchy of sources of rights and obligations continues to apply in connection
with the Agency Programme:
1st.
2nd.
3rd.
4th.
5th.
6th.
any Applicable Law;
the form of Passenger Sales Agency Agreement embodied in Resolution 824;
any contractual document specifically executed by the Agent and by IATA, acting on
behalf of the Carriers;
all other Resolutions of the Conference contained in the Travel Agent’s Handbook;
any Local Financial Criteria, as approved by the Conference; and
any and all applicable rules and provisions included in the BSP Manual for Agents.
4.2 in the event of any inconsistency between two sources of rights and obligations with respect
to any matter specifically dealt with by both, the provisions of the higher-ranking source
governs. In such a case, the inferior-ranking source remains in force but simply does not apply
to the extent of the inconsistency.
4.3 in case of inconsistency between two sources of equal ranking, the most recently-enacted
instrument prevails.
4.4 the Conference may exceptionally provide that a source of inferior ranking, such as a Local
Financial Criteria, will prevail, but such provision by the Conference must be explicit and it can
never be inferred or presumed.
5. ENTRY INTO FORCE, AMENDMENTS AND REPEALS OF RESOLUTIONS
5.1 Resolutions come into force at the time that they are declared to be effective by the
Conference and provided to the Agent in accordance with Resolution 824. They remain in
effect and apply to facts, circumstances and situations arising thereafter and shall not have
retroactive effect.
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5.2 every Resolution shall be so construed as to reserve to the Conference the power of
rescinding or amending it. Where a Resolution is rescinded or amended in whole or in part, the
rescission or amendment does not affect the previous operation of the Resolution so rescinded
or anything duly done or suffered thereunder, or affect any right, privilege, obligation or liability
acquired, accrued, accruing or incurred prior to the deemed effective date of such rescission or
amendment. All rules and provisions adopted under the rescinded Resolution remain in force
and are deemed to have been made under the new Resolution, in so far as they are not
inconsistent with the new Resolution or have not themselves been expressly rescinded, in which
case the new Resolution shall prevail.
5.3 amendments to Resolutions can be declaratory or remedial, depending on circumstances
and no inference one way or another can be drawn from the amendment, unless specified in the
amendment.
6. RULES OF INTERPRETATION
6.1 subject to any governmental or other state approval as may be required, every Resolution
applies globally wherever the Passenger Agency Programme is in effect, unless a contrary
intention is expressed in the Resolution in which case the Resolution concerned applies only to
the areas or countries mentioned as such.
6.2 a Resolution shall be considered as always applicable, and where a matter or thing is
expressed in the present tense, it shall be applied to the circumstances as they arise, so that
effect may be given to the enactment according to its true spirit, intent and meaning.
6.3 the preamble of a Resolution shall be read as a part of the Resolution intended to assist in
explaining its purport and object.
6.4 any word contained in a Resolution in the singular number includes the plural; any word
importing any gender includes the masculine, feminine and neuter genders; any word importing
a person includes a corporation, a partnership and any other entity and vice-versa.
7. COMPUTATION OF TIME
7.1 where the time limit determined for the execution of a provision expires or falls on a bank
holiday in the country of the Agent’s Approved Location, the action may be executed on the
immediate day following that is not a bank holiday.
7.2 where the time limit determined for the execution of a provision is expressed to begin after
or to be from a specified day, the computation of such time period does not include that day.
Where there is a reference to a number of days between two events, in calculating that number
of days the day on which the first event happens is excluded and the day on which the second
event happens is included.
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8. LANGUAGE
where Resolutions are adopted in another language in addition to English, or where
administrative translations of Resolutions are prepared, the English version shall prevail.
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AMENDMENTS TO RESOLUTION 820e
Submitted by IATA Legal Services
In response to a series of related requests for review where the Agency Administrator had not
been provided with copies of the Agents’ requests prior to the Travel Agency Commissioner
issuing his decisions, IATA Legal Services recommends that the Conference amend Resolution
820e to obligate the Travel Agency Commissioners to provide the Agency Administrator with a
copy of each Agent’s or Applicant’s request for review together with all related material and
evidence provided in support of the request.
Furthermore, IATA Legal Services recommends that Travel Agency Commissioners be
obligated to offer the parties the opportunity to hold a scheduling conference by telephone call
or other means to reach an agreement or alternatively to issue an order regarding the
procedures to be followed for the hearing of the matter, and to set a timetable.
Proposed Action
Conference to adopt the amendments to Resolution 820e shown in Attachment ‘A’.
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RESOLUTION 820e
REVIEWS BY THE TRAVEL AGENCY COMMISSIONER
1.2
PROCESSING REVIEW REQUESTS FROM AN AGENT OR APPLICANT
1.2.5 as promptly as reasonably possible after a case has been initiated by an Agent or
Applicant, the Commissioner must provide to the Agency Administrator a copy of the request for
review, together with all related material and evidence provided in support of the request;
[...]
Section 2 - Rules of Practice and Procedure
2.1.3 right to submit in writing any relevant information which it deems appropriate and the
right to respond to the other side’s submissions;
[...]
2.6
shortly after having received a request for review, the Commissioner shall offer the
parties the opportunity to hold a scheduling conference by telephone call or other means, with a
view to reach an agreement, or alternatively to issue an order, regarding the proper procedures
to be followed for the hearing of the matter, and to set a timetable. eExcept for good cause
stated in writing, the Commissioner shall schedule each review proceeding not later than 45
days after receipt of the request for review. The Commissioner shall normally render his
decision within 30 days after the close of the record in the proceeding;
[...]
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LOCAL FINANCIAL CRITERIA
Submitted by IATA Legal Services
In response to a number of instances relating to the interpretation of Local Financial Criteria,
IATA Legal Services has concluded that certain amendments to Resolutions are necessary to
ensure consistency of interpretation.
It is therefore proposed to include a definition for Local Financial Criteria in Resolution 866 as
shown below and to make amendments to Resolutions 800f, 818g and 820e as shown at
Attachment ‘A’:
LOCAL FINANCIAL CRITERIA sometimes referred to as ‘Local Criteria’ or ‘Financial Criteria’
means: (a) in relation to a country or a territory governed by Resolution 818g, the local criteria
recommended by the Agency Programme Joint Council and adopted by the Conference in
relation to said country or territory, or (b) in relation to a country or a territory governed by
Resolution 800, the standards established by the Agency Investigation Panel and endorsed by
the Agency Administrator in relation to said country or territory.
In addition, IATA Legal Services proposes an amendment to the cover page of Section 3 in the
Travel Agent’s Handbook to clarify that the Passenger Sales Agency Rules shall prevail over
any conflict, contradiction or inconsistency with any Local Criteria.
Proposed Action
PSG/83 endorsed the above proposal.
Conference is asked to adopt the changes shown at Attachment ‘A’.
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RESOLUTION 800
2.4.1(c) if so directed by the Agency Administrator, the Agency
Investigation
Panel
shall conduct annual examinations of the financial standing of Agents. Its Secretary
may request and the Agent concerned shall be under obligation to furnish, by the date
specified in the Secretary's letter of request, the documents deemed necessary by the
Agency Investigation Panel to conduct such examination. Failure by the Agent to submit
such documents as prescribed shall be grounds for the Secretary to apply two instances of
irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30
days shall be grounds for the Agency Investigation Panel to request the Agency
Administrator to give the Agent notice of termination of the Sales Agency Agreement
and notify all Members, Airlines and ISS Management accordingly, provided that if the Agent
demonstrates to the Agency Administrator prior to the termination date that it meets the
financial criteria Local Financial Criteria incorporated in the Travel Agent's Handbook the
termination shall not take effect;
2.4.1(d) when the Agency Investigation Panel determines that an Agent no longer satisfies
the financial criteria Local Financial Criteria incorporated in the Handbook, it may, if
circumstances so warrant, prescribe in writing such conditions as are deemed
appropriate to be complied with by the Agent within 60 days of the date of such written
prescription. The Secretary shall determine if such conditions have been met. On finding that
the Agent failed to comply, the Secretary shall request the Agency Administrator to apply two
instances of irregularity, to withdraw all Traffic Documents, and require the Agent to comply
within 30 days. If the Agent fails to comply within 30 days the Secretary shall request the
Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement
and notify all Members, Airlines and ISS Management accordingly;
2.4.1(g) when the financial position of an Agent is subject to examination by the Agency
Administrator, and the Agent is unable to meet the financial criteria Local Financial
Criteria of the Handbook, the Agency Administrator shall take normal business fluctuations
into account and provide the Agent with a reasonable period of time to meet those criteria;
2.4.1(h) A cost justified financial review fee, the level to be set by IATA Management, will
apply for each Agent that fails to comply with established criteria Local Financial Criteria..
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Branch Locations in Other Countries
2.4.2.1 An applicant that opens Branch Locations in a country, that is different from where
the Head Office legal entity is located, will be assessed against the financial criteria Local
Financial Criteria established for the country of the Branch Location. In such event the Agent
will be required to submit the financial documents of the Head Office legal entity. Where the
Agent is unable to meet the applicable local criteria Local Financial Criteria of the country of
the Branch Location, it shall be required to furnish additional security in the form of a bank
or insurance bond or guarantee to cover the funds at risk for that location.
11.10.1.2 if the financial situation of the Agent is found to be unsatisfactory, the Agency
Administrator shall give the Agent notice of termination of the Sales Agency Agreement,
provided that if the Agent demonstrates to the Agency Administrator prior to the
termination date that it meets the financial criteria Local Financial Criteria incorporated in
the Travel Agent's Handbook the termination shall not take effect;
11.12.4 Change of Head Office location to another country
In the event a Head Office location changes from one country to another without prior
notification, the Head Office and all of its Locations shall be suspended pending review of its
changed circumstances and evidence confirming its principal place of business for the Head
Office and compliance with the criteria Local Financial Criteria applicable to the country
concerned. Such suspension may lead to removal from the agency list and termination of
the current Passenger Sales Agency Agreement until such time as a new application
for accreditation, complying with all local criteria Local Financial Criteria in the other
country, is reviewed and approved and a new Passenger Sales Agency Agreement has been
signed with the Head Office legal and business entity in the new country.
RESOLUTION 800f
WHEREAS Resolution 818g provides that applicants and Agents shall undergo an
evaluation of their financial standing to become and maintain status as an Accredited Agent
in accordance with established local financial criteria Local Financial Criteria, as
recommended by the APJC and adopted by the Conference and published in the Travel
Agent's Handbook;
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WHEREAS a market may have not developed its own local financial criteria Local Financial
Criteria;
WHEREAS a review of local financial criteria Local Financial Criteria in a particular market may
raise financial concerns;
RESOLVED that the AGENTS' FINANCIAL EVALUATION CRITERIA shown at Appendix
‘A’ shall be taken into account as a best practice for the establishment and/or review of
the local financial criteria Local Financial Criteria in markets where existing local criteria
Local Financial Criteria raise substantiated concerns, including by AIPs and APJCs,
subject to any local conditions that may apply.
GENERAL RULE
1.
Each AIP and APJC must evaluate its local financial criteria Local Financial Criteria at
least once per annum taking into consideration the best practice financial criteria contained in
Appendix ‘A’, subject to any local conditions that may apply.
2. In the event of any conflict, contradiction or inconsistency between (a) the provisions of this
resolution or the provisions of any Local Criteria as the case may be and (b) any provisions
contained within the applicable Passenger Sales Agency Rules for a market, the provisions of
the Passenger Sales Agency Rules shall prevail.
RESOLUTION 800o
1. General
On-line Travel Agent applicants may be approved provided they can demonstrate they
comply with all business and legal requirements in a country to operate a travel agency
service and sell travel services to the public, provided they meet and continue to meet
the financial criteria Local Financial Criteria so established in the country, including where
appropriate and as determined by the Agency Administrator provision of a bank or insurance
bond or guarantee Financial Security to cover sales at risk.
2.4 All locations established by the applicant must also comply with the financial criteria
Local Financial Criteria of each country and any local laws for operation of a travel agency.
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RESOLUTION 814i
1.1.2.2 the Council when it deems appropriate shall create a Financial Advisory Group
to review and make recommendations to it on the criteria for financial standing Local
Financial Criteria , which body shall function as per sub-paragraph 1.1.3 below.
1.1.3 Financial Advisory Group
1.1.3.1 the Council may establish a Financial Advisory Group to assist in the
development of local financial criteria Local Financial Criteria for accreditation. The
Financial Advisory Group (FAG) will be under the direct control of the Council and shall:
(i) be composed in equal numbers of qualified staff of both airline and agent members,
(ii) consist at a minimum of two airline and two agent representatives as nominated by the
APJC.
1.1.3.3 the FAG will review any existing financial criteria Local Financial Criteria against
changing economic conditions in the market and make recommendations for change to the
Council.
RESOLUTION 818g
1.1.2.4 the Council when it deems appropriate shall create a Financial Advisory Group
to review and make recommendations to it on the criteria for financial standing Local
Financial Criteria, which body shall function as per sub-paragraph 1.1.3 below.
1.1.3 Financial Advisory Group
1.1.3.1 the Council may establish a Financial Advisory Group to assist in the
development of local financial criteria Local Financial Criteria for accreditation. The
Financial Advisory Group (FAG) will be under the direct control of the Council and shall:
(i) be composed in equal numbers of qualified staff of both airline and agent members,
(ii) consist at a minimum of two airline and two agent representatives as nominated by the
APJC.
1.1.3.3 the FAG will review any existing financial criteria Local Financial Criteria against
changing economic conditions in the market and make recommendations for change to the
Council.
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Section 2—Qualifications for Accreditation
The requirements and qualifications listed in this Section 2 (including established local
criteria Local Financial Criteria published in the Travel Agent's Handbook) are designed to
assess on fair and neutral terms whether the applicant has the necessary qualifications
and financial standing to become and maintain status as an Accredited Agent, with the
consequent credit entitlement that results.
Finances
2.1.4 The financial stability of the applicant is assessed in relation to the funds at risk, taking
into account net equity, net current assets compared to the net cash sales of an average
prescribed reporting and remitting period. Such evaluation shall be in accordance with the
Sales Agency Rules and, as the case may be, the established local criteria Local Financial
Criteria, as adopted by the Conference and published in the Travel Agent's Handbook.
Branch Locations in Other Countries
2.1.4.3 An applicant that opens Branch Locations in a country, that is different from where
the Head Office legal entity is located, will be assessed against the financial criteria Local
Financial Criteria established for the country of the Branch Location. In such event the Agent
will be required to submit the financial documents of the Head Office legal entity.
Where the Agent is unable to meet the applicable local criteria Local Financial Criteria of the
country of the Branch Location, it shall be required to furnish additional security in the
form of a bank or insurance bond or guaranteeFinancial Security to cover the funds at risk
for that location.
2.2
IATA has the right to conduct examinations of the financial standing of Agents either
annually or and for cause at any time.
2.2.1.1 When IATA determines that an Agent no longer satisfies the applicable financial
criteria Local Financial Criteria incorporated in the Handbook, IATA shall immediately inform
the Agent in writing of conditions as are deemed appropriate to be complied with by the
Agent by a specified date including, but not limited to, the provision of a Financial Security if
none had been previously required.;
2.2.1.2 Additionally, IATA has the right, when IATA finds for any reason that funds are at risk,
for cause to review at any time the Agent's funds at risk and require an adjustment to any
existing Financial Security provided to ensure appropriate and sufficient coverage. Such
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adjustment may require an increase or decrease in the Agent's Financial Security. The
Financial Security provided u n d e r t h i s S u b p a r a g r a p h shall be in accordance with
these Sales Agency Rules, but it may go beyond the established local criteria Local
Financial Criteria
2.2.1.3 as adopted by the Conference and published in the Travel Agent's Handbook, and
In all cases where a Financial Security needs to be provided, it
shall be provided by a specified date to be determined by IATA, which shall be no
earlier than 30 days and no later than 60 days from the date of such written notification. On
finding that the Agent failed to comply with a requirement to provide a Financial Security or
an increase thereof, such failure shall be grounds for IATA to apply two instances of
irregularity and IATA shall withdraw all Standard Traffic Documents (STDs) and require
the agent to comply with the conditions within 30 days. Failure by the agent to comply
within 30 days shall be grounds to give the Agent notice of removal from the Agency List,
which removal shall take effect on a date that is not before the date specified in clause 13.2 of
the Passenger Sales Agency Agreement, and to notify all BSP Airlines accordingly;
2.2.4 where pursuant to the provisions of Subparagraph 2.2 or 2.2.1.3 above STDs are
withdrawn or an Agent receives notice of removal, the Agent may within 30 days of the date of
such withdrawal, notice of removal or of termination, invoke the procedures set out in Resolution
820e for review of IATA’s action by the Travel Agency Commissioner including the possibility of
seeking interlocutory relief.
2.2.5 If an Agent is required to provide a Financial Security, the Agent must ensure that
the Financial Security is and remains valid, and is renewed by the expiry date. IATA also
has the right to review the validity of a Financial Security including in accordance with the
Applicable Criteria Local Financial Criteria.
10.2.2 No later than 7 days after any change listed in Subparagraph 10.2.1 taking effect,
the Agent must provide to IATA notice of the change and the most recently available
Aaccounts, in accordance with the Aapplicable Ccriteria, as defined in Section 2 of this
Resolution. The Agent's accreditation will remain in effect unless, after reviewing the
change or completing the Financial Review of the Agent, IATA determines that (i) the Agent
does not satisfy the qualifications for accreditation, or (ii) the change alters the Agent's
legal nature, in which case the Agency Administrator shall initiate a review of the Agent.
10.8.4 Change of Head Office location to another country
In the event a Head Office location changes from one country to another without prior
notification, the Head Office and all of its Locations shall be suspended pending review of its
changed circumstances and evidence confirming its principal place of business for the Head
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Office and compliance with the criteria Local Financial Criteria applicable to the country
concerned. Such suspension may lead to removal from the aAgency lList and termination of
the current Passenger Sales Agency Agreement until such time as a new application
for accreditation, complying with all local criteria Local Financial Criteria in the other
country, is reviewed and approved and a new Passenger Sales Agency Agreement has been
signed with the Head Office legal and business entity in the new country.
14.1.3 A cost justified fee, the level to be agreed locally, will apply for each Agent that
fails to comply with established criteria Local Financial Criteria..
RESOLUTION 850
8.2.4 to meet the local financial criteria Local Financial Criteria, if any;
RESOLUTION 850p
“WHEREAS certain Sales Agency Rules provide that an Agent may meet the financial
criteria Local Financial Criteria by the provision of additional financial security in the form of a
bank guarantee, insurance bond, or default insurance scheme (“DIP” scheme) (including trust
fund);”
2.1.1 No Provider or Provider product shall be accepted for the purposes of an Agent
meeting the financial criteria Local Financial Criteria by the provision of additional financial
security where permitted by the applicable Sales Agency Rules unless such Provider or
Provider product has been approved by IATA in accordance with this Resolution.
RESOLUTION 866
LOCAL FINANCIAL CRITERIA sometimes referred to as ‘Local Criteria’ or ‘Financial Criteria’
means: (a) in relation to a country or a territory governed by Resolution 818g, the local criteria
recommended by the Agency Programme Joint Council and adopted by the Conference in
relation to said country or territory, or (b) in relation to a country or a territory governed by
Resolution 800, the standards established by the Agency Investigation Panel and endorsed by
the Agency Administrator in relation to said country or territory.
TRAVEL AGENT'S HANDBOOK (usually called the ‘Handbook’) means the publication
issued
under
the authority of the Passenger Agency Conference, containing the
established accreditation criteria Local Financial Criteria, and the IATA Resolutions
concerning the Agency Programme. A copy of the Handbook is provided to each Approved
Location, and to each applicant seeking IATA Accreditation, and forms part of the IATA
Agency Agreement.
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AIRLINE BILATERAL GUARANTEES
Submitted by PSG
Background
Following the discussion at PSG/79 on this subject, which referenced recent demands by
Members for bilateral guarantees from all Agents in the Greek market, it was agreed that the
Secretary would prepare an item setting out a suggested process to be followed before airlines
could request a bilateral bank guarantee.
The fundamental requirement for Accreditation, determined in the Resolutions, is the financial
stability of the Agent, determined by an evaluation of the Agent’s financial accounts according to
the local criteria agreed by the APJC and adopted by Conference for the market. To obtain a
satisfactory evaluation, the Agent may be required to provide a Financial Security. The
provision of any Financial Security, if required, is calculated in accordance with the financial
criteria, to cover the funds at risk.
It has been longstanding IATA policy, endorsed by the PSG, that BSP Airlines should not
request Agents to furnish separate guarantees. Since IATA would have already undertaken a
financial assessment of the Agent in accordance with the terms of the financial criteria, and
obtained a Financial Security from the Agent where required, there should be no need for a BSP
Airline to require an additional guarantee. Separate guarantees only serve to drain Agents'
finances unnecessarily.
However, the discussion at PSG/79 reflected concern that some markets did not have
meaningful financial criteria, but that once these gaps were closed, there would be no
justification for additional bank guarantees.
Additionally, Conference recently agreed a change to Resolution 818g to accommodate cases
where the APJC had failed to agree on changes to local criteria, whereby proposals could be
put to Conference after four APJC meetings or a consultation period of two years.
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Therefore, the below proposal seeks to remedy the issue by defining a process for a BSP Airline
to identify deficiencies in local criteria by comparing with those in Resolution 800f (which
determines the baseline criteria for any market), obtain relief by obtaining a separate guarantee,
and as a consequence initiate a review of the criteria by the APJC.
Once the deficiencies of the local criteria had been addressed through alignment with those in
Resolution 800f, there would no longer be a need for a separate guarantee and the BSP Airline
would return it to the Agent.
Proposed Action
PSG has addressed this issue on a number of occasions, most recently at PSG/83 held in July
2013. For the second time it reviewed proposed resolution amendments to tackle the problem
and endorsed the proposal to Conference, on the understanding that further text edits would be
made. The resultant proposal is shown at Attachment ‘A’.
Conference is asked to adopt the revisions to Resolution 818g as shown in the attachment.
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RESOLUTION 818g
PASSENGER SALES AGENCY RULES
Section 2 - Qualifications for Accreditation
Finances
2.1.4.2 To obtain a satisfactory evaluation, the applicant may be required to provide further
information or additional financial support in the form of bank or insurance bonds or guarantees
to cover the funds at risk. Recognising that IATA is mandated to conduct examinations of the
financial standing of Agents in accordance with the provisions of this Section 2, a BSP Airline
may only request a separate bank guarantee on the grounds that the current Local Financial
Criteria in the market require strengthening, under which circumstances the following actions
will apply:
(i) The BSP Airline must notify the Agency Administrator in that the current Local Financial
Criteria in the market require strengthening
(ii) The Agency Administrator will:
a. authorise the BSP Airline to request a separate bank guarantee; any such bank
guarantee obtained must be notified to IATA
b. call an APJC meeting to propose strengthening the Local Financial Criteria in
accordance with the requirements of Resolution 818g, Section 1
(iii) In the event that no recommendation on changes to Local Financial Criteria can be
achieved, the provisions of Resolution 818g, subparagraph 1.1.2.3 may be invoked
(iv) Following the adoption by Conference of the changes to the Local Financial Criteria, and
subsequent to a financial review of the Agent in accordance with these criteria, IATA will
require the BSP Airline to return the Agent’s separate bank guarantee to the Agent
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FINANCIAL SECURITY POLICY
Submitted by the Secretary
Background
Agents without a satisfactory financial standing must provide IATA with a financial security as
per the applicable sales agency rules, for the purpose of recovering unpaid monies owed by the
Agent to Members or Airlines.
A number of cases involving unrecovered amounts from defaulted Agents highlighted to IATA
that not all financial security types currently accepted by IATA fulfill this purpose.
In particular, financial risk is not properly managed when the financial security is not able to
cover the amount at risk of an Agent. In addition, there is legal risk when the enforceability of
the financial security cannot be assured.
IATA initiated a global review of the financial security types in 2011 to identify and understand
the different types of financial securities currently accepted. The review identified 23 different
financial security types. The review revealed not only varying financial and legal risk coverage
but also the operational risk associated with managing the many forms of financial securities.
The financial, operational, and legal risk was identified for each financial security type by
assessing the coverage, the provider, the default recovery rate, and the impact of not accepting
certain financial security types. Based on the results, IATA is seeking to simplify and improve
the approach to financial security management. This includes:
-
Defining the accepted financial security types
Revising the criteria against which the financial security providers are assessed
(Appendix G to the ISSSPM)
Defining the minimum critical elements for each financial security and their templates
(subject to local legal requirements)
The accepted financial security types were defined taking into consideration the following:
-
The financial security types are provided by an independent third party
The security types have the possibility to give sufficient coverage, subject to the locally
established criteria
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-
The default recovery rate for the proposed acceptable financial security types is high
The cost to IATA and/or Members and Airlines is not substantial
There is transparency on the treatment of collateral provided by Agents to obtain the
financial security
Global coverage, meaning that no specific maintenance is required for one country to
minimise operational risk
The defined financial security types to be included in Resolution 850p will be:
-
-
-
Individual Financial Security provided by a bank
o Bank Guarantee
o Standby Letter of Credit
o Letter of Credit
Individual Financial Security provided by other than a bank
o Insurance bond
o Surety bond
Default Insurance Programme (refer to the section on Default Insurance Programme)
Providers of the accepted financial security types (except for banks as per r850p) are currently
required to meet the minimum criteria, as available in the ISSSPM. The key revisions to the
criteria are:
-
The provider must be an independent third party
The wording has been clarified and objectivised
Default Insurance Programme
IATA may facilitate the development of financial security types such as Default Insurance
Programmes, in response to local requirements, depending on the availability of suitable
providers in the market. A review has been performed of the current structure in order to
improve the policy and management of the Default Insurance Programme, to meet the minimum
critical elements for a financial security.
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Current Situation
This item was originally put to PSG/80 in September 2012, where the advice received was to
hold back on putting the proposal to Conference and in the meantime develop a detailed road
map with exit strategies for existing products that would no longer be considered suitable. A
more detailed proposal was shared with PSG/82 in March 2013, where the exit strategies were
endorsed and are now in the process of being implemented in the local markets, after
consultation with the airlines/agents.
A revised proposal as contained in this paper was reviewed by PSG/83 in July 2013 and
endorsed to Conference.
Proposed Action
Conference is asked to adopt the amendments to Resolution 850p as shown in Attachment ‘A’.
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1. Amend Resolution 850p as follows:
“WHEREAS certain Sales Agency Rules provide that an Agents may meet the financial criteria
by the provision of additional a financial security in the form of a bank guarantee, insurance
bond, or default insurance scheme (“DIP” scheme)(including trust fund);”
….
1.2 “FINANCIAL SECURITY PROVIDER’ (hereinafter referred to as “Provider”) Provider means
any entity that guarantees payment to Members or Airlines, through provision of an insurance
bond or other instrument any acceptable financial security type set out in section 2 (excluding
financial securities provided by a bank) (excluding bank guarantees), in the event of the default
of an Agent.
2. ACCEPTABLE FINANCIAL SECURITY TYPES
2.1 Individual financial security provided by a bank
2.1.1 Bank Guarantee
2.1.2 Standby Letter of Credit
2.1.3 Letter of Credit
2.2 Individual financial security provided by an independent third party, other than a bank
2.2.1 Insurance bond
2.2.2 Surety bond
2.3 Default Insurance Programme
2.4 Providers of the acceptable financial security types in 2.1 – 2.3 are required to meet the
criteria as referred to in section 3 of Resolution 850p.
23. EVALUATION OF PROVIDERS AND THEIR PRODUCTS
23.1
23.1.1
23.2
23.3 The result of the initial and periodic evaluation shall be reported to the LCAGP and APJC
as appropriate. Their views shall be relayed to IATA, who shall decide whether to accept
financial security instruments from the Provider; after consultation and recommendations
developed with local Airlines’.
23.4
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2. Amend Resolution 866 as follows:
BANK GUARANTEE means an individual guarantee, with IATA as the beneficiary, issued by a
bank in the country where the Agent operates.
STANDBY LETTER OF CREDIT means an individual guarantee of payment issued by a bank
on behalf of the Agent, that is used as "payment of last resort" if the Agent fails to settle a debt.
LETTER OF CREDIT means an individual letter from a bank guaranteeing that the Agent will
pay their dues on time and for the correct amount. If the Agent fails to settle a debt, the bank will
be required to cover the amount.
INSURANCE BOND means an individual guarantee, with IATA as the beneficiary, issued by an
approved insurance company (according to Resolution 850p).
SURETY BOND means an individual security, where an organisation or a Person assumes the
responsibility if the Agent fails to pay its debts.
DEFAULT INSURANCE PROGRAMME means a contractual arrangement where an approved
insurance company covers a group of Agents (according to Resolution 850p).
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NEW BSP CHARGING MODEL
Submitted by the Airline Participation Management
The last meeting of the ISS Working Group (ISSWG) endorsed the implementation of a new
BSP Charging model for 2014 using the same principals as for CASS which was introduced in
2010.
The new BSP charging model will address the issues of complexity, lack of transparency and
difficulty for airlines to budget their BSP costs.
The agreed model will introduce the following:
•
•
•
•
IATA Member airlines will receive one free BSPLink Basic and one free Enhanced
connection per market
DP core processing charges and management fees will be consolidated into one invoice
and charged in USD using an annual SCU based pricing with a 3 tier principal (i.e. Tier
1: up to 60k SCU; Tier 2: 60k-2M SCU – 10-fold reduction over tier 1; Tier 3: above 2M
SCU – 2 fold reduction over tier 2)
A 50% surcharge will apply on the consolidated invoice for non-IATA members, but the
USD 500 annual fee per operation will be eliminated
A minimum monthly management charge of USD 750 (USD 1,125 for non-IATA
members) will be introduced
The overall cost recovery principle will remain the same, with the possibility of quarterly price
adjustments in case of 10% variation and year-end refund/recharge mechanism.
The proposed charging model was presented and endorsed by FINCOM 108 and then
presented to the Board during the 69th AGM in June 2013.
The Board has endorsed this new BSP charging model and asked IATA to develop a
communication and implementation plan, in consultation with the IATA Financial Committee, to
enable a smooth transition to the new charging model as of 2014.
In addition to the introduction of this new charging model, in 2014 all BSP Joining Fees will be
set at USD 5,000 for IATA Members and USD 7,500 for non-IATA participants.
Proposed Action
Conference to note. A detailed presentation on the new Charging Model will be given on site.
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REQUIREMENT TO SIGN PROVISIONAL PSAA
Submitted by IATA Agency Management
A question of clarification has arisen with respect to the requirement under Resolution to have a
provisional PSAA “in the same form and effect” signed for certain major changes under s10 of
r818g (mainly changes of ownership and changes of name).
Pursuant to the provisions of procedures for changes requiring a new PSAA under Resolution
818g Section 10.3, and in the event that Section 10.3.1(a) or 10.3.1(b) applies, the Agency
Administrator is required to execute a Provisional Sales Agency Agreement which has the same
form and effect as a Sales Agency Agreement.
However, IATA’s regional Accreditation teams have advised that they are not doing this. They
are currently only requiring Attachment B of 818g to be signed by the Agents (both transferor
and transferee) on the basis that in the prescribed attachment:
“[…] the Transferee hereby undertakes that it accepts joint and several liability with
the Transferor for any outstanding obligations of the Transferor under its Sales Agency
Agreement as at the date the transfer of ownership takes place […]”
It is believed that this clause has the same effect as signing a provisional PSAA but clearly IATA
is not obtaining something that is in the same form as the PSAA. On this basis IATA feels that
the terms of Attachment B (attached to this paper) are sufficient to meet the binding
requirements of a Provisional Sales Agency Agreement. That being the case, a provisional
PSAA signed in the same form is unnecessary.
IATA therefore proposes a change to the Resolution wording wherever it appears to delete the
requirement for “same form” and provisional PSAA as follows:
Resolution 818g:
“10.3.3 upon receipt of the Notice of Change form, the Agency Administrator shall
execute a provisional Sales Agency Agreement, which shall will countersign the Notice
of Change form which will have the same form and effect as a Sales Agency Agreement,
with the Agent and/or, if applicable, the new owner, unless the application for
accreditation fails to meet the criteria set forth in Section 3 of these Rules, in which case
the Agency Administrator shall initiate a review”
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Proposed Action
Conference to endorse the above resolution amendment. A detailed proposal for modifications
to ‘Provisional PSAA’ in other resolutions set out below is in development for the 2nd Transmittal.
