A new generation replacement for Iata’s long-standing Billing and Settlement Plan (BSP) is to be developed.
The airline trade body is looking to introduce new Iata Settlement Systems (NewGen ISS).
Iata’s passenger agency conference in Singapore approved resolutions which will enable the introduction of three pillars of NewGen ISS:
• A range of accreditation models that can better fit travel agent needs
• Iata EasyPay – a pay-as-you-go e-wallet payment solution for issuance of airline tickets in the BSP, and
• Global default insurance – an optional financial security alternative to bank guarantees for travel agents.
A new risk management framework to enable safer selling and mitigate default losses in the BSP is also in the pipeline.
A joint agent and airline working group was established to define a proposal by early next year.
The related resolution will then go forward to the passenger agency conference for voting in 2017.
Iata financial and distribution systems senior vice president, Aleks Popovich, said: “We are taking a working-together approach to this important pillar of NewGen ISS in order to respond to travel agent requirements for flexibility while creating a structure that enables safer selling and greater protection of ticket funds.”
Popovich said: “Iata settlement systems are the financial back office of the air transport industry.
“Since its introduction 45 years ago, the Billing and Settlement Plan has successfully facilitated the distribution and settlement of funds between travel agents and airlines, which totalled more than $230 billion in 2015.
“But the one-size-fits-all model launched in 1971 no longer fits today’s vastly different operating environment.
“NewGen ISS will ensure that IATA’s passenger agency programme continues to deliver enormous value to airlines and travel agents by providing more flexibility and options with greater financial security.”