PASSENGER AGENCY CONFERENCE / 35
Abu Dhabi, 15-17 October 2012
RESULTS
Item
R1
R2
Subject
Editorial Changes to Passenger
Agency Resolutions
Bona Fide Bank Error
Outcome
Adopted.
Adopted,
Bona Fide
to amend
Bank Error
Resolution 818g AttachmentAdopted,
A Paragraph
to amend
1.7.4Resolution
and Resolution
818g832
Amend changes to Resolutions 818g and 832 as
Attachment
shown below.
A Paragraph 1.7.4 and
1. Resolution 818g
Resolution 832
1.7.4 Bona Fide Bank Error
a bona fide bank error is one of the following circumstances substantiated by evidence
acceptable to the Agency Administrator as provided for in Paragraph 1.7.4.3
1.7.4.3 Evidence Acceptable to the Agency Administrator
In all cases a bank letter must be provided to IATA:
(i) The original bank letter must be sent to IATA within 10 working days by registered post
or courier, stating the nature of the error and reason for the delay in remittance
(ii) A copy of the bank letter may be sent to IATA via fax or as a scanned copy via email
(iii) The bank letter must be signed by a Manager including name, job title or designation
(iv) The bank letter must stipulate that the Agent had sufficient available funds on
Remittance Date in the stipulated bank account(s), stating the account name and the
account number(s)
Agenda Item: R2
Revision No.: 0
R3
TAC Fund
Date: 15 Aug 12
Page: 3 of 3
2. Resolution 832 – Section 1
1.7.6 Bona Fide Bank Error
a bona fide bank error is one of the following circumstances substantiated by evidence
acceptable to the Agency Administrator as provided for in Paragraph 1.7.6.3
1.7.6.3 Evidence Acceptable to the Agency Administrator
In all cases a bank letter must be provided to IATA:
(i) The original bank letter must be sent to IATA within 10 working days by registered post
or courier, stating the nature of the error and reason for the delay in remittance
(ii) A copy of the bank letter may be sent to IATA via fax or as a scanned copy via email
(iii) The bank letter must be signed by a Manager including name, job title or designation
(iv) The bank letter must stipulate that the Agent had sufficient available funds on
Remittance Date in the stipulated bank account(s), stating the account name and the
account number(s)
Adopted with two abstentions, one by name – Delta Air Lines
1. Amend Resolution 820d
7.1 ……………..The total amount of contributions paid by Members collectively in a given year
shall be equal to the total amount of contributions paid by IATA Accredited Agents collectively in
the same year. All such contributions shall be paid into the Travel Agency Commissioner
Programme Fund, held by the Agency Administrator and expended in accordance with the
present Resolution. Such regular contribution shall not be deemed to include any payment of
fee or monetary penalty decided by the Commissioner in the execution of his mandate. The
purpose of the Fund is to cover the cost of running the Travel Agency Commissioners‘ office,
however the Fund may be used to reimburse the travel expenses incurred by PAPGJC Travel
Agency representatives attending PAPGJC meetings as determined in Resolution 860a.
R4
IATA Agency Fees
R5
Global Standardisation of
Administrative Fees & Charges
2. Amend Resolution 860a
3.7.2 Part of the expenditures should be associated to the reimbursement of travel expenses
incurred by PAPGJC Travel Agency representatives attending PAPGJC meeting.
(i) The expenses that will be covered by the Fund must relate exclusively to attendance by
authorised agency representatives at the Passenger Agency Programme Global Joint Council
(PAPGJC) industry meetings on global issues directly related to the IATA Agency Programme.
(ii) The Fund will cover the cost of AD75 air travel (other than first class) or equivalent for Travel
Agency representatives travelling directly to and from the meeting, meals, accommodation,
ground transportation and other reasonable expenses
Adopted for 1 January 2013 effectiveness.
