Resolution 850 - iata.org

1 Resolution850 RESOLUTION850 BILLINGANDSETTLEMENTPLANSPAC1(54)850(exc eptUSA)Expiry:IndefinitePAC2(54)850 Type:BPAC3(54)850 WHEREASIATAS ettlementSystemsManagementis afunctionalareaof IATAF inancialand DistributionSer-vices(FDS)responsibleto the IATAB oardof Governorsfor the managementand efficientoperationof the IATAS ettlementSystems(hereafterreferredto as ISS ), andWHEREASthe PassengerAgencyConferenceexercisesauthor ityandresponsibilityoverthe IATAP assengerAgencyProgramme,includingthe relationshipbetweenBSPA irlinesand Agents,andWHEREASM embershaveintroducedBillingand Settle-mentPlans(BSP).It is herebyRESOLVED that,1. DEFINITIONST hedefinitionsof termsandexpressionsusedin thisResolutionare containedin IATARESPONSIBILITIESIATAis responsiblefor all ISS administrationand oper-ationalfunctions,suchas: budgets(costand revenues) staffing contracts(serviceagreements)to includesignatureauthority officemanagementand administration,andIATA shalloperatein accordancewith the Resolutionsofthe Conference,whichdescribethe provisionof servicesin the Conferenceis responsiblefor settingoperationalstandards,andfor the rulesandproceduresfor IATAA ccreditedAgents,as providedin the SalesAgencyRulesand otherResolutionsof the responsiblefor establishingthestandardformsnecessaryfor the operationof the LOCALCUSTOMERADVISORYGROUPS PASSENGER(LCAGP) alsoauthorisedthe establish-mentof LocalCustomerAdvisoryGroups Passenger(LCAGPs)in countrieswherevera BSPis in operation,toprovideadviceto IATAon localcustomerserviceissuesand to ,1 proceduresfor es-7.

2 PARTICIPATIONBY AGENTS tablishingthe membershipof the BSPis implemented,the the LCAGPs,asadviseall Agentsin the areaand shallinformthe Agentsagreedby the Conferencefromtimeto time,are con-of howtheirparticipationin the BSPaffectstheirworktainedin Attachment B to this Resolutionand , iata mayallowdomestic-onlynon-IATA5. BUSINESSCASE Agentsto use the accountingand othertechnicalfacilitiesof a BSPas discussedin thisIMPLEMENTATIONOR EXTENSIONOFR esolution,provideda businesscasehas beenconduc-A BSPted, as providedin Paragraph5 above,and HeadOfficeof any Memberor groupof Mem-bersthat has an interestin a specificmarket,may requestIATAto initiatea studyby identifyingthe circumstances8. PARTICIPATIONBY NON-IATAAIR that shouldwarrantthe implementationor extensionof the absenceof a requestfor a non-Memberairline( an Applicant ) maysubmitanMemberor groupof Members,if iata considersthatapplicationto IATAin the formprescribedin Attach-thereare businessopportunitiesin implementinga BSPinment D to this Resolution ,to participatein a market,it shallconsultMembersoperatingin thatApprovalof the applicationshallbe subjectto themarketpriorto commencinga Applicantshallexecutea responsiblefor conductinga businessConcurrenceas prescribedin Attachment E to thiscaseto finality, thatmarket,to determinewhetherto any BSPshallbe dependenton theplementa BSPor to extendan existingBSPto includeApplicantpayingany amountdue in a BSPsettlement,toanothercountry(ies).

3 The BSPby the for BSPfeesand chargesapplicablefor itsparticipationin the amountsoutstanding6. PARTICIPATIONBY MEMBERSby the Applicantshallbe due on the RemittanceDateofthe periodin whichthey wereincludedin the Membersin any BSPis rightto deductsuchfeesand chargesatMembersmayjoin at the inceptionof a BSP,or mayjoinany time priorto makinga settlementto an a laterdate,by notifyingIATAand payingthe joininga BSP,the ApplicantmustsignaCounterindemnityAgreem entwith IATAas any BSPshallbe dependenton theAttachment C to this amountdue,in a BSPsettlement,tothe BSPby the a non-Memberairlinerequiresthat atamountsdue for BSPfeesand chargesapplicablefor itsleastninetypercent(by number)of ticketedtransactionsparticipationin the amountsoutstandingusingthat carrier's validationworldwideinvolveair trans-by Membersshallbe due on the RemittanceDateof whichtheywereincludedin the rightto deductsuchfeesand a conditionfor participationby non-Memberair-any time priorto makinga settlementto a any BSPit is requiredthat theyhavea validdesignator/prefixand accountingcodeassignedby joininga BSP,a Membermustsignaand haveopeneda validbankaccountin the BSPorCounterindemnityAgreementwith IATAas prescribedinsignedan ICCS agreementfor settlementof C to this Membersrequiresthat at leastninetypercent(by number)of ticketedtransactionsusingthat9.

