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LEGAL IAN SKUSE


for airlines, resulting in some significant losses. To counter risk caused by non- payment of monthly billing and settlement plan (BSP) payments, the International Air Transport Association (IATA) had proposed weekly billing and settlement, as applies in various other jurisdictions. The change, to be


CHANGE IN THE AIR T


BILLING, SCREEN-SCRAPING AND SECURITY


he collapse of Air Fast Tickets last year was a salutary experience


recommended at the next IATA Passenger Agency Conference, will mean that from April all new IATA agents in the UK will be on weekly reporting, with payments being made eight days thereafter for each agent’s first two years of trading. IATA proposes a minimum share capital requirement for all new travel agents of £50,000. From June 2016, existing agents currently reporting and making payment on a monthly basis, will be moved to fortnightly arrangements, reporting on the 1st and 15th of each month, with payment 15 days thereafter. For many smaller IATA


accredited agents, these changes raise significant cashflow concerns. However, monies received by the agent


BUYINGBUSINESSTRAVEL.COM


for payment for tickets should not be used as cashflow or collateral for the agency business, and the Passenger Sales Agency Agreement makes it clear that all payments for tickets are strictly to be held in trust for payment. Directors of IATA agencies who knowingly breach the trust by spending the money on themselves or their business may make themselves personally liable. This increased risk should drive travel management companies (TMCs) to require better agreements with their customers, and more use of lodge cards.


MANY AIRLINES STRONGLY OBJECT to screen-scraping websites, through which they lose control of their own distribution of tickets. Many sites appear willing to undercut the prices of an airline’s traditional agents for whom it has an agency agreement in place. Ryanair has pioneered the policing of its distribution rights and has taken legal action against a number of screen-scraping websites throughout Europe. Ryanair complains that


the break in its distribution results in passengers who have booked through these sites not being provided


For many smaller IATA


accredited agents, these changes raise significant cashflow concerns


with vital information such as flight changes, contact details and check-in facilities. The latest successful ruling was made in the Regional Court of Hamburg.


THE WORLD IS A DANGEROUS PLACE and some destinations present real risks to the business traveller, whether by terrorist activity, contagious disease or management of emergencies.


It is easy to be wise after the event, but there are issues for employers sending employees on work assignments to areas where there are known risks. Both employer and TMC need to ensure they do not expose the business traveller to risks, or fail to take reasonable safety precautions.


A prudent employer or TMC can check changes in passport requirements, review the latest travel information on the Foreign & Commonwealth Office website, liaise with key suppliers such as airlines in regards to destination safety, and have good insurance in place to cover as many of the risks as possible. Some agencies are able to use other services, such as those provided by the Association of British Travel Agents (ABTA), or external suppliers that can assist where an emergency arises. For some destinations, decisions need to be taken to withdraw if they are simply too dangerous, whatever the importance or urgency of the business. Each employer should have a policy to review destination and country safety on an ongoing basis, and have in place arrangements to deal with emergencies as they arise. TMCs may give enforceable indemnities if they are agreeing to take responsibility for the health and safety aspects of the travel arrangements they put in place.


Those indemnities need to


be carefully thought through by both the corporate and TMC to ensure that liability for any negligence in making travel arrangements is covered in an acceptable and transparent way.


Ian Skuse is a partner and head of Piper Smith Watton LLP’s Aviation, Travel & Tourism department. Piper Smith Watton LLP (pswlaw.co.uk) is a business and private client law firm based in Westminster.


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