travel agent handbook 810i eng

Travel Agent’s Handbook

Effective 1 June 2010

Resolution 810i Edition

International Air Transport AssociationMontreal — Geneva

Travel Agent’s Handbook

Effective 1 June 2010

Resolution 810i Edition

Travel Agent’s Handbook — Resolution 810i EditionRef. No: 9734-03ISBN 978-92-9233-409-3 © 2010 International Air Transport Association. All rights reserved.Montreal — Geneva

NOTICEDISCLAIMER. The information contained in this

publication is subject to constant review in the

light of changing government requirements and

regulations. No subscriber or other reader

should act on the basis of any such information

without referring to applicable laws and regulations

and/or without taking appropriate professional

advice. Although every effort has been made to

ensure accuracy, the International Air Transport

Association shall not be held responsible for any loss

or damage caused by errors, omissions, misprints

or misinterpretation of the contents hereof.

Furthermore, the International Air Transport

Association expressly disclaims any and all

liability to any person or entity, whether a

purchaser of this publication or not, in respect of

anything done or omitted, and the consequences

of anything done or omitted, by any such person or

entity in reliance on the contents of this publication.

FOREWORD

“FROM THE AGENCY ADMINISTRATOR”

Welcome to the 2010 edition of the Travel Agent's Handbook, which contains the current text of PassengerAgency Conference Resolutions that apply to IATA Accredited Agents.

This publication is normally produced annually and is legally required to be provided to each ApprovedLocation of an IATA Agent.

Section 1 of this Handbook contains useful information specific to Resolution 810i countries. Further GeneralInformation can be found on the dedicated Agenthome website (see below for details).

The Passenger Agency Conference Resolutions and locally established criteria, which together form part ofthe Passenger Sales Agency Agreement, can be found in Sections 2 and 3 respectively of this Handbook.The rules and criteria contained in Sections 2 and 3 are mandatory and must be adhered to by agentsparticipating in the Programme in the country/area governed by these rules.

The Manager of each Approved Location is recommended to draw this Handbook to the attention of staffinvolved in selling international air transportation and issuing tickets. There are items of information inthe handbook which will strengthen travel agents' knowledge of their trade and make them more effective intheir work, to the advantage both of their employer and themselves.

The Agency Programme is constantly under review and is the subject of on-going dialogue between airlinesand agents. As a result, adjustments and improvements are progressively introduced in order to keep theprogramme relevant to the industry's needs in the marketplace. The changes in this handbook incorporate allthe amendments made in 2009, a summary of which is provided in the ‘Salient Aspects’ section below.

The AgentHome web site (www.iata.org/agenthome) provides a wealth of information for IATA AccreditedAgents. In addition to the individual Passenger Agency Conference resolutions, Agents will also be able todownload copies of essential publications (Travel Agent's Handbook, BSP Manual for Agents) and otherreference material.

Agency Administrator

(email: [email protected])

EFFECTIVE 1 JUNE 2010 i

Travel Agent's Handbook

SALIENT ASPECTS OF NEW OR AMENDED RESOLUTIONS

Resolution 810i, Passenger Sales Agency Rules — India

Section 2 – Amendment to APJC Terms of Reference to provide for the establishment of Financial AdvisoryGroups.

Section 3 – (1) New provision in respect of branch locations in other countries. (2) New provision allowing theAgency Administrator to immediately terminate an agent that materially misrepresents their financial standing.(3) Removal of specific staffing requirements.

Section 11 – New provision dealing with change of Head Office location to another country.

Section 14 – Insertion of new Force Majeure provisions.

Section 15 – New provision inserted allowing IATA Management to collect a cost-justified fee for financialreviews.

Resolution 820d, Office of the Travel Agency Commissioner

Insertion of new indemnity clause for Travel Agency Commissioners.

Resolution 832, Reporting and Remitting Procedures

Section 1 – (1) Various amendments to the Reporting and Remitting rules to reflect today's electronicenvironment. (2) New text incorporating a timeline for ADM dispute resolution by BSP airlines to match theADM provisions. (3) Amendment to clarify that for 814 countries the Agency Administrator shall take thedecision when an Agent wishes to go to VMFR.

Removal of specific reference to provisions for Colombia, Jordan and People's Republic of China, that havemoved to Resolution 818g.

Attachment ‘A’ – Change to remittance frequency for Sri Lanka.

Resolution 838, Change of Traffic Documents by Agents

Deletion of text relating to change of reservation for member only traffic documents.

Resolution 852, Designation and Selection of Ticketing Airline

Section 2 – Resolution amendments to align plating rules in Resolution 852 with the Passenger Servicesconference rules.

Resolution 860a, Passenger Agency Programme Global Joint Council

Terms of reference of the PAPGJC amended to incorporate European matters.

Resolution 866, Definitions of Terms used in Passenger Agency Programme Resolutions

A number of additions, deletions and amendments to definitions.

EFFECTIVE 1 JUNE 2010ii

Foreword

REFERENCE MARKS USED FOR RESOLUTIONS

The following symbols placed against an item indicate changes from the previous edition:

Symbol MeaningAddition of a new itemChange to an itemCancellation of an item

INTENTIONALLY OMITTED sometimes appears in place of a paragraph or subparagraph. This usuallymeans that the provision in question has been deleted. Renumbering of subsequent provisions is thusavoided, thereby easing the problems of consequential cross-referencing amendments in other Resolutions.

EFFECTIVE 1 JUNE 2010 iii


TABLE OF CONTENTS

PageSection 1 — InformationAccreditation and Appointment Procedure .............................................................................................. 1Changes Within an Agency Requiring Prior IATA Approval .................................................................... 2

Section 2 — Passenger Agency Conference Resolutions — This is part of the contract betweenTravel Agents and IATA Members

ResolutionNumber

800a Application Form for Accreditation as an IATA Passenger Sales Agent .......................... 4800e Cash Basis Provisions ...................................................................................................... 8800f Agents' Financial Evaluation Criteria ................................................................................ 8800o On-line Travel Agent ......................................................................................................... 10800z Electronic Ticketing ........................................................................................................... 11810d Domestic Agency Programme in India ............................................................................. 12810i Passenger Sales Agency Rules — India .......................................................................... 12

Section 1 — Definitions .................................................................................................... 13Section 2 — Organisation ................................................................................................. 13Section 3 — Qualifications for Accreditation and Retention ............................................. 15Section 4 — Procedures ................................................................................................... 17Section 5 — Custody and Issue of Traffic Documents ..................................................... 19Section 6 — Application of Minimum Security Standards for Safe Custody of StandardTraffic Documents and Carrier Identification Plates ......................................................... 20Section 7 — Reporting and Remitting through the Billing and Settlement Plan ............... 22Section 8 — (Intentionally Left Blank) ............................................................................... 22Section 9 — Consequences of Default ............................................................................. 23Section 10 — Conditions for Payment of Commission and other Remuneration ............. 23Section 11 — Change of Ownership, Legal Status, Name or Location ............................ 24Section 12 — Reviews by the Travel Agency Commissioner ........................................... 29Section 13 — Arbitration ................................................................................................... 30Section 14 — Measures Affecting an Agent's Standing ................................................... 30Section 15 — Agency Fees .............................................................................................. 32Section 16 — Indemnities and Waiver .............................................................................. 33Attachment ‘A’ — Notice of Change ................................................................................. 34