4 PARTICIPATIONBY GENERALM ember's validationworldwideinvolveair (GSAs) any BSPare requiredtoEachBSPA irlineparticipatingin a BSPshallhavethehaveand maintaina validdesignator/prefixand account-facilityto haveits non-airlineGSAsreportits salesing codeassignedby IATAand haveopeneda validbankthroughthe BSPand to remiteitherthroughthe BSPoraccountin the BSPor signedan ICCS agreementfordirectlyto the Principal,subjectto the conclusionof ansettlementof the provisionof BSPservicesto the BSPairline's GSA,betweenIATAand the BSPA irline,contain-ing the conditionsfor ,1 JUNE2018 Resolution85010. PARTICIPATIONBY AIRPORT13. RISKCOVERAGEFORSELF-HANDLINGAGENTSHANDLI NGOF airporthandlingagentsto be suppliedwithandissueStandardTrafficWhere a DPCis operatingunderthe managementandDocuments(STDs)if the applicant:supervisionof iata (self-handledprocessingcentre)for aBSP,BSPA irlinesparticipatingin that (a)(i)is not an air carrieror,indemnifyIATA,its officers,employeesandotherap-pointeesaga instliability(includingliabilityfor legalcosts) (a)(ii)is a divisionof an air carrieroperatingindepen-for anyactiontakenor omittedin goodfaithin thedentlyof that air carrier,and is not in possessionof, orperformanceof theirfunctionswithrespectto suchauthorised,to issuethat carrier'sown tickets, separatelegalentityhas beenestab-lishedto carrya givenBSP,suchentityshallbe (b)actsas a passengerhandlingagentfor one orto be an otherappointee in the senseof the precedingmoreair carriersat an airport,sentence,and shallbe (c)has securedsponsorshipfroman IATAM emberparticipatingin the BSPconcerned,14.

5 (d)undertakesto providesatisfactorysecurityarrangementsf or premisesandsystemsusedfor BSPA irlinemaywithdrawfroma givenBSPbyissuanceof STDs,servingwrittennoticeof not less thanthreemonths,andshallbe liablefor theirshareof all coststhroughto (e)agreesto submitAgencySalesDataand effectend of the respectof STDsissuedin accordancewithIATA instructions,and15. SUSPENSIONOF (f)executesan agreementwithIATA governingthetermsof its authorizationto be suppliedwithand issueNotwithstandingParagraph14 of this Resolution ,IATASTDs;mayimmediatelysuspen d(withouta notificationor otherwaitingperiod)a BSPA irline s participationin someor ,suchairporthandlingagentsmay beBSPsunderany of the followingcircumstances:suppliedwith and (a)the BSPA irlinefailsto pay any amountdue inrelationto a BSPsettlement,as providedfor in subpara-11.

6 CLOSUREOF A or above;orShouldit be necessary,for whateverreason,to (b)the BSPA irlineceasesall scheduledpassengerclosureof an operatingBSP, iata will consultwiththeoperations,eithertemporari ly( the eventof closure, iata will normallyationsare plannedfor futuredatesbut are not currentlygivenoticeof at least12 monthsto all participants,beingflown)or permanently,dueto financialor otherincludingagents,GSAs,airporthandlin gagents,and BSPreasons,or otherwiseno longermeetsthe costsrelatingto the closureincurredduringfor participationin the BSPas describedin Paragraphs6the periodof the noticeand/orarisingafterclosure,will beand 8 of this Resolution ;orapportionedbetweenthe BSPA irlinesin accordancewiththe ISS (c)the BSPA irlinebecomessubjectto formalbank-ruptcy,moratoriumof debt,reorganization,liquidation,orsimila rproceedings;or12.