Reso 800:
3.4.1.2
11.3.2
11.3.3
11.3.4
11.3.5
11.6.1
11.7.1(a)(i)
Reso 818a
9.2.2
Reso 818g
10.3.3
10.3.6
10.3.7
10.5.2
10.6.1(a)(i) and (ii)
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RESOLUTION 800a – APPLICATION FORM FOR ACCREDITATION AS AN IATA
PASSENGER SALES AGENT
Submitted by PSG
A review of Resolution 800a, the standard form to be used to applications to become an IATA
Accredited Agent, reveals that some amendments are needed to remove outdated text or bring
the wording into line with current resolutions.
Specifically, this means removal of clauses relating to South West Pacific only and updating of
Section 7 on security of traffic documents. The proposed amendments are shown at
Attachment ‘A’.
PSG/83 reviewed this proposal and the proposed resolution amendments and endorsed to
Conference
Proposed Action
Conference to adopt the proposed amendments to Resolution 800a as shown in Attachment ‘A’.
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Amend Resolution 800a as shown below:
SOUTH WEST PACIFIC ONLY Paragraphs 4.3.4 through 4.5.4
4.3.4 Does each stockholder own the full beneficial interest in the stock?
Yes □ No □
If No, does the shareholder hold the stock in trust as nominee for someone?
Yes □ No □
If Yes, attach details.
4.3.5 What is your:
4.3.5.1 Authorised capital?
4.3.5.2 Paid-up capital?
4.4 If TRUST:
4.4.1 Type of trust:
4.4.2 When and where executed:
4.4.3 Name(s) of beneficiary(ies):
What is the corpus in the trust?—i.e. capital
4.5 If ASSOCIATION:
4.5.1 Type of association:
4.5.2 When and where incorporated:
4.5.3 Names of members, officers and manager:
4.5.4 Capital structure and the paid-up capital. If the entity is limited by guarantee, state
the liability (maximum of each member).
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Section 7—Security of Traffic Documents
Applicants will be required to provide evidence at the time of inspection that they meet the
requisites for Traffic Document security, as advised by the Agency Administrator or the
Secretary of the Agency Investigation Panel.
7.1 Describe the type of facility you have in the agency for the storage of your onpremises working supply of Traffic Documents or other accountable documents.
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APJC MEMBERSHIP
Submitted by PSG
A question frequently asked by Local and Regional Offices is whether a General Sales Agent
can participate in an APJC meeting on behalf of an Airline. As there is no specific reference to
this in resolution, the Secretary sought advice from the PAConf Chairman, who advised as
follows:
“GSA's are not allowed to attend any IATA Agency Meetings. Their interests are to
further their Agency and by attending Agency meetings they may well gain information which
would give them an unfair competitive advantage. Many GSAs have a number of interests
besides that of the airline they represent. In addition most GSAs represent more than just one
airline and this may also give problems on delicate issues.”
To avoid any uncertainty in the future, it is proposed to clarify this in resolution text by amending
Resolution 818g as shown below:
1.1 AGENCY PROGRAMME JOINT COUNCIL (‘THE COUNCIL’)
…
…
1.1.1 Composition
the Council shall consist of:
1.1.1.1 Members and Airlines designated from time to time by the Agency Administrator, from
those having designated a nominee, bearing in mind the local market
conditions. Members/Airlines must not designate a General Sales Agent as their APJC
representative. GSAs are also not permitted to attend APJC meetings as observers.
Proposed Action
PSG/83 endorsed the clarification and Conference is invited to adopt the resolution amendment
shown above.
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EDITORIAL AMENDMENTS TO RESOLUTION 832
Submitted by PSG
Introduction
An Action Item arising from PAConf/33 in October 2010 was to review the Reporting &
Remitting provisions currently in Resolution 832 and develop a proposal for PSG.
Background
As at 1 June 2011, all BSP countries with the exception of Israel have migrated to the 818g set
of Sales Agency Rules. Resolution 818g contains at its Attachment ‘A’ the Reporting and
Remitting (R&R) rules for those countries and a section on the Consequences of Default to
BSPs and BSP Airlines.
Resolution 832 also contains R&R rules for BSP countries, as well as non-BSP countries, and a
further section on Consequences of Default. The R&R rules found in Section 1 of Resolution
832 contain many obsolete provisions for countries that have now migrated to 818g, however
the rules are still needed for Israel.
To avoid any confusion between 818g and 832 R&R rules for BSP countries, the Secretary has
undertaken a full review of Resolution 832 and proposes the amendments as shown at
Attachment ‘A’.
Proposed Action
PSG/83 endorsed a proposal to Conference for the necessary amendments to Resolution 832.
Conference is invited to adopt the changes to Resolution 832 shown at Attachment ‘A’.
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Amend Resolution 832 as shown below:
Section 1—Reporting and Remitting through the Billing and Settlement Plan (BSP)
This Section is applicable to all Approved Locations of an Agent, except those covered by
Resolution 818g, with respect to all sales on behalf of Airlines and Members participating
in the BSP. The BSP Manual for Agents contains the administrative and procedural
rules to be followed by Agents and constitutes part of this Resolution.
1.1 MONIES DUE ON ISSUE OF STANDARD TRAFFIC DOCUMENTS
….
….
1.1.5 (India only) On the issuance by the Agent of a Standard Traffic Document on behalf
of a Member, the Agent shall be responsible for payment to the Member of any related nontransportation charges applicable in the country of issuance, irrespective of whether such
Standard Traffic Document is subsequently voided or refunded.
….
….
1.3 AGENCY SALES TRANSMITTALS
Agency sales are provided to the BSP Datea Processing Centre in an automated report by
the Ticketing System Providers.
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1.6 SETTLEMENT—THE REMITTANCE DATE
….
….
1.6.2.1 Resolution 814 countries only
the frequency so established by the Conference shall not be less than once each calendar
month, or at such greater frequency as the Conference shall determine; provided that
individual Agents may elect to remit at such greater frequency and for such length of time
as the Agency Administrator shall deem appropriate acting on the requirements of the
Agent; and
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1.6.2.1(a) if the Remittance frequency so established is monthly, Remittances shall reach
the Clearing Bank not later than its close of business on the date established by the
Conference. This date shall not be earlier than the tenth nor later than the fifteenth
day of the month following the month covered by the Billing,
1.6.2.1(b) MOROCCO ONLY if the remittance frequency so established is once monthly,
Remittances shall be made so as to reach the Clearing Bank not later than its close of
business on the 16th day of the following month or as provided for on the local calendar;
provided that the method of payment used, which is limited to Electronic Bank Transfers
and/or Direct Debit, assures that the funds are in the Clearing Bank for good value on the
day of remittance;
1.6.2.1(c) if the remittance frequency so established is twice monthly, Remittances shall be
made so as to reach the Clearing Bank not later than its close of business on the last day
of the month in respect of Billings covering the first 15 days of the month and the 15th day
of the following month, in respect of Billings covering the period from the 16th to the last day
of the month. The Conference may adjust the period within which Remittances are required to
reach the Clearing Bank by not more than five calendar days to meet the special
requirements which shall be demonstrated of a particular BSP,
1.6.2.1(d) if the remittance frequency so established or so elected pursuant to Subparagraph
1.6.2.1(a) is greater than twice monthly, Remittances shall be made by the Agent so as to
reach the Clearing Bank not later than its close of business on the fifth day following the
Reporting Dates so determined; any transactions not processed in previous reporting
periods will be included in the final billing;
1.6.2.1(e) if the Clearing Bank is closed for business on the day on which the remittance is
required to reach the Clearing Bank under the provisions of Subpara- graph 1.6.2, if
applicable, the remittance shall be made by the Agent so as to reach the Clearing Bank
before its close of business on the first subsequent day when the Clearing Bank is open for
business;
1.6.2.1(f) an Agent having more than one Approved Location subject to the same BSP
may apply to ISS Management for authorization to remit monies due on behalf of all
such Approved Locations through one designated office of the Agent to the Clearing Bank;
1.6.2.2—1.6.2.4 (except Resolution 814 countries and Canada & Bermuda)
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1.6.2.1 the Agent shall remit, by the Remittance Date the amount specified on the Billing for
the Remittance Period under settlement. If, exceptionally, the Agent has not received such
Billing by the Remittance Date the Agent shall:
1.6.2.21(a) on the Remittance Date, remit the amount its records indicate is owing in
respect of such Remittance Period or, in a direct debit situation, the amount deter- mined
by ISS Management, and
1.6.2. 21 (b) immediately upon receipt of the delayed Bill- ing, remit any shortage between
the remittance made pursuant to Subparagraph 1.6.2.2(a) above and the amount of the
Billing.
1.6.2. 21 (c) if the Agent fails to remit any such shortage immediately it shall be deemed to
be an overdue remittance and Irregularity and Default procedures shall apply in accordance
with Subparagraph 1.7.3.
1.6.2. 21 (d) if the extent of the shortage is such as to lead ISS Management to believe that
the Agent attempted deliberately to circumvent the settlement requirements of this Section,
ISS Management shall instruct the Clearing Bank to debit the Agent for Clearing Bank
charges incurred as a result of the shortage. Such charges shall be included in the
Clearing Bank's next Billing to the Agent and shall be due and payable by the Agent on the
Remittance Date applicable to such Billing;
1.6.2.32 (except Canada & Bermuda) if the Clearing Bank is closed for business on
the day on which the remittance is required to reach the Clearing Bank under the
provisions of Subparagraph 1.6.2, the remittance shall be made by the Agent so as to reach
the Clearing Bank before its close of business on the first subsequent day when the
Clearing Bank is open for business;
1.6.2.43 an Agent having more than one Approved Location subject to the same
BSP may apply to ISS Management for authorisation to remit monies due on behalf of
all such Approved Locations through one designated office of the Agent to the Clearing
Bank;
1.6.2.5—1.6.2.13 (Canada & Bermuda only: Processing and Settlement)
1.6.2.5 The Agent shall remit all settlements owing to the Clearing Bank with a value date for
each corresponding Settlement Date, in accordance with the Calendar of Settlement
Dates for Canada published yearly and in advance by IATA as part of the local Chapter
14 of the BSP Manual for Agents, as prescribed by ISS Manage- ment. The following
provisions shall govern the remit- tance process:
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1.6.2.5.1 In order to settle with the Clearing Bank through automated debits, the Agent shall
issue all appropriate authorisations, and in particular the Agent shall enter into agreement
providing for pre-authorised debits to be drawn from its designated account, such
authorizations and agreement to be substantially in the form as may be prescribed from time
to time by ISS Management.
1.6.2.5.2 The Agent who chooses not to settle through automated debits shall duly settle all
amounts outstanding by wire transfer, at its own costs, with a value date for each
corresponding Settlement Date.
1.6.2.6 the Data Processing Centre shall, in accordance with instructions prescribed by ISS
Management,
(i) process the contents of the Agent's sales transmit- tals;
(ii) provide to the Agent a summary of all transactions contained therein;
(iii) compute the net amount due to BSP Airlines;
(iv) draw a cheque in or otherwise debit such amount on the Agent's trust account or other
bank account for presentation on the ‘Settlement Date’, published in the BSP Manual for
Agents;
1.6.2.7 an Agent having more than one Approved Location subject to the BSP may
apply to ISS Manage- ment for authorisation to submit Sales Transmittals on behalf of all
such Approved Locations through one designated office of the Agent to the Processing
Centre;
1.6.2.8 the average number of days between the date of issue of a Standard Traffic
Document and the date on which settlement therefore is due to a BSP Airline, or its
designated intermediary acting on its behalf, is referred to
hereinafter as the ‘average delay from sales to settlement’ (ADSS).
1.6.2.9 It is determined by dividing the length of the Settlement Period in days by two,
and adding thereto the number of days following the end of the Settlement Period to
the date on which settlement (payment) in respect of all Accountable Transactions
made by the Agent during such Settlement Period is to be made to the Member, Airline or
designated intermediary;
Example:
ADSS = length of Settlement Period in days divided by two plus days to Settlement Date
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e.g.
1.6.2.10 the Conference may, provided also that the National Carrier(s) supports the
recommendation, authorise changes to the Reporting Period, Settlement Period, Reporting
Date, Submission Date and Settlement Date applicable to the BSP, subject to the following:
1.6.2.11 except as provided below the ADSS shall be uniform for all Agents,
1.7 IRREGULARITIES AND DEFAULT
….
….
1.7.1 Charges
The Conference, or the Assembly where so delegated, may, subject to the provisions set
forth in this Resolution and following local consultation, (which includes receiving comments
from the local Joint Agency Liaison Working Group), implement a programme of
cost-recovery charges to be levied on Agents under the following circumstances:
1.7.1(a) Administrative Charges
….
….
AND
1.7.1(a)(ii) (Philippines only) the amount of the charge shall escalate with the repetition
of the same type of incident by the same Location during the same calendar year;
provided that the level applicable to the fourth instance shall apply to all subsequent
instances during the same calendar year. ISS Management shall keep a record of
administrative charges debited to each Location during a calendar year. The record shall be
closed at the end of each calendar year and entries therein shall not be carried forward to the
following calendar year;
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1.7.1(b) Clearing Bank Charges
Clearing Bank Charges, which shall be in the amount debited to ISS Management by the
Clearing Bank as a result of the Agent's failure to remit as prescribed. These will be
increased, if applicable, by an amount to compensate for any extra efforts incurred by ISS
Management in relation to such failure; and
1.7.1(b)(i) (Philippines only) Clearing Bank Charges shall accrue from the Remittance
Date applicable to the date of receipt of the remittance by the Clearing Bank, or to the date
when the Agent is declared in Default, whichever is earlier, and shall be proportional
to the amount (less tax, if any) remitted late;
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1.7.2
Overdue
Paragraph 1.7.3)
or Dishonoured
Remittance (except
Canada
& Bermuda—see
1.7.2.1 (except Philippines) if the Clearing Bank does not receive a remittance due by: the
Remittance Date, or immediately on receipt by the Agent of a delayed Billing, a remittance in
respect of a shortage as provided for in Subparagraphs 1.6.2, or if an instrument of
payment received by the Clearing Bank to effect such remittance is dishonoured on or after the
Remittance Date, the Agency Administrator who shall thereupon demand payment from the
Agent including any Clearing Bank charges incurred and shall then:
….
….
OR
1.7.2.2 (Philippines only)
if the Clearing Bank does not receive a remittance due by the Remittance Date, or
immediately on receipt by the Agent of a delayed Billing, a remittance in respect of a
shortage as provided for in Subparagraphs 1.6.2.2(b), (c) and (d), or if an instrument of
payment received by the Clearing Bank to effect such remittance is dishonoured on or after
the Remittance Date, the Clearing Bank shall immediately so advise the Agency
Administrator who shall thereupon demand payment from the Agent including any
Clearing Bank charges incurred and shall then:
1.7.2.2(a) notify the Agent that an instance of overdue remittance will be entered in the
record kept under the provisions of Subparagraph 1.7.4. A Notice of Irregularity
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sent within the terms of this Subparagraph shall count as two listed instances of Irregularity
for the purpose of the list provided for in Subparagraph 1.7.6, for which its provisions
shall then apply;
1.7.2.2(b) if payment is not received on demand, the Clearing Bank shall immediately
so advise the Agency Administrator who shall thereupon notify the Agent and Default
Action with respect to all Locations of the Agent shall be taken in accordance with Paragraph
1.10;
1.7.2.2(c) notwithstanding such Default Action, the Agency Administrator shall debit
the Agent for Clearing Bank charges calculated as specified in Subpara- graph
1.7.1(b). The charges so debited shall, for the purpose of Subparagraph 1.10.2, be
deemed part of all amounts owing by the Agent;
1.7.2.2(d) in addition to any action prescribed in this Subparagraph, the Agency
Administrator shall debit the Agent for costs incurred as a consequence of the late or
dishonoured payment;
1.7.2.2(e) if it is established that such non-payment or dishonouring is due to a bona fide
bank error, as provided for in Paragraph 1.7.5, and settlement of all amounts due is received
on demand, the Irregularity if recorded, shall be rescinded;
1.7.2.2(f) if it is subsequently established that such non-payment or dishonouring is due
to a bona fide bank error, as provided for in Paragraph 1.7.9, and settlement of all amounts
due is received, but after Default Action has been taken, the Agency Administrator shall
immedi- ately withdraw such Default and the Notice of Irregularity, if recorded in accordance
with Subparagraph 1.7.5.2(a);
1.7.2.2(g) if, subsequent to an Agent's relinquishment of its accreditation, that Agent fails to
remit any monies due, it shall be held to be in default, and the provisions of Paragraph
1.10 shall apply. The Agency Administrator
shall thereby cause the termination to be amended to one
of default.
1.7.3 Dishonoured Cheque or other Method of Payment (Canada, Bermuda and
Philippines only)
1.7.3.1 (Canada & Bermuda only)
if a cheque or other debit in settlement of amounts due is dishonoured by non-payment by
the drawee bank, the Agency Administrator shall without delay send a Notice of Irregularity
in respect of the location concerned and demand immediate payment from the Agent.
Such Notice of Irregularity shall count as two instances of Irregularity for the purposes of
the lists provided for in Subpara- graph 1.7.6.
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1.7.3.1(a) If payment is not received on demand, the Agency Administrator shall
immediately notify ISS Management and the Agent and he/she shall take Default Action
with respect to all Locations of the Agent in accordance with Paragraph 1.10. In addition
to any action prescribed in this Subparagraph, the following additional provisions shall apply:
(i)
a charge as determined annually by the Conference to recover all costs incurred as a
consequence of the dishonoured cheque, or other debit shall be due and payable by the
Agent,
(ii) the charge so determined shall be included in the settlement amount due by the Agent,
1.7.3.1(b)
Irregularity
bona fide
Irregularity
if it is established within 90 days of receipt by the Agent of the Notice of
that non-payment by the drawee bank of such cheque or other debit is due to a
bank error and settlement of all amounts due is received on demand, the
so recorded and the charge set forth in Subparagraph 1.7.7.1 shall be rescinded,
1.7.3.1(c) if it is established within 90 days of receipt by the Agent of the Notice of
Irregularity that non-payment by the drawee bank of such cheque or other debit is due to a
bona fide bank error and settlement of all amounts due is received, but after Default Action
has been taken, the Agency Administrator shall immediately withdraw such Default and
Notice of Irregularity recorded in accord- ance with Subparagraph 1.7.3.1 rescind the charge
set forth in Subparagraph 1.7.3.1(a),
OR
1.7.3.2 (Philippines only)
If a cheque (except cheques not cleared locally) or other method of payment in settlement
of amounts due is dishonoured after the Remittance Date by non-payment by the drawee
bank, the Clearing Bank shall immediately so advise the Agency Administrator who shall
demand payment from the Agent. For the purpose of this Subpara- graph, payment on demand
means payment received by the Clearing Bank before its close of business on the first day
the Clearing Bank is open for business following the day of its demand:
1.7.3.2(a) if payment is received on demand the Clearing Bank shall immediately so advise
the Agency Adminis- trator who shall thereupon notify the Agent that an instance of
dishonoured payment will be entered in the record kept under the provisions of
Subparagraph 1.7.4 of this Paragraph. A Notice of Irregularity sent within the terms of this
Subparagraph shall count as two listed instances of
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Irregularity for the purpose of the list pro- vided for in Subparagraph 1.7.6, for which its
provisions shall then apply;
1.7.3.2(b) if payment is not received on demand the Clearing Bank shall immediately
so advise the Agency Administrator who shall thereupon notify the Agent and he shall take
default action with respect to all Locations of the Agent in accordance with Paragraph 1.10.1
of this Section.
1.7.3.2(c) if a cheque not cleared locally is dishonoured after the Remittance Date by nonpayment by the drawee bank, the Clearing Bank shall immediately so notify the Agency
Administrator who shall thereupon demand pay- ment from the Agent and, furthermore,
notify the Agent that an instance of dishonoured payment will be entered in the record
kept under the provisions of Subpara- graph 1.7.4 of this Paragraph. A Notice of
Irregularity sent within the terms of this Subparagraph shall count as two listed instances of
Irregularity for the purpose of the list provided for in Subparagraph 1.7.6, for which its
pro- visions shall then apply;
1.7.3.2(d) if the Agent has paid on or before demand, the Agency Administrator shall require
the Agent to submit a validated deposit slip as proof of payment and, in addition, the
Agency Administrator shall also notify the Agent that no cheque payment written in any
currency other than Philippine Pesos will be accepted for payment for a period of 12 months;
provided further that if, during the six months' period, subsequent to the first 12 months
period, any cheque payment made by the Agent is dishonoured, whether or not
subsequent to the issuance of the unfunded cheque and prior to it being dishonoured, the
Agent deposits with the Clearing Bank sufficient funds to cover the value of the cheque or,
payment is received on demand, default action shall be taken with respect to all Locations
of the Agent in accordance with Para- graph 1.10.1 of this Section;
1.7.3.2(e) if payment is not received on or before demand, default action with respect
to all Locations of the Agent shall be taken in accordance with paragraph 1.10.1 of this
Section,
1.7.3.2(f) In addition to any action prescribed in this Subparagraph, the Agency
Administrator shall debit the Agent for costs incurred as a consequence of the
dishonoured cheque or other method of payment.
1.7.4 Accumulated Instances of Late Remittance and/or Dishonoured Payment
(Philippines only)
1.7.4(a) the Agency Administrator shall keep a record of instances of late remittance and of
dishonoured payment notified to Agents pursuant to Paragraphs 1.7.2.2(a) and
1.7.3.2. When the record indicates that an Agent has received two such notifications
pursuant to Para- graphs 1.7.2.2(a) and 1.7.3.2. during any six
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consecutive months, or whenever an Agent has received one such notification pursuant to
Subparagraph 1.7.5 the following provisions shall apply:
1.7.4(b) the Agency Administrator shall conduct an examination of the financial
standing of the Agent in accordance with the provisions of Resolution 810, Section
3, Subparagraph 3.4.1; in addition to documents necessary for such examination, the
Agency Adminis- trator shall request the Agent to submit a written expla- nation of the
reasons for the instances of late remittance and/or dishonoured payment;
1.7.4(c) if, following the examination of the Agent's financial standing by the Agency
Administrator the Agent is retained on the Agency List, the record shall be cleared of all
instances of late remittance and of dishonoured payment recorded against the Agent prior
to the examin- ation and, for the purpose of this Subparagraph, the commencement of
the six months period shall be the date of the decision to retain the Agent.
.....
1.7.7 Accumulated Irregularities
The provisions of this Paragraph govern the procedures that shall apply when an Agent
accumulates Notices of Irregularities. Accumulated Irregularities may, ultimately, lead to an
Agent being placed in Default.
1.7.7.1 after each Remittance Date, or Settlement Date, the Agency Administrator shall
compile and publish to BSP Airlines a list containing the names of all the Agents (and
the addresses of the Approved Locations concerned) that have been sent Notice of
Irregularity under any of the provisions of these Rules since the preceding Remittance
Date.
1.7.7.2 if four (4), instances of Irregularity, or six (6) for Resolution 804 countries are
recorded on such lists in respect of a Location during any 12 consecutive months, the
Agency Administrator shall immediately advise ISS Management and he/she shall take
Default Action with respect to all Locations in accordance with Paragraph 1.10;
….
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1.9 NOTIFICATION OF IRREGULARITY
The provisions of this Paragraph govern the procedures when the Agency Administrator is
required under any of the provisions of Paragraph 1.7 to send to an Agent a Notice of
Irregularity.
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1.9.1(a) (Except 810 Countries) he/she shall immediately send the Agent a registered
letter, or certified letter with return receipt, or in countries where registered/ certified mail
is not available by use of regular postage and e-mail as appropriate in the form
prescribed from time to time.
1.9.1(b) (810 Countries only) he/she shall immediately send the Agent a registered letter,
as well as a fax or email copy, in the form prescribed from time to time.
1.9.2 the Notice of Irregularity shall be in respect of the Approved Location concerned,
except that a Notice of Irregularity resulting from overdue Remittance by an Agent
authorised to remit through one designated office shall be in respect of all Approved
Locations covered by the authorisation.
1.9.3 the Agency Administrator shall at the same time send a copy of the letter to the
Approved Location concerned, to ISS Management.
1.9.4 such irregularity shall be recorded against the Location concerned by the Agency
Administrator on the list maintained pursuant to Subparagraph 1.7.6 of this Section.
….
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1.11 REMITTANCE AND SETTLEMENT DELAYED BY OFFICIAL GOVERNMENT
ACTION (except Canada & Bermuda)
notwithstanding any other provision contained in this resolution an Agent shall not be
sent a Notice of Irregularity, debited for administrative or Clearing Bank charges, nor
declared in Default with respect to all or any part of a remittance to the extent that the Agent
is unable to make full settlement because of official Government action which directly
prevents such settlement; provided that the Agent demonstrates that the amount has been
made available for Remittance at a recognised bank but cannot be remitted owing to such
official Government action.
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ADMs – ALIGNMENT WITH BSPLINK
Submitted by the Secretary
Further to an ADM Workshop held as an adjunct to PSG/82 in March 2013, and previous
discussions on this topic at both PSG and PAPGJC meetings, the proposed amendments
shown at Attachment ‘A’ to Resolution 850m are summarised below:
1. Mandation of BSPlink - as the sole channel for ADM billing and dispute.
2. Mandation of ADM Policy – introducing the obligation for Airlines to publish their ADM
policies (free of charge) through a link on BSPlink.
3. ADM admin fees – obligation to include in the same ADM raised for the adjustment
4. Standardisation of timelines – in order to manage operationally.
Proposed Action
Conference is invited to adopt the proposed amendments to Resolution 850m shown at
Attachment ‘A’.
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1. Amend Resolution 850m as shown below:
RESOLUTION 850M
1. INTRODUCTION
1.4 BSPlink is mandated as the exclusive medium through which ADMs must be billed and
disputed.
2. AIRLINE POLICY
2.1 Airlines are required to publish and communicate in writing their ADM policies to Agents
through BSPlink in advance of implementation.
4. ISSUANCE PRINCIPLES
4.5 Where possible electronic BSP functionality will be used by the issuing airline.
4.6 An Agent shall have a minimum maximum of 14 15 days in which to review an ADM prior to its
submission to BSP for processing.
4.7.1 Except LATAM countries under 818g Any disputes are to be raised by Agents within 30
days of receipt of an ADM, and
4.7.1.1 all disputes are to be settled by the Airline within 60 days of receipt.
4.7.2 LATAM countries under 818g only Any disputes are to be raised by Agents within two
reporting periods of receipt of an ADM, and
4.7.2.1 all disputes are to be settled by the Airline within 60 days of receipt.
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AMENDMENT TO DEFINITION OF STD
Submitted by PSG
As VMCO and VMPD will become obsolete effective 01 January 2014, PSG83 has endorsed to
Conference an amendment to the definition for Standard Traffic Documents found in Resolution
866 as shown below:
“STANDARD TRAFFIC DOCUMENTS means the following BSP documents:
• Electronic Miscellaneous Documents (EMD)
• Electronic tickets
• Automated coupon-by-coupon MCO (paperless or plain paper) VMCO in
accordance with Resolution
725d
• Virtual Multipurpose Miscellaneous Document
(VMPD)
They are supplied by ISS Management, and do not bear any carrier identification until
after issuance by the Agent.”
Proposed Action
Conference is asked to adopt the above amendment and approve editorial amendments to the
BSP Manual and ISS Service Provisions – Passenger, namely:
BSPM:
• Chapter 6 – Standard Traffic Documents (Paragraph 6.1)
• Appendix C – Glossary of Terms
ISSSPM:
Chapter 5 BSP Standard Traffic Documents
• Preamble
• 5.1 ET – Control of Serial Numbers
Chapter 6 – STD Issuance
• Preamble
• 6.1 Issuance of STDs
• Appendix J - Acronyms
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RESOLUTION 800o - ON-LINE TRAVEL AGENT
RESOLUTION 818a - EUROPE ACCREDITED AGENT
RESOLUTION 842 - NETWORK AGENT
Submitted by the Secretary
Now that Conference has established one set of global Sales Agency Rules for application in
BSP countries it is timely to examine other standalone resolutions that impact on the single set
of Sales Agency Rules. There are three such resolutions.
Resolution 800o - On-Line Travel Agent. In Europe there are 47 Head Office locations
registered covering a further 73 Branches making a total of 120 locations.
Resolution 818a – Europe Accredited Agent. This resolution only applies in Europe and has 6
registered Agents with over 600 branch locations which are mainly located in Spain.
Resolution 842 – Network Agent. This resolution has world wide application and has been
effective for ten years and no Agents have ever been accredited.
It would be beneficial to merge the relevant parts of the appropriate resolutions into the Sales
Agency Rules. The three separate resolutions cause a degree of confusion when they are being
analysed alongside resolution 818g. Much of the text is similar or overlaps with what is already
contained in the Sales Agency Rules. It is therefore suggested that the relevant text from the
stand alone resolutions be incorporated into resolution 818g to provide a single source of
reference. The changes will assist applicants and IATA operational staff administering the
programme.
Proposal
As Resolution 842 – Network Agent has been established for 10 years and as no applicant has
applied to become a Network Agent it is proposed to rescind this resolution and not include any
of the wording in 818g.
It is proposed to retain the other two categories but to incorporate the relevant text in resolution
800o and 842 into resolution 818g and then once the changes have been adopted these two
resolutions can be rescinded.
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The Agents who have registered under the existing resolutions would continue with Grandfather
rights and rescission of the resolutions will have no practical effect on the Agents. They would
continue to operate as they do today.
Details of the proposed changes to Resolution 818g are shown on Attachment A and B.
Proposec Action
PAConf to agree to the rescission of Resolution 842 and to agree to the changes to Resolution
818g and upon these being adopted by Conference agree to the rescission of Resolution 800o
and 818a.
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Resolution Text to incorporate Resolution 800o into Resolution 818g
As much of the text and procedures for Resolution 800o is a duplication of what is in resolution
818g on-line Agents can be incorporated into 818g by making the following amendments:
Firstly, Section 2 is entitled Qualifications for Accreditation. Whilst the paragraph headings do
not form part of the resolution it would be more appropriate if Section 2 was entitled
“Requirements and Qualifications for Accreditation”. In reviewing the text of resolution 800o it is
proposed to improve the definition of On-line Travel Agent contained in Resolution 866, as
shown below.
Resolution 818g
Section 2 – Requirements and Qualifications for Accreditation
Insert new paragraphs
Online Agent
2.1.14 Applicants for approval as an internet-only Agent must meet the criteria specified in this
section with the exception of the physical requirements relating to Premises and Security. In
addition any entity applying for the status of an Online Agent must have an established physical
Head Office duly registered/licensed to operate as a business. The applicant will also be
required to conclude a Passenger Sales Agency Agreement to cover each Online Agent
location in a country.
2.1.15 The applicant will effect sales through a website and where local laws permit the
applicant may have its Head Office Location/Administrative Office in one country and establish a
local web address in another country. The Head Office Location/Administrative Office will be
required to meet the criteria specified in this section. In such circumstances each location will be
responsible for the reporting and remitting of BSP sales to the BSP of the country/area in
which it is located.
Renumber 2.1.14 to 2.1.16
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Resolution 866
ON-LINE ONLINE AGENT – means a travel agency an Agent or applicant, duly
registered/licensed in the country of operation authorised to sell travel services that facilitates
the sale of Members and Airlines services through an Internet portal. which effects sales of
Members’ and Airlines’ services through a website, and which has been accredited in
accordance with the provisions of Resolution 818g.
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Resolution text to incorporate Resolution 818a into 818g
Given the history of this resolution the changes are a little more sensitive but much of the text in
resolution 818a already exists in 818g. The revised wording would mean that once the entity is
accredited it has the ability to seek approval as a European Accredited Agent (EAA).
The resolution only applies to European countries and is unique in permitting Accredited EAA
Agents to open Branch Offices without seeking approval for these offices. To date there are only
six EAA Agents accredited but there are over six hundred branches which may be affiliated,
subsidiaries or implants. However much of the text and procedures in resolution 818a is a
duplication of what is contained in resolution 818g. It is suggested that the following changes be
made to 818g to incorporate this category of Agent into the single set of Sales Agency Rules.