Annual Fee :
- Autumn 2012 at CHF 200 (Areas 1, 2, 3) for 2013
- Autumn 2013 at CHF 200 (Areas 1, 2, 3) for 2014
- Autumn 2014 at CHF 200 (Areas 1, 2, 3) for 2015
Change Fee for existing Agents
- Autumn 2012 for 2013: A 10% reduction on 2012 change fees for existing agents (Areas 1, 2,
3).
- Autumn 2013 for 2014: Same as 2013 (Areas 1, 2, 3)
- Autumn 2014 for 2015: Same as 2013 (Areas 1, 2, 3)
Then in Autumn 2015, all fees for 2016 and beyond to be determined by PAC
A pre-condition is that all agent fees be frozen to stay at 2013 levels (as set by the October
2012 PAC) for the period 2013, 2014, 2015.
Adopted for 1 January 2013 effectiveness
1. To replace all current Admin Fees and Charges currently applied across each
Region (shown at Attachment „A‟) with only two types of charges:
(a) "Late Remittance Recovery" charge, and
R7
Report of the PAPGJC Working
Group (PWG)
(b) "Reinstatement Recovery".
2. Exempted legacy (fee) – Excessive Voids Fees
3. All Admin Fees should be based on a cost-recovery principle, more precisely:
(a) “Late Remittance Recovery” –
USD128+ (Bank base interest rate of unpaid amount + 2%)/365 x no. days
(b) “Reinstatement Recovery" – USD119
Resolution amendments shown in Attachment B unanimously adopted.
Amend Resolution 818g, Section 5, as shown below:
Section 5 - lntegrity of Standard Traffic Documents - Custody, Protection and Proper
Issuance
5.1 DUTY OF CARE
An Accredited Agent is duty bound to take all reasonable care and precautions to secure
standard Traffic Documents assigned to it and to protect them from unauthorized or improper
issuance or post-issuance tampering whilst in its custody.
5.2 LIABILITY
The liability of an Agent in the event of the following is a strict one: damage, expenses or loss
experienced by the BSP Airline, its officers, agents or employees on account of the
misapplication, theft or forgery of Standard Traffic Documents are assigned to the Agent.
5.3 AGENT TO REPORT IRREGULAR OCCURRENCES
5.3.1 An Agent who has reason to suspect any of the above occurrences must immediately
report the matter, in writing, in accordance with the provisions of the BSP Manual for Agents.
5.3.2 An Agent whose business premises suffer any form of unlawful entry, such as a forced
entry or burglary, irrespecti.ve of whether or not material loss is detected, shall immediately
report the incident to the police authorities, with copy of such report to IATA.
5.4 CONSEQUENTIAL ACTION
Upon receipt of a report that an Agent has suffered loss as a consequence of robbery, theft,
burglary, fraud or any other unlawful means which might have compromised the integrity of
Standard Traffic Documents assigned to the Agent, IATA shall immediately alert all BSP Airlines
in the country and publish to them the serial numbers of any Standard Traffic Documents the
integrity of which has been compromised.
5.5 REVENUE LOSSES ATTRIBUTABLE TO ATTERATION OR FALSIFICATION OF
STANDARD TRAFFIC DOCUMENTS WHILST IN AGENTS CARE
5.5.1 A BSP Airline which has incurred revenue loss as a consequence of alteration of original
entries or falsification of entries made in one or more Standard Traffic Documents issued in its
name, which may reasonably be attributed to the issuing Agent, may request review of the
irregularity by the Agency Administrator;
Agenda Item: R7
Revision No.: 0
Date: 15 Aug 12
Attachment: ‗B‘
Page: 3 of 3
5.5.2 upon receipt of such a request, the Agency Administrator shall promptly invite the Agent's
explanation of the purported irregularity and evaluate the documentary evidence thus obtained;
5.5.3 if the Agency Administrator does not receive an explanation from the Agent within ten
working days of his request, or receives an explanation but concludes from it that an irregularity
has indeed occurred and may reasonably be attributed to the fault of the Agent, he shall refer
the matter, with all the documentary evidence in his possession, to the Travel Agency
Commissioner with a request for review and action;
5.5.4 if the Agent demonstrates to the satisfaction of the Agency Administrator that the
irregularity was committed by an employee who acted without the knowledge or complicity of
the Agent, the Agency Administrator shall require the Agent to make good the revenue loss
within a prescribed period prescribed by him. Failure by the Agent to adhere to the terms of the
R8
Development of Global Criteria –
Proposed New Resolution 800f
R9
Non-Use of STDs
Agency Administrator's requirement shall cause him to refer the matter to the Travel Agency
Commissioner, with a request for review and action;
5.5.5 if the Agency Administrator concludes that the detected irregularity and ensuing revenue
loss stem from the Agent‘s own fault; intentional, negligent or otherwise, he shall immediately
pass the documentary evidence gathered to the Travel Agency Commissioner, with a request
for review and action.