820d Office of Travel Agency Commissioner ............................................................................ 35820e Reviews by the Travel Agency Commissioner ................................................................. 37822 IATA Numeric Code .......................................................................................................... 41824 Passenger Sales Agency Agreement (Version II) ............................................................ 43824a Application of the Term ‘Commission’ .............................................................................. 48824d Deposit Receipts to be Issued by Agents ......................................................................... 48824r Refunds to Agents ............................................................................................................ 49824s Adherence to Minimum Security Standards — Applicable Indemnity Provisions ............. 49828 Remittance of Amounts Collected as Part or Full Special Advance Payment for Special

Fares ................................................................................................................................. 50830a Consequences of Violation of Ticketing and Reservation Procedures ............................. 50830d Reservations Procedures for Automated Accredited Agents ............................................ 51

Table of Contents

Resolution PageNumber

832 Reporting and Remitting Procedures ................................................................................ 52Section 1 — Reporting and Remitting through the Billing and Settlement Plan (BSP) .... 53Section 2 — Reporting and Remitting Directly to Members in Non-BSP Countries ......... 62Section 3 — Consequences of Default to BSPs and to Members ................................... 65Attachment ‘A’ — Frequency of Agent Remittances ........................................................ 67

838 Change of Traffic Documents by Agents .......................................................................... 69842 Network Agent .................................................................................................................. 70850 Attachment ‘A’ — Airline Direct Web Sales Ticket Issuance for Agents .......................... 76850e Industry Settlement Systems ............................................................................................ 77850m Issue and Processing of Agency Debit Memos (ADMs) ................................................... 77850p Financial Securities ........................................................................................................... 79852 Designation and Selection of Ticketing Airline .................................................................. 80860a Passenger Agency Programme Global Joint Council (PAPGJC) ..................................... 80862 Joint Agent and Airline Consultative Meetings ................................................................. 82866 Definitions of Terms Used in Passenger Agency Programme Resolutions ...................... 82878 General Concurrence ........................................................................................................ 87880 Reduced Fares for Accredited Passenger Sales Agents ................................................. 89880a IATA Travel Agent Identity (ID) Card ................................................................................ 95

Attachment ‘A’ — Recognition and Acceptance of the IATA Travel Agent ID Card ......... 96Attachment ‘B’ — Countries where the IATA Travel Agent ID Card is in Circulation ....... 97Attachment ‘C’ — Application Form .................................................................................. 100

884 Reduced Fares for Delegates Attending Official Joint Industry Meetings ........................ 101886 Members' Group Vocational Training Trips for Accredited Passenger Sales Agents ...... 102886p Reduced Fare Transportation for Persons Officially Travelling to Travel Agency

Commissioner Hearings .................................................................................................... 104890 Card Sales Rules .............................................................................................................. 104892 Disclosure of Positions Taken at an IATA Meeting .......................................................... 107898a Electronic Reservation Services Providers ....................................................................... 107

Section 3 — Local Criteria for the Accreditation and Retention of Agents — This is part of thecontract between Travel Agents and IATA MembersLocal Criteria ............................................................................................................................................ 109

Accreditation and Appointment Procedure

NUMERIC CODEACCREDITATION AND APPOINTMENTPROCEDURE Each Approved Location of an Accredited Agent is

allocated an individual IATA numeric code and is enteredThe regulations concerning the approval, accreditationon the IATA Agency List. IATA Member Airlines are freeand retention of Agents are set forth in detail in IATAto appoint Accredited Agents from that list.Resolutions and are reproduced in this handbook. The

following brief outline thus serves merely as an introduc-tion. QUALIFICATIONS AND CRITERIA

Certain minimum criteria must be met if an application isSALES AGENCY RULES to be successful. IATA accreditation will not be given toan applicant who fails to meet these minimum criteria.IATA Sales Agency Rules regulate the relationshipThe criteria must continue to be met in order to ensurebetween IATA Accredited Agents and Member Airlines.retention on the IATA Agency List. The criteria fall into theThese rules set forth the rights and obligations of bothfollowing categories.parties as well as the basic procedures applicable to

those seeking IATA accreditation for the sale of interna- Premisestional air passenger travel.

The place of business under application shall be open forbusiness on a regular basis, be identified and trade as aSTATUS OF IATA ACCREDITED AGENT travel agency; provided that a place of business whichdoes not meet these conditions may nevertheless beAn IATA Accredited Agent is a passenger sales agentapproved it if meets all other qualifications and is:whose name has been entered on the Agency List in— solely devoted to the organizing of Inclusive Toursaccordance with the Rules.

and performs the issuance of Traffic DocumentsAn Approved Location is a Head Office, or Branch Office, related to such Inclusive Tours only, orLocation appearing on the Agency List. — a Branch Office Location situated on the premises of

an organisation, plant or commercial firm and dedi-cated substantially to the travel requirements of thatAPPLICATION organisation, plant or commercial firm.

Any person or organisation may become an Accredited The place of business shall not be located in office spaceAgent by submitting an application which is in the form of jointly occupied with another travel agency, an Accreditedanswers to a questionnaire. Copies of the questionnaire Agent or an air carrier.and answers to enquiries can be obtained from the IATAOffice and it is to this office that the application is sent. Minimum Security StandardsMore detailed information regarding application proce-dures can be obtained from Please refer to revised provisions in Section 6 of Resolu-

tion 810i.INTERNATIONAL AIR TRANSPORT ASSOCIATIONAgency Services Office Staff Qualifications101, HDO Corporate Enclave, “B” WingB. D. Sawant Marg The applicant must have in its employment competentChakala, Andheri East and qualified staff able to sell international air transporta-Mumbai 400093 tion and correctly issue electronic travel documents and

report these to the BSP.Tel: 91-22-29210111/2Fax: 91-22-28206958Email: [email protected] Finances

Only companies and firms that are financially sound willbe approved.ACTION ON APPLICATIONSThe applicant shall submit independently produced finan-An applicant will be granted recognition as an IATAcial statements prepared in accordance with localAccredited Agent and consequently may be appointed toaccounting practices as specified in the Handbook. Suchrepresent Member Airlines, by meeting the qualificationsstatements shall be evaluated and found satisfactoryand criteria outlined in the Sales Agency Rules andpursuant to the methodology and standards establishedexecuting a Passenger Sales Agency Agreement. Afrom time to time by the Agency Programme Jointperson whose application has been disapproved is toldCouncil. To obtain a satisfactory evaluation, the applicantthe reasons for such action. The disapproved applicantmay be required to provide additional financial support inmay request reconsideration or a review of the decision.the form of recapitalization or of a bank or insuranceThere is no limit to the number of applications that can beguarantee.made.