7 EXTENSIONOF (d)the BSPA irlinedefaultson a the extentcompatiblewith the primarypurposeto the BSPunderthe Resolutionsor otheragreementsof the BSPwhichis to provideand issueSTDsand togoverningits participationin the BSP,orserveas an accountingand (e)if the BSPA irlinedoesnot havea validdesig-Agentsand participatingBSPA irlines,IATAmay considernator/prefixand accountingcodeassignedby iata ;oranyproposalto makeavailableto thirdpartiestheaccountingand othertechnicalfacilitiesof a (f)if the BSPA irlineis suspendedfromany of theothersettlementsystemsprovidedby iata , suchas to renderthe BSP'sIATAC learingHouseand the CargoAccountsSettlementoperationmorecost -effectiveand shallnot be in conflictSystem;orwith (g)if BSPA irlineissuesElectronicTicketsonsufficien tfinancialor legalgrounds includingoutstandingbehalfof Agentsthroughtheirwebsite,suchsalesmayam ountsowedto IATAin connectionwithits otherbe reportedto BSPfor suchcase,the BSPsettlementservicesor otherwise to suspendthe BSPA irlineshallreportsuchsalesto the BSPon a ,in light of the financialor legalrisk to the ,1 the discretionof iata , iata mayelectto refrainthe BSPis identifiedby IATAand cannotbe resolvedfromsuspendinga BSPA irlinefromsomeor all BSPspursuantto.

8 The existingBSPunderthis paragraphif thereare alternativesavailabletoAirlinewill be terminatedfromall BSPsandthe newprotectthe financialintegrityof the BSPfromthe circum-carriershallbe processedas a new the BSPA irline includingfromthe risk BSPA irlinesceasesor will ceaseoper-refundsmayexceedsales and to obtainthe immediateationsandremainsindebtedfinanci allyto iata ,andpaymentof outstandingdebtsof the BSPA irlineto ownersof suchBSPairlinehaveor will haveSuchalternativesmayinclude,at the discretionof iata ,an interestin a newapplicantairline, iata mayrejectthe provisionby the BSPA irlineof a ,or alternativesecurityacceptabletoIATAto be heldcentrally,and calculatedso as to coverfundsat risk for a minimumof one proceduresoutlinedin Attach-HONOURINGSTANDARDTRAFFIC ment F to this Resolutionuponthe suspensionof a BSPDOCUMENTSA irlinepursuantto this the caseof iata determinesthat the financialintegrityof theSTDswherethe issuingAgentmaygo into irredeemableBSPis at risk as a resultof the circumstancesof a BSPdefaultor wherethe STDshavebeenissuedfraudulently,Airline,I ATA maywithholdfundsdue fromthe BSPtoIATA shalltakethe actionoutlinedin Attachment G tosuchBSPA irlinein orderto securethe potentialrisk,inthis any potentialsuspensionof TICKETINGAIRLINESELECTION16.

9 ,and maybe invokedby IATAat anytime,with respectto any debtor claimowingby a BSPBSPA irlinesshallfollowthe ticketingairlineselectionAirlineto theBSPin relationto a BSPsettle-rulesspecifiedin includingany amountowedby the BSPA irlinetoIATAfor the provisionof BSPprocessingand manage-mentfees againstany moniesheldor owedby IATAor20. ELECTRONICTICKETING anyof its divisionsor affiliatedentitiesandwhichisAUTHORITY payableto that BSPA irlinedepositsits addition,set-offalso applies,and may be invokedAuthoritywithan Agent,it shallsimultaneouslyinformby IATAat any time,withrespectto any debtor a BSPA irlineto IATAor any of its divisionsoraffiliatedentitiesagainstany moniesheldor owedbyIATAor any of its divisionsor affiliatedentitiesand which21. BSPSETTLEMENTMODELSis payableto that CHANGEOF OWNERSHIPW henusedin connectionwith this model,the term BSPW herea BSPA irlineundergoesa changeof ownershipsettlement for a Memberor BSPA irlinewill be thewhichhas the effectof transferringownershipto anotheramountof the salesreportedfor any one periodnotwith-entity,and wishesto continueparticipationin one or morestandingwhetherall amountshavebeenreceivedbyBSPs,the BSPA irlineshallIATA fromthe IATAto allowfor areviewof the legaleffectof the informationprovidedby theWhenusedin connectionwith this model,the term BSPBSPA irlineand determinewhetherthe proposedchangesettlement for a Memberor BSPA irlinewill be theposesa financialor legalrisk to the BSP includingtheamountactuallyreceivedby iata fromthe Agentfor anyrisk sucha risk isone.

10 iata shalldeterminewhetherthereare alterna-tivesavailableto protectthe financialintegrityof the ,at the22. IATAEasyPay(IEP)discretionof iata ,the provisionby the BSPA irlineof acentrallyheldsecuritydeposit,or eachcountryor areawhereResolution812 hasacceptableto IATAto be heldcentrally,and calculatedtobeendeclaredeffective,all BSPA irlineswill acceptIEPas to coverfundsat risk for a minimumof one default,unlessa BSPA irlinenotifiesIATA that it doesnot wishto acceptIEP in a the BSPA irlinedoesnot complywiththe ,or if any risk to39 THEDITION,1 JUNE2018 Resolution850 Attachment A a BSPA ir