Adopted as presented for expedited effectiveness of 1 January 2013, with two carriers JL and EK
abstaining by name.
Japan Airlines expressed concern related to new clause 3.5 that would allow Agents passing all
the financial tests and satisfying the points set out in 3.5.1 and 3.5.2, not to provide a financial
security, thus increasing the risk for countries such as in Asia where all agencies in accordance
with Local Financial Criteria are currently providing a Financial Security.
On the understanding that Local Financial Criteria will prevail for countries where financial
securities are already provided by the Agents, Japan Airlines agreed to abstain on the proposal.
EK also expressed concern with regards to application of the new Resolution 800f, paragraph 3.5
in GCC (Gulf Co-operating countries) and also abstained.
A further amendment to the proposal was made on the Conference floor, changing „six months‟
to ‟12 months‟ in the first sentence of sub-paragraph 4.1.4.4 of Resolution 818g. With this
amendment, Conference adopted the proposal set out in R9, with one carrier abstaining.
Amend Reso 818g, Section 4.1.4.4 to read:
4.1.4.4 an Agent that does not make use of Standard Traffic Documents in its possession for a
period in excess of 12 months shall have such BSP STDs removed by the Agency
Administrator. In the event, subsequent to the action above, an Agent has reason to request
reinstatement
of STDs it shall be subject to a BSP inspection and a review of its financial
standing. If the inspection and the review reveals that the Agent still fulfils the accreditation
R20
Conditions for Participation in the
BSP and Suspension from the
BSP
criteria, the Agency Administrator shall reinstate ticketing facilities. If after a period of three
months the Agent still does not make use of STDs a notice of termination shall be sent to the
Agent in accordance with paragraph 13.1.3 of Resolution 824. Likewise, a notice of termination
shall be sent to the Agent if three months
Adopted for normal effectiveness of 1 June 2013.
1. Addition to Resolution 850, Section 6 (Participation by members) as shown
below:
Add new paragraph
6.7 Members participating in any BSP are required to have and maintain a valid
designator/prefix and accounting code assigned by IATA and have opened a valid bank
account in the BSP or signed an ICCS agreement for settlement of funds.
2. Addition to Resolution 850, Section 8 (Participation by non-IATA air carriers) as
shown below:
Add new paragraph
8.6 as a condition for participation by non-IATA air carriers in any BSP it is required that
they have a valid designator/prefix and accounting code assigned by IATA and have
opened a valid bank account in the BSP or signed an ICCS agreement for settlement of
funds.
3. Addition to Resolution 850, Attachment F, Section 1 (Reasons for suspension) as
shown below:
1. REASONS FOR SUSPENSION
(a) Where an airline participating in a BSP (“BSP Airline”) ceases all operations, either
temporarily or permanently, due to financial or other reasons, or where the BSP
Airline becomes subject to bankruptcy, moratorium of debt, re-organisation, or when
the BSP Airline does not have valid designator/prefix and accounting code assigned
by IATA, or when IATA otherwise determines that there are sufficient financial
R21
Resolution 850 – Billing &
Settlement Plans
R22
Amendment to Resolution 850 –
Participation by GSAs
R23
TAC Annual Meeting
grounds to suspend the BSP Airline, IATA shall evaluate whether the BSP Airline
should be suspended from all BSP operations and the actions to be taken, based on
the pertinent information available; or
(b) where an Airline defaults on a material obligation under the BSP IATA shall
determine the action to be taken in accordance with this Attachment.