EFFECTIVE 1 JUNE 2010 1


Further details of the financial and other criteria are CHANGES WITHIN AN AGENCYavailable from the local IATA Agency Services Office. REQUIRING PRIOR IATA APPROVALName Under the terms of the Passenger Sales Agency Agree-

ment entered into by each IATA Accredited Agent, anThe name used by an applicant must not be same as or Agent proposing to effect certain changes within itsmisleadingly similar to that of an IATA Member Airline, or agency must so notify the Agency Administrator throughIATA itself. The place of business must not be identified the IATA Office. The details of the procedural require-as an office of a Member or a group of Member Airlines. ments for cases of change of ownership, legal status,name or location are shown in the Sales Agency Rules.Business StandardsThe following brief summary of the provisions is given to

The applicant, or any of its managers, principal share- assist Agents to understand the importance of advisingholders (or persons for whom they act as nominees), IATA in advance of proposed changes in their agencies.directors, officers or managers shall have no record of Copies of the appropriate forms and notices together withwilful violations of fiduciary obligations incurred in the answers to enquiries can be obtained from the IATAcourse of business nor be undischarged bankrupts. Office and it is to this office that the notification of change

should be submitted.Management

No person who is a director of or who holds a financial CHANGES OF OWNERSHIP/EQUITYinterest or a position of management in the applicant shall OR LEGAL STATUShave been a director of, or had a financial interest or helda position of management in, an Agent which has been New owner(s) must be made at the same time to facilitateremoved from the Agency List or is under notice of approval of the change prior to its effective date.default, and still has outstanding commercial debts, or insuch an Agent whose commercial debts were met solelyor in part by recourse to a financial bond or guarantee; CHANGES OF NAMEprovided that the applicant may nevertheless be approvedif the Agency Services Manager is satisfied that such If an Accredited Agent wishes to change its name, or theperson was not responsible for the acts or omissions that name under which any of its Approved Locations iscaused such removal or default or if he is satisfied that operated, it must give prior notice of and make applicationthe applicant can be relied upon to comply with the terms for approval of the change.of the Sales Agency Agreement and other Resolutions ofthe Conference.

CHANGES OF LOCATIONAn applicant may nevertheless be approved if the AgencyServices Manager is satisfied that such person did not If an Accredited Agent wishes to change the place of anyparticipate in the acts or omissions that caused such of its Approved Locations it must give prior notice of andremoval or default or if he is satisfied that the applicant make application for approval of the change.can be relied upon to comply with the terms of the SalesAgency Agreement and other Resolutions of the Confer- Each Approved Location is inspected and this forms partence. of the IATA accreditation process. When an Approved

Location changes, the Agent must inform the IATA OfficeGeneral Sales Agency in writing before the change.

Applicants must not be appointed by an air carrier as aGeneral Sales Agent for the country concerned or for any

Note: Failure to give timely notice to IATA of changes

part thereof. (A General Sales Agent is one to whom anmay jeopardize your status as an Accredited Agent or

airline has delegated general authority to represent it forthat of the Approved Location.

purposes of overseeing sales in a defined territory andwho is remunerated accordingly.)

In respect of the issue of Traffic Documents afterapproval, an Agent shall comply with the provisions ofResolution 822 to the extent that they affect the Agent'sobligations or actions.

Where officially required, the applicant must be in posses-sion of a valid licence to trade.

All material statements in the application must be accu-rate and complete.

EFFECTIVE 1 JUNE 20102

Changes Within an Agency Requiring Prior IATA Approval

MAINTAINING QUALIFICATIONSAND CRITERIAIt is essential for an IATA Accredited Agent to maintainthe standards necessary for accreditation. A review of theAgent's qualifications and criteria can take place at anytime and a full review of the Accredited Agent's financialstanding is carried out on an annual basis. Failureto submit, by the specified date, financial documentsrequested by IATA to conduct a financial review of theAgent is in itself grounds for review of the Agent'seligibility to be retained on the Agency List.



2.1.2 a branch office location of an IATA AccreditedRESOLUTION 800a Agent:

APPLICATION FORM FORYes □ No □ACCREDITATION AS AN IATAIf Yes:PASSENGER SALES AGENT2.1.2.1 give name, address, telephone number, e-mailPAC1(45)800a(except USA) Expiry: Indefiniteaddress and IATA Numeric Code of IATA Approved HeadPAC2(45)800a Type: BOfficePAC3(45)800a

2.1.2.2 Is the branch office:RESOLVED that, the following standard form shall beused in connection with the Passenger Sales Agency

wholly owned by this Head Office: Yes □ No □Rules.

wholly managed by this Head Office: Yes □ No □APPLICATION FORM FOR

2.1.2.3 Is this application for an On-line Agency?ACCREDITATION AS AN IATAPASSENGER SALES AGENT (issuing only Electronic Tickets) Yes □ No □The information requested below is required by IATA to 2.2 Specify legal status:assist in determining the eligibility of the applicant forinclusion on the IATA Agency List. Type or print clearly sole proprietorship □the answers to all questions on this form. Whereadditional space is required, or where you wish to

partnership □supplement your answer and there is insufficient space,attach to this form additional sheets containing the data.Retain a copy of this application for your permanent limited liability company □records at the agency location.

other (describe) □Note: A separate form is required for each agencylocation for which approval is sought. 2.3 If your travel agency is owned by an organisation

other than the head office mentioned above, answer theSection 1 — Identification of Agency following with respect to the parent organisation:Location for which Approval Requested

2.3.1 What is its legally registered name and address?1.1 Legal name: 2.3.2 What is the principal business of this organisation?1.2 Trade name, if different from 1.1 above:

Section 3 — Financial Information1.3 Full address and telephone number of the office for of Business Entitywhich application for approval is made:

Specify as applicable:1.4 If registration and/or licence is required by law in yourcountry, give: 3.1 Registered capital:

1.4.1 the trade registration or licence number of the 3.2 Paid-up capital:agency;

3.3 Minimum paid-up capital required by the law of your1.4.2 the date this was granted; country:

1.4.3 please attach a copy of the official certificate of 3.4 VAT numberregistration and/or licence.

3.5 Attach a copy of your current financial statements1.5 Date on which the office for which approval is sought including balance sheet and profit and loss accountopened as a travel agency. certified by a chartered, certified public or certified general

accountant.Section 2 — General Information2.1 Is approval sought as:

2.1.1 a head office location: Yes □ No □


Resolution 800a

4.4.3 Name(s) of beneficiary(ies):Section 4 — Business Entityof Agency What is the corpus in the trust? — i.e. capital

4.1 If SOLE OWNER: 4.5 If ASSOCIATION:

Name: 4.5.1 Type of association:

Address, Telephone Number, Fax Number and E-mail 4.5.2 When and where incorporated:Address:

4.5.3 Names of members, officers and manager:% of time devoted to the agency business:

4.5.4 Capital structure and the paid-up capital. If the4.2 If PARTNERSHIP: entity is limited by guarantee, state the liability (maximum

of each member).Name(s) and Title(s) of Partner(s):

4.6 If NONE OF ABOVE APPLIES, fully describe theAddress(es), Telephone Number(s), Fax Number(s) and type of business entity, when and where organised andE-mail Address(es): the names and titles of persons holding a financial or

managerial interest in the business, the nature and extent% of time devoted to the agency business:of their interest, their address, telephone numbers, faxnumbers and e-mail addresses and percentages of theirFinancial Interest %:time devoted to the agency business.

4.3 If CORPORATION:Section 5 — Details of Owners,

4.3.1 When and where incorporated: Managers and Staff of Agency4.3.2 Names of Shareholders1

1 5.1 Attach a list setting forth the names and experiencein the travel industry of managerial personnel and otherAddresses, Telephone Numbers, Fax Numbers andfull-time travel staff members qualified and competent toE-mail Addresses:sell international air transportation and issue travel docu-

% of time devoted to the agency business: ments, giving details as follows:

Financial Interest % (i.e. shareholding): 5.1.1 Name of manager or staff:

4.3.3 Name(s) and Titles of Directors and Officers: 5.1.2 Position or title:

SOUTH WEST PACIFIC ONLY Paragraphs 4.3.4 5.1.3 Date joined agency location for which approval isthrough 4.5.4 sought:

4.3.4 Does each stockholder own the full beneficial 5.1.4 Name of previous employer(s) and address(es). Ifinterest in the stock? previous employer(s) were travel agents, indicate if IATA

accredited or not:Yes □ No □

5.1.5 Date(s) of previous employment (month/year):If No, does the shareholder hold the stock in trust as 5.1.6 Position(s) held during previous employment:nominee for someone?

