SPAA voices ‘dismay’ at IATA BSP plans
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The Scottish Passenger Agents Association (SPAA) has voiced its dismay at IATA’s plans to introduce twice-monthly BSP remittance.
The association said it did not endorse the move in its representation on the Agent Programme Joint Committee (APJC), which last week voted in favour of fortnightly payments.
SPAA said many of its members now fear the scheme, which would be introduced in June 2016, will have a ‘serious impact’ on IATA-licensed agents, and believe it is indirectly paying for the failure of IATA and airlines.
Concerns have also been raised over agency protection in the current proposals, which ensure airline members are protected.
A SPAA spokesperson said: “Of course it’s understandable that airlines seek to protect themselves against agency defaults resulting from over-trading or miss-selling, but that does not justify a solution that penalises the vast majority of IATA-member agencies and TMCs, working hard to pursue best management and financial practice at all times. These agencies pay significant fees to IATA and fulfil stringent criteria to be approved for an IATA licence, and as a consequence the pursuit of mutually respectful and transparent long-term business partnership between airline and agent should be at the core of the solution, rather than further financial strictures imposed on the latter.”
SPAA said it will consult with other members of the APJC including ABTA and GTMC leading up to IATA’s Passenger Agency Conference in October 2015 when a formal recommendation is expected.
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