OPERATING A BSP

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OPERATING A BSP
Jordan Karamalakov Country Manager BG - KZ

• Antalya, 26/27 May 2009

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Basic principles and governance

• BSP is ONLY ONE of IATA activities
• Passenger Agency Conference decisions
• Resolutions, local regulations and various
  information
• Resolution 850 regulates BSP operations
• Resolution 832 gives detailed procedures in case
  of late remittance or non-payment followed by
  default action.
• BSP Manual for Agents, where local KZ specifics
  can be found in Chapter 14
• http//www.iata.org/worldwide/cis/kazakhstan/

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Basic principles and governance

• Any airline, who signed Counterindemnity
  Agreement and Form of Concurrence may apply to
  join BSP
• Any IATA Accredited Agent MUST operate in BSP in
  the area
• Any exception is detailed specified in IATA
  resolutions 800/818g

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Ticketing authority (TA) maintenance

• Not the responsibility of IATA
• To be handled exclusively by individual airlines
• However, in case of default or suspension, IATA
  removes the TA for all airlines
• Whenever an agent is newly accredited or whenever
  default or suspension is lifted by IATA, the
  airline needs to review the TA for the agent
  concerned
• TA is assigned or deleted via BSPlink only

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Agency default

• Detailed mechanism is listed in Resolution 818g
  Attachment A Sections 1 2
• Always done by IATA and based upon facts, not
  upon hearsay or rumors
• Ticketing Authority is removed by IATA
• Airlines are notified by means of the weekly
  bulletin
• In case IATA has paid uncollected funds to the
  airlines, claw back will happen during the next
  period

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Risk management

• Handled by IATA and considered as the main
  priority
• Financial requirements are listed in the Locally
  Established Criteria for Approval and Retention
  of Agents and can be found the TAH
• Changes can only be made by the PAConf
• Financial assessment is made on a yearly basis
• Outcome is not communicated to the airlines
• Based upon the financial assessment, agents are
  required to improve the financial standing

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Bank guarantees

• Bank guarantee covering 100 of Amount at Risk is
  required from any agent in BSP-KZKG
• Amount of Risk is calculated as 1/16 from the
  total sales in previous 12 months
• Minimum level of guarantee is USD 100,000 for KZ
  and USD 50,000 for KG
• Periodic revision of the bank guarantee levels is
  done by IATA KZ

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Reso 850m and handling of ADM

• Reso 850m requires that all airlines make
  available their ADM policies to agents
• Agent may dispute any ADM by following the
  airlines stated and communicated procedure or by
  using the dispute mechanism in BSPlink
• All airlines should switch on the dispute
  function in BSPlink
• If an agent deducts ADMs from the remittance,
  IATA will not default the agent concerned
• The basis for this is recorded in Resolution 818g
  Attachment A 1.7.12
• All disputed ADMs further need to be handled
  outside of the BSP

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