5.2 If any of the questions below are answered in theYes □ No □ affirmative, give the name(s) of the agency or agencies

and location(s) involved, the relationship of theIf Yes, attach details. individual(s) with the agency or agencies, the date of the

bankruptcy or default and all pertinent details:4.3.5 What is your:5.2.1 If a sole proprietor, have you:4.3.5.1 Authorised capital?5.2.1.1 been involved in bankruptcy proceedings?4.3.5.2 Paid-up capital?

4.4 If TRUST: Yes □ No □4.4.1 Type of trust: If so, are you now legally and fully discharged of your

obligations by the court involved?4.4.2 When and where executed:

Yes □ No □

1 Except where your organisation is a legal entity whose shares are listedon a securities exchange or are regularly traded in an ‘over-the-counter’market.



5.2.1.2 at any time been a director or had a financial 5.2.3.3 been found guilty of wilful violations of fiduciaryinterest or a position of management in an IATA Agent obligations in the course of business?which has been removed from the IATA Agency List orwhich was under notice of default and still has outstand- Yes □ No □ing debts to IATA Members or in an IATA Agent whosedebts to IATA Members were met by recourse to a Section 6 — Premises of Agencyfinancial bond or guarantee? Location for which Approval RequestedYes □ No □ 6.1 What are the normal business hours and days of the

week that the office is open:5.2.1.3 been found guilty of wilful violations of fiduciaryobligations in the course of business? 6.2 Are the premises located at an airport:

Yes □ No □ Yes □ No □5.2.2 If an unincorporated firm, partnership or association 6.3 Describe the means by which the premises arehave any partners or any individual having authorisation identified as a travel agency:to act and sign on behalf of such firm, partnership, orassociation: 6.4 Attach a photograph of the exterior and of the interior

of the location.5.2.2.1 been involved in bankruptcy proceedings?

6.5 If an On-line Agent specify URL address.Yes □ No □

Section 7 — Security of TrafficIf so, are they now legally and fully discharged of their Documents and Airline Identificationobligations by the court involved? PlatesYes □ No □ Applicants will be required to provide evidence at the time

of inspection that they meet the requisites for Traffic5.2.2.2 been a director or had a financial interest or a Document security, as advised by the Agency Administra-position of management in an IATA Agent which has tor or the Secretary of the Agency Investigation Panel.been removed from the IATA Agency List or which wasunder notice of default and still has outstanding debts to 7.1 Describe the type of facility you have in the agencyIATA Members or in an IATA Agent whose debts to IATA for the storage of your on-premises working supply ofMembers were met by recourse to a financial bond or Traffic Documents or other accountable documents.guarantee?

Section 8 — Other InformationYes □ No □

8.1 Is the agency a General Sales Agent for any IATA or5.2.2.3 been found guilty of wilful violations of fiduciary non-IATA airline?obligations in the course of business?

Yes □ No □Yes □ No □

If yes, specify:5.2.3 If a corporation, have any officers, directors ormanagers: 8.1.1 Name(s) of airline(s):

5.2.3.1 been involved in bankruptcy proceedings? 8.1.2 Scope of operation:

8.1.3 GSA territory:Yes □ No □8.2 Provide the names of individuals authorised to sign,If so, are they now legally and fully discharged of theiron behalf of the applicant, documents which relate to theobligations by the court involved?day-to-day operation of the travel agency:

Yes □ No □ 8.3 Submit in accordance with the attached format, astatement of your current international air passenger5.2.3.2 been a director or had a financial interest or a transportation sales.

position of management in an IATA Agent which hasbeen removed from the IATA Agency List or which was 8.4 If approved as an IATA Agent, what do you estimateunder notice of default and still has outstanding debts to will be the gross amount of international air transportationIATA Members or in an IATA Agent whose debts to IATA sales of IATA carriers at the location for which approval isMembers were met by recourse to a financial bond or requested:guarantee?

8.4.1 in your first year?Yes □ No □

8.4.2 in your second year?


Resolution 800a

8.5 Is your agency an IATA Registered Cargo Agent? GOVERNMENT RESERVATIONS

Yes □ No □UNITED STATES

If so, name under which it is registered:In Order 73-8-115 dated 23 August 1973, the Civil AeronauticsBoard approved Resolution 810q (except USA) (now 800a)IATA Numeric Code:subject to the condition that such approval shall not extend toagencies located in the United States.8.6 Attach a sample of your agency's letterhead.

I hereby certify that the foregoing statements (includingstatements made in any attachment hereto) are true andcorrect to the best of my knowledge and belief, and that Iam authorised by the organisation identified in the answerto 1.1 above to make these statements and file thisdocument.

It is hereby agreed that this application shall become apart of every Sales Agency Agreement signed withMembers of IATA for the sale of international air passen-ger transportation, and as such, all information containedherein will be treated as confidential (excluding theinformation contained in Section 1). Notwithstanding theforegoing, the applicant authorizes IATA to use andprocess the information contained in Sections 2.1.2.2,2.2, 4, 5.1.1 and 5.1.2, in order to produce and distributedatabases among the airline industry participants.

The applicant hereby expressly waives any and all claims,causes of action or rights to recovery and agrees toindemnify and hold harmless IATA or any of its Members,their officers, employees, agents or servants, for any loss,injury or damage based upon libel, slander or defamationof character by reason of any action taken in good faithpursuant to this application, including but not limited to anotice of disapproval.

The applicant understands and agrees that if theapplication for accreditation as an IATA Agent is disap-proved, he will not claim any commission, remunerationor compensation for the sale of air transportation over theservices of any IATA Member during the period theapplication was under consideration.

The Applicant understands and agrees to pay theapplication, entry and annual fees, in the amounts deter-mined by the Conference in consultation with the DirectorGeneral, and as advised by the Agency Administrator, forinclusion and retention on the Agency List. If theapplication is rejected, the entry and initial annual agencyfees shall be returned to the applicant.

............................................................................................(Signature)

............................................................................................(Name of Applicant)

............................................................................................(Title)

............................................................................................(Country)

............................................................................................(Date)



RESOLUTION 800e RESOLUTION 800f

CASH BASIS PROVISIONS AGENTS' FINANCIAL EVALUATIONCRITERIA

PAC1(43)800e(except USA) Expiry: 31 December 2010PAC2(43)800e Type: B PAC1(43)800f(except USA) Expiry: IndefinitePAC3(43)800e PAC2(43)800f Type: B

PAC3(43)800fThe purpose of this resolution is to withdraw the appli-cability of Cash Basis provisions from all versions of the WHEREAS the Passenger Agency Conference (“the Con-Passenger Sales Agency Rules howsoever numbered. ference”) wishes to promote a consistent and, wherever

possible, standard set of rules for agency accreditation,Where appropriate Cash Basis is replaced with twoirregularities and a review, so it is It is RESOLVED that the following Agent financial evalua-

tion criteria be applied as the baseline for establishmentRESOLVED that upon this resolution becoming effective: and/or review of the local financial criteria in all markets,1. All references to dealing with Agents on a Cash subject to any local conditions that may apply.

Basis are no longer applicable.2. In place of cash basis action for accumulated irregu-

larity and in cases where an Agent fails to comply 1. GENERAL RULEwith financial criteria so established the Agency

1.1 The following principles are to be applied as guide-Administrator shall apply two instances of irregularitylines in the development of Agents' financial criteria.and provide the Agent with 30 days in which to

comply. Failure by the Agent to comply within1.2 Agents will be required to provide sufficient financial30 days shall be grounds for removal of the Agentguarantee as detailed below.from the Agency list.