Resolution 818g
Section 2 – Requirements and Qualifications for Accreditation
Insert new paragraphs
European Accredited Agent (EAA)
2.1.16 Any Agent established or planning to establish locations in the European Union (EU) the
European Economic Area (EAA) or Switzerland may apply for EAA status. European Accredited
Agents must be officially registered as companies under the national law of a member state of
the EU, EAA or Switzerland and/or licensed to trade and offer travel agency services as
prescribed by the national commercial or fiscal law of that member state. The Head Office must
be located in the same member state as the entity is registered. The Head Office of the
controlling entity which applies to become a EAA shall accept full financial responsibility to IATA
and its Members for the performance of all of the locations within its application for classification
as an EAA and for any locations subsequently added.
2.1.17 Once Accredited as such, an EAA shall automatically acquire the right to open affiliated,
subsidiary locations and implants within the EU, EEA and Switzerland without the need to seek
individual accreditation for these locations on the condition that the criteria described in this
section is met. When notifying IATA of the creation of a new Location the EAA shall be required
to indicate the name, address and other relevant information, (contained in the Application Form
shown as Attachment D to this resolution) of the new Location.
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Re number existing paragraph 2.1.14 as 2.1.18
If this wording is agreed, Section 5 of Resolution 818a Attachment A will become Attachment D
to Resolution 818g.
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NON-BSP COUNTRIES MOVED TO RESOLUTION 800
Submitted by Secretary
When Latam countries migrated from Resolution 808 to 818g, all the countries listed under Latin
America and the Caribbean were carried over into the 818g country listing.
Subsequently, Conference took the decision to ring-fence Resolution 818g for BSP countries
only, with all non-BSP countries adopting the Sales Agency Rules under Resolution 800.
The change to move LATAM non-BSP countries to Resolution 800 was never made and
therefore it is proposed to regularize the situation by moving Cuba and Falkland Islands/
Malvinas to the appropriate set of SAR.
Proposed Action
Conference is invited to adopt the amendments shown at Attachment ‘A’.
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Amend Resolutions 800/818g as shown below:
RESOLUTION 800
PASSENGER SALES AGENCY RULES
This Resolution is applicable in the following countries and/or territories:
Afghanistan, Algeria, Angola, Armenia, Belarus, Bhutan, Brunei Darussalam, Burundi,
Cape Verde, Christmas Island, Cocos (Keeling) Islands, Cuba, Comoros, Democratic
People's Republic of Korea (DPRK), Democratic Republic of Congo, Djibouti, Equatorial
Guinea, Eritrea, F a l k l a n d I s l a n d s / M a l v i n a s , Gambia, Guinea, Guinea-Bissau,
Indian Ocean Islands, Islamic Republic of Iran, Iraq, Israel, Laos (Peoples' Democratic
Republic),
Liberia,
Libya,
Madagascar,
Maldives, Myanmar,
Sao
Tome
and
Principe,
Seychelles, Sierra Leone, Somalia,
Sudan, Tajikistan, Timor Leste,
Turkmenistan, and Uzbekistan.
RESOLUTION 818g
PASSENGER SALES AGENCY RULES
PAC1(49)818g(except USA)
PAC3(49)818g
Expiry: Indefinite PAC2(49)818g
Type: B
This Resolution is applicable in the following countries:
Area 1: Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize,
Bermuda, Bolivia, Bonaire, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile,
Colombia, Costa Rica, Cuba, Curacao, Dominica, Dominican Republic, Ecuador, El
Salvador, Falkland Islands/Malvinas, French Guyana, Grenada, Guadeloupe, Guatemala,
Guyana,
Haiti,
Honduras,
Jamaica, Martinique, Mexico, Montserrat, Nicaragua,
Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the
Grenadines, St. Eustatius, St. Maarten (Dutch part), Saba, Suriname, Trinidad and
Tobago, Turks and Caicos Islands, Uruguay, Venezuela.
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DEFINITION OF LATIN AMERICA IN RESOLUTION 866
Submitted by a Member
Background
During PAC/34 held in Singapore (October 2011) the agenda item R10 was submitted and
adopted to amend the country “Netherlands Antilles” in Resolution 818g to read instead
“Bonaire, Curacao, St. Eustatius, St. Maarten (Dutch part) & Saba” in view of a change of status
within the Kingdom of the Netherlands effective 10 October 2010.
During a recent check in resolution 866 it was discovered that the definition “Latin America and
the Caribbean” has erroneously not been amended accordingly.
Proposal
To amend and adopt the definition “Latin America and the Caribbean” as shown follows :
Latin America and the Caribbean means in this Resolution Anguilla, Antigua and Barbuda,
Argentina, Aruba, Bahamas, Barbados, Belize, Bolivia, Bonaire, Brazil, British Virgin Islands,
Cayman Islands, Chile, Colombia, Costa Rica, Cuba, Curacao, Dominica, Dominican Republic,
Ecuador, El Salvador, Falkland Islands/Malvinas, Grenada, Guadeloupe, Guatemala, Guyana,
Haiti, Honduras, Jamaica, Mexico, Montserrat, Netherlands Antilles, Nicaragua, Panama,
Paraguay, Peru, Saba, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, St.
Eustatius, St. Maarten (Dutch part), Suriname, Trinidad and Tobago, Turks and Caicos Islands,
Uruguay, Venezuela.
Proposed Action
PSG to endorse the above amendment in Resolution 866 to Conference.
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DEFINITION OF SOUTH WEST PACIFIC
Submitted by PSG
Background
During PAC/34 (Singapore) and PAC/35 (Abu Dhabi) we received individual reports of and
discussed the issues (if any) with the following titles:
APJC Australia (2011 – G4.1 / 2012 – G4.2.1)
APJC New Zealand (2011 – G4.49 / 2012 – G4.2.9)
APJC Papua New Guinea (2011 – G4.52 / 2012 – G4.2.11)
APJC South West Pacific Islands (2011 – G4.64 / 2012 – G4.2.14)
The first 3 (largest) countries in this region are however part of South West Pacific as defined in
Resolution 866.
Proposal
Due to fact future PAC meetings will most probably continue to receive individual reports from
these most important markets (Australia, New Zealand and Papua New Guinea) it is proposed
to amend the wording/definitions as follows.
Amend Resolution 866:
South West Pacific that is the area composed of Australia, Cook Islands, Fiji, French
Polynesia, Kiribati (Canton and Enderbury Islands), Marshall Islands, Federated State of
Micronesia, Nauru, New Caledonia (including Loyalty Islands), New Zealand, Niue, Palau,
Papua New Guinea, Samoa (Independent State of), Solomon Islands, South West Pacific
Islands, Tonga, Tuvalu, Vanuatu, Wallis and Futuna Islands.
South West Pacific Islands that is the area composed of Cook Islands, Fiji, French Polynesia,
Kiribati (Canton and Enderbury Islands), Marshall Islands, Federated State of Micronesia,
Nauru, New Caledonia (including Loyalty Islands), Niue, Palau, Samoa (Independent State of),
Solomon Islands, Tonga, Tuvalu, Vanuatu, Wallis and Futuna Islands.
Proposed Action
Conference to adopt the resolution amendment above.
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DEFINITION OF ATA IN RESOLUTION 866
Submitted by PSG
Background
Resolution 866 contains a definition for ATA. Since 2011 or 2012, this organization has changed
its name and abbreviation to Airlines for America / A4A. However, as the Passenger Agency
Programme does not operate in the United States and there is no reference to ATA in any
Passenger Agency resolutions, it is proposed that the definition of ATA be deleted from
Resolution 866 as shown below:
ATA means the Air Transport Association of America.
Proposal / Action
Conference to adopt the above resolution amendment.
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RESOLUTION 850M – ISSUE AND PROCESSING OF AGENCY DEBIT MEMOS (ADMs)
Submitted by a Member/Secretary
Background
This proposal was submitted to last year’s PAConf which raised concerns whether the
procedure for Agents’ to dispute ADMs issued to closed and terminated Agents were in place
and recommended that a new proposal with 30 days dispute period be submitted to the PSG for
review and approval. The rationale behind the 30 days dispute period compared to the current
15 days dispute period given to default Agent needs to be clarified by IATA. This requirement is
similar to the proposal approved by PAConf in 2011 to allow BSP Airlines to submit
ADMs/ACMs after the Agent was declared in default.
Problem
Resolution 818g, sub-paragraph 13.1 and 13.2.1 states that the Agent is liable to BSP Airlines
for all obligations accrued up to the date of closure/termination, however currently the Airlines
are not permitted to raise ADMs/ACMs to recover dues through the BSP mechanism. The only
recourse available to BSP Airlines is to recover the outstanding amount from these Agents
outside the BSP process. It should be noted that this is a very time consuming and expensive
activity for the BSP Airlines with little or no control of recovering the outstanding amount.
Proposed Solution
The proposal is to amend/add new text to Resolution 850m, 818g and 832 to provide BSP
Airlines with the opportunity to raise ADMs/ACMs within a reasonable time period on closed and
terminated Agents. Airlines should be allowed maximum period of 30 days (to be consistent with
the period provided to raise ADMs/ACMs on defaulted Agents) to raise ADMs/ACMs from the
date of IATA notification to Airlines as it has been noted that on some occasions the IATA
notification is received after the Agent has closed. The appropriate amendments are set out in
Attachment ‘A’.
Proposed Action
Conference to adopt the resolution changes shown in Attachment ‘A’.
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Resolution 818g
Section 13 - Measures Affecting an Agent’s Standing
13.1 RELINQUISHMENT BY AGENT
13.1.1 an Accredited Agent may voluntarily relinquish its Accreditation in respect of all or any of
its Approved Locations at any time by giving advance notice in writing to the Agency
Administrator who shall notify all Members and BSP Airlines. The notice will state an effective
date of withdrawal, The withdrawal shall take effect on a date that is not before the date
specified in clause 13.2 of the Sales Agency Agreement, unless these Rules specify a different
date. Such withdrawal shall be without prejudice to fulfilment by the Agent and each of the BSP
Airlines having the Agent under appointment, of all obligations accrued up to the date of
withdrawal from the Agency List;
Resolution 818g
Section 14 - Agency Fees
14.2 INVOICING
Except in respect of the first assessment upon application annual agency fees for each calendar
year shall be paid due not later than December 1 of the preceding year in accordance with the
instructions of the Agency Administrator. Invoices for such fees shall be sent out by the Agency
Administrator not later than November 1 of each year. Invoices for such fees will be issued by
the Agency Administrator for collection through the BSP, except where this is not operationally
feasible payment will be due within 30 days of the date of issue.
14.2 NON-PAYMENT OF ANNUAL, APPLICATION OR ADMINISTRATIVE FEES
14.3.1 if any Agent fails to pay the annual agency fee by December 1, the due date, IATA will
apply two instances of irregularity by issuing a Notice of Irregularity, including notice of
suspension, and will give the Agent 30 days to comply. Failure by the Agent to comply within 30
days will cause IATA immediately to suspend the Agent and to give the Agent written notice of
removal from the Agency List, provided that if the Agent submits payment prior to the removal
date the removal shall not take effect. Where the Agency Administrator gives notice of removal
under this provision, the notice shall specify the date at which it will be effective, which shall not
be before the date specified in clause 13.2 of the Sales Agency Agreement. the Agency
Administrator shall promptly notify the Agent in writing that its Sales Agency Agreement shall be
terminated if such fee is not received by December 31. In the event payment is not made by
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such date, the Director General shall terminate the Agent’s Sales Agency Agreement and the
Agency Administrator shall remove the Agent’s name from the Agency List. Payment of annual
fees by the Agent after the due date may be subject to a 10% late-payment surcharge to cover
costs incurred.
14.3.2 if an Agent whose Agreement has been terminated under Subparagraph 14.3.1 of this
Paragraph subsequently remits the annual fee by March 31 following such termination, the
Agency Administrator may, if he is satisfied that the late payment was caused by events beyond
the Agent’s control, reinstate the accreditation of an Agent. Such Agent’s name shall then be
reentered on the Agency List and a new Sales Agency Agreement shall be executed.
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EXPIRY OF RESOLUTION 810d
Submitted by the Secretary
Background
During the period when the Passenger Agency Programme operated in India under the
governance of Resolution 810i, the possibility of including Domestic transactions within the
scope of Billing & Settlement was contemplated and accordingly, authority of the PAConf to do
so was proposed and passed as Resolution 810d. Under this authority a Domestic BSP,
distinct from International BSP was introduced in 2006 and operated as a parallel BSP with
different remittance dates. Each accredited Agent signed an Addendum to the PSAA giving
their consent to be bound by the covenants of governing Resolutions relating to consequences
of default for Domestic BSP in the same manner as they are bound for International.
Since June 2011 the Passenger Agency Programme has operated under the governance of
Resolution 818g and with effect from 01 July 2013, International and Domestic transactions are
billed in a single invoice with the same Remittance Date. Since there is only a single Billing &
Settlement Calendar and all transactions are amalgamated in a single invoice the authority of
Resolution 810d to operate a Domestic BSP Programme is no longer necessary.
Proposed Solution
The practice of obtaining a Domestic Addendum to the Passenger Sales Agency Agreement is
no longer required and Resolution 810d should be expired as soon as possible as it is no longer
relevant.
Proposed Action
Conference to agree to the expiration of Resolution 810d effective 31 December 2013 and
adopt the resolution changes as shown in Attachment ‘A’.
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Amend Resolution 810d as shown below:
RESOLUTION 810d
DOMESTIC AGENCY PROGRAMME IN INDIA
PAC3(4050)810d(India)
Expiry: Indefinite 31 December 2013
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ADDITION TO RESOLUTION 818g (Attachment C) FOR REMITTANCE DATE – INDIA
Submitted by APJC India
Background
India has weekly billing cycle. The Remittance with effect from 01 January 2014 is the 7th day
after the end of the sales period. The APJC-IN had unanimously proposed to the 32nd
Passenger Agency Conference an easement of having the Remittance date deferred in the
event of there being bank holidays during the credit period but no action was returned by
Conference.
Hence the APJC-IN at their 38th meeting held on 13 August 2013 unanimously recommended
that this proposal be placed before Conference anew at the 36th PAConf.
Oftentimes it is observed that banking closure for several days during the period between the
end of a sales period and the remittance date brings about a freeze in the commercial and
banking activity and impairs the ability of agents to mobilize funds for Remittance. This causes
them undue hardship and has the potential of accelerating the number of Irregularities and
Defaults that, in general, is unhealthy for the Industry.
Proposal
It is submitted that the intent of the Council in having proposed seven days between the end of
the sales period and the remittance date, was to allow at least five working days for agents to
mobilize funds and make the same available for remittance. In this light it is proposed that the
following paragraph be inserted after paragraph 1.6.2.1(d) of Resolution 818g, Attachment C:
INDIA ONLY: Remittance shall be made by the agent to reach the clearing bank by not later
than its close of business on the seventh day after the end of each Reporting period. Exception:
When there are more than two days of Bank closure / holidays between the end of the sales
period and the remittance date or less than five working days, then the remittance date shall be
deferred by as many days as the number of holidays/closure in excess of two days or by as
many days as the number of working days during the same period fall short of five. Bank
closure/holidays, for the purpose of this paragraph, shall mean a Bank Holiday or complete
unscheduled closure of all Banks in a specific territory or in India for all business, owing to
strikes, riots or civil commotions. Such deferment of Remittance date shall not exceed one
working day under any circumstances whatsoever.
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Proposed Action
Conference to adopt the change to Resolution 818g, Attachment ‘C’ as shown above for
effectiveness from 01 January 2014.
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NUMBER OF IRREGULARITIES TO TRIGGER DEFAULT IN INDIA
Submitted by APJC India
Background
India has weekly billing cycle. The Remittance with effect from 01 January 2014 is the 7th day
after the end of the sales period. There was an apprehension expressed by the airline and
agency representatives on the Joint Council that instances of irregularity and default will
escalate. The Agency representatives argued that two occasions in twelve months of a
dishonour often due to Agent error was too stringent for triggering default. It was pointed out
that recently the Indian banking infrastructure had been enhanced with a Cheque Truncation
Scheme (CTS) whereby oftentimes the payment instrument did not even arrive for clearing at
the local bank. They cited the exception in Resolution 818g, Attachment A for Nepal and
argued that circumstantially the two neighboring countries were similar. The APJC-IN at their
37th meeting unanimously agreed to propose this change to Conference.
Proposal
It is proposed that paragraph 1.7.5.2 of Resolution 818g, Attachment A be amended as follows:
1.7.5.2 immediately upon a fourth instance of Irregularity being recorded, six instances in the
case of Nepal and India and countries on weekly remittance in Area 1 except Argentina,
Paraguay and Uruguay where eight instances apply, on such list in respect of a Location during
any 12 consecutive months the Agency Administrator shall take Default Action with respect to
all Locations in accordance with Paragraph 1.10;
Proposed Action
Conference to adopt the resolution amendment shown above for effectiveness from 01 January
2014.
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REDUCTION IN BSP PROCESSING TIMES – BSP NEW ZEALAND
Submitted by APJC-NZ
1.
Background
1.1
The APJC-NZ has been deliberating over the past year on further operating efficiencies
to improve risk management and reduce airlines’ exposure to agency default, by means
of both default protection arrangements and reduced credit exposure through the BSP.
1.2
The improved and recently re-stated default protection arrangement (the TAANZ-IATA
Agreement) covering airlines transacting through the New Zealand BSP has been
finalised. The other area of focus has been on BSP processing times, where the APJC
Airline and Agency members have been working collaboratively to introduce efficiencies
to reduce exposure and better manage risk.
2.
Proposal to Reduce Processing Times
2.1
At the APJC-NZ meeting on 01 August, TAANZ agreed, on behalf of its membership, to
a 7 day reduction in the BSP processing times, largely facilitated by efficiencies in airline
and IATA processing. Local airlines who were previously uploading ADM’s/ACM’s to the
BSP via a third party are now able upload ADM’s/ACM’s directly to IATA’s Data
Processing Centre (DPC), thus removing this 5 day processing window. In addition,
IATA was able to shave one day from its DPC processing time. New Zealand Travel
Agents were able to contribute a further one day efficiency in their back-office billing
reconciliation, bringing the total savings in processing time to 7 days.
2.2
The proposed BSP calendar (as an example) for both 7 and 14 day remittance cycles is
shown at Attachment ‘A’.
2.3
The reduction in processing times would be phased in over two tranches:
•
6 days reduction effective 01 January 2014
•
Further 1 day reduction effective 01 July 2014
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3.
Action Required of PAConf
3.1
The APJC-NZ seeks the PAConf’s approval to introduce these processing efficiencies in
two tranches, as outlined above, and that they be included in Resolution 818g,
Attachment C.
Section 1.6
New Zealand Only: If the remittance frequency so established is four times monthly,
Remittances shall be made so as to reach the Clearing Bank not later than its close of
business on the 7th day from the Billing Distribution date [6th day from Billing Distribution
date effective 1st July 2014]. If the remittance frequency so established is twice monthly,
Remittances shall be made so as to reach the Clearing Bank not later than its close of
business on the 7th day from the Billing Distribution date of the later sales period. [6th day
from Billing Distribution date effective 1st July 2014]
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CURRENT CALENDAR
REPORTING
PERIOD
Day 1
A p r-2013
1-Apr
8-Apr
15-Apr
22-Apr
to
to
to
to
EXPECTED RDPC
BILLING RUN
DATE
A/ine /AGT. BILLING
DISTRIBUTION
DATE
AGENT
REMITTANCE
ACCOUNT
AGENT
REMITTANCE
ACCOUNT
DEBIT DATE
14 day remittance
D a y 29
Day 7
D a y 12
D a y 15
DEBIT DATE
7 day remittance
Day 22
7-Apr
14-Apr
21-Apr
28-Apr
Fri 12 Apr
Fri 19 Apr
Fri 26 Apr
Fri 03 May
Mon 15 Apr
Mon 22 Apr
Mon 29 Apr
Mon 06 May
Mon 22 Apr
Mon 29 Apr
Mon 06 May
Mon 13 May
P R OP OS E D CA LE N D A R e ff 1s t J a n 2014 - D ue to Mo nd a y S und a y c y c le
2014 c a le nd a r will c o mme nc e fro m 30th D e c
REPORTING
EXPECTED RDPC
A/ine /AGT. BILLING
AGENT
PERIOD
BILLING RUN
DISTRIBUTION
REMITTANCE
DATE
DATE
ACCOUNT
Mon
29
Apr
Mon
13
May
AGENT
REMITTANCE
ACCOUNT
Day 1
Day 7
Day 8
Day 9
DEBIT DATE
7 day remittance
Day 16
DEBIT DATE
14 day remittance
D a y 23
30-Dec
6-Jan
13-Jan
20-Jan
27-Jan
5-Jan
12-Jan
19-Jan
26-Jan
2-Feb
Mon 06 Jan
Mon 13 Jan
Mon 20 Jan
Mon 27 Jan
Mon 03 Feb
Tue 07 Jan
Tue 14 Jan
Tue 21 Jan
Tue 28 Jan
Tue 04 Feb
Tue 14 Jan
Tue 21 Jan
Tue 28 Jan
Tue 04 Feb
Tue 11 Feb
A/ine /AGT. BILLING
DISTRIBUTION
DATE
AGENT
REMITTANCE
ACCOUNT
AGENT
REMITTANCE
ACCOUNT
DEBIT DATE
14 day remittance
D a y 22
Tue
21
Jan
Tue
04
Feb
P R OP OS E D CA LE N D A R e ff 1s t J ul 2014
REPORTING
PERIOD
EXPECTED RDPC
BILLING RUN
DATE
Day 1
Day 7
Day 8
Day 9
DEBIT DATE
7 day remittance
Day 15
30-Jun
7-Jul
14-Jul
21-Jul
28-Jul
6-Jul
13-Jul
20-Jul
27-Jul
3-Aug
Mon 07 Jul
Mon 14 Jul
Mon 21 Jul
Mon 28 Jul
Mon 04 Aug
Tue 08 Jul
Tue 15 Jul
Tue 22 Jul
Tue 29 Jul
Tue 05 Aug
Mon 14 Jul
Mon 21 Jul
Mon 28 Jul
Mon 04 Aug
Mon 11 Aug
Mon
21
Jul
Mon
04
Aug
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CHANGE OF REMITTANCE FREQUENCY – PAKISTAN
Submitted by APJC-PK
Background Information
Pakistan BSP is on four times a month billing and twice monthly settlement. Due to the high
number of defaults and the high amount of unrecoverable debt, the APJC considered a proposal
to increase the remittance frequency to four times a month to coincide with the billings.
APJC-PK has met on four occasions since November 2012, supported by five FAG meetings, to
discuss increasing the remittance frequency in Pakistan. A chronology of discussions at these
meetings is shown at Attachment ‘A’.
Having received a confirmation email from TAAP on 20 August 2013 (shown in the attachment),
the APJC is now unanimous in putting to Conference a request to implement weekly remittance
in Pakistan with effect from 1 July 2014.
Proposed Action
(1) Conference to adopt the proposal to move to weekly remittance in Pakistan effective 1
July 2014 on the basis of the following remittance calendar:
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(2) Conference to adopt an amendment to Resolution 818g, Attachment ‘C’ as shown
below:
Section 1.6
PAKISTAN ONLY If the remittance frequency so established is four times monthly,
Remittances shall be made so as to reach the Clearing Bank not later than its close of business
on the 7th day from the Reporting Date.
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CHRONOLOGY OF EVENTS
1.
Inaugural APJC meeting – 19th Nov – After resolution of the legal case with the
assistance of UFTAA, IATA organized the inaugural APJC – Pakistan
2. Second APJC – 10th January 2013 –Agency Members wanted to defer the
discussion
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3. Third APJC – 28th February 2013 – Unanimous agreement on Weekly Remittance
from 1st January 2014
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4. Fourth APJC – 14th June 2013 – Agency members retracted earlier agreement and
proposed a 10 day cycle if approved by the TAAP – AGM on 26th June 2013.
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5. 28th June 2013 – Travel Agents Association of Pakistan [ TAAP ] rejected the
weekly or 10 day cycle after the AGM
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6. 20th August 2013 – email confirmation from TAAP obtained as follows:
On behalf of Travel Agents Association of Pakistan and TAAP APJC-P delegates, give our
concurrence as agreed on draft as under.
" Consequent to the discussions at four APJC and five FAG meetings held since 19th November
2012 and the last meeting of TAAP members with Chairman APJC at PIA Head Office on 22nd
July, 2013, - in principal TAAP has agreed to work with the APJC for implementation of
remittance frequency of 7-10 days in the Pakistan market on the condition that sufficient time
will be given to the agents/market to understand and adjust themselves to the changes in the
remittance cycle, therefore the implementation date will be deferred till July 2014 instead of the
earlier proposed date of 01st January 2014. The APJC members will ensure to work out a joint
strategy for a smooth changeover and simultaneously assist member Agent’s to get acquainted
with proposed changes in financial criteria and also resolve member Agent’s issues & concerns,
to bring improvement in business practices for the successful functioning of APJC in Pakistan."
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REDUCTION OF CREDIT PERIOD – BSP INDONESIA
Submitted by the Secretary
Background
Until now ID has a separate Domestic and International Remittance calendar.
While the Domestic Remittance date is 8 days after the Reporting date, the International is 14
days after the Reporting date. In an effort to arrive at a common Remittance date for
International & Domestic transactions, the Agency Programme Joint Council (APJC) proposes
to meet before the second transmittal of the PAConf Agenda is due. The proposal is to arrive at
a common Remittance date for International & Domestic transactions.
Proposal
Therefore subject to consensus at the APJC meeting proposed to be held next month, the
recommendation that is likely to have the nod of all airline representatives is to shorten the
credit period for International transactions with effect from 01 July 2014, provided the
Remittance date is the same as that for Domestic. There is no change to billing frequency
being proposed. That frequency stays weekly. The calendars current and proposed by
unanimous or majority vote at the APJC meeting next month.
Proposed Action
Conference to note that subject to discussions at APJC ID there might be a proposal coming
onto the agenda with the 2nd Transmittal.
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CHANGE TO REMITTANCE FREQUENCY AND LOCAL FINANCIAL CRITERIA – BSP
SPAIN
Submitted by APJC Spain
Background
The 37th meeting of APJC Spain took place on 23 July 2013 and reviewed recommendations of
the Financial Working Group in respect to remittance frequency and changes to the Local
Financial Criteria.
As a result, APJC members have unanimously endorsed the following:
1. Remittance Frequency: change to twice-monthly remittance effective 1 May 2014 and
three times monthly effective 1 May 2015. The full proposal is set out at Attachment ‘A’.
2. Local Financial Criteria: concurrent changes to Local Financial Criteria to reflect the
increase in remittance frequency, as set out in Attachments ‘B’ and ‘C’.
Proposed Action
Conference is invited to adopt the proposed changes set out in Attachments ‘A’, ‘B’ and ‘C’, the
changes in Attachments ‘B’ and ‘C’ being dependent on the adoption of Attachment ‘A’.
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CHANGE OF REMITTANCE FREQUENCY IN BSP SPAIN
Currently the standard remittance frequency in Spain is 30+10 calendar days, with exceptions
in months in which there are public holidays within the first 10 calendar days of the months,
where in such cases the remittance date is delay in delayed by the same number of days as
public holiday days. A voluntary more frequent remittance calendar (7+10 calendar days) is as
well also currently in place in the market.
New proposed remittance calendars:
1/ Remittance frequency from the 1st of May 2014 to the 30th of April 2015
a/ As standard, twice-monthly remittance will apply to all agents in BSP Spain. Twicemonthly remittance day will be 10 days after the end of the period concerned (twice a month)
with a frequency of 15+10 calendar days. For example:
Cash sales performed from the 1st to 15th of May 2014 must be in at IATA’s Account on the
25th of May.
*Those months with 31 or 28 days will be adjusted in the second period of the month, it. This
means that in the example given in May, which has 31 days, there will be two remittance
periods: 15+16, and in February, which has 28 or 29 days, the periods will be 15+13 or 15+14.
*If an Agent does not manage to meet the Local Financial Criteria financial local criteria; it must
provide a bank guarantee. According with to this remittance model (15+10 calendar days), the
bank guarantee provided to IATA must be in accordance with the Resolutions in the authorized
format for an amount equal to the average twenty eight (28) days net BSP cash sales of the
Agent over the previous 12 months.
b/ It will be the possibility to the agent who request it to have a more frequent remittance
calendar as it happens today, it will be with a frequency of 7+10 calendar days. For example:
Example:
Cash sales performed from the 1st to 7th of May 2014 must be at IATA’s Account on the 17th of
May.
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*If an Agent does not manage to meet the Local Financial Criteria financial local criteria; it must
provide a bank guarantee. According with to this remittance model (7+10 calendar days), the
bank guarantee provided to IATA must be in accordance with the Resolutions in the authorized
format for an amount equal to the average twenty (20) days net BSP cash sales of the Agent
over the previous 12 months.
c/ Finally and exclusively for the Agent that does manage to meet the Local Financial
Criteria set in the established for BSP Spain local critera, there will be a possibility for these
Agents to ask for having a less frequent remittance calendar, it will be with a frequency of 30
(31)+10 calendar days. Example: For example:
Cash sales performed from the 1st to 31st of May 2014 must be at in IATA’s Hinge Account on
the 10th of June.
Agents that request to be in this setting should provide a bank guarantee to IATA, it which must
be in accordance with the Resolutions in the authorized format for an amount equal to the
average fifteen (15) days net BSP cash sales of the Agent over the previous 12 months.
2/ Remittance frequency from the 1st of May 2015
a/ As standard, three times-monthly remittance will apply to all Agents in the BSP Spain.
Three times-monthly remittance day will be 10 days after the end of the period concerned (three
times a month) with a frequency of 10+10 calendar days. Example: For example:
Cash sales performed from the 1st to 10th of May 2015 must be at in IATA’s Account on the
20th of May 2015.
*Those months with 31 or 28 days, will be adjusted in the last period of the month, it . This
means that in the example given in May, which has 31 days there will be three remittance
periods: 10+10+11, and in February, which has 28 or 29 days, the periods will be 10+10+8 or 9
*If an Agent does not manage to meet the Local Financial Criteria financial local criteria; it must
provide a bank guarantee. According with to this remittance model (10+10 calendar days), the
bank guarantee provided to IATA must be in accordance with the Resolutions in the authorized
format for an amount equal to the average twenty three (23) days net BSP cash sales of the
Agent over the previous 12 months.
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b/ Finally and exclusively for the Agent that does does manage to meet the Local
Financial Criteria established for financial local criteria set in the BSP Spain local critera, there
will be a possibility for these Agents to ask for having a less frequent remittance calendar, it will
be with a frequency of 30 (31)+10 calendar days. Example: For example:
Cash sales performed from the 1st to 31st of May 2015 must be in at IATA’s Account on the
10th of June 2015.
Agents that request to be in this setting should provide a bank guarantee to IATA, it which must
be in accordance with the Resolutions in the authorized format for an amount equal to the
average twenty (20) days net BSP cash sales of the Agent over the previous 12 months.
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PROPOSED LOCAL FINANCIAL CRITERIA FOR BSP SPAIN TO BE APPLIED FROM THE
1ST OF MAY 2014 TO THE 30TH OF APRIL 2015
1/ Requirements for Accreditation of new Agent
A/ Documentation:
Provided below is a description of the original documents required to become an
Accredited Agent. These documents must not be older than three (3) months from the date
of the Agent accreditation application described in the official form.
-
-
-
-
-
Certified or attested photocopy of the National Identity Document or Foreigners’ Identity
Number (NIE) of the joint and several administrator/s, managing director, legal
representative/s and director/s of the new Agent.
Original criminal record certificate of the joint and several administrator/s, managing
director, legal representative/s and director/s of the new Agent.
Original, certified or attested certificate from the General Treasury of the Social Security
confirming that the new Agent is up-to-date with the payment of Social Security
contributions.
