Key Issues:

  • Do you have the correct IATA bond level/s?
  • Do you experience disagreements with IATA annual assessment results?
  • Are you lodging a new agent IATA application?
  • Do you experience issues with compliance to IATA rules and regulations which result in defaults or irregularities?
  • Do you have the optimal group or branch structure which yields the optimal annual financial assessment results?
  • If your business is not yet IATA registered and intends to lodge an application we can ensure that your financial team  / finance director have the necessary professional support to lodge a new IATA agent application
  • International business structure which may yield a high IATA bond?
  • Do you consider the impact on your cash flow if you balance volumes between GDS ticketing and your own merchant service?

Our Solutions:

IATA Membership Application Procedure and Fees

  • Readiness assessments
  • Review of company & group structure/s
  • Impact of an IATA financial assessment
  • Review of guarantee levels
  • Review of optimum BSP settlement period or follow PAConf approved minimum remittance frequency.
  • If you have provided IATA with a guarantee, is this at correct levels?  Can a reduction be achieved?
  • Optimum level of Airline BSP through GDS versus own merchant facility.
  • Impact of branches and multiple locations
  • Review of impact following any changes in ownership, legal status, name or location to determine impact and whether this requires notification to the IATA agency administrator.

IATA Annual Agent Financial Assessment Support

  • Pre-IATA-assessment review & results
  • Review of accounting policies to ensure optimum results
  • Assistance in dealing with IATA agency administrator support & Issue resolution
  • Dealing with IATA accounting disagreements and application of the local criteria to agents accounts
  • Assistance with dealing with Travel Agency Commissioner
  • Review existing defaults and how to reduce risk of default

Full or Partial Withdrawal of IATA Authorisation

  • Support in defending full withdrawal of approval
  • Support in defending withdrawal of Standard Traffic Documents (STD) authority

New financial assessment rules

  • Impact of new rules effect on guarantee level
  • Review of accounting policies to ensure optimum results
  • Pre-IATA assessment review and provide feedback on expected results – impact of new rules on current business
  • Review option to mitigate position

Business Recovery and Debt Management

  • Due to the complex nature of the financial structure of most travel businesses we also have a wealth of experience in assisting in corporate recovery when businesses experience difficulties.  We have an association with an experienced team of business recovery specialists who can assist you in saving and retaining control of your business and your IATA accreditation.

Our principal has a deep understanding of the IATA Travel Agents Handbook Rules (TAH) through delivering a global transition of IATA’s annual travel agent financial assessment to a central delivery platform and has worked closely with IATA Geneva management to create new IATA central risk management policies which resulted in a reduction of annual losses associated with failing travel agents and levels of financial guarantee (bond) levels.  Improvements to the generic global rules of the Travel Agents Handbook (TAH) and new financial criteria will replace over 130 individual local country criteria.

New IATA Rules Key Points:

  • Capital requirements (a company’s assets that must satisfy the bank  or other depository institution) are to be replaced by net equity requirement Proof of profits will be required in all IATA agents and their parent companies
  • Current assets must exceed current liabilities
  • There must be no defaults on IATA filing or reporting in the past two years
  • All agency accounts must be audited, regardless of size
  • Financial security (bonding) must be provided for initial two years’ accreditation
  • The level of bonding required is to be risk assessed and reviewed quarterly
  • A single default will trigger a two year financial security requirement
  • If there is a change in control of an agency or its parent company, IATA must be notified (49% shareholding is viewed as a control change)

We are able to offer unparalleled advice with regard to all licensing and bonding issues, through our deep understanding and experience of the travel industry and key compliance requirements.

We will help you fly…..

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Contact Us today to discuss your requirements in a FREE telephone consultation.