3. For technical default where monetary payment is not 1.3 Fulfilment of this obligation will remove the require-due such as a change of name or location Cash ment to file audited financial statements.Basis provisions are replaced with two irregularitiesand review at Agent cost. Failure by the Agent to 1.4 After two years of trading as an Agent, the Agent maynotify the Agency Administrator of a change within elect to provide audited financial statements which will be30 days of the change being made can therefore evaluated as outlined below. That evaluation will deter-result in a double irregularity and a review to ensure mine the amount (if any) of guarantee that must continuethe Agent continues to meet the Accreditation crite- to be supplied.ria. The notice of double irregularity and the cost ofthe review, which shall be paid for by the Agent, willbe confirmed in writing. Failure by the agent to 2. AGENTS DURING THE FIRST TWOsubmit the appropriate application or to rectify the YEARS OF TRADINGsituation within 30 days shall result in the Agentbeing notified by the Agency Administrator of termi- 2.1 Bank Guarantee or Insurance Guaranteenation of the Sales Agency Agreement resulting inthe removal of STDs and cause the removal of CIPs. 2.1(a) To be provided by all Agents during the first two

years of trading as an Agent. Guarantee should not be fora limited period; it must be open-ended and subject to aminimum notice period of cancellation of ninety (90) days.

2.2 Amount of Guarantee Required

2.2(a) The amount should be calculated on the basis ofthe estimation, as provided by the applicant, of theagent's BSP cash turnover in his first year as IATAaccredited agent, adjusted for the numbers of “Days'Sales at Risk”.

2.2(b) The number of “Days' Sales at Risk” is to becounted from the beginning of the reporting period to theremittance date in respect of that reporting period orperiods, plus a margin of five days. The result is to bedivided by 360 days, and then applied to the annual cashturnover estimation to calculate the estimated Amount atRisk and the amount of guarantee required.

2.2(c) The local IATA manager will review the level of theguarantee after the first six months based on the Amountat Risk computed with reference to the average net cashsales of the Agent during that six month period. The


Resolution 800f

amount of guarantee required will be increased if it is adjustments must be made to write down to zero thefound to be insufficient to cover the Amount at Risk. following:

2.2(d) Thereafter, the Amount at Risk will be computed 4.2(a)(i) The balance of all intangible assets, includingusing the average annual net cash sales of the previous goodwill,12 months (or the previous calendar year as specified

4.2(a)(ii) All unamortised research and developmentbelow), or for a lesser period as determined by localcosts,market conditions, and the amount of guarantee required

adjusted by the IATA manager, if necessary. 4.2(a)(iii) The value of all unquoted investments,

4.2(a)(iv) All encumbered Assets,3. AGENTS WHICH HAVE COMPLETED4.2(a)(v) All trading losses for the current financial period.TWO YEARS OF TRADING4.2(b) Net Equity must be greater than the sum of LongAgents which have completed two or more years ofTerm Debt and other Long-Term Liabilities. Long term istrading without a financial irregularity (late payment,defined to be where repayment is due more than twelvedishonoured cheques etc) in the previous twelve months,months after the end of the financial period.will be given the option to:

3.1 Continue to provide a guarantee. The adequacy ofthe Agent's guarantee will be reviewed in the first quarter 4.3 Net Current Assets:of every year based on the business of the previous

4.3.1 Current Assets must exceed Current Liabilities. Thecalendar year.following are to be excluded from Current Assets in

or making the calculation:

3.2 Submit audited financial statements, together with a 4.3.1(a) Stocks and work in progress,self-assessment form, for the most recent year-end,

4.3.1(b) Deposits or guarantees given to third partiesprovided that, the end of the accounting period falls withinother than IATA,six months of the second anniversary. The profit and loss

account must be for a period of at least twelve months. 4.3.1(c) Loans to Directors, Associate Companies,The amount of the guarantee required will be reduced bythe excess of liquid current assets over current liabilities 4.3.1(d) Payments in advance,in the financial statements of the relevant legal entity.

4.3.1(e) Deferred Expenses,3.3 In the event of default for non-payment of monies dueAgents will be required to furnish a bank guarantee or an 4.3.1(f) Doubtful debtors,approved insurance guarantee or bond equivalent tosales at risk and in accordance with any locally estab- 4.3.1(g) Blocked funds.lished formula prior to consideration of reinstatement.

4.3.2 Current Liabilities are to be increased for theamount of Long Term Liabilities which exceed Net Equity.

4. RECOMMENDED CRITERIA FOR 4.3.3 Current Assets less Current Liabilities (the NetEVALUATION OF AGENTS' AUDITED Current Assets) must be greater than the Amount at Risk(average annual net cash sales multiplied by the numberFINANCIAL STATEMENTSof Days' Sales at Risk).

The amount by which the Net Current Assets fall short4.1 General Principle:of the Amount at Risk must be covered by a guaranteefrom the Agent, to be furnished by the Agent within4.1(a) There must be Net Equitythirty (30) days of being notified to do so.

4.1(b) The Net Equity must exceed the sum of LongTerm Debt and other Long Term Liabilities

5. CHANGES IN OWNERSHIP4.1(c) The amount of Net Current Assets must exceedthe Amount at Risk 5.1 Notification to the Accreditation department of a

change in ownership or change in control, other than inthe cases of corporations where the shares are regularly

4.2 Net Equity: traded through a recognised stock exchange, should beaccompanied by audited financial statements at the time4.2(a) There must be Net Equity in the business. The of the change in control to be filed within sixty (60) days

most recent audited (signed/certificated, where locally of change in control.required) financial statements, to be received no laterthan 6 months following the latest accounting year-end of 5.2 Failure to provide accounts within the due date willthe Agent concerned, must show a positive balance on result in the Agent being treated in the same way as ashareholders'/owners' funds. In computing the Net Equity, recently accredited Agent: the Agent will be required to



provide within thirty (30) days a guarantee to cover the RESOLUTION 800oAmount at Risk.

ON-LINE TRAVEL AGENT6. CHANGES IN YEAR-END PAC1(45)800o(except USA) Expiry: Indefinite

PAC2(45)800o Type: B6.1 Notification to the Accreditation department of aPAC3(45)800ochange in year-end, without a change in ownership, will

result in a review of the Agent's financial position to RESOLVED that the following provisions shall apply fordetermine whether a financial guarantee is required. the establishment of applicants for accreditation wishing

to operate an on-line only agency.6.2 The Agent must, as a minimum, submit an auditedstatement of assets and liabilities for the twelve (12)months period since its last accounting year-end, within Definitionssix (6) months of the end of that period. IATA managerwill conduct the financial evaluation based on this state- The definitions of terms and expressions used in thisment with reference to the Amount at Risk applicable to Resolution are contained in Resolution 866. The use ofthe Agent. words and expressions in the singular shall, where the

context so permits, be taken to include their use in the6.3 Failure by the Agent to provide an audited statementplural and vice versa. Paragraph headings are for ease ofof assets and liabilities for the twelve months since thereference only and do not form part of these Rules.last year-end, within the due date, will result in the Agent

being required to provide a guarantee for the totalAmount at Risk within thirty (30) days. 1. General

On-line Travel Agent applicants may be approved pro-vided they can demonstrate they comply with all businessand legal requirements in a country to operate a travelagency service and sell travel services to the public,provided they meet and continue to meet the financialcriteria so established in the country, including whereappropriate and as determined by the Agency Administra-tor provision of a bank or insurance bond or guarantee tocover sales at risk.