Limited audit carried out by a member auditor of the Official Registry of Auditors (ROAC)
of the accounts of the previous financial year submitted to the Trade Registry, and
interim financial statements for the period spanning from the start date of the current
financial year to the date of the Agent accreditation application to be assessed in
accordance with section B2 below. If the new Agent is a newly formed company without
interim financial statements due to its short period in operation, the new Agent must
provide the duly checked opening balance sheet. The opening balance sheet will not be
subject to any assessment.
Certified or attested photocopy of the Company’s formation deed in which the names of
the new Agent’s administrator/s and legal representative/s are clearly specified.
If the new Agent has had any change in ownership at any time after the formation of the
company and prior to the Agent accreditation application, the new Agent must provide a
copy of the change in ownership deed or the change in administrator/s, legal
representative/s and director/s deed certified or attested by the auditor or a notary.
If the administrator/s and director/s of the new Agent are not EU citizens, please provide
a certified or attested copy of their Spanish Residence Permit/s, which must be valid for
at least four (4) years.
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-
Certified or attested photocopy of the new Agent authorisation issued by the
autonomous region authorities.
Agent Certified or attested photocopy of the business tax (IAE) payment receipt.
Certified or attested photocopy of the contract (excluding the financial terms) with an
accredited Reservation System, or otherwise a letter from the GDS confirming the
installation of the system in the Agent’s premises.
B/ Financial requirements:
B1/ The new Agent is a newly-formed agency (less than (1) year since the formation of
the company):
The new Agent must provide a bank guarantee for an amount of seventy five
thousand Euros (75,000€) forty nine thousand Euros (49.000€).
B2/ The new Agent is a pre-existing agency (more than (1) year since the formation of
the company):
IATA will appoint a company specialized in risk and solvency analysis and external to
both Travel Agencies and Airlines to perform impartial risk and solvency analyses on
the new Agent. The results of the analyses will give a score ranging from zero (0) to
ten (10), where ten (10) is the highest score and zero (0) the lowest. Likewise, the
external company will perform a creditworthiness analysis and a RAI (Unpaid
Receivables Registry) incidents analysis on the new Agent.
For the results to be valid the new Agent must have submitted the accounts for the
most recent financial year to the Trade Registry by the deadline established by law. If
the Agent has been in operation for more than (1) year but has not yet been required
to submit its accounts to the Trade Registry, the Agent must provide its limited
audited provisional accounts to the external company performing the analyses.
Otherwise, the results of the solvency ratio analysis will be considered to be zero (0).
The Agent is required to achieve a score of five (5) in the results of each of the
analyses performed at the time of applying for accreditation as a new Agent. The
new Agent is also required to be given a creditworthiness rated above six thousand
(6,000) Euros and to have no incidents in the RAI (Unpaid Receivables Registry).
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In addition to meeting the evaluation criteria, the new Agent is to provide a bank
guarantee for an amount of seventy five thousand Euros (75.000€) forty nine
thousand Euros (49.000€).
The bank guarantee provided by all new Agents under this section 1 to IATA at the time of
accreditation as a new Agent must continue in effect for a period of three (3) years from the date
of the form of application to join the BSP as notwithstanding the result of any financial
assessment of the Agent required in accordance with section 4 of these financial criteria during
that time.
2/ Requirements for Changes in ownership
A/ Documentation:
Described below are the original documents required by IATA for a change in the
ownership of an Agent or in its shareholders (if the change involves a change in the control
of the company) to become effective. These documents must not be older than three
months from the date of the application for change in ownership authorisation described in
the official form.
-
-
-
-
-
Certified or attested photocopy by the auditor of the National Identity Document or
Foreigners’ Identity Number (NIE) of the new joint and several administrator/s, managing
director, legal representative/s and director/s of the Agent.
Original criminal record certificate of the new joint and several administrator/s, managing
director, legal representative/s and directors of the Agents.
Original, certified or attested certificate from the General Treasury of the Social Security
confirming that the Agent is up-to-date with the payment of Social Security contributions.
Limited audit carried out by a member auditor of the Official Registry of Auditors (ROAC)
of the accounts of the previous financial year submitted to the Trade Registry, and
interim financial statements for the period spanning from the start date of the current
financial year to the date of the application for the change in ownership authorisation.
Certified or attested photocopy of the change in ownership deed in which the names of
the new joint and several administrator/s, managing director, legal representative/s and
director/s of the Agent are clearly specified.
If the new joint and several administrator/s, managing director, legal representative/s
and director/s of the travel Agent are not EU citizens, please provide a certified or
attested photocopy of their Spanish residence permit/s, which must be valid for at least
four (4) years.
Certified or attested photocopy of the Agent’s authorisation issued by the autonomous
region authorities.
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B/ Financial requirements:
IATA will appoint a company specialized in risk and solvency analysis and external to
both Travel Agencies and Airlines to perform impartial risk and solvency analyses on the Agent.
The results of the analyses will give a score ranging from zero (0) to ten (10), where ten (10) is
the highest score and zero (0) the lowest. Likewise, the external company will perform a
creditworthiness analysis and a RAI (Unpaid Receivables Registry) incidents analysis on the
Agent.
For the results to be valid the Agent must have submitted the accounts for the most
recent financial year to the Trade Registry by the deadline established by law . Otherwise, the
result of the risk and solvency analyses will be considered to be zero (0). Likewise, the same
zero result will be applied to Agents whose accounts have not yet been required to be submit to
the Trade Registry when the analysis is performed because of the short period in which the
Agent is in operation.
All Agents who have a change in ownership must submit a bank guarantee to IATA in
accordance with the Resolutions in the authorized format, for an amount equal to the average
twenty eight (28) days forty three days (43) net BSP cash sales of the Agent over the previous
12 months but which can never be below the minimum value of forty nine thousand Euros
(49.000€) seventy-five thousand euros (75,000€).
If all the following apply to an Agent with a change in ownership:
-
-
The results of the analysis on the Agent range from five to ten (5-10);
The Agent is assigned a creditworthiness rating above sixty thousand (60,000) Euros (if
the applicant is an Agent whose average cash turnover to Spain’s BSP in the past
twelve months is above 150,000 Euros) or six thousand (6,000) Euros (if the applicant is
an Agent whose average cash turnover to Spain’s BSP in the past twelve months is
below 150,000 Euros);
The Agent does not have incidents in the RAI;
then the bank guarantee provided by the Agent to IATA at the time of the change in
ownership must continue in effect for a period of one (1) year from the date of the
application for a change in ownership notwithstanding the result of any financial
assessment of the Agent required in accordance with section 4 of these financial criteria
during that time
If the results of the analysis differ from those mentioned above, the bank guarantee
provided by the Agent to IATA at the time of the change in ownership must continue in
effect for a period of two (2) years from the date of the application for a change in
ownership notwithstanding the result of any financial assessment of the Agent required
in accordance with section 4 of these financial criteria during that time.
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The above-mentioned financial requirements will not apply in the event of a transfer of
ownership inter vivos o mortis causa up to the second degree of kinship or affinity by marriage
as defined in Articles 915 to 920 of the Civil Code in Spain. This must be supported by
document certified by the Civil Registry.
3/ Requirements for Accredited Agents to be reinstated
A/ In the event of irregularity/ies in any of the payments to the BSP, giving rise to default by the
Agent, the Agent may be reinstated in the system provided that, as well as meeting the
requirements provided in the IATA Resolutions, a bank guarantee in the authorised format is
provided to IATA calculated as follows:
-
for an amount equal to the average twenty eight (28) days forty three days (43) net BSP
cash sales of the Agent over the previous 12 months but not less than the amount of
forty nine thousand Euros (49.000€) seventy-five thousand Euros (75.000€)
B/ In the event of the Agent falling into technical default as a result of accumulated irregularities,
the Agent may be reinstated in the system provided that, as well as meeting the requirements
provided in the IATA Resolutions, a bank guarantee in the authorised format is provided to IATA
calculated as follows:
-
for an amount equal to the average twenty eight (28) days forty three (43) net BSP cash
sales of the Agent over the previous 12 months.
In both the above cases, the bank guarantee provided by the Agent to IATA at the time of
reinstatement must continue in effect for a period of three (3) years from the date of
reinstatement as an Agent notwithstanding the result of any financial assessment of the Agent
required in accordance with section 4 of these financial criteria during that time.
4/ Continuity of accredited Agent requirements
A/ Agent whose average 28 43 days’ cash sales, taking the past 12 months as a
reference, is more than three hundred and twenty five thousand (325.000) five hundred
thousand (500,000) Euros on the date the continuity analysis is performed.
IATA will appoint two rating companies specialized in risk and solvency analysis and
external to both, travel agencies and airlines to perform impartial risk and solvency analyses on
the Agent.
Agents are evaluated twice a year by an required to have two impartial risk and solvency
analysis:
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(a) the first time 46 days after the deadline established by law for submitting the annual
accounts duly signed by the administrators; and
(b) the second time 46 days after the deadline established by law for depositing the
annual accounts at the Trade Registry.
The Agent will also have the option to send directly to IATA a rating report prepared by
either of the two companies designated by IATA, as chosen by the Agent on a voluntary basis.
These reports must be:
(a)
(b)
sent to IATA no later than 45 days after the deadline established by law for
submitting the annual accounts duly signed by the administrators or
depositing the annual accounts at the Trade Registry, whichever is applicable
(the “presentation deadline”), and
must not be older than seven (7) days from the presentation deadline.
If the voluntary report is sent by the Agent in accordance with the timeframes specified in
these criteria, IATA will not request any report and will use the analysis in the report sent by the
Agent as a reference.
If the Agent’s year-end is not 31 December, the Agent must notify IATA before the
closing date of its accounts.
For the results of each of the default and insolvency analyses to be valid, the Agent must
have submitted the annual accounts duly signed by the administrators or deposited the annual
accounts in the Trade Registry within the deadline established by law, whichever is applicable.
A1 / If the Agent has not sent a risk and solvency report on a voluntary basis, the
report requested by IATA to COMPANY 1 will provide results for which it is established
that the Agent is required to achieve a score of six (6) in the results of the default
analysis and six (6) in the results of the solvency analysis to be able to operate without
needing to provide a bank guarantee to IATA.
A2 / If the Agent has sent a risk and solvency report on a voluntary basis forming
accordance with the criteria described above, the results provided in the report will
depend on the company chosen by the Agent.
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A2.1/ If the chosen company by the Agent is COMPANY 1:
The Agent is required to achieve a score of six (6) in the results of
the risk analysis and six (6) in the results of the solvency analysis to be
able to operate without needing to provide a bank guarantee to IATA.
A2.1/ If the chosen company by the Agent is COMPANY 2:
It is established that the Agent is required to achieve a score of
eleven (11) in the results of the analysis to be able to operate without
needing to provide a bank guarantee to IATA.
Should any of the results of the risk and insolvency analyses not meet the scores
described above; the Agent will be required to provide a bank guarantee to IATA that must be in
accordance with the Resolutions in the authorised format, a bank guarantee for an amount
determined by the following percentages, in relation to results obtained:
COMPANY 1:
-
If the minimum valuation obtained is 5, either in the default analysis, solvency analysis or
in both, the agent will have to present a bank guarantee for 40% 30% of the average
cash sales for 43 28 days, taking into account the last 12 months.
-
If the minimum valuation obtained is 4, either in the default analysis, solvency analysis or
in both, the agent will have to present a bank guarantee for 75% 65% of the average
cash sales for 43 28 days, taking into account the last 12 months.
-
If the minimum valuation obtained is 3 or lower, either in the default analysis, solvency
analysis or in both, the agent will have to present a bank guarantee for 100 % of the
average cash sales for 43 28 days, taking into account the last 12 months.
COMPANY 2:
-
If the valuation obtained is 10, the agent will have to present a bank guarantee for 40%
30% of the average cash sales for 43 28 days, taking into account the last 12 months.
-
If the valuation obtained is 9, the agent will have to present a bank guarantee for 75%
65% of the average cash sales for 43 28 days, taking into account the last 12 months.
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-
If the valuation obtained is 8 or lower, the agent will have to present a bank guarantee
for 100 % of the average cash sales for 43 28 days, taking into account the last 12
months.
B/ Agent whose average 43 28 days cash sales, taking the past 12 months as a
reference, is below five-hundred thousand (500,000) three hundred and twenty five
thousand (325.000) Euros on the date the continuity analysis is performed.
Agents are to provide the following financial documents on a yearly basis:
— Copy of the annual accounts prepared and duly signed by the administrators in the
month following the deadline established by law for preparing the accounts.
— Copy of the duly completed annual accounts submitted to the Trade Registry in the
month following the deadline established by law for submitting the annual accounts to
the Trade Registry.
— In the case of companies obliged to audit the accounts, a copy of the audit.
To assess the Agent’s financial situation, the following minimum criteria will be applied:
Capital/Equity:
-
The Agent’s equity must:
not be less than 80% of the authorised and paid-up capital; and
Must not be less than 48,080.97 Euros.
Short-term solvency:
Short-term solvency = Current assets/Short-term debts (current liabilities)
A weighting ratio of short-term solvency will be applied, based on the result of comparing
Equity with Authorised and paid-up capital.
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To do this, the following table is applied:
Equity/
Share Capital
>1, 3
1, 2
1, 1
1
0, 9
0, 8
Weighting Ratio
1.10
1.075
1.05
1
0, 95
0.925
The weighting ratio resulting from applying the table is multiplied by the short-term
solvency ratio and the result should be 1 or above.
Earnings:
The Agent must report pre-tax earnings of more than zero.
Agent will be able to report annual pre-tax losing within a maximum of 15.000 Euros
annually or 20% of its equity
If an Agent does not manage to meet one of the criteria described in the sections above,
it must provide a bank guarantee. The bank guarantee provided to IATA must be in accordance
with the Resolutions in the authorised format for an amount equal to the average forty three
days (43) twenty eight (28) days net BSP cash sales of the Agent over the previous 12 months.
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PROPOSED LOCAL FINANCIAL CRITERIA TO BE APPLIED FROM THE 1ST OF MAY 2015
1/ Requirements for Accreditation of new Agent
A/ Documentation:
Provided below is a description of the original documents required to become an
Accredited Agent. These documents must not be older than three (3) months from the date
of the Agent accreditation application described in the official form.
-
-
-
-
-
-
Certified or attested photocopy of the National Identity Document or Foreigners’ Identity
Number (NIE) of the joint and several administrator/s, managing director, legal
representative/s and director/s of the new Agent.
Original criminal record certificate of the joint and several administrator/s, managing
director, legal representative/s and director/s of the new Agent.
Original, certified or attested certificate from the General Treasury of the Social Security
confirming that the new Agent is up-to-date with the payment of Social Security
contributions.
Limited audit carried out by a member auditor of the Official Registry of Auditors (ROAC)
of the accounts of the previous financial year submitted to the Trade Registry, and
interim financial statements for the period spanning from the start date of the current
financial year to the date of the Agent accreditation application to be assessed in
accordance with section B2 below. If the new Agent is a newly formed company without
interim financial statements due to its short period in operation, the new Agent must
provide the duly checked opening balance sheet. The opening balance sheet will not be
subject to any assessment.
Certified or attested photocopy of the Company’s formation deed in which the names of
the new Agent’s administrator/s and legal representative/s are clearly specified.
If the new Agent has had any change in ownership at any time after the formation of the
company and prior to the Agent accreditation application, the new Agent must provide a
copy of the change in ownership deed or the change in administrator/s, legal
representative/s and director/s deed certified or attested by the auditor or a notary.
If the administrator/s and director/s of the new Agent are not EU citizens, please provide
a certified or attested copy of their Spanish Residence Permit/s, which must be valid for
at least four (4) years.
Certified or attested photocopy of the new Agent authorisation issued by the
autonomous region authorities.
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-
Agent Certified or attested photocopy of the business tax (IAE) payment receipt.
Certified or attested photocopy of the contract (excluding the financial terms) with an
accredited Reservation System, or otherwise a letter from the GDS confirming the
installation of the system in the Agent’s premises.
B/ Financial requirements:
B1/ The new Agent is a newly-formed agency (less than (1) year since the formation of
the company):
The new Agent must provide a bank guarantee for an amount of seventy-five
thousand Euros (75,000€). forty thousand Euros (40.000€).
B2/ The new Agent is a pre-existing agency (more than (1) year since the formation of
the company):
IATA will appoint a company specialized in risk and solvency analysis and external to
both Travel Agencies and Airlines to perform impartial risk and solvency analyses on
the new Agent. The results of the analyses will give a score ranging from zero (0) to
ten (10), where ten (10) is the highest score and zero (0) the lowest. Likewise, the
external company will perform a creditworthiness analysis and a RAI (Unpaid
Receivables Registry) incidents analysis on the new Agent.
For the results to be valid the new Agent must have submitted the accounts for the
most recent financial year to the Trade Registry by the deadline established by law. If
the Agent has been in operation for more than (1) year but has not yet been required
to submit its accounts to the Trade Registry, the Agent must provide its limited
audited provisional accounts to the external company performing the analyses.
Otherwise, the results of the solvency ratio analysis will be considered to be zero (0).
The Agent is required to achieve a score of five (5) in the results of each of the
analyses performed at the time of applying for accreditation as a new Agent. The
new Agent is also required to be given a creditworthiness rated above six thousand
(6,000) Euros and to have no incidents in the RAI (Unpaid Receivables Registry).
In addition to meeting the evaluation criteria, the new Agent is to provide a bank
guarantee for an amount of seventy-five thousand euros (75,000€) forty thousand
Euros (40.000€).
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The bank guarantee provided by all new Agents under this section 1 to IATA at the time of
accreditation as a new Agent must continue in effect for a period of three (3) years from the date
of the form of application to join the BSP as notwithstanding the result of any financial
assessment of the Agent required in accordance with section 4 of these financial criteria during
that time.
2/ Requirements for Changes in ownership
A/ Documentation:
Described below are the original documents required by IATA for a change in the
ownership of an Agent or in its shareholders (if the change involves a change in the control
of the company) to become effective. These documents must not be older than three
months from the date of the application for change in ownership authorisation described in
the official form.
-
-
-
-
-
Certified or attested photocopy by the auditor of the National Identity Document or
Foreigners’ Identity Number (NIE) of the new joint and several administrator/s, managing
director, legal representative/s and director/s of the Agent.
Original criminal record certificate of the new joint and several administrator/s, managing
director, legal representative/s and directors of the Agents.
Original, certified or attested certificate from the General Treasury of the Social Security
confirming that the Agent is up-to-date with the payment of Social Security contributions.
Limited audit carried out by a member auditor of the Official Registry of Auditors (ROAC)
of the accounts of the previous financial year submitted to the Trade Registry, and
interim financial statements for the period spanning from the start date of the current
financial year to the date of the application for the change in ownership authorisation.
Certified or attested photocopy of the change in ownership deed in which the names of
the new joint and several administrator/s, managing director, legal representative/s and
director/s of the Agent are clearly specified.
If the new joint and several administrator/s, managing director, legal representative/s
and director/s of the travel Agent are not EU citizens, please provide a certified or
attested photocopy of their Spanish residence permit/s, which must be valid for at least
four (4) years.
Certified or attested photocopy of the Agent’s authorisation issued by the autonomous
region authorities.
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B/ Financial requirements:
IATA will appoint a company specialized in risk and solvency analysis and external to
both Travel Agencies and Airlines to perform impartial risk and solvency analyses on the Agent.
The results of the analyses will give a score ranging from zero (0) to ten (10), where ten (10) is
the highest score and zero (0) the lowest. Likewise, the external company will perform a
creditworthiness analysis and a RAI (Unpaid Receivables Registry) incidents analysis on the
Agent.
For the results to be valid the Agent must have submitted the accounts for the most
recent financial year to the Trade Registry by the deadline established by law . Otherwise, the
result of the risk and solvency analyses will be considered to be zero (0). Likewise, the same
zero result will be applied to Agents whose accounts have not yet been required to be submit to
the Trade Registry when the analysis is performed because of the short period in which the
Agent is in operation.
All Agents who have a change in ownership must submit a bank guarantee to IATA in
accordance with the Resolutions in the authorized format, for an amount equal to the average
twenty three (23) days twenty eight days (28) net BSP cash sales of the Agent over the previous
12 months but which can never be below the minimum value of forty thousand euros (40.000€)
seventy-five thousand euros (75,000€).
If all the following apply to an Agent with a change in ownership:
-
-
The results of the analysis on the Agent range from five to ten (5-10);
The Agent is assigned a creditworthiness rating above sixty thousand (60,000) Euros (if
the applicant is an Agent whose average cash turnover to Spain’s BSP in the past
twelve months is above 150,000 Euros) or six thousand (6,000) Euros (if the applicant is
an Agent whose average cash turnover to Spain’s BSP in the past twelve months is
below 150,000 Euros);
The Agent does not have incidents in the RAI;
then the bank guarantee provided by the Agent to IATA at the time of the change in
ownership must continue in effect for a period of one (1) year from the date of the
application for a change in ownership notwithstanding the result of any financial
assessment of the Agent required in accordance with section 4 of these financial criteria
during that time
If the results of the analysis differ from those mentioned above, the bank guarantee
provided by the Agent to IATA at the time of the change in ownership must continue in
effect for a period of two (2) years from the date of the application for a change in
ownership notwithstanding the result of any financial assessment of the
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Agent required in accordance with section 4 of these financial criteria during that time.
The above-mentioned financial requirements will not apply in the event of a transfer of
ownership inter vivos o mortis causa up to the second degree of kinship or affinity by marriage
as defined in Articles 915 to 920 of the Civil Code in Spain. This must be supported by
document certified by the Civil Registry.
3/ Requirements for Accredited Agents to be reinstated
A/ In the event of irregularity/ies in any of the payments to the BSP, giving rise to default by the
Agent, the Agent may be reinstated in the system provided that, as well as meeting the
requirements provided in the IATA Resolutions, a bank guarantee in the authorised format is
provided to IATA calculated as follows:
-
for an amount equal to the average twenty three (23) days twenty eight days (28) net
BSP cash sales of the Agent over the previous 12 months but not less than the amount
of forty thousand Euros (40.000€) seventy-five thousand Euros (75.000€)
B/ In the event of the Agent falling into technical default as a result of accumulated irregularities,
the Agent may be reinstated in the system provided that, as well as meeting the requirements
provided in the IATA Resolutions, a bank guarantee in the authorised format is provided to IATA
calculated as follows:
-
for an amount equal to the average twenty three (23) days twenty eight days (28) net
BSP cash sales of the Agent over the previous 12 months.
In both the above cases, the bank guarantee provided by the Agent to IATA at the time of
reinstatement must continue in effect for a period of three (3) years from the date of
reinstatement as an Agent notwithstanding the result of any financial assessment of the Agent
required in accordance with section 4 of these financial criteria during that time.
4/ Continuity of accredited Agent requirements
A/ Agent whose average 23 28 days’ cash sales, taking the past 12 months as a
reference, is more than two hundred and sixty seven thousand (267.000) three hundred and
twenty five thousand (325.000) Euros on the date the continuity analysis is performed.
IATA will appoint two rating companies specialized in risk and solvency analysis and
external to both, travel agencies and airlines to perform impartial risk and solvency analyses on
the Agent.
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Agents are evaluated twice a year by an required to have two impartial risk and solvency
analysis analyses conducted on a yearly basis:
(a) the first time 46 days after the deadline established by law for submitting the annual
accounts duly signed by the administrators; and
(b) the second time 46 days after the deadline established by law for depositing the
annual accounts at the Trade Registry.
The Agent will also have the option to send directly to IATA a rating report prepared by
either of the two companies designated by IATA, as chosen by the Agent on a voluntary basis.
These reports must be:
(a) sent to IATA no later than 45 days after the deadline established by law for
submitting the annual accounts duly signed by the administrators or depositing the
annual accounts at the Trade Registry, whichever is applicable (the “presentation
deadline”), and
(b) must not be older than seven (7) days from the presentation deadline.
If the voluntary report is sent by the Agent in accordance with the timeframes specified in
these criteria, IATA will not request any report and will use the analysis in the report sent by the
Agent as a reference.
If the Agent’s year-end is not 31 December, the Agent must notify IATA before the
closing date of its accounts.
For the results of each of the default and insolvency analyses to be valid, the Agent must
have submitted the annual accounts duly signed by the administrators or deposited the annual
accounts in the Trade Registry within the deadline established by law, whichever is applicable.
A1 / If the Agent has not sent a risk and solvency report on a voluntary basis, the
report requested by IATA to COMPANY 1 will provide results for which it is established
that the Agent is required to achieve a score of six (6) in the results of the default
analysis and six (6) in the results of the solvency analysis to be able to operate without
needing to provide a bank guarantee to IATA.
A2 / If the Agent has sent a risk and solvency report on a voluntary basis forming
accordance with the criteria described above, the results provided in the report will
depend on the company chosen by the Agent.
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A2.1/ If the chosen company by the Agent is COMPANY 1:
The Agent is required to achieve a score of six (6) in the results of
the risk analysis and six (6) in the results of the solvency analysis to be
able to operate without needing to provide a bank guarantee to IATA.
A2.1/ If the chosen company by the Agent is COMPANY 2:
It is established that the Agent is required to achieve a score of
eleven (11) in the results of the analysis to be able to operate without
needing to provide a bank guarantee to IATA.
Should any of the results of the risk and insolvency analyses not meet the scores
described above; the Agent will be required to provide a bank guarantee to IATA that must be in
accordance with the Resolutions in the authorised format, a bank guarantee for an amount
determined by the following percentages, in relation to results obtained:
COMPANY 1:
-
If the minimum valuation obtained is 5, either in the default analysis, solvency analysis or
in both, the agent will have to present a bank guarantee for 40% 30% of the average
cash sales for 28 23 days, taking into account the last 12 months.
-
If the minimum valuation obtained is 4, either in the default analysis, solvency analysis or
in both, the agent will have to present a bank guarantee for 75% 65% of the average
cash sales for 28 23 days, taking into account the last 12 months.
-
If the minimum valuation obtained is 3 or lower, either in the default analysis, solvency
analysis or in both, the agent will have to present a bank guarantee for 100 % of the
average cash sales for 28 23 days, taking into account the last 12 months.
COMPANY 2:
-
If the valuation obtained is 10, the agent will have to present a bank guarantee for 40%
30% of the average cash sales for 28 23 days, taking into account the last 12 months.
-
If the valuation obtained is 9, the agent will have to present a bank guarantee for 75%
65% of the average cash sales for 28 23 days, taking into account the last 12 months.
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-
If the valuation obtained is 8 or lower, the agent will have to present a bank guarantee
for 100 % of the average cash sales for 28 23 days, taking into account the last 12
months.
B/ Agent whose average 28 23 days cash sales, taking the past 12 months as a
reference, is below three hundred and twenty five thousand (325.000) two hundred and
sixty seven thousand (267.000) Euros on the date the continuity analysis is performed.
Agents are to provide the following financial documents on a yearly basis:
— Copy of the annual accounts prepared and duly signed by the administrators in the
month following the deadline established by law for preparing the accounts.
— Copy of the duly completed annual accounts submitted to the Trade Registry in the
month following the deadline established by law for submitting the annual accounts to
the Trade Registry.
— In the case of companies obliged to audit the accounts, a copy of the audit.
To assess the Agent’s financial situation, the following minimum criteria will be applied:
Capital/Equity:
The Agent’s equity must:
-
not be less than 80% of the authorised and paid-up capital; and
Must not be less than 48,080.97 Euros.
Short-term solvency:
Short-term solvency = Current assets/Short-term debts (current liabilities)
A weighting ratio of short-term solvency will be applied, based on the result of comparing
Equity with Authorised and paid-up capital.
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To do this, the following table is applied:
Equity/
Share Capital
>1, 3
1, 2
1, 1
1
0, 9
0, 8
Weighting Ratio
1.10
1.075
1.05
1
0, 95
0.925
The weighting ratio resulting from applying the table is multiplied by the short-term
solvency ratio and the result should be 1 or above.
Earnings:
The Agent must report pre-tax earnings of more than zero.
Agent will be able to report annual pre-tax losing within a maximum of 15.000 Euros
annually or 20% of its equity.
If an Agent does not manage to meet one of the criteria described in the sections above,
it must provide a bank guarantee. The bank guarantee provided to IATA must be in accordance
with the Resolutions in the authorised format for an amount equal to the average twenty eight
(28) twenty three (23) days net BSP cash sales of the Agent over the previous 12 months.
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REMITTANCE FREQUENCY
Submitted by IATA Legal Services
Whereas Resolution 818g, Section 1.1.2.3 deals with circumstances where an APJC is unable
to achieve a recommendation to Conference, recent misunderstandings and confusion have
arisen with various markets looking to revise their local financial criteria and/or Remittance
frequency. To assist with the avoidance of such confusion, it is proposed to include the
changes detailed below.
1. Amend Resolution 818g as follows:
1.1.2.3 in the event that no recommendation on changes to financial criteria Local
Financial Criteria, Remittance Frequency, or other matters within the terms of
reference of an APJC can be achieved after consultation at an APJC within 24
months or 4 consecutive meetings (whichever represents the shorter period of time),
any APJC member or group of members may make proposals directly to the
Passenger Agency Conference.
2. Incorporate the following new Definition in Resolution 866:
REMITTANCE FREQUENCY means the time elapsed between Remittance Dates established
by the Conference.
Proposed Action
PSG/83 endorsed the above proposal to PAConf. Conference is asked to adopt the changes
shown in (1) and (2) above and consequential editorial amendments as shown in Attachment
‘A’.
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RESOLUTION 818g
Attachment ‘A’
1.6.2 Frequency of Remittance
1.6.2.1(a) if the Remittance fFrequency so established is monthly, Remittances shall reach
the Clearing Bank not later than its close of business on the date established by the
Conference. This date shall not be earlier than the tenth nor later than the fifteenth day
of the month following the month covered by the Billing,
AND
1.6.2.1(b) Whereso agreed by the PAConf if the Remittance fFrequency so established is
monthly, Remittances shall reach the Clearing Bank on the date established by the
Conference which shall not be earlier than the tenth nor later than the fifteenth day of the
month following the month covered by the Billing; provided that the method of payment used
assures that the funds are in the Clearing Bank in time for the Remittance to be made into the
BSP Airlines' account on the date so established;
1.6.2.1(c) if the Remittance fFrequency so established is twice monthly, Remittances shall
be made so as to reach the Clearing Bank not later than its close of business on the last
day of the month in respect of Billings covering the first 15 days of the month and the 15th
day of the following month, in respect of Billings covering the period from the 16th to the last
day of the month. The Conference may adjust the period within which Remittances are
required to reach the Clearing Bank by not more than five calendar days to meet the special
requirements which shall be demonstrated of a particular BSP or BSP Airline;
1.6.2.1(d) if the Remittance fFrequency so established or so elected pursuant to
Subparagraph 1.6.2.1(a) is greater than twice monthly, Remittances shall be made by the
Agent so as to reach the Clearing Bank not later than its close of business on the fifth day
following the Reporting Dates so determined or by such date where agreed by the
Conference for application in a specific market; any transactions not processed in previous
reporting periods, will be included in the final billing;
….
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1.6.2.1(g) The Conference acknowledges that a BSP Airline may establish an
individualized frequency of Remittance subject to (i) bilateral agreement with an Agent,
or (ii) applicable law, which shall be distinct from the Remittance fFrequency set by the
Conference. An individual frequency of Remittance shall be subject to all terms
and
conditions contained in this Resolution including, for the avoidance of doubt, Section
1.7 and Section 1.10. In the event of an overdue or dishonored Remittance under an
individualized frequency, the Agent shall be subject to a Notice of Irregularity and, where
appropriate, Default Action.
Attachment ‘C’
SECTION 1.6 SETTLEMENT—THE REMITTANCE DATE
BELGIUM,
FRANCE,
LUXEMBOURG
AND
THE NETHERLANDS and such other
countries as agreed by the PAConf where agreed if the rRemittance fFrequency so
established is monthly, remittances shall reach the Clearing Bank on the date established
by the Conference which shall not be earlier than the tenth nor later than the fifteenth day of
the month following the month covered by the Billing; provided that the method of payment
used assures that the funds are in the Clearing Bank in time for the remittance to be made into
the BSP Airlines' account on the date so established;
JORDAN ONLY if the rRemittance fFrequency so established is twice monthly,
Remittances shall be made so as to reach the Clearing Bank not later than its close of
business on the last day of the month in respect of Billings covering the first 15 days of
the month and the 15th day of the following month, in respect of Billings covering the
period from the 16th to the last day of the month; provided that the method of payment
used assures that the funds are in the Clearing Bank for good value on the day of remittance
in time for the settlement to be made into the BSP Airlines' account on the date so
established locally;
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CUSTOMER CONTACT INFORMATION
Submitted by IATA Simplifying the Business
Background
Carriers are facing major challenges when need to inform passengers of flight cancellations or
delays, schedule changes, gate changes due to missing, incomplete or incorrect contact
information in the PNR. As a result, customer experience is damaged and the reoccurrence of
disruption events creates a series of issues affecting not only airlines, but airport operators and
travel agents as well.