Adopted for normal effectiveness of 1 June 2013.
Amend Resolution 850 as shown below:
16.2 Where a BSP Airline participating in a BSP defaults on a material obligation to IATA
in respect of the IATA Clearing House, or other financial arrangement for services
provided by IATA, or the Agency Administrator determines the integrity of the BSP is at
risk, it shall be grounds for IATA to withhold funds due from the BSP to such BSP Airline
in order to settle the debt or potential risk. IATA may also require the BSP Airline to
provide a centrally held security deposit, or alternative security acceptable to IATA to be
held centrally, and calculated so as to cover funds at risk for a minimum of one month.
The proposal was amended on the Conference floor to read
“9. PARTICIPATION BY GENERAL SALES AGENTS (GSAs)
Each Member or airline participating in a BSP shall have the facility to have its non-airline GSAs
report and remit its sales through the BSP, subject to the conclusion of an agreement for the
provision of BSP services to an airline‟s GSA, between ISS Management and the member or
Airline, containing the conditions for such participation.”
With this amendment, the proposal to amend Resolution 850, Section 9 was adopted for normal
effectiveness of 1 June 2013.
The proposal for an amendment to Resolution 820d was further amended on the Conference
floor, to add the words „shall have the ability to meet annually‟. With this amendment, the
proposal was adopted.
Amend Resolution 820d as shown below:
R24
R25
C1.3
Resolution 820d
OFFICE OF TRAVEL AGENCY COMMISSIONER
15. in order to discuss issues of mutual concern, the Commissioners shall meet
annually.
Resolution 820d – Attachment ‘A’
9. in order to discuss issues of mutual concern, the Commissioners shall meet annually.
Instructions to Agents in the Event Adopted for expedited effectiveness of 1 January 2013
of Airline Suspension
1. Amend Resolution 866 as shown below:
OUTSTANDING BILLING includes any Billing which either (i) has not yet been
remitted to IATA, or (ii) where the related Remittance Date has not yet passed,
whichever event occurs last.
2. Amend Resolution 850 Attachment ‘F’ as follows:
(iv) to settle all 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 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 into account any refund actually or potentially owing by such BSP
Airline;
Awarding of Irregularities to
Adopted for expedited effectiveness of 1 January 2013
Agents‟ Branch Offices
Amend Resolution 818g, Attachment ‘A’ as shown below:
1.9 NOTIFICATION OF IRREGULARITY
1.9.2 The Notice of Irregularity shall be in respect of the Agent‟s Head Office Location
Disbandment of the ISS Advisory Adopted as proposed for 1 June 2013 effectiveness (subject to Mail Vote after Conference for
Committee (ISSAC)
Members not attending).
C1.4
Adjustment of an Agent‟s
Financial Security Amount
1. Amend Resolution 850e as shown below:
RESOLVED that upon this Resolution becoming effective:
1. All authority and responsibilities previously delegated by the PAConf to the BSPC and
through the BSPC to the BSP Panels and their Steering Panels are subject to the condition that
no such authority or responsibility shall be exercised with respect to the administrative and
operational functions to be performed by ISS Management on ISS matters at the direction of the
IATA Board of Governors, who shall act on the advice of the IATA Financial Committee.
2. Remove references to ISSAC in the ISSSPM.
Adopted with the addition of „for cause‟ for expedited effectiveness of 1 November 2012 (subject
to Mail Vote after Conference for Members not attending).
RESOLUTION 818g - Section 2
Add below text as indicated:
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 if none had been previously
required. Additionally, IATA has the right 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 adjustment may require an increase or decrease in the Agent‟s
Financial Security. The Financial Security provided shall be in accordance with the established
local criteria as adopted by the Conference and published in the Travel Agents Handbook, and
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;