2. QualificationsApplicants for approval as an on-line agent will be boundby the relevant Passenger Sales Agency Rules applicablein each country in which the applicant wishes to operate.In addition the following rules will be applied.

2.1 Any entity applying for the status of on-line agentmust have an established physical Head Office dulyregistered/licensed to operate as a business in a countrywhere the resolutions of the Passenger Agency Pro-gramme are applicable.

2.2 The applicant will be required to conclude a Passen-ger Sales Agency Agreement (PSAA) to cover eachon-line agent location in a country. Where a location is aseparate legal entity that location will be required toestablish its own PSAA.

2.3 The applicant's business entity and/or its owners andmanagers must have the requisite official registrationand/or licence to trade and offer travel agency services,as prescribed by applicable law.

2.4 All locations established by the applicant must alsocomply with the financial criteria of each country and anylocal laws for operation of a travel agency.


Resolution 800z

2.5 Each location will be responsible for the reporting and RESOLUTION 800zremittance of BSP sales to the BSP of the country/area inwhich it is located. ELECTRONIC TICKETING2.6 The applicant will be required to furnish financial

PAC1(46)800z(except USA) Expiry: Indefinitesurety sufficient to satisfy IATA that BSP Airline salesPAC2(46)800z Type: Bremittances will be secured. This may be in the form ofPAC3(46)800zre-capitilisation, and/or bank or insurance bonds or guar-

antees to cover the funds at risk. WHEREAS the Passenger Agency Conference wishesthe IATA Passenger Agency Programme to respondeffectively and efficiently to the rapid developments inelectronic ticketing and to provide for such forms ofticketing to be handled within the framework of thatprogramme, now it is

RESOLVED that, the following provisions are adopted

DEFINITIONSThe definitions of terms and expressions used in thisResolution are contained in Resolution 866.

1. Electronic Tickets as defined above and provided for inthis Resolution shall carry a form code in accordance withthe RP1720a. Appropriate measures must be taken toensure clear identification of the ticket as an electronictransaction throughout all processing operations con-cerning such ticket.

2. Ranges of serial numbers shall be allocated to BSPsand from BSPs to Agents in accordance with establishedBSP procedures.

3. Electronic Tickets shall be reported and remitted inaccordance with BSP standard procedures.

4. An Electronic Ticket is deemed to have been issued atthe time that a serial number is assigned to the reserva-tions record. The date of issuance must be recorded forall transactions.

5. Standard Traffic Documents, as defined in the Passen-ger Sales Agency Rules, shall be understood to includeElectronic Tickets.

6. Where reference is made in the Passenger SalesAgency Agreement and the Passenger Sales AgencyRules to issuance of a Traffic Document, such referenceshall be understood to include issuance of an ElectronicTicket.

7. At the time of issuing an electronic ticket Agentsmust provide the passenger with all applicable legalnotices and a receipt must be generated and furnished tothe passenger by the Agent. When an Agent provides thelegal notices these must be in accordance with theguidelines furnished in the BSP Manual for Agents.



RESOLUTION 810d RESOLUTION 810i

DOMESTIC AGENCY PROGRAMME PASSENGER SALES AGENCYIN INDIA RULES — INDIA

PAC3(40)810d(India) Expiry: Indefinite PAC3(46)810i(India) Expiry: IndefiniteType: B Type: B

WHEREAS Resolution 810i governs the relationship be- WHEREAS the Passenger Agency Conference (‘the Con-tween IATA Members and Approved Agents in India, and ference’), in consultation with the travel agency commu-

nity wishes to provide consumers with a network ofWHEREAS pursuant to Resolution 810i, the Agency reliable and professionally managed sales outlets for airProgramme for India has been established by the transportation products in an efficient and cost-effectivePassenger Agency Conference with delegated authority manner responsive to evolving individual market placeover specified provisions of the IATA Agency Programme, requirements, it isand

RESOLVED that the following Rules are adopted.WHEREAS in response to the marketplace requirements,

ContentsIATA Members operating domestic services in India wishto extend the benefits and obligations of the IATA Agency SECTION 1 — DEFINITIONSProgramme, to their agents engaged in selling domesticair transportation in India, and SECTION 2 — ORGANISATION

SECTION 3 — QUALIFICATIONS FORWHEREAS the said Members are particularly desirous ofACCREDITATION AND RETENTIONmaking available to their domestic agents reporting and

remitting facilities of the IATA Billing and Settlement Plan SECTION 4 — PROCEDURES(BSP) in India, and

SECTION 5 — CUSTODY AND ISSUE OF TRAFFICWHEREAS it is desired to obtain the approval of the DOCUMENTSPassenger Agency Conference for extension of the IATA

SECTION 6 — APPLICATION OF MINIMUM SECURITYAgency Programme to domestic agents of IATA MembersSTANDARDS FOR SAFE CUSTODY OF STANDARDand of other domestic air carriers participating inTRAFFIC DOCUMENTS AND CARRIERBSP-India it isIDENTIFICATION PLATES

RESOLVED that the Passenger Agency Conference, SECTION 7 — REPORTING AND REMITTINGhaving noted the wishes expressed by certain Members,THROUGH THE BILLING AND SETTLEMENT PLANin response to the evolving market situation in India as

outlined above, SECTION 8 — (INTENTIONALLY LEFT BLANK)

1. approves the extension of relevant aspects of the IATA SECTION 9 — CONSEQUENCES OF DEFAULTAgency Programme, to domestic agents of IATA Mem- SECTION 10 — CONDITIONS FOR PAYMENT OFbers and of other domestic air carriers participating in

COMMISSION AND OTHER REMUNERATIONBSP-India to the extent compatible with applicablenational law and regulations; SECTION 11 — CHANGE OF OWNERSHIP, LEGAL

STATUS, NAME OR LOCATION2. delegates responsibility to ISS for devising appropriaterules, regulations and contractual documents to govern SECTION 12 — REVIEWS BY THE TRAVEL AGENCYthe relationship between domestic agents and IATA COMMISSIONERMembers and such other domestic air carriers in India it SECTION 13 — ARBITRATIONbeing understood that any such rules and regulationsshall be implemented subject to any authorization and SECTION 14 — MEASURES AFFECTING AN AGENT'Smay be required in accordance with national law; STANDING

3. subject to the foregoing, authorises ISS Management SECTION 15 — AGENCY FEESof the IATA Billing and Settlement Plan in India to make SECTION 16 — INDEMNITIES AND WAIVERavailable the services of BSP-India for the reporting andremitting of sales of domestic air transportation in India on ATTACHMENT ‘A’ — NOTICE OF CHANGEbehalf of IATA Members and other domestic air carriersparticipating in BSP-India.


Resolution 810i — Section 2

Section 1 — Definitions Section 2 — OrganisationThe definitions of terms and expressions used in thisResolution are contained in Resolution 866. 2.1 AGENCY PROGRAMME JOINT

COUNCIL (THE COUNCIL)The use of words and expressions in the singular shall,where the context so permits, be taken to include their each Member eligible to participate in the Billing anduse in the plural and vice versa. Settlement Plan and each Airline which participates in the

Plan may, by written notification to the Agency Adminis-Paragraph headings are for ease of reference only andtrator, nominate a person of senior management standingdo not form part of these Rules.(the nominee) to serve as its representative on theAgency Programme Joint Council;

2.1.1 Composition

2.1.1(a) the Council shall consist of not less than 14 normore than 15 elected members, including:

2.1.1(a)(i) two representatives of Members with headoffices in India, nominated by the Agency Administrator.