Passengers on the other hand suffer from uncertainty, stress and frustration associated with
irregular airline operations. To be able to deliver excellent customer service airlines need to
have relevant contact details available to reach the passenger (mobile phone and email),
including when the passenger has already commenced the trip. This will enable proactive and
real-time messages; it will also allow the passenger to request relevant real-time information
when needed.
The advantages of pro-active customer notification will benefit all in the industry value chain:
•
•
•
•
For Passengers
o Increased levels of passenger experience
o Proactive notification about cancellations, delays, schedule changes, gate
changes and ability to receive advance rebooking alternatives
For Agents
o Improved customer care and satisfaction
For Airlines
o Less recovery (care and assistance) costs
o More efficient process in the airline back-offices, especially at the hubs to
perform rebooking activities, improved revenue management and load factors
For Airports
o Reduced congestion in times of disruption in the terminal building and better
managed passenger flows
o Improved passenger experience in the terminal
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State of the industry
Member Airlines at IATA’s 69th Annual General Meeting unanimously endorsed a set of
common principles calling on governments to develop consumer protection regulation that,
among others, ensure passenger access to regular situational updates in the case of service
disruptions.
Additionally, regulators are already introducing legislation making it obligatory to inform the
passenger of flight disruptions or cancellations (e.g. US DoT Airline Passenger Protections, EC
Reg.261)
Recent passenger survey carried out by IATA shows that:
•
•
Nearly all air travellers (98%) find proactive notifications a good idea in case of flight
disruptions
68% of air travellers would prefer to obtain information from the airline they are flying
with in case of a travel disruption
IATA’s Reservation Working Group (RESWG) created a dedicated SSR element for contact
information, with specific format for mobile phone number and email address. This will provide
travel agents, GDSs and airlines with a common industry standard for creating a record of the
customer contact information in the PNR, ensuring it is transmitted in the same format and is
visible to all.
IATA’s Reservations Committee (RESCOM) endorsed the SSR and the revised RP 1770 Code
of Reservations Ethics to Conference.
Issues
Providing customer contacts are already stipulated in Passenger Agency Conference
Resolution 830d, however the current provisions (adopted on 23 Dec 1983) need to be
modernised.
Proposal
The proposal is stemmed from airline’s desire to better support passengers and it is not
intended to use contact information data for marketing purposes.
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Travel agents are encouraged provide contact details on behalf of the passenger by entering in
the Passenger Name Record (PNR) the passenger’s mobile phone number and email address,
while maintaining compliance with all applicable data protection directives and regulations.
The contact details should be entered in the PNR in compliance with the Resolutions governing
reservations procedures, using the dedicated SSR element for contact information.
Airlines shall use these contact details exclusively for the purpose of passenger notification in
the event of flight cancellation or delay in departure, gate changes, and schedule changes and
not for marketing purposes.
While the passenger provides contact details on a voluntary basis, in the event the passenger
exercises their right not to provide contact details it is incumbent on the travel agent to indicate
that the passenger has declined such details, and to enter the refusal in the PNR in order to limit
any statutory liability. In such a case no information relating to flight cancellation or delay in
departure, gate changes, and schedule changes will not be notified to the passenger.
The travel agent can elect not to provide the passenger’s contact details and to fulfil passenger
notification on its own behalf which would include the assumption of any liability for failure to
notify the passenger.
Proposed Action
Conference is requested to approve the Resolution amendments shown at Attachment ‘A’.
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Amend Resolution 830d as shown below:
RESOLUTION 830d
RESERVATIONS PROCEDURES FOR
AUTOMATED ACCREDITED AGENTS
1.
when an Accredited Agent (hereinafter ‘Agent’) is effecting a booking through an
connected to a Member’s automated reservations system, the Agent is acting on behalf of the
Member(s) or BSP Airline (s) in using that system and, therefore, shall adhere to the appropriate
reservations procedures contained in IATA Resolutions. These procedures shall be provided by
the Member(s) or BSP Airline (s) to the Agent.
2. the Agent shall request or sell airline space and/or associated services of a passenger
handling nature only when the Agent has a request to do so from a customer. The Agent shall
make such transaction in accordance with his system provider agreement.
3. the Agent shall ensure that the reservations booking designator used in booking space
corresponds to the applicable fare quoted to the customer.
4. To be able to advise passengers of irregular flight operations and disruptions Members and
BSP Airlines need to have sufficient contact details available to proactively contact the
passengers. Additionally, regulators are introducing legislation making it obligatory to inform the
passenger of flight cancellation or schedule changes (including delay in departure).
Consequently the Agent shall provide contact details on behalf of the passenger by entering in
the Passenger Name Record (PNR) the passenger’s mobile phone number and email address,
while maintaining compliance with all applicable data protection directives and regulations.
Contact details should be entered in the PNR in compliance with the Resolutions governing
reservations procedures. Members and BSP Airlines shall use these contact details exclusively
for the purpose of passenger notification in the event of flight cancellation or schedule changes
(including delay in departure) and shall not use the contact details for marketing purposes.
In the event the passenger exercises his or her right not to provide contact details it is
incumbent on the Agent to indicate that the passenger has declined to provide such details, and
to enter the refusal in the PNR to limit any statutory liability. In such a case, the passenger shall
not be provided information relating to flight cancellation or schedule changes (including delay in
departure).
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Should the Agent elect not to provide the passenger’s contact details and to fulfil passenger
notification of flight cancellation or scheduled changes (including delay in departure) on its own
behalf, the Agent shall have assumed any and all liability for any failure to notify the passenger.
Members must have the passenger’s contact in the event there are any operational difficulties
or it is either too late or not practical to advise the Agent. For this reason, in addition to its own
telephone contact, the booking Agent shall enter in the Passenger Name Record (PNR) the
customer’s home and/or business telephone contact whenever available.
5. the Agent shall notify the customer of the reservations status of all segments and associated
services and of any changes thereto.
6. all reservations for a specific itinerary and changes thereto shall, whenever possible, be
processed through one Member. When this is not possible, the Agent shall inform each Member
involved that the reservation is in connection with an itinerary.
7. the Agent shall ensure that the ticket will be issued in accordance with the reservations
status of each segment and in accordance with the applicable ticketing time limit.
8. the Agent shall be solely liable for the consequences of its failure to comply with any
Resolution governing reservations.
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CHANGE IN REMITTANCE FREQUENCY – BSP ROMANIA AND MOLDOVA
Submitted by APJC Romania & Moldova
Background
APJC Romania and Moldova met on 18 June 2013 and reviewed a recommendation from the
FAG for the introduction of Voluntary More Frequent Remittance scheme for the market, for
introduction as soon as possible. The APJC unanimously voted in favour of this proposal.
The APJC also considered moving the market to weekly remittance and unanimously voted in
favour of the following proposal:
-
Recommendation for weekly remittance for new applicants and for reinstated agents
after default, effective 01 JUN 2014
-
Weekly remittance for the whole market starting with 01 DEC 2015.
The
billing/reporting period will cover 7 days and the amount due will be paid after 15 days
counting after the closure of the reporting period.
Proposed Action
Conference is asked to approve:
•
•
The introduction of a VMFR scheme for BSP Romania and Moldova
The move to weekly remittance for new/reinstated agents effective 1 June 2014 and the
whole market effective 1 December 2015
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INSTRUCTIONS TO AGENTS IN THE EVENT OF AIRLINE SUSPENSION
Submitted by ECTAA
Re:
RE: Changes to Resolution 850 Attachment F on instructions to agents in the
event of airline suspension from BSP
Following the discussion in PAPGJC/18 regarding amendments to Resolution 866 and
Resolution 850 Attachment F § 2.b.iv.b that where adopted by PAConf/35, we would like to
revert back to you with the following proposal.
I. Background
PAConf/35 adopted amendments to Resolution 866 and Resolution 850 Attachment F §
2.b.iv.b effective from 1 January 2013, providing that when agents are requested to settle
outstanding billings directly with a suspended airline, remittance to BSP should not take into
account any refund actually or potentially owing by such airline.
These amendments were discussed at length during PAPGJC/17, in particular concerning
the possibility for IATA to require agents not to deduct from the amount remitted to BSP
refunds filed in BSP before the airline was suspended from BSP.
The minutes of PAPGJC/17 reflect the following:
M/110 “Lengthy discussion ensued during which several agent and airline representatives
considered that refunds filed through BSP before an airline was suspended from BSP should
be processed normally in BSP. An agent representative asked whether the item could be
withdrawn until certain issues had been clarified and considering that the proposal was not in
line with the views expressed by airline and agent representatives in the PAPGJC.”
ECTAA further notes that during the PAPGJC/17 of 14 October, ECTAA asked IATA to
clarify if agents will be able to deduct from the BSP billing refunds reported to BSP before the
airline was suspended. IATA suggested that agents may not deduct from the BSP billing
refunds reported before the airline was suspended, on the basis that agents hold the airline’s
monies in trust. Both agent representatives and some airline representatives in the PAPGJC
indicated that refunds reported before an airline was suspended should be deductible from
the BSP billing.
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The discussions in PAPGJC were supposed to be reported to PAConf, but the report in the
minutes of PAConf/35 is as follows:
M/187 “The Chairman advised that the agent representatives had expressed concern about
this item, but given the circumstances that had prompted this proposal, it should not come as
any surprise.”
PAConf adopted the amendments on this basis. ECTAA and GEBTA consider that the
concerns raised during PAPGJC/17 have not been given sufficient consideration by PAConf.
The rules applicable to refunds filed in BSP before an airline is suspended from BSP must be
reconsidered, with due regard to growing concerns about BSP efficiency in case of airline
failure and to principles of law.
I I. Agents’ concerns with the new wording
The issue at stake is the possibility for IATA to require agents not to deduct from the amount
remitted to BSP refunds initiated before the date when the airline was suspended. This
poses an unjustified risk on the Agents’ financial planning, and renders the safeguards of the
BSP system obsolete. Agents consider that the very purpose of the BSP suspension
procedure is to protect trading partners by suspending an airline in financial difficulties. The
suspension date hence serves as a termination date for normal trading, proving legal
certainty for transactions carried out before that date. Consequently, Agents should be able to
adjust the BSP billing at the end of the period during which the airline is suspended, with
refunds initiated before the airline was suspended. Such refunds are money legitimately
owed to customers that have not travelled.
III. ECTAA’ s Proposal
To correct the current situation, ECTAA respectfully proposes to Conference to endorse an
amendment to New Resolution 850 Attachment F § 2.b.iv.b, repealing the amendment
introduced on 1 January 2013 and re-introducing prior wording, as shown at Attachment ‘A’.
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Proposed amendment to Resolution 850 Attachment F § 2.b.iv.b
(iv) to settle all outstanding billings Outstanding Billings and pending sales either:
(a) directly with IATA for control and reconciliation of the airline's funds as detailed in
paragraph 2(c), or
(b) directly with the BSP Airline concerned, in which case the total amount to be remitted to
the Clearing Bank at the end of the current reporting period in respect of any Outstanding
Billing shall be adjusted by excluding the total amount due to or from the BSP Airline; for
greater certainty, the remittance of all Outstanding Billings should not take taking into
account any potential refund actually or potentially owing by such BSP Airline;
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MINOR ERROR RULE – ARGENTINA, PARAGUAY AND URUGUAY
Submitted by APJC Argentina/Uruguay/Paraguay
APJC Meeting summary
•
•
•
•
APJC Meeting No. 4 for Argentina, Uruguay and Paraguay was held on May 15th, 2013.
Quorum was reached with attendance of 13 delegates representing 7 airlines and 6
travel agent’s associations.
The present proposal, presented by AAAVYT (Travel Agent’s Association from
Argentina) was unanimously approved by agents and airlines’ delegates.
The purpose of the proposal is to increase the current number of Minor Errors allowed currently one (1) – in the terms stated in the Travel Agent’s Handbook Section 3.
Summary of changes proposed
As registered in the Minutes of the meeting, the following proposal was unanimously approved:
•
Three (3) minor errors will be allowed to each BSP Agent in Argentina, Paraguay and
Uruguay, in a twelve (12) month period.
•
Minor error rule definition remains the same as stated in the Travel Agent Handbook –
Section 3 – Local Criteria, copied as follows for a quick reference:
Minor Error Rule – An Agent shall be subject to two instances of irregularity following a
short payment and/or late payment (pursuant to Resolution 818g), however, the financial
criteria requirement to submit a financial guarantee will be waived three times, in a
twelve month period, whenever the Agent demonstrates satisfactory evidence from the
bank, that total amount due was available in Agent’s bank account on the date of
remittance and the amount due was paid within the demand period.
Proposed Action
Conference is requested to endorse the above proposal to be applied to Argentina, Paraguay
and Uruguay Agents, as from next January 1st 2014.
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CHANGE TO LOCAL FINANCIAL CRITERIA – ARGENTINA
Submitted by APJC Argentina/Paraguay/Uruguay
Background
On May 15th, 2013 the 4th meeting of the APJC for Argentina, Paraguay and Uruguay held a
meeting to review local financial criteria applicable for those countries.
Problem/Issues
1. This meeting addressed the need to review the Argentinean local financial criteria in
order to ensure that the criteria were fit for purposes in order to evaluate not only
incorporated and limited legal entities but also other types of legal business.
2. The current local criteria is restricted only to the evaluation of the legal entities
mentioned above without considering “Sole Ownerships” or “Partnerships.
3. Under Argentinean law, those legal entities do not have an obligation to submit a
balance sheet.
Proposal
PAConf is requested to endorse the revised criteria for Argentina approved in the last APJC
meeting held on 15 May 2013 as shown at Attachment ‘A’ for 1 January 2014 effectiveness.
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ARGENTINA
1 - EXISTING CRITERIA TO BE REPLACED:
Argentina
Audited up-to-date balance sheet certified by chartered accountant whose signature must be
certified by the Professional Board, including a Profit and Loss Statement. Minimum tangible net
worth required of Approved Agents will be equivalent to the minimum amount shown per sales
volume bracket in the table below. The sales volume calculation is based on Agent's own
average cash sales for a period of three weeks. Tangible net worth shall be supported only by
real estate of equivalent value registered in the name of the owner (sole
ownership/partnerships) or the legal entity (corporations) otherwise an insurance bond or bank
guarantee will be requested.
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2 – NEW CRITERIA APPROVED BY APJC TO BE SENT TO PACONF:
Argentina
Financial Criteria for Agent Evaluation
General Rule



I.
Accredited agents must comply with financial assessment criteria approved for the
corresponding country. These criteria will be revised by local APJC on an annual basis.
In order to be evaluated, every accredited agent must present the documentation
described in Section I. The agent must also fulfill the Minimum Tangible Net Worth
(MTNW) requirements through the ownership of real estate or the provision of financial
guarantees (bank guarantees or insurance bonds), as defined in Section III.
In case of initial accreditation and during a two-year term, the only accepted mechanism
for the fulfillment of the MTNW requisites will be the provision of financial guarantee
(bank guarantees or insurance bonds). After the second year of accreditation, the agent
will have the option either to maintain its financial guarantee or to present real estate of
its ownership at the aim of fulfilling the MTNW requisites, under the terms defined in
Section III.
Documentation to be submitted according to society type
1.1. Partnership and sole proprietorship





Agencies presenting real estate registered under the name of the agency’s owner or
owners:
Agency owner or owners’ assets declaration, certified by a Public Accountant.
Accountant’s signature must be certified by the College or Council in which he/she is
registered.
Ownership certificate of each real estate presented by the agency’s owner or owners.
Validity of the certificate will be 30 days. Each real estate submitted must be free of any
encumbrance (garnishment, mortgage, usufruct, etc.) and fully available by its owner.
Agency owner or owners’ certificate of non-encumbrance. Validity of the certificate will
be 30 days.
Two assessments done by nearby real estate agencies or public auctioneer, showing
the estimated market value of the real estate presented as guarantee.
In case of conjugal shared possessions, where the spouse is not a partner to the agency
society, a “Fianza Solidaria” granting the agency’s operations must be submitted. This
document must be signed by the spouse and certified by Public Notary. A model of
“Fianza Solidaria” must be requested.
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Agencies not owning real estate registered under the name of the agency’s owner:

Agency owner or owners’ assets declaration, certified by a Public Accountant.
Accountant’s signature must be certified by the College or Council in which he/she is
registered.
1.2. Corporations and Limited Companies
Agencies presenting real estate registered under company name:




Complete audited up-to-date Financial Statements (Balance Sheet, Profit & Loss
Statement, Notes and Annexes). Accountant’s signature must be certified by the College
or Council in which he/she is registered.
Ownership certificate of each real estate owned by the agency. Validity of the certificate
will be 30 days. Each real estate submitted must be free of any encumbrance
(garnishment, mortgage, usufruct, etc.) and fully available by its owner.
Agency owner or owners’ certificate of non-encumbrance. Validity of the certificate will
be 30 days.
Two assessments done by nearby real estate agencies or public auctioneer, showing
the estimated market value of the real estate presented as guarantee.
Agencies not owning registered real estate:

II.
Complete audited up-to-date Financial Statements (Balance Sheet, Profit & Loss
Statement, Notes and Annexes). Accountant’s signature must be certified by the College
or Council in which he/she is registered.
Conditions for the analysis of Financial Statements presented by the Agent
Maximum validity of Financial Statements presented by agents will be 8 months as from
closing date. Presentation Calendar is shown in the table below:
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The Calendar above contains dates which will be adjusted subject to week-ends and local
holiday. The agent must follow these deadlines in order to comply with the Financial
Statements presentation and evaluation requisites within the 8-month term mentioned above.
The Financial Statement assessment will be based on the calculation of the Financial
Indicators and the achievement of the score described below:
The maximum score to be obtained as a result of the application of the 4 financial indicators
will be 40 points. In order to achieve a satisfactory evaluation, the minimum acceptable score
will be 22 points.
Formula and score applicable to Financial Indicators:
Liquidity = Current Assets / Current Liabilities
Above 1.99
1.50 – 1.99
1.25 – 1.49
1.00 – 1.24
0.96 – 0.99
0.91 – 0.95
0.86 – 0.90
Below 0.85
14 points
12 points
10 points
8 points
6 points
4 points
2 points
0 points
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Collection Term Average = (Receivables / Sales) * 365
Below 15 days
7 points
15 - 16 days
6 points
17 – 18 days
5 points
19 – 20 days
4 points
21 – 23 days
3 points
24 – 26 days
2 points
27 – 29 days
1 points
Above 30 days
0 points
Debt = Total Liabilities / Total Assets
Below 0.4
14 points
0.4 – 0.59
12 points
0.6 – 0.89
10 points
0.9 – 0.99
8 points
1.0 – 1.19
6 points
1.2 – 1.34
4 points
1.35 – 1.49
2 points
Above 1.5
0 points
Cash Flow = After-tax earnings / Long-term Debt
0.20
5 points
0.18
4 points
0.15
3 points
0.13
2 points
0.10
1 points
0.09
0 points
Definitions:
Current Assets: Receivables from related companies, shareholders, employees, directors,
partners as well as cash and fix-term deposits in escrow must be excluded.
Current Liabilities: It must include the current portion of long-term debt.
Total Sales: The amount must appear specifically in the Financial Statements. And
correspond to gross sales obtained in the period including (but not limited to) ticket sales,
packages, hotels, car rental, insurances, miscellaneous, etc.
Long-term Liabilities: It comprises all third parties long-term debt. Loans to shareholders or
proprietors must be excluded.
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Receivables: It must be shown as a breakdown of commercial receivables, fees,
commissions, related companies receivables and advances granted to suppliers. Bad debt
must be excluded.
Earnings after taxes: Extraordinary earnings must be excluded.
Total Assets: Intangible assets must be included.
Total Liabilities: It includes current liabilities and third parties loans. Loans granted to
shareholders or owners must be excluded. It must include related companies liabilities less the
corresponding subordinated tranche (receivable).
III.
Financial requirements: Minimum Tangible Net Worth
Minimum Tangible Net Worth (MTNW) for Accredited Agents will be the amount stated in
column “MTNW” on the table presented below. In order to determine the applicable MTNW, it
is necessary to estimate the Agent’s 3-week cash sales amount, which are calculated based
on the last 12 months cash sales average. In order to guarantee the MTNW determined, the
Agent must be owner of:
(i)
(ii)
In case of sole proprietorship or partnership: real estate for an equivalent amount,
registered under the name of the partner or partners;
In case of legal entity (SRL or SA): real estate for an equivalent amount, registered
under the name of that legal entity (SRL or SA).
In case of not being owner of real estate, a bank guarantee or an insurance bond for an
amount equivalent to the MTNW value must be submitted. The list of accepted providers for
these guarantees will be delivered by IATA.
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Agent accreditation and initial 2-year period
Upon accreditation, every agent must present a financial guarantee (bank guarantee or
insurance bond) for an amount equivalent to USD 30.000, in order to constitute its initial
MTNW.
As from then and on a four-month basis, IATA will recalculate the 3-week cash sales average
done by the agent and, in case an increase is registered, a guarantee increment equal to or
higher than USD 10.000 will be requested.
During the first 2 years of accreditation, the provision of a financial guarantee according to the
terms described above will be mandatory for the agent.
In the case of a new agency constituted as a branch of a previously accredited one, the sales
average of the new branch will be added to those of its headquarters at the aim of calculating
the financial guarantee requested.
Agents with more than 2 year of accreditation
Upon 2 years of accreditation and in case of having achieved a satisfactory result in the
financial evaluation performed on the Financial Statements presented, the agent must decide
whether to continue to provide a financial guarantee under the terms above described or to
constitute its MTNW through the presentation of real estate of its ownership, as established
above.
The MTNW amount will continue to be revised on a four-month basis through the recalculation
of the 3-week cash sales average done by the agent during the previous 12-month period. In
case an increase is detected, an increment in the corresponding guarantee equal to or higher
than USD 10.000 will be requested
.
Unsatisfactory result in the financial evaluation
In case of obtaining an unsatisfactory result in the evaluation performed to the Financial
Statements presented (score below 22 points), the USD 800.000 cap established in the
MTNW table shown in this Section will not apply and the agent will have to provide a financial
guarantee (bank guarantee or insurance bond) for the corresponding total 3-week cash sales
average.
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CHANGE TO LOCAL FINANCIAL CRITERIA – BANGLADESH
Submitted by APJC Bangladesh
Background
The existing Local Financial Criteria in Bangladesh are not fit for purpose. APJC Bangladesh
held a meeting on 30 May 2013 and reviewed the Local Financial Criteria against the guideline
criteria in Resolution 800f. The APJC unanimously agreed to adopt the r800f guideline criteria,
with a few local factors. A copy of the new criteria is shown at Attachment ‘A’.
Proposed Action
Conference to adopt the revised Local Financial Criteria for Bangladesh as shown at
Attachment ‘A’ for 1 January 2014 implementation.
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Amend Local Financial Criteria for Bangladesh as shown below:
1. Finances
1.1 The applicant must provide a certified and audited Balance Sheet and Profit and Loss
account not more than six months old at the time of submission.
1.2 The applicant must:
1.2(a) have conducted travel agent business for at least six (06) months prior to the date of
application.
1.2(b) meet the criteria as published under Resolution 800f, Section 4.
1.2(c) submit a minimum bank guarantee of BDT 3 million or equal to 35 days’ average
turnover, whichever is higher.
1. GENERAL RULE
1.1.
Audited Accounts means accounts reviewed by an auditor recognized as competent
by the regulatory authority to perform an audit that are provided to
IATA
2. CRITERIA FOR EVALUATION OF AGENTS’ ACCOUNTS
2.1.
All financial information used in the financial criteria will be extracted from the
Agent’s Audited Accounts.
2.2.
The following financial tests apply to the evaluation of an Agent’s Audited Accounts:
2.2.1. There must be positive Net Equity
2.2.2. Net Equity divided by long-term debt and other long-term liabilities must be
greater than
0.5.
2.2.3. EBITDA (Earnings Before Interest, Taxation, Depreciation, Amortisation and
extraordinary items) must be positive save in exceptional circumstances
2.2.4. The EBITDA must exceed the Interest Payable by a factor of a minimum of two
2.2.5. Adjusted Current Assets must exceed Current Liabilities.
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3. ANNUAL FINANCIAL REVIEWS
3.1.
All Agents must provide Audited Accounts no later than 12 months after each
financial year end, of that Agent for the purposes of evaluation against the financial
tests in section 2
4. INTERIM FINANCIAL REVIEWS
4.1.
For any Financial Review conducted for cause at a time other than in respect of an
Agent’s financial year end, IATA may conduct a Financial Review in accordance with
section 3 as applicable to that Agent by reviewing the internal monthly management
accounts of the Agent showing the results for each month since the last accounting
date, the cumulative results to date and the latest balance sheet.
5. FINANCIAL SECURITY
5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
An Agent will not be accredited or will not continue to be accredited until any
Financial Security required to be provided to IATA has been received by IATA and
confirmed to IATA by way of written confirmation received directly from the third party
supporting the Financial Security that the Financial Security was issued by that third
party and is valid.
Financial Securities will be subject to a minimum notice period of ninety (90) days
and be valid for a minimum of at least one year.
All Agents must provide a Financial Security with a minimum amount of BDT Three
Million to be accredited or to remain accredited or
Furnish a Financial Security for a minimum amount calculated on the basis of the
average BSP cash sales over last 12 months, for the number of Days Sales at
Risk, whichever is higher.
“Days Sales at Risk” means the number of days from the beginning of the Agent’s
reporting period to the remittance date in respect of that reporting period or periods,
plus a margin of up to five days.
At any point in time, if the existing Financial Security is insufficient to cover the
Amount at Risk, the amount of the Financial Security required will be increased to
cover the Amount at Risk.
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5.7.
Amount at Risk is calculated by dividing the Day’s Sales at Risk by 365 and
applying that percentage to the BSP cash turnover, or cash turnover as
applicable:
“Amount at Risk” = (Days Sales at Risk/365) x BSP cash turnover last 12 month
period .
6. SIGNIFICANT CHANGE IN GROSS BSP SALES
6.1.
A significant change means any change in the business of the Agent which results in
a change in gross BSP sales of more than 10% as compared to the previous 12
months. A change can be an increase or a decrease in gross BSP sales.
6.2.
An interim Financial Review may also be initiated by IATA where IATA becomes
aware of a significant change in gross BSP sales in accordance with Section 4.
7. DEFINITIONS OF TERMS USED IN THESE GUIDELINES
7.1.
7.2.
7.3.
7.4.
7.5.
Adjusted Current Assets – are defined as Current Assets as in the Balance Sheet
of the Accounts after deducting:
- Stocks and work in progress.
- Deposits given to third parties other than IATA,
- Loans to Directors, Associate Companies, (including any subsidiary,
associate or company under common ownership)
- Doubtful debtors,
- Blocked funds, except for funds held in favour of IATA.
Current Liabilities - are defined as Current Liabilities as in the Balance Sheet of the
Accounts
EBITDA – Earnings Before Interest, Taxation, Depreciation and Amortisation
Financial Irregularity means an irregularity applied as a result of any failure to
adhere to the reporting and remittance procedures described in Resolution 818g
Attachment “A” including but not limited to those irregularities described in Resolution
818g Attachment “A”.
Financial Review means a review of an Agent’s financial position or the calculation
of the amount of Financial Security required in accordance with this Resolution 800f,
or both.
Agenda Item:
Revision No.:
Date:
Attachment:
Page:
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7.6.
7.7.
7.8.
7.9.
7.10.
Irregularity means any irregularity applied under the Passenger Sales Agency Rules
for non-compliance with those Rules including but not limited to Financial
Irregularities.
Net Equity or Shareholders’/Owners’ Funds – consists of:
- Share capital
- Share premium
- Retained earnings
- Other distributable reserves
- Shareholder’s loans if subordinated less declared dividends:
Long Term Debt – All debt liabilities where repayment is due more than twelve
months after the end of the financial period.
Long Term Liabilities – all liabilities where repayment is due more than twelve
months after the end of the financial period.
Review means any assessment or evaluation of an Agent’s continuing compliance
with the Passenger Sales Agency Rules.
Agenda Item:
Revision No.:
Date:
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CHANGE TO REPORTING CALENDAR – BOLIVIA
Submitted by APJC Bolivia/Peru/Chile
Background
Bolivia is under a weekly periods calendar Monday to Sunday. For years the Airlines and
Agents have had to live with a calendar that involves complex internal controls in the last weeks
of each month or the first weeks of each month that relate to dates of the previous month.
Bolivia has been dealing with the following issues with the current calendar.
Tax payments delays
The tax bureau (Impuestos Nacionales) imposes fines due to late tax payments on closing of
each month. Fines are calculated in UFV (1UFV equals 1.84 BOB), for example:
•
late affidavit or original documents presentation 400 UFV x 1.81 = BOB 736, equivalent
to USD 106
•
Late purchase and sales ledger presentation UFV 3000 x 1.81 = BOB 55520 equivalent
to USD 793
This means that additional internal controls are needed to separate sales of one ending month
and the next month. Commission invoices that reflect sales of two months when VAT law 843,
paragraph 1, subparagraph II, article 10th mandates that VAT must be paid monthly
Proposed Solution
To avoid such tax problems for both airlines and agents in the future, it is proposed to adopt a
per week calendar, in a way that all periods are included in a month, as follows.
Dates:
1-8
9-15
16-23
24 to last calendar day of the month
Agenda Item:
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Date:
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The above proposal has been agreed by APJC Bolivia/Peru/Chile for implementation in Bolivia
effective 1 January 2014. A copy of the revised reporting calendar is shown at Attachment ‘A’.
Proposed Action
Conference is asked to approve the new reporting calendar for Bolivia shown at Attachment ‘A’.
