5 HOT STORIES NEWS YOU NEED TO KNOW THIS WEEK


This week’s top stories: 1. BSP ‘payment threat’ 2. Midcounties £25 fee 3. ‘Scrap APD for kids’ 4. Google in travel 5. Bookable creditors


1


Iata could force UK agents ‘out of business’ with payment plan Martin Ferguson


UK travel agents could be forced out of business if the International Air Transport Association (Iata) tightens airline payment terms, according to a senior industry source. Speaking to Travel Weekly, the business owner, who asked to remain anonymous, said forcing agencies and travel management companies (TMCs) to remit weekly or fortnightly would push businesses into insolvency. The source said: “Many [agencies] will


not receive more credit from their bank, so they either go bust or pay additional cost for borrowing or servicing by card. Each of these methods takes profit away from the agency.” At present, accredited intermediaries


pay airlines via Iata’s Billing and Settlement Plan (BSP) every four weeks. Cashflow for most TMCs and travel agencies is based on a four-weekly cycle. A spate of recent defaults, including the collapse of AirFastTickets, left airlines tens of millions of euros out of pocket. Martin Warner, a former Carlson


4 • travelweekly.co.uk — 27 November 2014


Wagonlit Travel executive, oversaw changes in other markets in recent years and predicted airlines would push ahead with change in spite of opposition. Ken McLeod, corporate director at the


Advantage Travel Partnership, said: “The status quo must prevail for the good of our members.” Warner believes agents should demand changes to Iata resolution 890 as a trade-off against a change in payments terms. The regulation forbids intermediaries from using credit cards to buy and sell flights. Sources claim major carriers from the Middle East and North America are behind the drive for change. Etihad is known to oppose change, while Emirates vice-president for the UK Laurie Berryman said: “We do not support weekly reporting.” Another agency owner said: “Moving


to weekly remittance means agents have to fund three weeks of credit for their customers.” Iata’s Agency Programme Joint


Council will vote on the future of BSP on December 11.


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