2.1.1(a)(ii) five representatives of air carriers elected/reelected biennially by the Conference, on the recommen-dation of the Agency Administrator, from those havingdesignated a nominee,

2.1.1(a)(iii) seven representatives, each of whom is anAccredited Agent of a national association or associa-tions, representative of Accredited travel agents.

2.1.1(a)(iv) one additional representative of a Memberwith its head office in India to act as a non-votingChairman, elected bienially by the Conference, on therecommendation of the Agency Administrator, from thosehaving designated a nominee.

2.1.1(b) provided that no Member or Airline shall havemore than one voting representative on the Council atany one time. The Agency Administrator shall be an exofficio non-voting member of the Council.

2.1.2 APJC Authority and Terms of Reference

2.1.2.1 the Council may consider all aspects of theAgency Programme in the country and make recommen-dations thereon in the form of agenda proposals to thePassenger Agency Conference which shall informthe Council of action taken, with reasons therefor. Con-versely, the Agency Administrator shall refer to theCouncil for comments and recommendations all propo-sals submitted to the Passenger Agency Conferencewhich fall within the Council's authority,

2.1.2.2(a) the Council shall make recommendations tothe Passenger Agency Conference regarding accredita-tion criteria in respect of financial standing;

2.1.2.2(b) such local criteria shall be published in theTravel Agent's Handbook.

2.1.2.3 the Council when it deems appropriate shallcreate a Financial Advisory Group to review and makerecommendations to it on the criteria for financial stand-ing, which body shall function as per sub-paragraph 2.1.3below.



Administrator to manage the accreditation programme,2.1.3 Financial Advisory Groupincluding administrative actions and reviews.

2.1.3.1 the Council may establish a Financial AdvisoryGroup to assist in the development of local financialcriteria for accreditation. The Financial Advisory Group 2.3 EFFECTIVENESS AND(FAG) will be under the direct control of the Council and IMPLEMENTATIONshall:(i) be composed in equal numbers of qualified staff of 2.3.1 Effectiveness

both airline and agent members,notwithstanding Resolution 001:(ii) consist at a minimum of two airline and two agent

representatives as nominated by the APJC. 2.3.1.1 the following resolutions shall become effectiveonly if both such resolutions become simultaneously2.1.3.2 FAG may seek the assistance of legal expertiseeffective:and/or external financial expertise to advise on local

PAC3(35)810iaccounting standards.PAC1(38)820e (except USA)2.1.3.3 the FAG will review any existing financial criteriaPAC2(38)820eagainst changing economic conditions in the market andPAC3(38)820emake recommendations for change to the Council.

2.3.1.2 upon both resolutions listed in Subpara-2.1.3.4 Recommendations of the FAG will be subject tograph 2.3.1.1 of this Paragraph being implemented inratification of the Council as per sub-paragraph 2.1.4.India, Resolutions PAC3(02)800 (amended) andPAC1/2/3(38) 820e shall be suspended with respect to2.1.4 Proceduressuch country; provided that if the resolutions listed in

2.1.4.1 The Council shall meet at least twice a year and Subparagraph 2.3.1.1 of this Paragraph are subsequentlythereafter as required. voided or rescinded in that country, or if the authority

delegated to the Agency Programme Joint Council for2.1.4.2 A minimum of nine representatives of the current India is subsequently withdrawn by the Conferencemembership of the Council shall constitute the quorum. pursuant to paragraph 2.4 of this section, in eitherThis shall include a minimum of two airline members and event Resolutions PAC3(02)800 (amended) andtwo travel agent members. PAC1/2/3(38)820e shall be reinstated and the status quo

ante restored in that country.2.1.4.3 All recommendations or decisions shall beadopted when a simple majority of the airline memberspresent and a simple majority of the agents present vote 2.4 AUTHORITY OF THE CONFERENCEin favour of the proposal. In the event that only two airlineor travel agent representatives are present, both shall be the Conference may, at its discretion, expand, reduce orrequired to vote in favour of the proposal for the proposal withdraw the authority delegated to the Agency Pro-to be adopted. gramme Joint Council for India pursuant to Subpara-

graph 2.1.2 of this Section.2.1.4.4 Written records shall be kept by the Secretarywho shall be provided by the Agency Administrator.

2.5 AREA OF JURISDICTION2.1.4.4(a) the IATA Secretary shall formally call meetingsof the Council and shall establish the date and venue in The Council is a permanent body conducting its activitiesconsultation with the Chairman. The Secretary shall under the authority of the Conference to which it shallcompile and distribute the agenda in a timely manner. report annually. The area over which the Council exer-

cises the authority delegated by the Conference consists2.1.4.4(b) minutes of each meeting shall be compiled byof the following countries and/or territories:the Secretary and presented to the Chairman for

Bhutanapproval. Thereafter such minutes shall be circulatedpromptly to the membership who shall be free to provide Indiacomments to those minutes for consideration at the next Indian Ocean Islandsformal meeting of the Council where such minutes shall

Afghanistanalso be tabled for approval of the Council.2.5.1 The Conference may amend the list of countries set2.1.4.5 Except as provided herein, the Council shallout in the above Subparagraph.establish its own procedures and submit a report of its

activities to each meeting of the Conference.

2.2 AGENCY SERVICES OFFICEthe Agency Services Office shall be headed by theAgency Services Manager appointed by the Agency



Branch Locations in Other CountriesSection 3 — Qualifications forAccreditation and Retention 3.3.4 An applicant that opens Branch Locations in a

country, that is different from where the Head Office legal3.1 any Person in possession of the appropriate official entity is located, will be assessed against the financiallicences, where required, may become an Accredited criteria established for the country of the Branch Location.Agent by making an application in the form prescribed to In such event the Agent will be required to submit thethe Agency Services Manager in the country where such financial documents of the Head Office legal entity.Person carries on business, and by meeting the qualifica- Where the Agent is unable to meet the applicable localtions set forth in this Section. Such qualifications must criteria of the country of the Branch Location, it shall becontinue to be met in order to ensure retention as an required to furnish additional security in the form of aAccredited Agent (in which event, the term “applicant” bank or insurance bond or guarantee to cover the fundswhere used in this Section shall be understood to include at risk for that location.an Accredited Agent).