Agenda Item:
Revision No.:
Date:
Attachment:
Page:
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BOLIVIA BSP CALENDAR 2014 (PERIODS)
Period nr
REMITTANC
E DATE
Reporting From ..To
BOLIVIA BSP CALENDAR 2014(CALENDAR DATES)
Reporting From ..To
REMITTANCE DATE
1
2
3
4
1-ene mié
7-ene mar
14-ene mar
21-ene mar
6-ene lun
13-ene lun
20-ene lun
27-ene lun
16-ene jue
23-ene jue
30-ene jue
6-feb jue
1-ene mié
9-ene jue
16-ene jue
24-ene vie
8-ene mié
15-ene mié
23-ene jue
31-ene vie
18-ene sáb
25-ene sáb
4-feb mar
11-feb mar
5
6
7
8
9
28-ene mar
4-feb mar
11-feb mar
18-feb mar
25-feb mar
3-feb lun
10-feb lun
17-feb lun
24-feb lun
3-mar lun
13-feb jue
20-feb jue
27-feb jue
6-mar jue
13-mar jue
1-feb sáb
9-feb dom
16-feb dom
24-feb lun
1-mar sáb
8-feb sáb
15-feb sáb
23-feb dom
28-feb vie
8-mar sáb
18-feb mar
25-feb mar
5-mar mié
11-mar mar
18-mar mar
10
11
12
13
4-mar mar
11-mar mar
18-mar mar
25-mar mar
10-mar
17-mar
24-mar
31-mar
lun
lun
lun
lun
20-mar jue
27-mar jue
3-abr jue
10-abr jue
9-mar dom
16-mar dom
24-mar lun
1-abr mar
15-mar sáb
23-mar dom
31-mar lun
8-abr mar
25-mar mar
2-abr mié
10-abr jue
18-abr vie
14
15
16
17
1-abr mar
8-abr mar
15-abr mar
22-abr mar
7-abr lun
14-abr lun
21-abr lun
28-abr lun
17-abr jue
24-abr jue
2-may vie
8-may jue
9-abr mié
16-abr mié
24-abr jue
1-may jue
15-abr mar
23-abr mié
30-abr mié
8-may jue
25-abr vie
3-may sáb
10-may sáb
20-may mar
18
19
20
21
29-abr mar
6-may mar
13-may mar
20-may mar
5-may lun
12-may lun
19-may lun
26-may lun
15-may jue
22-may jue
29-may jue
5-jun jue
9-may vie
16-may vie
24-may sáb
1-jun dom
15-may jue
23-may vie
31-may sáb
8-jun dom
27-may mar
3-jun mar
10-jun mar
18-jun lun
22
23
24
25
26
27-may mar
3-jun mar
10-jun mar
17-jun mar
24-jun mar
2-jun lun
9-jun lun
16-jun lun
23-jun lun
30-jun lun
12-jun mar
19-jun jue
26-jun jue
3-jul jue
10-jul jue
9-jun lun
16-jun lun
24-jun mar
1-jul mar
9-jul mié
15-jun dom
23-jun lun
30-jun lun
8-jul mar
15-jul mar
25-jun mié
3-jul jue
10-jul jue
18-jul vie
25-jul vie
27
28
29
30
1-jul mar
8-jul mar
15-jul mar
22-jul mar
7-jul lun
14-jul lun
21-jul lun
28-jul lun
17-jul jue
24-jul jue
31-jul jue
7-ago jue
16-jul mié
24-jul jue
1-ago vie
9-ago sáb
23-jul mié
31-jul jue
8-ago vie
15-ago vie
2-ago sáb
12-ago mar
19-ago mar
26-ago mar
31
32
33
34
29-jul mar
5-ago mar
12-ago mar
19-ago mar
4-ago lun
11-ago lun
18-ago lun
25-ago lun
14-ago jue
21-ago jue
28-ago jue
4-sep jue
16-ago sáb
24-ago dom
1-sep lun
9-sep mar
23-ago sáb
31-ago dom
8-sep lun
15-sep lun
2-sep mar
10-sep mié
18-sep jue
25-sep jue
35
36
37
38
39
26-ago mar
2-sep mar
9-sep mar
16-sep mar
23-sep mar
1-sep lun
8-sep lun
15-sep lun
22-sep lun
29-sep lun
11-sep jue
18-sep jue
25-sep jue
2-oct jue
9-oct jue
16-sep mar
24-sep mié
1-oct mié
9-oct jue
16-oct jue
23-sep mar
30-sep mar
8-oct mié
15-oct mié
23-oct jue
3-oct vie
10-oct vie
18-oct sáb
25-oct sáb
4-nov mar
40
41
42
43
30-sep mar
7-oct mar
14-oct mar
21-oct mar
6-oct lun
13-oct lun
20-oct lun
27-oct lun
16-oct jue
23-oct jue
30-oct jue
6-nov jue
24-oct vie
1-nov sáb
9-nov dom
16-nov dom
31-oct vie
8-nov sáb
15-nov sáb
23-nov dom
11-nov mar
18-nov mar
25-nov mar
3-dic mié
44
45
46
47
28-oct mar
4-nov mar
11-nov mar
18-nov mar
3-nov lun
10-nov lun
17-nov lun
24-nov lun
13-nov jue
20-nov jue
27-nov jue
4-dic jue
24-nov lun
1-dic lun
9-dic mar
16-dic mar
30-nov dom
8-dic lun
15-dic lun
23-dic mar
10-dic mié
18-dic jue
26-dic vie
2-ene jue
48
49
50
51
52
25-nov mar
2-dic mar
9-dic mar
16-dic mar
23-dic mar
1-dic lun
8-dic lun
15-dic lun
22-dic lun
31-dic mié
11-dic jue
18-dic jue
26-dic vie
2-ene jue
8-ene mié
24-dic mié
31-dic mié
10-ene sáb
Inicio de cada Periodo de ventas
Agenda Item:
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CHANGE TO LOCAL FINANCIAL CRITERIA – BOLIVIA
Submitted by APJC BO CL PE
Background
APJC BO CL PE met on 3 July 2013 and unanimously endorsed changes to the Local
Financial Criteria for Bolivia as shown at Attachment ‘A’.
The changes relate to:
1. Adoption of Resolution 800f with the following modification for Bolivia – For the
purposes of the calculation of a guarantee, the amount at risk shall be calculated by
considering the sale of 360 days to give the average sales of 22 days (total net sales /
360 x 22).
2. The minimum guarantee for new or Accredited Agents in Bolivia will be USD 20,000
when required.
3. Agencies should be evaluated in accordance with the new criteria for presentation of
financial statements, according to applicable local rules of the country.
Proposed Action
PAConf is requested to adopt the revised Local Financial Criteria for Bolivia shown at Attachment ‘A’for
1 January 2014 effectiveness.
Agenda Item:
Revision No.:
Date:
Attachment:
Page:
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Amend Local Financial Criteria for Bolivia as shown below:
DELETE - Financial Local Criteria by Country - Bolivia
New Applicant requirements
The Financial Statements require an audit report performed by external audit firm for all new
applicants. All applicants need to present Profit and Loss statements with the balance sheet
presented to the local tax authority.
Minimum Capital expressed in local currency:
For La Paz, Cochabamba and Santa Cruz
USD 25,000
Rest of cities in Bolivia:
USD 20,000
Any variances over 10% in local currency, due to devaluation of BOB/USD will be adjusted
annually when presenting financial documentation for financial reviews.
Annual Financial Reviews
The agents present the Financial Statements with an audit report only when required by Law or
the Travel Agent is applying to qualify and operate under no guarantee scheme.
Copy of the Financial Statement electronic form, submitted to the tax authority.
New text:
INSERT - Financial Criteria by Country - BOLIVIA
Adopts 800f resolution 5 t est s evaluat ion with the following modifications in the
financial criteria:
a.
For the purposes of the calculation of a guarantee, the amount at risk shall be
calculated by considering the sale of 360 days to give the average sales of 22 days (total
net sales / 360 x 22)
a. The minimum guarantee for new or accredited agents in Bolivia will be
USD 20,000 when required.
New Applicant requirements
The Financial Statements are required with an audit report performed by external audit firm.
•
•
Minimum Capital expressed in local currency:
USD 25,000 for La Paz, Cochabamba and Santa Cruz.
Rest of cities in Bolivia: USD 20,000
Any variances over 10% in local currency, due to devaluation of BOB/USD will be adjusted
annually when presenting financial documentation for financial reviews.
Agenda Item:
Revision No.:
Date:
Attachment:
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Annual Financial Reviews
The agent presents the Financial Statements with an audit report only when required by Law or
when the Travel Agent is applying to qualify and operate under no guarantee scheme. A copy
of the Financial Statement in electronic form submitted to the tax authority shall be included.
The presentation of Financial Statements for the annual financial review will be 30 days after the
legal presentation date with a maximum of 8 months after the closing date.
Agenda Item:
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CHANGE TO LOCAL FINANCIAL CRITERIA – BRAZIL
Submitted by APJC Brazil
Proposal:
Ratio Test for Financial Reviews to be transparent and include the
information on the Local Criteria
Background
On 20 June 2013 the 5th meeting of the APJC Brazil held a discussion to review local financial
criteria applicable for the country.
Problem/issues
Travel and cargo agents do not find the local criteria transparent. Most of them have a lot of
questions regarding the formulas and calculation.
Proposed Action
APJC participants agreed that the Ratio Test for Financial Reviews needs to be transparent and
therefore requests PAConf endorse the inclusion of more detailed information as shown at
Attachment ‘A’ with the current Local Criteria.
Agenda Item:
Revision No.:
Date:
Attachment:
Page:
Financial
Indicators
Maximum
Score
Indicator
Formula
ILG
Current Assets +
Long Term
Assets/ Current
Liabilities +
Long Term
Liabilities
7
ILC
Current Assets /
Current
Liabilities
7
Liquidity
CE
Current Assets /
Current
Liabilities +Long
Term Liabilities
4,2
PCT
Current Assets
+Long Term
Liabilities /
Equity
9,8
Debt
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Formula Result
Corresponding
Score
Over 1.97
1.50 - 1.97
1.25 - 1.49
1.00 - 1.24
0.96 - 0.99
0.91 - 0.95
0.86 - 0.90
Under 0.85
Over 1.97
1.50 - 1.97
1.25 - 1.49
1.00 - 1.24
0.96 - 0.99
0.91 - 0.95
0.86 - 0.90
Under 0.85
7
6
5
4
3
2
1
0
7
6
5
4
3
2
1
0
Under 0.50
0.50 - 0.59
0.60 - 0.89
0.90 - 0.99
1.00 - 1.19
1.20 - 1.34
1.35 - 1.49
Over 1.5
Under 0.50
0.50 - 0.59
0.60 - 0.89
0.90 - 0.99
1.00 - 1.19
1.20 - 1.34
1.35 - 1.49
Over 1.5
4.2
3.6
3.0
2.4
1.8
1.2
0.6
0
9.8
8.4
7.0
5.6
4.2
2.8
1.4
0
Agenda Item:
Revision No.:
Date:
Attachment:
Page:
Net Operating
Margin
Net Profit/Net
Operating
Revenue
7
Solvency
Kanitz
(¹Profitability
Net Equity
*0.05) + (ILG *
1.65) + (ILC *
3.55) - (ILC *
1.06) - (PCT *
0,33)
¹Profitability NE = Net Profit / Net
Equity
5
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Over 5.99
5.00 - 5.99
4.00 - 4.99
3.00 - 3.99
2.00 - 2.99
0.00 - 1.99
(3.00) - (0.01)
7
6
5
4
3
2
1
Under (3.00)
Over 0.14
0.08 - 0.14
0.06 - 0.07
0.04 - 0.05
0.02 - 0.03
0
5
4
3
2
1
Under 0.01
0
40
Maximum score
22
Minimum for approval
Agenda Item:
Revision No.:
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CHANGE TO LOCAL FINANCIAL CRITERIA – CHILE
Submitted by APJC Bolivia/Peru/Chile
Background
PACONF35 approved a new Resolution 800f published as of Jan 01st, 2013 and agents met to
consider its adoption and to review the Local Financial Criteria for Chile.
Problem/Issues
When performing financial evaluations Chile currently applies the four following ratios as
described in the local financial criteria:
Having reviewed the local criteria and the new Resolution 800f, agents agreed that they could
not adopt the new resolution 800f at this time and would like to ratify their current local criteria.
However, they did agree to a few modifications that would reduce barriers to entry to new
agents.
Agenda Item:
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Proposal:
Ratify Local Financial Criteria.
Modify the Local Financial Criteria for Chile so that where it currently reads
Chile
Certified up-to-date balance sheet required. Minimum capital as follows:
Santiago, USD 35,000
Valparaiso and Concepción USD 25,000
Rest of Country USD 18,000
Additional Requirement:
Guarantees shall be equivalent to the number of Days Sales at Risk or a minimum of
USD
10,000.
Instead reads
Chile
•
The presentation of Financial Statements for the annual financial review will be 30 days
after the legal presentation date.
• Their financial statements must consist of a Balance Sheet, Profit and Loss
Statement and Statement of Cash Flow, prepared by a certified external auditor in the
format provided by IATA (attached).
• The amount of the guarantee to be presented will be the 22 days “Amount at risk”.
The calculation of the 22 days “Amount at risk” for Chile will consider a 12 month
average of the agent´s sales.
• The minimum guarantee for new or accredited agents in Chile will be USD10,000 when
required.
The proposal was reviewed at the fifth meeting of APJC Bolivia/Chile/Peru that met on 8 May
2013. The Council agreed to amend it only to add the deadline for financial evaluation
submissions. The chosen date (30 days after the legal presentation date) is according to local
practice and unless the authorities introduce any changes in Chile, would be May 31st.
The APJC unanimously voted in favour of the amended text, which is shown at Attachment ‘A’.
Proposed Action
Conference is asked to adopt the revised Local Financial Criteria for Chile as shown in the
attachment for 1 January 2014 effectiveness.
Agenda Item:
Revision No.:
Date:
Attachment:
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Amend Local Financial Criteria for Chile as shown below:
Chile
Certified up-to-date balance sheet required. Minimum capital as follows:
Santiago
USD 35,000
Valparaiso and Concepción USD 25,000
Rest of Country
USD 18,000
Additional Requirement:
Guarantees shall be equivalent to the number of Days Sales at Risk or a minimum of
USD10,000.
•
•
•
•
The presentation of Financial Statements for the annual financial review will be 30 days
after the legal presentation date.
Financial statements must consist of a Balance Sheet, Profit and Loss Statement and
Statement of Cash Flow, prepared by a certified external auditor in the format
provided by IATA.
The amount of the guarantee to be presented will be the 22 days “Amount at risk”.
The calculation of the 22 days “Amount at risk” for Chile will consider a 12 month
average of the agent´s sales.
The minimum guarantee for new or accredited agents in Chile will be USD 10,000 when
required.
Agenda Item:
Revision No.:
Date:
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CHANGE TO LOCAL FINANCIAL CRITERIA – CHINA
Submitted by APJC China
Background
APJC China met on Friday 16 August 2013 and took action to revise its Local Financial Criteria
so as to:
1.
2.
3.
avoid confusion and ambiguity;
reflect market changes;
remove duplication of resolution text.
Proposed Action
Conference is invited to approve the changes to Local Financial Criteria for BSP China shown at
Attachment ‘A’ for 1 January 2014 effectiveness.
Agenda Item:
Revision No.:
Date:
Attachment:
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Amend Local Financial Criteria for People’s Republic of China as shown below:
1.
GENERAL QUALIFICATIONS
1.1
Finances
1.1.1 the applicant shall submit independently produced financial statements prepared in
accordance with local accounting practices as specified by APJC and published in the
Handbook. Such statements shall be evaluated and found satisfactory pursuant to the
methodology and standards established from time to time by APJC and published in the
Handbook. Notwithstanding the requirement set out below in Paragraph 1.1.2, to obtain a
satisfactory evaluation, the applicant may be required to provide additional financial support in
the form of a bank or insurance guarantee or as otherwise determined by APJC.
1.1.2 the applicants must submit a financial guarantee equivalent to 50% of the average
monthly sales turnover of the total passenger sales on behalf of BSP-CN participating airlines
but not less than CNY 1.5 million, whichever is higher.
1.1.3 the Agency Services Manager shall conduct periodic examinations of the financial
standing of Agents. He may request and the Agent concerned shall be under obligation to
furnish, by the date specified in the Agency Services Manager's letter of request, the documents
deemed necessary by the Agency Services Manager to conduct such examination. Failure by
the Agent to submit such documents as prescribed shall be grounds for the Agency Services
Manager to apply two instances of irregularity and to give the Agent 30 days to comply. Failure
by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the
Agent notice of termination of the Sales Agency Agreement, provided that if the Agent
demonstrates to the Agency Administrator prior to the termination date that it meets the financial
criteria incorporated in the Travel Agent's Handbook the termination shall not take effect.
1.1.4 when the financial position of an Agent is subject to examination by the Agency
Administrator, and the Agent is unable to meet the financial criteria of the Travel Agent's
Handbook, the Agency Administrator shall take normal business fluctuations into account and
provide the Agent with a reasonable period of time to meet those criteria.
1.1.5 an Agent must submit Audited Financial Statements prepared in accordance with Chinese
accounting standards. Such statement shall include Balance Sheet and Profit & Loss Account
duly certified by an outside public accountant.
1.1.62 the Audited Financial Statement should not be older than six nine months at the time of
evaluation submission.
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1.1.73 if the applicant is new or has been operating for less than six months, it could provide a
Capital Verification Report, instead of Audited Financial Statements.
1.1.74 the registered capital shall not be less than CNY 1.5 million for the international agent.
1.1.95 the following elements are used in the financial evaluation:
1.1. 95.1 Current Ration > 130%, Current Assets divided by Current Liabilities;
1.1. 95.2 Liquid Ratio > 100%, (Current Assets – Inventory – Prepayment) divided by Current
Liabilities;
1.1. 95.3 Cash Ratio > 30%, Cash and Cash Equivalents divided by Current Liabilities;
1.1. 95.4 Debt Ratio < 65%, Total Liabilities divided by Total Assets;
1.1. 95.5 Owners’ Equity is not less than 65% of Paid-up Capital
1.1.106 Guarantee
1.1.10.1 all agents must provide a financial security. It should be equivalent to 50% of the
average monthly cash sales turnover of the total passenger sales on behalf of BSP-CN
participating airlines during the previous 12 month period, with a minimum amount of CNY 1.5
million for international agents.
1.1.10.2 the guarantee will be reviewed on a yearly basis. Thereafter the amount at risk will be
computed using the average sales of the previous 12 months and the amount of guarantee
required adjusted if necessary.
1.2
Personnel
The Agent must have in its employment competent and qualified staff able to sell international
air transportation and correctly issue electronic travel documents and report these to the BSP.
1.3
Premises & Security
1.3.1 the applicant shall conform to the provisions laid down in Sections 2 and 5 of Resolution
818g.
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1.4
Name
1.4.1
the applicant must not have a name, acronym, logo or trademark which is:
1.4.2 the same as that of the International Air Transport Association (IATA) or of a Member or
other Airline, or
1.4.3 the same as an acronym formed from the two or three letter designator of a Member or
other Airline.
1.4.4 misleadingly similar to the name, acronym, logo or trademark of the International Air
Transport Association (IATA) or that of a Member or other Airline; provided that this shall not
preclude the accreditation of such applicant by the Agency Administrator if no protest is
received from any Member.
1.4.5 the place of business must not be identified as an office of a Member or of a group of
Members or of an air carrier or group of air carriers.
1.5
Wilful Misconduct
The applicant, its principal stockholders (or persons for whom they act as nominees), directors,
officers or managers shall not have unsatisfactory records with regard to adherence to ethical
business practices, nor be undischarged bankrupts.
1.6
Prior Default
No person who is a director of or who holds a financial interest or a position of management in
the applicant shall have been a director of or had a financial interest or held a position of
management in an Agent which has been removed from the Agency List or is under notice of
default and still has outstanding debts to Members; provided that the applicant may
nevertheless be approved if the Agency Administrator is satisfied that such person was not
responsible for the acts or omissions that caused such removal or default and is satisfied that
the applicant can be relied upon to comply with the terms of the Sales Agency Agreement,
these Rules and other Resolutions of the Conference.
1.7
General Sales Agent
The applicant must not be a General Sales Agent for any air carrier in the People's Republic of
China (whether or not for the whole of that country); provided that this shall not preclude
consideration by the Agency Services Manager of such an applicant if the application contains
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evidence, to his satisfaction, that the applicant will have ceased to be such a General Sales
Agent before the date of effectiveness of the Agency Services Manager's decision.
1.8
Electronic Ticketing
The applicant shall have, at the place of business under application, the facility to issue on
behalf of Members/ Airlines participating in the BSP, STDs through the use of an approved
Electronic Ticketing System which meets the requirements set out in Resolution 854.
1.9
Branch Office
The applicant must wholly own and fully manage the business for which approval is sought as a
Branch Office Location.
1.10
License
Where officially required the applicant must be in possession of a valid license to trade.
1.11
Accuracy of Statements
All material statements made in the application shall be accurate and complete.
1.12
Tour Operator as Accredited Agent
An applicant which demonstrates that its business is solely concerned with the organizing of
Inclusive Tours and which fulfils all other criteria but does not maintain a place of business
which is freely accessible to the general public, may nevertheless be accredited provided that it
performs the issuance of Traffic Documents related to such Inclusive Tours only.
2.
BSP CHINA REPORTING CALENDAR
In order to ensure transparent and fair BSP procedures according to IATA Passenger Agency
Conference Resolutions and BSP Manuals, the key definitions and processes of the reporting
and settlement calendar for BSP China are formalized as follows:
2.1 Period Number: reference number for reporting period
2.2 Reporting Period: specific sales dates to be reported for reporting period
2.3 Reporting Date: the date on which the Agent reports sales to DPC
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2.4 Agent Billing Date: the date on which the billing reports of this period are available in ASD
2.5 Agent Remittance Date: the date on which the agent remit billing amount to its BSP account
in the Clearing Bank. If the Clearing Bank does not receive a complete remittance before the
close of business of the Clearing Bank on the Remittance Date, BSP China will send the Agent
Demand of Payment and a Notice of Irregularity, which counts as two instances of Irregularity.
If payment is not received from the Agent before the close of business of the Clearing Bank on
the first day following the Remittance Date, the Agent is declared in default.
2.6 Airline Settlement Date: the date on which IATA settles the amount of the Billing Period to
Airlines.
3.
ACCUMULATED IRREGULARITIES IN BSP CHINA
If ten (10) instances of irregularity are recorded in respect of a Location during any 12
consecutive months, the Agency Administrator shall immediately advise ISS Management and
he/she shall take Default Action with respect to that Location in accordance with Paragraph.
24.
ADMINISTRATIVE CHARGE
24.1 For excessive voiding of STDs exceeding 5% of the total tickets sold in the billing period,
an administrative charge shall be levied to the agent on the basis of RMB 5.00 per excessive
voided ticket.
4.2 For Overdue/Dishonoured Remittance, interest at the official (prime) bank rate plus one per
cent.
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CHANGE TO LOCAL FINANCIAL CRITERIA – HONG KONG AND MACAU
Submitted by APJC Hong Kong and Macau
APJC HK held its 13th meeting on 7 August 2013 and unanimously agreed on two proposals to
change the Local Financial Criteria. As the two proposals are to be reviewed by PAConf as
standalone proposals and are not dependent on each other, they are being submitted for the
agenda as two separate items.
The first proposal concerns an editorial change so as to make it clear that the maximum
timeframe for Agents to submit their audited financial statements is 9 months based on the
submission date and not the date of assessment. The proposed amendment is to replace the
word ‘assessment’ with ‘submission’ in paragraph 1.1 of the Local Financial Criteria.
As BSP MO is a subset of HK, the Local Financial Criteria for Macau will be changed
accordingly.
Proposed Action
Conference is invited to adopt the changes Local Financial Criteria shown at Attachments ‘A’
and ‘B’ for Hong Kong and Macau respectively effective 1 January 2014.
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Amend Local Financial Criteria for Hong Kong (SAR), China, as shown below:
(Effective 01 January 2014)
1.
Finances
1.1 General Financial Requirements
New Applicants
Applicants must:
a) be established and in business as a travel agent for not less than 18 months from the date
of licensing prior to the date of application, and
b) have as a minimum paid-up capital of HKD 500,000;
c) after accreditation, contribute to the Industry Trust Fund in accordance with its terms and
conditions as determined by the Agency Programme Joint Council — HKG SAR from time to
time;
d) submit to IATA a certified complete set of audited financial statements which must not be
older than 9 months at the time of assessment submission and in the auditor’s opinion, the
financial statements give an unqualified true and fair view of the state of the company’s
affairs.
Accredited Agents
Accredited Agents must submit to IATA annually a certified complete set of audited financial
statements which must not be older than 9 months at the time of assessment submission and in
the auditor’s opinion the financial statements give an unqualified true and fair view of the state
of the company’s affairs.
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Amend Local Financial Criteria for Macau as shown below:
(Effective 01 January 2014)
1.
Finances
1.1 General Financial Requirements
New Applicants
Applicants must:
e) be established and in business as a travel agent for not less than two years from the date of
licensing prior to the date of application, and
f)
have as a minimum paid-up capital of MOP 1 million;
g) submit to IATA a certified complete set of audited financial statements which must not be
older than 9 months at the time of assessment submission and in the auditor’s opinion, the
financial statements give an unqualified true and fair view of the state of the company’s
affairs.
Accredited Agents
Accredited Agents must submit to IATA annually a certified complete set of audited financial
statements which must not be older than 9 months at the time of assessment submission and in
the auditor’s opinion the financial statements give an unqualified true and fair view of the state
of the company’s affairs.
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CHANGE TO LOCAL FINANCIAL CRITERIA – HONG KONG AND MACAU
Submitted by APJC Hong Kong and Macau
APJC HK held its 13th meeting on 7 August 2013 and unanimously agreed on two proposals to
change the Local Financial Criteria. As the two proposals are to be reviewed by PAConf as
standalone proposals and are not dependent on each other, they are being submitted for the
agenda as two separate items. This paper concerns the second proposal.
BSP HK had established the local practice of deducting airlines’ bilateral bank guarantees from
the IATA bank guarantee. The rationale was that airlines in HK had the market practice to
collect bilateral bank guarantees and so the objective of this local practice was to avoid
demanding duplicate bank guarantees from agents. As part of the ISS Strengthening exercise,
IATA advised the APJC that in fact IATA did not have an authority to deduct the bilateral bank
guarantee from the industry bank guarantee and suggested to sunset the practice in July 2013.
APJC strongly resisted but finally agreed at the 13th APJC meeting to postpone the sunset date
to 01 April 2015.
Major change: To revise paragraph 1.5 of the local criteria to state that the practice of
deducting airline bilateral bank guarantees from IATA bank guarantee would be valid until 01
April 2015 only.
As BSP MO is a subset of HK, the Local Financial Criteria for Macau will be changed
accordingly.
Proposed Action
Conference is invited to adopt the changes Local Financial Criteria shown at Attachments ‘A’
and ‘B’ for Hong Kong and Macau respectively effective 1 January 2014.
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Amend Local Financial Criteria for Hong Kong (SAR), China, as shown below:
(Effective 01 January 2014)
1.5 Financial Security Amount
For applicants and Agents, the amount of bank guarantee/insurance bond required is equivalent
to the applicant’s BSP cash turnover based on the previous 6 months. The bank
guarantee/insurance bond covers its average 13-day/18-day/23-day/25-day BSP cash turnover,
depending on its financial assessment result. Minimum bank guarantee/insurance bond amount
is HKD 50,000.
If the Agent has submitted bilateral bank guarantees to airlines, their amounts will be deducted
from the amount of IATA BG. This practice of deducting airline bilateral bank guarantees from
IATA bank guarantee is valid until 01 April 2015.
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Amend Local Financial Criteria for Macau as shown below:
(Effective 01 January 2014)
1.5 Financial Security Amount
For applicants and Agents, the amount of bank guarantee/insurance bond required is equivalent
to the applicant’s BSP cash turnover based on the previous 6 months. The bank
guarantee/insurance bond covers its average 13-day/18-day/23-day/25-day BSP cash turnover,
depending on its financial assessment result. Minimum bank guarantee/insurance bond amount
is MOP 50,000.
If the Agent has submitted bilateral bank guarantees to airlines, their amounts will be deducted
from the amount of IATA BG. This practice of deducting airline bilateral bank guarantees from
IATA bank guarantee is valid until 01 April 2015.
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CHANGE TO LOCAL FINANCIAL CRITERIA – INDIA
Submitted by APJC India
Background
The Local Financial Criteria (LFC) India were approved by Mail Vote # A235 effective from 01
August 2013. One covenant that was omitted in drafting the LFC was to specify the type of
financial institution whose guarantee would be acceptable unanimously.
At the 38th APJC meeting held on 13 August 2013, the APJC-India unanimously endorsed the
addition of a definition of Financial Security to elucidate that a guarantee issued by a Scheduled
Bank only will be acceptable.
Proposal
The changes to Local Financial Criteria for India, endorsed by the APJC India are shown at
Attachment ‘A’, for effectiveness from 01 January 2014.
Proposed Action
Conference to adopt the changes to Local Financial Criteria for India as shown at Attachment
‘A’ for 1 January 2014 effectiveness.
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Amend the Local Financial Criteria for India as shown below:
7.
DEFINITIONS OF TERMS USED IN THESE GUIDELINES
…
…
7.11.
Financial Security: means a Bank Guarantee (issued by a Scheduled Bank) or an
Insurance Policy issued by an approved Insurer.
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CHANGE TO LOCAL FINANCIAL CRITERIA – KOREA
Submitted by APJC Korea
Background
Historically, credit card billing and settlement via BSP CC hinge account was introduced in
Korea in 1991. During the initial stages, CC transactions were infinitesimal and there were no
occasions of non-payment or fraud. After the IMF financial crisis in 1997, the volume of CC
sales increased, also bolstered by the by Korea government’s promotion and e-ticketing from
2005. Today CC sales account for more than 60% of BSP sales.
Over 99% of Credit Card transactions are non-face-to-face in Korea whereby the Agent holds
neither an imprint of the card nor the card holder’s signature. Volume of Credit sales in the BSP
is still significant representing more than 52% of the sale. In general, airlines felt the need to
maintain a certain level of financial guarantee for Credit Card sales because BSP airlines still
experience significant chargebacks and incidents of fraudulent transactions, most often
triggered by the Agent’s non-compliance with credit card rules. That is the reason why
historically, Agents’ financial guarantee amounts have been calculated on (Cash + Credit Card
sales).
Chapter 14 of the BSP Manual for Agents, Korea, clearly outlines the calculation of the Agent’s
financial guarantee amount as “11 days cash sales plus 11 days card sales”.
At the 5th APJC-Korea meeting held on 08 Aug 2013, the necessity to reduce the guarantee
amount for credit card sales was propounded by agents and discussed at length. Airlines
agreed to dilute the computation of the required financial guarantee to (11 Days Cash sales plus
5 days Credit sales), thereby reducing the number of credit sales days by six from the
computation of Agent’s financial guarantee. The recommendation of so changing the Local
financial Criteria was passed by a majority vote of the Council.
Proposed Action
Conference to adopt amendments to the Local Financial Criteria for Korea as shown in
Attachment ‘A’ for 1 January 2014 effectiveness.
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Amend the Local Financial Criteria for Korea as shown below:
5. FINANCIAL SECURITY
Notwithstanding whether an Agent obtains a satisfactory or unsatisfactory result in
a financial review, all Agents must provide IATA with a financial guarantee
equivalent to an average of 11 days turnover but not less than a minimum of KRW
200 million 11 days cash sales plus 5 days credit card sales turnover but not less
than a minimum of KRW 200 million whichever is higher. There must be at least
one financial guarantor liable jointly or severally.
The acceptable forms of financial securities are as follows:
-Bank Guarantee
-Insurance Bond
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CHANGE TO LOCAL FINANCIAL CRITERIA – MALAYSIA
Submitted by APJC Malaysia
Background Information
The existing Local Financial Criteria for Malaysia contains text that is repetitive with 818g and
also elements that discriminate financial securities by location of business. APJC Malaysia
recommends criteria changes to be in compliance with Resolution 818g (removal of Premises
and Licence requirements) and to eliminate the anti-competitive element of differentiation of
financial security based on location.
These changes were discussed at an APJC meeting held on 16 May 2013 and unanimously
adopted.
Proposed Action
Conference is invited to approve the changes to the Local Financial Criteria for Malaysia as
shown at Attachment ‘A’ for 1 January 2014 effectiveness.
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Amend Local Financial Criteria for Malaysia as shown below:
1. Finances
1.1 The applicant must provide a certified and audited balance sheet and Profit and Loss not
more than twelve months old.
1.2 Applicants must:
(a) have as a minimum paid up capital of MYR 300,000, provided that:
(b) submit a bank guarantee or an insurance scheme approved by APJC MY, whichever
opted by the applicant; provided that in case of bank guarantee, the level of such guarantee
shall be :
(i) 100 percent of an average of 16 days sales turnover for all agency locations, provided
further that such financial guarantee shall not be less than MYR 100,000 for applications in
Ipoh, Johore Bharu, Kuala Lumpur or Penang and not less than MYR 60,000 for applicants
in other areas;
(ii) provided further that such financial guarantee shall not be less than MYR 60,000 in all
areas for Bumiputra applicants holding a letter of appointment from the Ministry of Finance;
(iii) provided further that in case of insurance scheme, the level of such guarantee shall be
100 per cent of the net sales turnover based on the remittance amount under the BSP.
(c) for the purpose of this Paragraph Kuala Lumpur includes Petaling Jaya, Shah Alam and
Klang;
1.3 When assessing whether the applicant meets the financial standing described in
Subparagraph 1.1 of this paragraph the following shall be taken into account:
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1.3(a)(i) Financial Assessment
Liquidity Ratio
Value
Current Assets/
Current
Liabilities
1.00 and
above
20
0.80 to 0.99
10
0.70 to 0.79
5
0.69 to 0.49
2
0.48 and
below
0
Gearing Ratio
Value
Total Liabilities/
Total Equity*
2.00 or
less
Points Efficiency Ratio
(Receivables/Sales) x
365
Points Payment History
15
No. of Irregularities in
the last 2 years
Value
Points
60 days or
less
30
61 to 120
days
121 to 150
days
151 days and
above
15
Value
0 or 1
5
0
Points
20
2.01 to
10
2
15
3.00
3.01 to
5
3 and above
0
4.00
4.01 and
0
above
*If the total equity is at negative value, the point for the Gearing Ratio will be deemed as zero.
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Profitability Ratio
Value
Points Quick Ratio
Net Income (after
tax) / Total
Revenue
0.050 and
above
5
0.000 to
0.049
Below
0.000
Quick Asset / Current
Asset
Value
Points
1.00 and
above
10
3
0.80 to 0.99
5
0
0.70 to 0.79
2
0.69 – 0.49
0.48 and
below
1
0
1.3(a)(ii) the minimum passing score for annual financial review on audited statement dated
year 2010 shall be at 40 points and 50 points for the subsequent years.
1.3(a) If an agent fails the annual financial review, agent may be accepted if the paid-up
capital of the company is increased to show a positive net worth. The agent must forward
the relevant document to the Agency Administrator as evidence.
An agent may also be accepted if the financial guarantee is increased as per below tiers:
Tier 1: Additional 20% financial guarantee if an agent scored 20 points below the passing
score
Tier 2: Additional 50% financial guarantee if an agent scored below tier 1
2. Premises
The location for which application is made must be open for business on a regular basis and
freely accessible to the general public for the sale of international air transportation during
normal business hours.
3. Licence
The applicant must be in possession of a valid licence as a Ticketing Agent issued by the
relevant authorities. A copy of the KKKP/KPL (Ministry of Tourism) Licence must be
provided and certified correct by a Commissioner of Oath or Public Notary.
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LOCAL FINANCIAL CRITERIA – BSP MOROCCO
Submitted by the Secretary
Background
The APJC Secretary has highlighted a problem with the Local Financial Criteria for Morocco
published in the Travel Agent’s Handbook, which varies to the criteria most recently adopted by
the APJC. It would appear that the criteria that should be published were adopted by the APJC
in 2006, when Morocco came under Resolution 814 and APJCs had the authority to make
changes to Local Criteria without the approval of Conference.
To regularize the situation, the APJC Morocco met on 4 June 2013 and agreed that the 2006
LFC are the criteria that should be published in the Handbook, with a further addition that ‘The
Applicant/Agent must provide current financial statements, stamped by the taxation authority’.
Proposed Action
Conference is asked to adopt the Local Financial Criteria for Morocco as shown at Attachment
‘A’ to be published in the Travel Agent’s Handbook with immediate effect.
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LOCAL FINANCIAL CRITERIA - MOROCCO
Ratios and criteria
Ratios and Criteria
Grade
In the case of the legal form "SNC"
0 if positive
The owner of an "SNC" is fully liable for its debts,
his personal available assets
Private assets of the owner
2 if negative
should be evaluated to apreciate its solvability.
In the case of a "SARL": Net assets > 100
000,00 Dh
0 if No
The minimum paid capital is of 100.000 Dh for the
"SARL" and 300.000 Dh for the "S.A", the net
"S.A": Net assets> 300 000,00 Dh
1 if yes
assets should not be lower than this minimum in
case of accumulation of reported losses.
Net equity / yearly sales with
0 if R<1%
airlines >1%
1 if R>1%
FINANCIAL STRUCTURE
1
2
3
4
This criteria is already required by IATA in Morocco
and other Countries
0 if R <50%
The financial structure of the permanent financing
(equity +long term debt) should be composed
1 if R >50%
at least by 50% with equity.
Net equity/Permanent Financing>50%
0 if R<20%
5
Comments
Net equity/Total assets>20%
1 if R >20%
The net equity should represent at least 20% of the
total liabilities.
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0 if R<1
6
Long term financing/Net fixed assets>1
1 if R>1
This is to ensure basic financial balance between
the company's resources and liabilities:
Long term resources will cover the working capital
needs and
improve the cash position for the agency.
0 if R>1
7
Shareholder's financing/Equity<1
This criteria is not applicable for "SNC"
1 if R<1
LIQUIDITY
8
0 if R<0.75
Current assets (receivables+cash) should cover at
least 100% of the short term liabilities.
1 if R<1
The bad debts should not be including in the
current assets
Current assets/Current Liabilities(including
Short term Cash)>1
2 if R<1.25
9
0 if R<30%
The cash availability should exceed at least 30% of
the debts.
1 if R>30%
This ratio allows the evaluation of the liquidity of
the agency.
Debts payment delays
0 if R>60 days
The bad debts should not be included in the
calculation of this ratio
"Ticketing"
1 if R<60 days
If not available a 10 to 15% security margin should
be applied to Client account
Cash/Current liabilities(excluding cash
debt)>30%
10
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PROFITABILITY
11
12
0 if R>20%
An agency represents a risk if the operating
income barely covers the financial charges.
1 if R<20%
The ratio between the financial charges and the
operating income should not exceed 20%
Financial charges/Operating income <20%
Financial income/Operating income <20
0 if R<20
1 if R>20
Financial profitability:
0 if R<5%
This ration allows to assess the profitability with
respect to the equity provided
Net income/Equity>5%
2 if R>5%
by the shareholders. The minimum profit ratio
required is of 5%
Work productivity:
0 if R>70%
The ratio identifies the impact of employment cost
with respect to the value added.
Frais du personnel/value ajoutée
1 if R<70%
The lower the ration the better the productivity.
0 if negative
This ration evaluates the evolution of the agency
activity in terms of turnover with respect
1 if positive
to the industry.
ACTIVITY
13
14
15
Turnover growth: BSP ticketing
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(Short term financing)/
0 Si R>50%
current liabilities excluding cash>50%
1 Si R <50%
Off-balance sheet commitment: Statement
(-1) if R>20%
Net assets/Off-balance sheet commitments
0 if No
Incidentof payment during the past
(-2) if yes
2 years
1 if no
16
OTHER
17
18
0 if less than 3 years
19
Date of creation of the agency
1 if between 3 and 4
years
2 if more than 5 years
An agency who's has financing facility allowing to
meet deadlines for debt payment has a better
solvability. The agency should provide proof of the
existence of the financing facilities.
the net assets of the agency should cover at least
20% of the off-balance sheet commitments
provided.
The agency with an payment incident should be
penalized.
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GRADE: The agency is graded with respect to 20.
0<grade>7
8<Note<10
Bank guaranty of 60 days sales
equivalent
Bank guaranty of 30 days
for member airlines
of sales equivalent.
11<Note<20
No Guaranty required
To be monitored.
Financial Statements
:
The applicant/Agent must provide current financial statements, stamped by the taxation authority.
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CHANGE TO LOCAL FINANCIAL CRITERIA – PAKISTAN
Submitted by APJC Pakistan
Background
The existing Local Financial Criteria for Pakistan are not considered fit for purpose. A meeting of
APJC Pakistan held on 14 June 2013 reviewed the Criteria and unanimously adopted changes
to align the Criteria with the new Resolution 800f guidelines.
Proposed Action
Conference is asked to approve the changes to the Local Financial Criteria for Pakistan, as
shown at Attachment ‘A’, for 1 January 2014 effectiveness.
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Amend Local Financial Criteria for Pakistan as shown below:
1. Finances
1.1 Applicant must have:
1.1(a) conducted travel agent business for at least twelve (12) months having a Government
Licence issued by the Department of Tourist Services, Ministry of Tourism, Government of
Pakistan.
1.1(b) minimum paid-up Capital/Investment of PKR 4 million. The minimum paid-up
Capital/Investment criteria will be applicable to existing IATA approved agents from 01 April
2008 and for new IATA applicants from 01 April 2007.
1.1(c) minimum Bank Guarantee or Insurance Bond of PKR 7 million or equal to 35 days
average turnover, whichever will be higher. The Bank Guarantee has to be issued by a bank,
from the approved list, with an investment status rating from the Pakistan Credit Rating Agency
(PACRA) or JCR-VIS of A+/-or any other local or international rating approved by the State
Bank of Pakistan (SBP). For Financial Security Providers, the financial strength rating (FSR)
should be B+ or better from A.M. Best or the equivalent rating from another recognized rating
agency unless the Provider has reinsurance complying with these criteria. The minimum Bank
Guarantee or Insurance Bond will be applicable to new and existing IATA Approved Agents.
1. GENERAL RULE
The applicant must have conducted travel agent business for at least twelve (12) months having
a Government License issued by Department of Tourist Services, Ministry of Tourism,
Government of Pakistan.
2. CRITERIA FOR EVALUATION OF AGENTS’ ACCOUNTS
2.1 All financial information used in the financial criteria will be extracted from the Agent’s
Audited Accounts.
2.2 The following financial tests apply to the evaluation of an Agent’s Audited Accounts:
2.2.1 There must be positive Net Equity.
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2.2.2 Net Equity divided by long-term debt and other long-term liabilities must be greater than
0.5.
2.2.3 EBITDA (Earnings Before Interest, Taxation, Depreciation, Amortization and extraordinary
items) must be positive save in exceptional circumstances
2.2.4 The EBITDA must exceed the Interest Payable by a factor of a minimum of two;
2.2.5 Adjusted Current Assets must exceed Current Liabilities.
2.2.6 Minimum paid-up Capital/Investment of PKR 5 million for Head Office and PKR 1 million
for each Branch Office. The minimum paid-up Capital/Investment criteria will be applicable to
existing and new IATA approved agents from 01 January 2014.
3. ANNUAL FINANCIAL REVIEWS
All Agents must provide Audited Accounts no later than 12 months after each financial year end,
of that agent for the purposes of evaluation against the financial tests in section 2.
4. INTERIM FINANCIAL REVIEWS
For any Financial Review conducted for cause at a time other than in respect of an Agent’s
financial year end, IATA may conduct a Financial Review in accordance with section 3 as
applicable to that Agent by reviewing the internal monthly management accounts of the Agent
showing the results for each month since the last accounting date, the cumulative results to date
and the latest balance sheet.
5. FINANCIAL SECURITY
5.1 An Agent will not be accredited or will not continue to be accredited until any Financial
Security required to be provided to IATA has been received by IATA and confirmed to IATA by
way of written confirmation received directly from the third party supporting the Financial
Security that the Financial Security was issued by that third party and is valid.
5.2 Financial Securities will be subject to a minimum notice period of ninety (90) days and be
valid for a minimum of at least one year.
5.3 All Agents must provide a Financial Security with a minimum amount of PKR 7,000,000 to
be accredited or to remain accredited or
5.4 Furnish a Financial Security with a minimum amount at Risk calculated as per 35 days
average calculated over last 12 months, whichever is higher.
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5.5 For new Agents effective from 1st January 2014 who are accredited less than 12 months,
the minimum Financial Security / Bank Guarantee will be PKR 10 million or 35 days average
cash sales calculated over last 12 months, whichever is higher.
5.6 At any point in time, If the existing Financial Security is insufficient to cover the Amount at
Risk, the amount of the Financial Security required will be increased to cover the Amount at
Risk.
6. DEFINITIONS OF TERMS USED IN THESE GUIDELINES
6.1 Adjusted Current Assets – are defined as Current Assets as in the Balance Sheet of the
Accounts after deducting:
- Stocks and work in progress.
- Deposits given to third parties other than IATA,
- Loans to Directors, Associate Companies, (including any subsidiary, associate or company
under common ownership)
- Doubtful debtors,
- Blocked funds, except for funds held in favour of IATA.
These generic descriptions may be modified to terms specifically defined under the applicable
local Generally Accepted Accounting Principles (GAAP) and disclosed in the
financial statements.
6.2 Current Liabilities - are defined as Current Liabilities as in the Balance Sheet of the
Accounts
6.3 EBITDA – Earnings Before Interest, Taxation, Depreciation and Amortisation
6.4 Financial Irregularity means an irregularity applied as a result of any failure to adhere to the
reporting and remittance procedures described in Resolution 818g Attachment “A” including but
not limited to those irregularities described in Resolution 818g Attachment “A”.
6.5
Financial Review means a review of an Agent’s financial position or the calculation of the
amount of Financial Security required in accordance with this Resolution 800f, or both.
6.6 Irregularity means any irregularity applied under the Passenger Sales Agency Rules for
non-compliance with those Rules including but not limited to Financial Irregularities.
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6.7 Net Equity or Shareholders’/Owners’ Funds – consists of:
- Share capital
- Share premium
- Retained earnings
- Other distributable reserves
- Shareholder’s loans if subordinated less declared dividends:
6.8 Long Term Debt – All debt liabilities where repayment is due more than twelve months after
the end of the financial period.
6.9 Long Term Liabilities – all liabilities where repayment is due more than twelve months after
the end of the financial period.
6.10 Review means any assessment or evaluation of an Agent’s continuing compliance with
the Passenger Sales Agency Rules.
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CHANGE TO LOCAL FINANCIAL CRITERIA – PARAGUAY
Submitted by APJC Argentina/Paraguay/Uruguay
Background
On May 15th, 2013 the 4th meeting of the APJC for Argentina, Paraguay and Uruguay held a
meeting to review local financial criteria applicable for those countries.
Problem/Issues
1. This meeting addressed the need to review the Paraguay local financial criteria in order
to ensure that the criteria were fit for purposes.
2. As a result, the APJC agreed a number of changes to the Criteria, as shown at
Attachment ‘A’.
Proposal
PAConf is requested to endorse the revised criteria for Paraguay approved in the last APJC
meeting held on 15 May 2013 as shown at Attachment ‘A’ for 1 January 2014 effectiveness.
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PARAGUAY
1 - EXISTING CRITERIA TO BE REPLACED:
Audited up-to-date balance sheet certified by chartered accountant whose signature must be
certified by the Professional Board, including a Profit and Loss Statement. Minimum tangible net
worth required of Approved Agents will be equivalent to the minimum amount shown per sales
volume bracket in the table below. The sales volume calculation is based on Agent's own
average of net cash sales for a period equivalent to the number of “Days' Sales at Risk” (refer to
Resolution 800f). Tangible net worth shall be guaranteed.
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2 - CRITERIA APPROVED BY APJC TO BE SENT TO PACONF:
Paraguay
Financial Criteria for Agent Evaluation
General Rule


I.
II.
Documentation to be submitted

III.
Accredited agents must comply with financial assessment criteria approved for the
corresponding country. These criteria will be revised by local APJC on an annual basis.
In order to be evaluated, every accredited agent must present the documentation
described in Section I. The agent must also fulfill the Minimum Tangible Net Worth
(MTNW) requirements through the provision of financial guarantees (bank guarantees or
insurance bond), as defined in Section III. Although fulfilling the requirement of financial
guarantee, the agency must accomplish with documentation submission required.
Complete up-to-date Financial Statements, presented to the Fiscal Authority (SET)
(Balance Sheet, Profit & Loss Statement, Notes and Annexes), must be submitted. Tax
affidavit copies, in replacement of Financial Statements, are not acceptable.
Conditions for the analysis of Financial Statements presented by the Agent
Maximum validity of Financial Statements presented by agents will be 8 months as from
closing date. Presentation Calendar is shown in the table below:
_
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The Calendar above contains dates which will be adjusted subject to week-ends and local
holiday. The agent must follow these deadlines in order to comply with the Financial
Statements presentation and evaluation requisites within the 8-month term mentioned above.
The Financial Statement assessment will be based on the calculation of the Financial
Indicators and the achievement of the score described below:
The maximum score to be obtained as a result of the application of the 4 financial indicators
will be 40 points. In order to achieve a satisfactory evaluation, the minimum acceptable score
will be 22 points.
Formula and score applicable to Financial Indicators:
Liquidity = Current Assets / Current Liabilities
Above 1.99
1.50 – 1.99
1.25 – 1.49
1.00 – 1.24
0.96 – 0.99
0.91 – 0.95
0.86 – 0.90
Below 0.85
14 points
12 points
10 points
8 points
6 points
4 points
2 points
0 points
Collection Term Average = (Receivables / Sales) * 365
Below 15 days
15 - 16 days
17 – 18 days
19 – 20 days
21 – 23 days
24 – 26 days
27 – 29 days
Above 30 days
7 points
6 points
5 points
4 points
3 points
2 points
1 points
0 points
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Debt = Total Liabilities / Total Assets
Below 0.4
14 points
0.4 – 0.59
12 points
0.6 – 0.89
10 points
0.9 – 0.99
8 points
1.0 – 1.19
6 points
1.2 – 1.34
4 points
1.35 – 1.49
2 points
Above 1.5
0 points
Cash Flow = After-tax earnings / Long-term Debt
0.20
5 points
0.18
4 points
0.15
3 points
0.13
2 points
0.10
1 points
0.09
0 points
Definitions:
Current Assets: Receivables from related companies, shareholders, employees, directors,
partners as well as cash and fix-term deposits in escrow must be excluded.
Current Liabilities: It must include the current portion of long-term debt.
Total Sales: The amount must appear specifically in the Financial Statements. And
correspond to gross sales obtained in the period including (but not limited to) ticket sales,
packages, hotels, car rental, insurances, miscellaneous, etc.
Long-term Liabilities: It comprises all third parties long-term debt. Loans to shareholders or
proprietors must be excluded.
Receivables: It must be shown as a breakdown of commercial receivables, fees,
commissions, related companies receivables and advances granted to suppliers. Bad debt
must be excluded.
Earnings after taxes: Extraordinary earnings must be excluded.
Total Assets: Intangible assets must be included.
Total Liabilities: It includes current liabilities and third parties loans. Loans granted to
shareholders or owners must be excluded. It must include related companies liabilities less the
corresponding subordinated tranche (receivable).
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IV.
Financial requirements: Minimum Tangible Net Worth
Minimum Tangible Net Worth (MTNW) for Accredited Agents will be the amount stated in
column “MTNW” on the table presented below. In order to determine the applicable MTNW, it
is necessary to estimate the Agent’s 22-days cash sales amount, which are calculated based
on the last 12 months cash sales average. In order to guarantee the MTNW determined, the
Agent must provide a bank guarantee or an insurance bond for an amount equivalent to the
MTNW value must be submitted.
Agent initial accreditation
Upon accreditation, every agent must present a financial guarantee (bank guarantee or
insurance bond) for an amount equivalent to USD 10.000, in order to constitute its initial
MTNW.
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As from then and on a four-month basis, IATA will recalculate the 22-days cash sales average
done by the agent, calculated based on the last 12 months cash sales average and, in case an
increase is registered, a guarantee increment equal to or higher than USD 10.000 will be
requested.
In the case of a new agency constituted as a branch of a previously accredited one, the sales
average of the new branch will be added to those of its headquarters at the aim of calculating
the financial guarantee requested.
Unsatisfactory result in the financial evaluation
In case of obtaining an unsatisfactory result in the evaluation performed to the Financial
Statements presented (score below 22 points), the USD 200.000 cap established in the
MTNW table shown in this Section will not apply and the agent will have to provide a financial
guarantee (bank guarantee or insurance bond) for the corresponding total 22-days cash sales
average.
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CHANGE IN BSP CALENDAR - PERU
Submitted by APJC Bolivia/Peru/Chile
Background
Peru is under a weekly periods calendar Monday to Sunday. Until 1999 the Peru calendar was
by weekly calendar dates.
The Regional Assembly approved a regional change to calendars without considering the
impact it may have in a country where VAT is involved in tickets and invoices.
For years the Airlines and Agents have had to live with a calendar that involves complex internal
controls in the last weeks of each month or the first weeks of each month that relate to dates of
the previous month.
This creates the following issues:
•
Tax payments delays
•
Sunat tax regulator fines due to late tax payments on closing of each month
•
Internal additional controls to separate sales of one ending month and next month.
•
Commission invoices that reflect sales of two months when VAT law mandates to pay
VAT monthly.
Proposed Solution
To avoid such tax problems for both airlines and agents locally, it is proposed to adopt a per
week calendar, in a way that all periods are included in a month, as follows:
Dates:
1-8
9-15
16-23
24 to the last calendar day of month.
Payment will be day after 10 days of the period close.
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The above proposal was agreed by APJC Bolivia/Peru/Chile for implementation in Peru
effective 1 January 2014. A copy of the revised reporting calendar is shown at Attachment ‘A’.
Proposed Action
Conference is asked to approve the new reporting calendar for Peru shown at Attachment ‘A’.
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PERU BSP CALENDAR 2014 (PERIODS)
Period nr
Reporting From ..To
REMITTANC
E DATE
PERU BSP CALENDAR 2014(CALENDAR DATES)
Reporting From ..To
REMITTANCE DATE
1
2
3
4
1-ene mié
6-ene lun
13-ene lun
20-ene lun
5-ene dom
12-ene dom
19-ene dom
26-ene dom
15-ene mié
22-ene mié
29-ene mié
5-feb mié
1-ene mié
9-ene jue
16-ene jue
24-ene vie
8-ene mié
15-ene mié
23-ene jue
31-ene vie
20-ene lun
27-ene lun
3-feb lun
10-feb lun
5
6
7
8
9
27-ene lun
3-feb lun
10-feb lun
17-feb lun
24-feb lun
2-feb dom
9-feb dom
16-feb dom
23-feb dom
2-mar dom
12-feb mié
19-feb mié
26-feb mié
5-mar mié
12-mar mié
1-feb sáb
9-feb dom
16-feb dom
24-feb lun
1-mar sáb
8-feb sáb
15-feb sáb
23-feb dom
28-feb vie
8-mar sáb
18-feb mar
25-feb mar
5-mar mié
10-mar lun
18-mar mar
10
11
12
13
3-mar lun
10-mar lun
17-mar lun
24-mar lun
9-mar dom
16-mar dom
23-mar dom
30-mar dom
19-mar mié
26-mar mié
2-abr mié
9-abr mié
9-mar dom
16-mar dom
24-mar lun
1-abr mar
15-mar sáb
23-mar dom
31-mar lun
8-abr mar
25-mar mar
2-abr mié
10-abr jue
21-abr lun
14
15
16
17
31-mar lun
7-abr lun
14-abr lun
21-abr lun
6-abr dom
13-abr dom
20-abr dom
27-abr dom
16-abr mié
23-abr mié
30-abr mié
7-may mié
9-abr mié
16-abr mié
24-abr jue
1-may jue
15-abr mar
23-abr mié
30-abr mié
8-may jue
25-abr vie
5-may lun
12-may lun
19-may lun
18
19
20
21
28-abr lun
5-may lun
12-may lun
19-may lun
4-may dom
11-may dom
18-may dom
25-may dom
14-may mié
21-may mié
28-may mié
4-jun mié
9-may vie
16-may vie
24-may sáb
1-jun dom
15-may jue
23-may vie
31-may sáb
8-jun dom
26-may lun
2-jun lun
9-jun lun
18-jun lun
22
23
24
25
26
26-may lun
2-jun lun
9-jun lun
16-jun lun
23-jun lun
1-jun dom
8-jun dom
15-jun dom
22-jun dom
29-jun dom
11-jun lun
18-jun mié
25-jun mié
2-jul mié
9-jul mié
9-jun lun
16-jun lun
24-jun mar
1-jul mar
9-jul mié
15-jun dom
23-jun lun
30-jun lun
8-jul mar
15-jul mar
25-jun mié
3-jul jue
10-jul jue
18-jul vie
25-jul vie
27
28
29
30
30-jun lun
7-jul lun
14-jul lun
21-jul lun
6-jul dom
13-jul dom
20-jul dom
27-jul dom
16-jul mié
23-jul mié
30-jul mié
6-ago mié
16-jul mié
24-jul jue
1-ago vie
9-ago sáb
23-jul mié
31-jul jue
8-ago vie
15-ago vie
4-ago lun
11-ago lun
18-ago lun
25-ago lun
31
32
33
34
28-jul lun
4-ago lun
11-ago lun
18-ago lun
3-ago dom
10-ago dom
17-ago dom
24-ago dom
13-ago mié
20-ago mié
27-ago mié
3-sep mié
16-ago sáb
24-ago dom
1-sep lun
9-sep mar
23-ago sáb
31-ago dom
8-sep lun
15-sep lun
2-sep mar
10-sep mié
18-sep jue
25-sep jue
35
36
37
38
39
25-ago lun
1-sep lun
8-sep lun
15-sep lun
22-sep lun
31-ago dom
7-sep dom
14-sep dom
21-sep dom
28-sep dom
10-sep mié
17-sep mié
24-sep mié
1-oct mié
9-oct jue
16-sep mar
24-sep mié
1-oct mié
9-oct jue
16-oct jue
23-sep mar
30-sep mar
8-oct mié
15-oct mié
23-oct jue
3-oct vie
10-oct vie
20-oct lun
27-oct lun
3-nov lun
40
41
42
43
29-sep lun
6-oct lun
13-oct lun
20-oct lun
5-oct dom
12-oct dom
19-oct dom
26-oct dom
15-oct mié
22-oct mié
29-oct mié
5-nov mié
24-oct vie
1-nov sáb
9-nov dom
16-nov dom
31-oct vie
8-nov sáb
15-nov sáb
23-nov dom
10-nov lun
18-nov mar
25-nov mar
3-dic mié
44
45
46
47
27-oct lun
3-nov lun
10-nov lun
17-nov lun
2-nov dom
9-nov dom
16-nov dom
23-nov dom
12-nov mié
19-nov mié
26-nov mié
3-dic mié
24-nov lun
1-dic lun
9-dic mar
16-dic mar
30-nov dom
8-dic lun
15-dic lun
23-dic mar
10-dic mié
18-dic jue
26-dic vie
2-ene jue
48
49
50
51
52
24-nov lun
1-dic lun
8-dic lun
15-dic lun
22-dic lun
30-nov dom
7-dic dom
14-dic dom
21-dic dom
31-dic mié
10-dic mié
17-dic mié
24-dic mié
31-dic mié
7-ene mié
24-dic mié
31-dic mié
12-ene lun
Inicio de cada Periodo de ventas
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CHANGE TO LOCAL FINANCIAL CRITERIA – PERU
Submitted by APJC Bolivia/Peru/Chile
Background
PACONF 35 approved new Resolution 800f effective Jan 01 2013, with important changes to
financial standards and reviews in lieu of prevention of Defaults. Peru is now prepared to
endorse part of these new criteria and has considered reviewing the actual Financial Criteria, by
a proposal to update and change part of the text. Peru acknowledges that this change in the
new Resolution 800f is important to improve Risk Management and ensure the Travel Agency
Community is qualified under the Agency Management programs. Peru Travel Agency
community, in addition has taken into consideration local aspects and recommends adopting the
new 5 assessment tests with several changes related to minimum capital, minimum guarantee
and the basis for the 22 day risk calculation. The necessary documentation for the assessment
has been reviewed and a more clear and simplified text is proposed.
Peru Statistical Information
Defaults Record with Actual Criteria
2010
1
2011
2
2012
0
2013
0
Recoveries: 100%
Accumulation of Irregularities all agencies reinstated.
2010
3
2011
1
2012
3
2013
0
No losses
Problem/Issues/Market Situation
In Peru the law does not oblige all legal businesses to present an audit report attached to the
formal documentation and annual declaration presented to Sunat that is the tax regulator. A
business that requires audit report has to present it according to parameters that are defined by
Sunat according to business volumes regardless of industry line. The Sunat formal template and
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contents require to be duly signed by a chartered accountant, information that is verified by
SUNAT, and has penal consequences for the Legal representatives and accountant in case of
fraud or irregular reporting. For this reason and given that the annual financials are formal
declarations to the government, and are fully controlled by state, Peru has considered to
propose the presentation of audit reports only when required by the authority as specified in the
current law and its rules.
Important to mention that:
In Peru the costs for Audit Reports continues to be a burden for the Travel Agents, in a
country where accounting reporting, tax reporting is regulated, and this is one of the reasons
why many agents in the past, have opt to present a Guarantee at less cost even though their
financials qualify in all other requirements.
Given that today the audit report is mandatory to apply for an operation without a guarantee,
the Accreditation programme is not attractive, with a burden of too many costs.
Peru has a
minimum growth of Affiliations, and has lost a good group of Travel Agents due to present
requirements. Many Agents have gone to No IATA status and purchase tickets through the
Consolidation system.
The Default statistical reports show that financial health in the Travel Agency Community.
More than one decade Peru is in continuous growth of its solid economy based on a healthy
strict fiscal control. Financial institutions have evolved to good administration of credit and risk
and are fully controlled by the Government National Superintendence of Banking and Insurance
(SBS)
From the number of agents that work with a Guarantee even though they do qualify with the
present FLC, one can appreciate that Agents receive credit facilities and qualify to work with the
financial institutions.
A negative aspect that has been analyzed , is that the new IATA resolution 800f criteria is
calculating guarantees based on the average of 3 month highest sales, whereas in Peru high
peaks are a result of Groups, atipic events, and not of current Corporate or Vacation/personal
travel. The variables of Peru market are due to facts that cannot be considered as a current
behavior. Based on this comment Peru proposes to continue with the actual basis for Risk
calculation.
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Proposal
Peru has modified proposal presented at APJC No. 5 to adopt the new Resolution 800f:
1. Adopt new 800f 5 tests criteria for the Financial reviews assessments clarifying that:
a. The Agents that have approved the Net equity test (2.3.1) and do not report
long term liabilities pass the second test 2.3.2
b. If agent has long term liabilities they can approve with 0.5 as minimum or greater.
2. For the purpose of the calculation of a guarantee, the amount at risk shall be calculated
by considering the net cash sales of 360 days to give the average of 22 days at risk.
(total net cash sales /360 x 22)
3
Eliminate from the FLC Infocorp report as agreed in 2010 as well as the debts control
with Sunat.
4
Keep minimum capital for new applications at USD 5000
5
Keep requirement of the minimum guarantee at USD 10,000
6 Eliminate obligation to present an Audit report if the law does not mandate this obligation
because the Financials are formal Tax declaration to the Government and there is penal
fault in case one frauds declaration goes to jail.
Effective date Jan 01,2014
Proposed Action
(1) Conference is asked to approve the changes to Local Criteria for Peru shown at
Attachment ‘A’ for 1 January 2014 effectiveness.
(2) Furthermore, APJC Members have requested to consult with the Agency Administration
and PACONF concerning the contents of Resolution 800f Appendix A 2 Criteria for
evaluation of Agents’ Accounts.
2.3.2 Net Equity divided by long term debt and other long term liabilities must be
greater than 0.5
A precision and confirmation is required:
a) An Agent that has no long term liabilities and has a positive result in the test of Net
Equity (2.3.1) passes the evaluation described in 2.3.2
b) Net Equity divided by ……………… “must be 0.5 or greater” (not greater than 0.5)
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Amend Local Financial Criteria for Peru as shown below:
Financial Local Criteria - Peru
Independently produced audit financial statements certified by chartered accountant including
Statement of Asset and Liabilities and Profit and Loss statement as of 31 December or 30 June,
which are submitted to the Ministry of Economics and Finance. Copy of the annual format
declaration presented to Sunat or PDT Programme of Telematic Declaration. Minimum tangilble
net worth required of Approved Agents will be equivalent to the minimum amount shown per
sales volume bracket in the table below. The sales volume calculation is based on Agents own
average cash sales for a period of three weeks. Tangible net worth shall be supported only by
real state of equivalent value registered in the name of the owner (sole ownership/partnerships)
or the legal entity (corporations) otherwise and insurance bond or bank guarantee will be
requested. A financial review will be conducted annually. Agents may opt to present a financial
security in lieu of audited financial statements.
• INFOCORP report with a minimum score of 750 points
• Agent shall not have recorded debts with government entities.
3 weeks Agents’ Cash Sales
More than USD500,000
From USD 480,000 to USD 499,999
From USD 460,000 to USD 479,999
From USD 440,000 to USD 459,999
From USD 420,000 to USD 439,999
From USD 400,000 to USD 419,999
From USD 380,000 to USD 399,999
From USD 360,000 to USD 379,999
From USD 340,000 to USD 359,999
From USD 320,000 to USD 339,999
From USD 300,000 to USD 319,999
From USD 280,000 to USD 299,999
From USD 260,000 to USD 279,999
From USD 240,000 to USD 259,999
From USD 220,000 to USD 239,999
From USD 200,000 to USD 219,999
From USD 180,000 to USD 199,999
From USD 160,000 to USD 179,999
From USD 140,000 to USD 159,999
From USD 120,000 to USD 139,999
From USD 100,000 to USD 119,999
From USD 80,000 to USD 99,000
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From USD 40,000 to USD 59,999
From USD 20,000 to USD 39,999
From USD 10,000 to USD 19,000
Up to USD 9,999
_____________________________________________
New text
Peru - Local Financial Criteria:
Annual reviews: Agents will present the Formal Annual Tax Declaration with all its annexes
that support the amounts declared, submitted to SUNAT the Government Tax Regulator, in
the government official template, in addition Statement of Assets and Liabilities, Profit and Loss
as of 31 de December. All accounting documents and SUNAT declaration must be duly signed
by a chartered accountant sending copy of the proof of habilitation of Accountant.
Evaluations will be performed with the 5 financial tests set out in sections 2.3.1-2.3.5 of Criteria
for Evaluation of Agents Accounts.
Test 2.3.2: Net equity divided by long term liabilities debt and other long term liabilities to
approve test must be 0.5 or greater. When the agent has a positive Net Equity (test 2.3.1) and
has no long term liabilities the test is positive.
Audit report: Will be presented with documentation only when the law mandates this
requirement.
Last presentation date for documentation: May 15 of the following year.
New applicants : Present the formal documentation submitted to Sunat with annexes as
detailed in Annual Reviews requirements, with annual information presented to Sunat, of the
previous year to application, when the applicant has operations from a previous year and in
addition Statement of Assets and Liabilities, Profit and Loss of the months of the unclosed
current year, signed by a chartered accountant sending copy of the proof of habilitation of the
accountant.
Minimum capital of new applicants: Agent must comply with USD 5,000 or equivalent in local
currency. At annual review, check and if required, will have to comply with an annual adjustment
to minimum required.
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Minimum guarantee level a) for a new or accredited Agent USD 10,000 b) for renewals of
existing agents a minimum of USD 10,000 when the result of the risk calculation is less than
USD 10,000
Net sales risk calculation:
For new and annual financial reviews or any periodic reviews,
when a calculation is required to cover the risk of 22 days, the formula must be based on the
average of last 12 months net cash sales, (net cash sales/360 x 22), using accumulated sales
information to the previous month of the calculation.
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CHANGE TO LOCAL FINANCIAL CRITERIA – POLAND
Submitted by APJC Poland
Background
APJC Poland met on 07 June 2013 and reached unanimous agreement on the following
recommendations to Conference:
1.
Effective 01 July 2015, to implement weekly Remittance frequency, with a reporting period
of 7 days but with a credit period of 15 days; these arrangements would remain
unchanged for two years, after this period Remittance rules would be open for revision, i.e.
from 01 July 2017
2.
Local Financial Criteria – Financial Security requirements are revised in concurrence with
the above proposal, as shown in Attachment ‘A’
Additionally, the APJC agreed that Voluntary More Frequent Remittance should be introduced in
Poland as soon as practicable.
Proposed Action
Conference is invited to approve the changes to Local Financial Criteria for BSP Poland shown
at Attachment ‘A’ for 01 July 2015 effectiveness.
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Amend Local Financial Criteria for Poland as shown below:
5.3.
If an established Agent fails to meet any of the criteria described under point 5.1 above,
the Agent will only be retained provided that a guarantee to cover the full Amount at Risk
and is submitted within thirty (30) days from being notified to do so. In any event the
amount of delivered BG will not be less than 25,000 EUR in the case of bi-weekly
remittance scheme and 15 000 EUR in the case of VMFR and weekly remittance
scheme (equivalent in PLN, at the NBP average rate of exchange on the date of the
letter of request issued by IATA).
5.4.
If all criteria described under point 5.1 above are met by the Accredited Agent which has
completed 2 years of trading as IATA Agent, then the amount of the guarantee will be
reduced to cover 20% of the Amount at Risk, but in any event the amount will not be less
than 25,000 EUR in the case of bi-weekly remittance scheme and 15 000 EUR in the
case of VMFR and weekly remittance scheme (equivalent in PLN, at the NBP average
rate of exchange on the date of the letter of request issued by IATA). However, if the
Agent had a default in the previous 12 months, the Agent must provide a Guarantee to
cover the Amount at Risk in full.
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CHANGE TO LOCAL FINANCIAL CRITERIA - SINGAPORE
Submitted by APJC Singapore
Background
At PAConf in October 2012, a proposal, escalated unanimously from APJC-SG to exclude BSP
sales of Self-Administered Financial Coverage [SAFC] airlines in the Industry Bank Guarantee
[IBG] calculation, was rejected, and sent back to the APJC for revisiting. The guidance from
PAConf was that the BSP sales from any airline could not be excluded from the IBG calculation.
To address the issue a Financial Advisory Group [FAG] was formed and the group met 5 times,
but could not arrive at a proposal that could be put forward to the APJC for consideration. As
there were no feasible proposals put forward, SAFC Airline representative on the FAG
maintained that they would continue with their existing practice of collecting bilateral bank
guarantees and maintain status quo. Owing to the stalemate within the FAG, changes to current
Local Financial were designed by Members of FAG comprising Industry Administered Financial
Coverage [IAFC] Airline Representatives and affected Agents without the involvement of
Representatives from SAFC Airlines to be placed before APJC-SG for their approval.
A meeting of APJC-SG was held on 16 July 2013 and reviewed proposed changes to Local
Financial Criteria, as follows:
a) To include the following as an additional sub-paragraph to Section 1: Finances
1.2(a)(iv) Two years after initial accreditation and if agent has had not been in default or
not had a change of ownership, the following rates will apply. In the event of default or
change of ownership, the rating stated in 1.2(a)(iii) will apply and after two years without
default or change of ownership the following rates will apply.
A rated Agents 20%
B rated Agents 33%
C rated Agents 53%
D rated Agents 85%
Further to what is stated in Resolution 818g Attachment A. 1.10.4 in the event an agent
has provided a separate financial security in favour of any BSP Airline, such BSP Airline
will not be entitled to any payment from agents BSP financial security.
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b) Deletion of Paragraph 2
Premises
2.1 if located at the premises of an organisation, plant or commercial firm and dedicated
substantially to the travel requirements of that organisation, plant or commercial firm, be
a branch of an existing accredited agent and meet all the qualifications of this section,
except that it need not be freely accessible to the general public.
APJC-SG adopted the changes under (a) by majority vote of the airlines and unanimous vote of
the agents present and the changes under (b) by unanimous vote of both airlines and agents.
Proposed Action
Conference is asked to adopt the changes to Local Financial Criteria shown at Attachment ‘A’
for Singapore effective 1 January 2014.
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Amend Local Financial Criteria for Singapore as shown below:
1. Finances
1.1 applicants must:
1.1(a) have as a minimum paid up capital of SGD 100,000, and
1.1(b) be established and in business as a travel agent not less than twelve months prior to the
date of application, provided that if an applicant with less than twelve months trading record may
be approved if the applicant furnishes a minimum financial security of SGD 50,000 valid until the
receipt of audited annual accounts, provided further that during this period if the average
monthly sales exceeds this amount it shall be adjusted accordingly. This financial security
should be provided in addition to the minimum security required based on the assessment
result.
1.2(a) when assessing whether the applicant meets the financial standing described in
subparagraph 1.1 of this Paragraph the following shall be taken into account.
1.2(a)(i) Financial Assessment Indicators
Paid-up Capital
100,000
100,001 - 150,000
150,001 - 180,000
180,001 - 210,000
210,001 - 300,000
300,001 - 500,000
Score
1
2
3
4
5
6
500,001 - 700,000
7
700,000 - 1,200,000
8
1,200,001 - 10,000,000
> 10,000,000
9
10
Business Scale
1 - 1,000,000
1,000,001 - 2,700,000
2,700,001 - 5,000,000
5,000,001 - 6,500,000
6,500,001 - 8,000,000
8,000,001 - 10,500,000
10,500,001 13,500,000
13,500,001 20,800,000
20,800,001 35,000,000
> 35,000,000
Score
1
2
3
4
5
6
7
8
9
10
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Profitability*
Score
< (250,000)
1
(249,999) - (90,000)
2
(89,999) - (22,000)
3
(21,999) - 0
4
1 - 5,000
5
5,001 - 16,500
6
16,501 - 39,500
7
39,501 - 90,000
8
90,001 - 213,000
9
> 213,000
10
* 3 or 2 Years AVERAGE of profit and/or
losses
Leverage
Score
Negative or > 25.00
1
12.51 - 25.00
2
6.01 - 12.50
3
4.31 - 6.00
4
3.11 - 4.30
5
2.12 - 3.10
6
1.61 - 2.11
7
1.01 - 1.60
8
0.66 - 1.00
9
0.01 - 0.65
10
Margin Trends**




Score
5
3
-3
-5
**Based on Rate of Net Profit after Sales
Liquidity
0.01 - 0.60
0.60 - 0.75
0.75 - 0.95
0.96 - 1.05
1.06 - 1.17
1.18 - 1.26
1.26 - 1.45
1.46 - 1.68
1.68 - 2.50
> 2.51
Score
1
2
3
4
5
6
7
8
9
10
Reserve
< (1,750,000)
(1,749,999) - 90,000
90,001 - 130,000
130,001 - 200,000
200,001 - 400,000
400,001 - 680,000
680,001 - 1,200,000
1,200,001 - 2,300,000
2,300,001 - 7,500,000
> 7,500,000
Score
1
2
3
4
5
6
7
8
9
10
Score
≥ 60
46 - 59
35 - 45
12 - 34
≤ 12
Rating Scale
A
B
C
D
Fail
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If an agent fails the annual financial review, agent may be accepted if the paid up capital of the
company is increased to show a positive net worth. The agent must forward ACRA document as
evidence.
1.2(a)(ii) Minimum Financial Security for an existing agent is SGD 40,000 or equivalent to 2
weeks average sales based on the last 12 months activity whichever is higher.
1.2(a)(iii) The final security required may vary subject to the score/rating scale of the agent’s
financial assessment result, subject to minimums in paragraph 1.2(a)(ii)
Financial Security Required
25% of minimum security required
50% of minimum security required
75% of minimum security required
100% of minimum security required
Score
A
B
C
D
1.2(a)(iv) Two years after initial accreditation and if agent has had not been in default or not had
a change of ownership, the following rates will apply. In the event of default or change of
ownership, the rating stated in 1.2(a)(iii) will apply and after two years without default or change
of ownership the following rates will apply.
Score
A
B
C
D
Financial Security Required
20% of minimum security required
33% of minimum security required
53% of minimum security required
85% of minimum security required
Further to what is stated in Resolution 818g Attachment A. 1.10.4 in the event an agent has
provided a separate financial security in favour of any BSP Airline, such BSP Airline will not be
entitled to any payment from agents BSP financial security.
1.2(a)(iv) 1.2(a)(v) It is recognized that different interpretations of financial accounts are
possible and do occur. Accordingly, the Financial Assessor shall have discretion as to the most
appropriate classification in accordance with standard accounting practices for all items included
in the statements.
It is in the applicant’s best interest to supply any additional information that has a bearing on the
review.
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2. Premises
2.1 if located on the premises of an organisation, plant or commercial firm and dedicated
substantially to the travel requirements of that organisation, plant or commercial firm, be a
Branch of an existing Accredited Agent and meet all the qualifications of this Section, except
that it need not be freely accessible to the general public.
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CHANGE TO LOCAL FINANCIAL CRITERIA – SRI LANKA
Submitted by APJC Sri Lanka
Background
The existing Local Financial Criteria for Sri Lanka contains a specified frequency of Bank
Guarantee review annually. As this is not in conformity with the resolutions, a proposal was put
to APJC-LK to delete this text. The proposed text by APJC had not been included since it is the
standard frequency of review by IATA. Other editorial amendments to remove outdated text
were also proposed.
A meeting of APJC-LK was held on 20 March 2013 and unanimously endorsed changes to the
Local Financial Criteria as shown at Attachment ‘A’.
Proposed Action
Conference to adopt the revised Local Financial Criteria for Sri Lanka as shown at Attachment
‘A’ for 1 January 2014 implementation.
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Amend Local Financial Criteria for Sri Lanka as shown below:
1. Finances
1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss
account not more than one year old.
1.2 Applicant must:
1.2(a) be licensed by the Civil Aviation Authority of Sri Lanka for not less than 1 year with a
minimum paid up capital of LKR500,000 for all new applicants who will also fulfil the criteria
specified in 1.1;
1.2(b) be established and be in airline trading business of not less than one year prior to the
application. The applicant is also required to submit a minimum Bank Guarantee of LKR 3.45
million or 22 days trading whichever is higher (for thrice monthly settlement until 30 June 2013)
and LKR 2.5 million or 17 days trading whichever is higher (for weekly settlement effective 1
July 2013). The Bank Guarantee has to be issued by a bank with an investment status rating
from Fitch Lanka or an international rating from Standard & Poors, Moody’s or Fitch Ratings.
The industry Bank Guarantee will be reviewed bi-annually based on the average sales of the
previous 12 months every June and December for effectiveness from 1 July and 1 January
respectively.
1.3 when assessing whether the applicant meets the financial standing described in
Subparagraph 1.1, the applicant must be able to fulfill one of the following criteria:
1.3(a) Net equity less long-term debt should be positive
Net Equity: the sum between paid-up capital and accumulated profit/losses should be positive.
In case there is goodwill, it is subtracted from the sum previously computed. With regards to
partnerships and sole proprietorship (which do not have accumulated profit/losses accounts),
Net Equity is computed as beginning capital + additions – drawings. Goodwill is also to be
deducted.
If not, the Agent/Applicant must enhance their equity, for net equity less long-term debt to be a
positive value. Agent/Applicant must enhance and resubmit audited financial statements within
30 days to qualify for retention of accreditation or become newly accredited.
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1.3(b) Net current assets should be greater than amount at risk
If not, the quantum by which the net current assets fall short of the amount at risk must be
pledged by a bank guarantee from the Agent/Applicant, in addition to the bank guarantee
quantum stipulated in 1.2(b).
Amount at Risk: Annual Sales *22/365 (for thrice monthly settlement until 30 June 2013) or
Annual Sales *17/365 (for weekly settlement effective 01 July 2013).
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CHANGE TO LOCAL FINANCIAL CRITERIA – SWITZERLAND/LIECHTENSTEIN
Submitted by APJC CH-LI
Background
As per Swiss Law (OR Art. 727a Para.2 and HRegV Art. 62 Para.1), certain corporate types are
exempted from the provision of audited financial accounts. The agents meeting the criteria
stipulated in the above mentioned articles are able to request a waiver to the Swiss Trade
Register (Handelsregister) and be exempt of the provision of audited financial statements.
According to the current Local Financial Criteria (short: LFC) of BSP Switzerland, audited
accounts are stated as obligatory for the financial examination for all corporate companies.
Consequently, IATAs requirements are not aligned to the local law. However, following the
current practice, the exemption has been already taken into account during the financial review
of the previous years, although not reflected in the LFC.
The issue was addressed in the CH APJC P 2013/1 on July 8th 2013 and the LFC were
amended temporarily by including the exemption of the non-provision of audited accounts for
the agents participating in the “Opting Out” – practice. In case the agent is eligible for OptingOut and decides to refrain from the audition, it needs to provide a certificate of the Swiss Trade
Register in order to proof the exemption.
The delegates however underline that a full review of the local financial criteria is to be
performed during the next 24 months, with the deadline of July 2015. Following the delegate
vote of the APJC, the requirements of the financial documentation should be aligned to local
legislation, and therefore temporarily apply to the Annual Review 2012.
For the above reasons, an exception was made to ISS Management to apply the amended
financial criteria with immediate effect subject to on-going review. The effective date of
amended financial criteria would therefore be retroactive to July 8th 2013 when approved by the
PAConf. The full review of the criteria is to be conducted by June 30th.
The exception request was approved and LFC amended temporarily including the exception of
the non-provision of audited accounts for the agents participating in the “Opting Out” – practice.
In case the agent is eligible for Opting-Out and decides to refrain from the audition, it needs to
provide a certificate of the Swiss Trade Register in order to proof the exemption.
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The proposed changes were approved by the APJC CH-LI held on July 8th 2013 following a
unanimous vote and are shown at Attachment ‘A’.
As agreed by the GPO on July 12th 2013 via exception request Q-000595, the proposed
changes have been implemented into the yearly financial review 2012. The effective date for
these changes shall be retroactively July 8th 2013.
Proposed Action
Conference is asked to note the action taken to modify the CH-LI Local Financial Criteria and
formally endorse the changes shown at Attachment ‘A’ for immediate effectiveness.
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Amend Local Financial Criteria for Switzerland/Liechtenstein as shown below:
FINANCIAL CRITERIA
Balance sheets must be in compliance with Swiss Law’ Code of Obligations (OR).
The time limit for submission of audited papers is within six months after the closing date of the
Fiscal year.
Document requirements:
Corporate
Companies
Balance Sheet, with entities (Limited
Profit and Loss Account
Statement of Distribution of net profit
Auditor’s Control report)
Appendix acc. OR663b
All other legal
Entities
Certified Balance Sheet
Certified Profit and Loss Account
Auditor’s control report in case of corporate associations and whenever
available
According to Art. 727a Para. 2 OR, Auditor’s control report is not obligatory for those legal
entities participating in the Opting-Out practice. The agent must provide with a copy of the
certificate of the Swiss trade register in order to proof the exemption.
New legal entities without at least one year’s trading record: Certified Opening Balance Sheet.
…
…
SECURITY REQUIREMENTS
The premises must meet the security standards for the safe custody of Traffic Documents.
All normal access points to the premises shall be efficiently secured with strong metal mesh or
bars. Premises shall be protected by:
• A burglar alarm systems, or
•
Other acceptable security arrangements
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An Accredited Agent location is permitted to be assigned stocks of Standard Traffic Documents
equal to a few months average usage. A working supply equal to one months average usage
may be held in the Agents Premises at any time and reserve stocks must be stored in an offpremise vault such as a bank vault or security deposit box. In the light of this, it is essential that
a suitable safe be installed in which to store the working supply of air tickets. The safe must
meet IATA’s minimum standards. These are:
• Minimum weight – 182 kg
•
Fitted with both key and combination locks
•
Bolted to the floor or wall if weighing less than 500 kg
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CHANGE TO LOCAL FINANCIAL CRITERIA – URUGUAY
Submitted by APJC Argentina/Paraguay/Uruguay
Background
On May 15th, 2013 the 4th meeting of the APJC for Argentina, Paraguay and Uruguay held a
meeting to review local financial criteria applicable for those countries.
Problem/Issues
1. The meeting addressed the need to review the Uruguayan local financial criteria in order
to ensure that the criteria were fit for purpose.
2. The APJC agreed extensive amendments to the Local Criteria, as shown at Attachment
‘A’.
Proposal
PAConf is requested to endorse the revised criteria for Uruguay approved in the last APJC
meeting.
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URUGUAY
1 - EXISTING CRITERIA TO BE REPLACED:
Uruguay
Audited up-to-date balance sheet certified by chartered accountant whose signature must be
certified by the Professional Board, including a Profit and Loss Statement. Minimum tangible
net worth required of Approved Agents will be equivalent to the minimum amount shown per
sales volume bracket in the table below. The sales volume calculation is based on Agent's
own average of net cash sales for a period equivalent to the number of “Days' Sales at Risk”
(refer to Resolution 800f).
Tangible Net Worth shall only be supported by: (i) in the case of sole ownership or
partnerships: real estate of equivalent value registered in the name of the owner and (ii) in
the case of a legal entity (corporation): real estate of equivalent value registered in the name
of the legal entity (corporation). Otherwise, an insurance bond or bank guarantee will be
requested in any of the two cases.
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2 - CRITERIA APPROVED BY APJC TO BE SENT TO PACONF:
Uruguay
Financial Criteria for Agent Evaluation
General Rule



V.
Accredited agents must comply with financial assessment criteria approved for the
corresponding country. These criteria will be revised by local APJC on an annual basis.
In order to be evaluated, every accredited agent must present the documentation
described in Section I. The agent must also fulfill the Minimum Tangible Net Worth
(MTNW) requirements through the ownership of real estate or the provision of financial
guarantees (bank guarantees), as defined in Section III.
In case of initial accreditation and during a two-year term, the only accepted mechanism
for the fulfillment of the MTNW requisites will be the provision of financial guarantee
(bank guarantees). As from the second year of accreditation, the agent will have the
option either to maintain its financial guarantee or to present real estate of its ownership
at the aim of fulfilling the MTNW requisites, under the terms defined in Section III.
Documentation to be submitted




Agencies owning real estate:
Complete up-to-date Financial Statements (Balance Sheet, Profit & Loss Statement,
Notes and Annexes) with Public Accountant’s Compilation Report, as a minimum
(Limited Review and Audit reports should be acceptable).
Notarial certification where the Notary relates real estate and its ownership, certifying if
they are free of any encumbrance (garnishment, mortgage, usufruct, etc.), and if its
owner’s freedom to dispose of them.
Two assessments done by nearby real estate agencies or public auctioneer, showing
the estimated market value of the real estate presented as guarantee.
Agencies not owning real estate:
Complete up-to-date Financial Statements (Balance Sheet, Profit & Loss Statement,
Notes and Annexes) with Public Accountant’s Compilation Report, as a minimum
(Limited Review and Audit reports should be acceptable).
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VI.
Conditions for the analysis of Financial Statements presented by the Agent
Maximum validity of Financial Statements presented by agents will be 8 months as from
closing date. Presentation Calendar is shown in the table below:
The Calendar above contains dates which will be adjusted subject to week-ends and local
holiday. The agent must follow these deadlines in order to comply with the Financial
Statements presentation and evaluation requisites within the 8-month term mentioned above.
The Financial Statement assessment will be based on the calculation of the Financial
Indicators and the achievement of the score described below:
The maximum score to be obtained as a result of the application of the 4 financial indicators
will be 40 points. In order to achieve a satisfactory evaluation, the minimum acceptable score
will be 22 points.
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Formula and score applicable to Financial Indicators:
Liquidity = Current Assets / Current Liabilities
Above 1.99
14 points
1.50 – 1.99
12 points
1.25 – 1.49
10 points
1.00 – 1.24
8 points
0.96 – 0.99
6 points
0.91 – 0.95
4 points
0.86 – 0.90
2 points
Below 0.85
0 points
Collection Term Average = (Receivables / Sales) * 365
Below 15 days
7 points
15 - 16 days
6 points
17 – 18 days
5 points
19 – 20 days
4 points
21 – 23 days
3 points
24 – 26 days
2 points
27 – 29 days
1 points
Above 30 days
0 points
Debt = Total Liabilities / Total Assets
Below 0.4
14 points
0.4 – 0.59
12 points
0.6 – 0.89
10 points
0.9 – 0.99
8 points
1.0 – 1.19
6 points
1.2 – 1.34
4 points
1.35 – 1.49
2 points
Above 1.5
0 points
Cash Flow = After-tax earnings / Long-term Debt
0.20
5 points
0.18
4 points
0.15
3 points
0.13
2 points
0.10
1 points
0.09
0 points
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Definitions:
Current Assets: Receivables from related companies, shareholders, employees, directors,
partners as well as cash and fix-term deposits in escrow must be excluded.
Current Liabilities: It must include the current portion of long-term debt.
Total Sales: The amount must appear specifically in the Financial Statements. And
correspond to gross sales obtained in the period including (but not limited to) ticket sales,
packages, hotels, car rental, insurances, miscellaneous, etc.
Long-term Liabilities: It comprises all third parties long-term debt. Loans to shareholders or
proprietors must be excluded.
Receivables: It must be shown as a breakdown of commercial receivables, fees,
commissions, related companies receivables and advances granted to suppliers. Bad debt
must be excluded.
Earnings after taxes: Extraordinary earnings must be excluded.
Total Assets: Intangible assets must be included.
Total Liabilities: It includes current liabilities and third parties loans. Loans granted to
shareholders or owners must be excluded. It must include related companies liabilities less the
corresponding subordinated tranche (receivable).
VII.
Financial requirements: Minimum Tangible Net Worth
Minimum Tangible Net Worth (MTNW) for Accredited Agents will be the amount stated in
column “MTNW” on the table presented below. In order to determine the applicable MTNW, it
is necessary to estimate the Agent’s 22-days cash sales amount, which are calculated based
on the last 12 months cash sales average. In order to guarantee the MTNW determined, the
Agent must be owner of real estate for an equivalent amount, registered under the name of the
partner or partners or registered under the name of the legal entity (SRL or SA).
In case of not being owner of real estate, a bank guarantee for an amount equivalent to the
MTNW value must be submitted.
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Agent accreditation and initial 2-year period
Upon accreditation, every agent must present a financial guarantee (bank guarantee) for an
amount equivalent to USD 20.000, in order to constitute its initial MTNW.
As from then and on a four-month basis, IATA will recalculate the 22-days cash sales average
done by the agent and, in case an increase is registered, resulting in a MTNW step change
according to the table above, a guarantee increment will be requested.
During the first 2 years of accreditation, the provision of a financial guarantee according to the
terms described above will be mandatory for the agent.
In the case of a new agency constituted as a branch of a previously accredited one, the sales
average of the new branch will be added to those of its headquarters at the aim of calculating
the financial guarantee requested.
Agents with more than 2 year of accreditation
Upon 2 years of accreditation and in case of having achieved a satisfactory result in the
financial evaluation performed on the Financial Statements presented, the agent must decide
whether to continue to provide a financial guarantee under the terms above described or to
constitute its MTNW through the presentation of real estate of its ownership, as established
above.
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The MTNW amount will continue to be revised on a four-month basis through the recalculation
of the 22-days cash sales average done by the agent during the previous 12-month period. In
case an increase is detected, resulting in a MTNW step change according to the table above,
a guarantee increment will be requested.
Unsatisfactory result in the financial evaluation
In case of obtaining an unsatisfactory result in the evaluation performed to the Financial
Statements presented (score below 22 points), the USD 800.000 cap established in the
MTNW table shown in this Section will not apply and the agent will have to provide a financial
guarantee (bank guarantee) for the corresponding total 22-days cash sales average.
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CHANGE TO LOCAL FINANCIAL CRITERIA - VENEZUELA
Submitted by APJC Colombia/Ecuador/Venezuela
Background
Venezuela has suffered a devaluation of 46% in 2013, following the 100% devaluation of 2011.
This has considerably increased the capital required and amount of the guarantees for new
accreditations.
The travel agency market in Venezuela is a very stable market with a low incidence of
irregularities and defaults. Though the market throughout the years has experienced a steady
growth in accredited agents, the recent devaluations of 2011 and 2013 have considerably
stagnated accreditation. The capital required for the market and guarantee for new agencies is
extremely high.
At a meeting held on 3 July 2013, in alignment with other countries in the area, APJC
CO/EC/VE unanimously adopted a proposal for new agents pursuing IATA accreditation.
Requested Capital:
Location
Current scenario
New scenario
Caracas and Metropolitan Area
Maracaibo and Valencia
Rest of the Country
Branches
USD 30.000
USD 25.000
USD 20.000
USD 8.000
USD 20.000
USD 20.000
USD 20.000
No Requirement
Guarantee for new applicants:
Market Sales
USD 30.000
Proposed Action
Conference is asked to endorse the change to Local Financial Criteria for Venezuela outlined
above for 1 January 2014 implementation.
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CHANGE TO LOCAL FINANCIAL CRITERIA - ITALY
Submitted by APJC Italy
The 40th meeting of APJC Italy was held on 27 June 2013. The APJC reviewed the Local
Financial Criteria and unanimously adopted changes to ensure full transparency for all market
participants. A summary of the main changes is as follows:
To ensure full transparency the APJC Members unanimously agreed for the information
below to be published in the local financial criteria:
a) The calculating table for each of the 5 financial index
b) Accredited Agents:
BG calculation formula (no changes in the formula itself. The formula is already
published in the Chapter 14)
c) Changes:
for Agents that have a change in ownership or control that necessitates a new PSAA
a financial security based on the BG formula applied to accredited agents is required
(reference Resolution 800f)
d) Annual examination of the financial standing of IATA agents:
if the amount at risk is already covered by a financial security the agent may not
submit the annual balance sheet for review (reference to provision adopted for
Germany by PAConf 35)
Proposed Action
Conference is requested to approve the changes to Local Financial Criteria for Italy as shown at
Attachment ‘A’ for 1 January 2014 effectiveness.
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Amend Local Financial Criteria for Italy as shown below:
Finances
Balance Sheet and Profit and Loss Account (duly certified by an outside public accountant)
indicating a satisfactory financial standing.
If an applicant or Agent is required to provide additional financial support the following are
acceptable:
The following indexes are used in the financial evaluation:
Currently
Published in
TAH
Current Ratio
Currently Published
in TAH
Adjusted Current
Assets /
Adjusted
Current
Liabilities
Currently Published in TAH
AMENDED
Current Assets on the balance
sheet which can either be
converted to cash or used to pay
current liabilities within 12
months. Include cash, cash
equivalents, (short term
government bonds, marketable
securities), accounts receivables
and the portion of prepaid
liabilities which can be paid within
1 year.
Current Liabilities of balance
sheet that are to be settled in
cash within 12 months. Include
accounts payable for goods and
services, short-term debts, tax
debts.
Index score range from 0
to 20
Value x
class
0,0 – 0,5
0,5 – 0,9
0,9 – 2,0
2,0 – 3,0
3,0 – 5,0
5,0 above
scoring
5
10
20
10
5
0
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Currently
Published in
TAH
Currently Published
in TAH
Currently Published in TAH
Net Worth to
Loan Ratio
Equity
Bank & Loans
Equity includes Share Capital,
Reserves, plus Net Profit/minus
Losses.
Short and Long-term debts.
AMENDED
Index score range from 0
to 20
Value x
class
0,00 – 0,25
0,25 – 0,50
0,50 – 1,50
1,50 – 2,00
2,00 – 5,00
5,00 –
above
scoring
0
5
10
20
20
10
Index score range from
0 to 20
Total assets of balance sheet net
of Reserves for Depreciation.
Assets to
Equity Ratio
Total Assets
Equity
Equity includes Share Capital,
Reserves, plus Net Profit/minus
Losses.
Value x
class
0–1
1–2
2-5
5 - 10
10 above
scoring
0
20
10
5
0
Index score range from
0 to 20
Payable
Turnover Ratio
Total Purchases
Total Accounts
payable
Total costs excluding
depreciation, levies and taxes,
discounts and rebates.
Total accounts payable
Value x
class
0 – 30
30 - 90
90 - 120
120 - 180
180 above
scoring
10
20
10
5
0
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Currently
Published in
TAH
Currently Published in TAH
AMENDED
Currently Published
in TAH
Total revenues net of returns,
discount and rebates
Receivables
Turnover Ratio
Sales
Total Accounts
receivable
Total accounts receivable
Index score range from 0
to 20
Value x
class
0 – 30
30 - 90
90 - 120
120 - 180
180 above
scoring
10
20
10
5
0
Once the five indexes are determined, a value is assigned to each of them according to an
agreed table. If the total value reached is between 0 and 49 the applicant does not qualify,
between 50 and 79 the applicant is required to supply additional financial support and from 80
and 100 the applicant qualifies without condition.
Financial Security
Applicants — On the basis of financial situation and of ascertained productivity or minimum
Commercial Risk Average of the region.
Accredited Agents: Average monthly BSP Net Cash Sales of the last 12 months of the month
of the date of calculation, multiplied by 1.5 (45 days).
Changes of Ownership: On the basis of new balance sheet and productivity. For Agents that
have a change in ownership or control that necessitates a new Passenger Sales Agency
Agreement a financial security, calculated according to the above formula, is required.
Reviews — Where a discrepancy between the guarantee level and productivity is ascertained,
review will take place based on new Balance Sheet/BSP Net Cash Sales, requiring realignment
in a maximum of 60 working days from the date of the request in accordance with following
scale:
 requests for increases up to 50% of the guarantee level to be met in 30 working days
 requests for increases over and above 50% of the guarantee level to be met in 60
working days.

Whenever the risk is already covered by a financial security the agent may not submit the
annual balance sheet for review.