3.3.5 in the event an Agent or applicant materially mis-3.2 when there are reasons to believe that an Accredited represents its financial standing, providing that writtenAgent or Approved Location does not continue to meet evidence of such action is presented and can be verified,such qualifications, the Agency Administrator shall on his the Agency Administrator shall take action to remove theown initiative, or may, at the request of the Agency Agent from the Agency List and to serve immediate noticeServices Manager or of any Member, initiate a review of of suspension. Such notice shall take effect on the datethe Agent or Location. If the Agent is unable to demon- so described by the Agency Administrator.strate to the Agency Administrator by a specified date thatit meets the qualifications, the Agency Administrator shall,give the Agent notice of termination of the Sales Agency 3.4 GENERAL QUALIFICATIONSAgreement or, in the case of a Branch Office Location, ofremoval of such Location from the Agency List. Such 3.4.1(a) the applicant shall submit independently pro-termination shall not take effect if, prior to the date of duced financial statements prepared in accordance withtermination or removal, the Agency Administrator deter- local accounting practices as specified by the Council andmines that the Agent or Location meets the qualifications; published in the Handbook. Such statements shall be

evaluated and found satisfactory pursuant to the metho-3.3 if at any time the Agency Administrator becomes dology and standards established from time to time by theaware that an application, which resulted in accreditation Council and published in the Handbook. To obtain aof the applicant, contained a material statement that was satisfactory evaluation, the applicant may be required toinaccurate or incomplete in respect of the criteria set out provide additional financial support in the form of recapi-in Subparagraphs 3.4.6 and 3.4.7 of this Paragraph, it talization or of a bank or insurance guarantee:shall be grounds for the Agency Administrator, if heconsiders that the circumstances so warrant, to give the 3.4.1(a)(i) the Agency Services Manager shall conductAgent notice of termination of the Sales Agency Agree- periodic examinations of the financial standing of Agents.ment or, in the case of a Branch Office Location, of He may request and the Agent concerned shall be underremoval of such Location from the Agency List; provided obligation to furnish, by the date specified in the Agencythat such termination or removal shall not take effect if, Services Manager's letter of request, the documentsprior to the date of termination or removal: deemed necessary by the Agency Services Manager to

conduct such examination. Failure by the Agent to submit3.3.1 the Agent eliminates the grounds for such termina- such documents as prescribed shall be grounds for thetion or removal to the satisfaction of the Agency Adminis- Agency Services Manager to apply two instances oftrator or, irregularity and to give the Agent 30 days to comply.

Failure by the Agent to comply within 30 days shall be3.3.2 the Agency Administrator is satisfied that the Agentgrounds for the Agency Administrator to give the Agentcan be relied upon to comply with the terms of the Salesnotice of termination of the Sales Agency Agreement,Agency Agreement, these Rules and other Resolutions ofprovided that if the Agent submits the required documentsthe Conference;to the Agency Services Manager prior to the terminationdate the termination shall not take effect;3.3.3 Failure to Comply with requirements

or to Continue to Meet Qualifications 3.4.1(a)(ii) when the Agency Services Manager deter-mines that an Agent no longer satisfies the

In the event an Agent fails to comply with any of the financial criteria incorporated in the Handbook, he shallrequirements or qualifications listed in the passenger immediately inform the Agent in writing of such conditionssales agency rules or with any of the terms of the as he deems appropriate to be complied with by thepassenger sales agency agreement suspension action Agent within by a specified date which shall in no eventmay be taken in accordance with Section 13 of these be later than 60 days from the date of such writtenrules. In situations where an Agent fails to meet the prescription notification. The Agency Services Managerrequirements of the reporting and remittance rules irregu- shall determine if such conditions have been met. Onlarity and/or default action will be taken as described in finding that the Agent failed to comply, the Agencythose rules. Services Manager shall request the Agency Administrator

to give the Agent notice of termination and notify allMembers, Airlines and ISS Management accordingly;



3.4.1(a)(iii) if subsequent to the action taken under Sub- 3.4.4(b)(ii) at an airport. (The term ‘airport’ means theparagraph 3.4.1.a.ii above, but prior to the termination airport and supporting facilities, including all parkingdate, the Agent satisfies the Agency Administrator that areas, under the direct jurisdiction of the Airportthe prescribed conditions have been met, the termination Authorities).shall not take place and the Agency Administrator shall

3.4.5(a) the applicant shall not have a name which is:reinstate credit facilities and notify the Agent, all Mem-bers, Airlines and ISS Management accordingly; 3.4.5(a)(i) the same as that of IATA or of a Member, or3.4.1(a)(iv) in the circumstances described in Subpara- 3.4.5(a)(ii) similar to the name of a Member; providedgraphs 3.4.1.a.i through 3.4.1.a.iii above the Agency

that this shall not preclude approval of such applicant byServices Manager shall, if so agreed by the Agencythe Agency Services Manager if no protest is receivedProgramme Joint Council, using the procedures of thefrom any Member;BSP, levy an administration charge on the Agent to cover

additional workload caused by the tardy submission of 3.4.5(b) the place of business must not be identified asfinancial documents and/or caused by delay in meeting an office of a Member or of a group of Members;the prescribed conditions referred to in Subpara-graph 3.4.1.a.ii above. The charge shall be as recom- 3.4.6 the applicant, its managerial staff or its principalmended by the Agency Services Manager and agreed by stockholders (or persons for whom they act as nominees),the Agency Programme Joint Council on an annual basis; directors or officers or managers shall not have been

found guilty of wilful violations of fiduciary obligations3.4.1(a)(v) if the termination takes effect pursuant to the incurred in the course of business nor be undischargedprovisions of Subparagraph (i) or (ii) above, the Agent bankrupts; any Member holding such information shallmay, within 30 days of the termination, invoke the immediately inform the Agency Services Manager accord-procedures for review of the Agency Administrator's ingly;action by the Travel Agency Commissioner; in such casethe Agency Administrator shall place the Agent on a 3.4.7 no person who is a director of or who holds anon-commissionable Cash Basis pending the outcome of financial interest or a position of management in thethe review and notify the Agent, ISS Management, and all applicant shall have been a director of, or had a financialMembers and Airlines accordingly; interest or held a position of management in, an Agent

which has been removed from the Agency List, or is3.4.1(b) when the financial position of an Agent is subject under notice of default, and still has outstanding commer-to examination by the Agency Administrator, and the cial debts; provided that the applicant may neverthelessAgent is unable to meet the financial criteria of the Travel be approved if the Agency Services Manager is satisfiedAgent's Handbook, the Agency Administrator shall take that such person was not responsible for the acts ornormal business fluctuations into account and provide the omissions that caused such removal or default and isAgent with a reasonable period of time to meet those satisfied that the applicant can be relied upon to complycriteria; with the terms of the Sales Agency Agreement, these

Rules and other Resolutions of the Conference;3.4.2 the applicant must wholly own and fully manage thebusiness for which approval is sought as a Branch Office 3.4.8 the applicant is not a General Sales Agent in theLocation; country (whether or not for the whole of the country) for

any air carrier; provided that this shall not preclude3.4.3 The applicant must have in its employment compe-approval of such an applicant by the Agency Servicestent and qualified staff able to sell international airManager if the application contains evidence to histransportation and correctly issue electronic travel docu-satisfaction that the applicant will have ceased to be suchments and report these to the BSP.a General Sales Agent before the date of effectiveness ofthe Agency Services Manager's decision to accredit the3.4.4(a) the place of business under application shall beapplicant;open for business on a regular basis, be identified and

trade as a travel agency; provided that a place of 3.4.9 the premises in respect of which approval is soughtbusiness which does not meet the aforementioned condi-shall meet the security standards set out in Section 6 oftions may nevertheless be approved if it meets all otherthese Rules (or their equivalents established by thequalifications of this Section and is:Conference and published in the Handbook) and theapplicant undertakes to implement the security precau-3.4.4(a)(i) solely devoted to the organising of Inclusivetions prescribed;Tours and performs the issuance of Traffic Documents

related to such Inclusive Tours only, or 3.4.10 in respect of the issue of Traffic Documents afterapproval, an Agent shall comply with the provisions of3.4.4(a)(ii) a Branch Office Location situated on theResolution 822 to the extent that they affect an Agent'spremises of an organisation, plant or commercial firm andobligations or actions;dedicated substantially to the travel requirements of that

organisation, plant or commercial firm; 3.4.11 where so agreed by the Agency Programme JointCouncil, the applicant shall have, at the place of business3.4.4(b)(i) the place of business shall not be located inunder application, the facility to issue on behalf ofoffice space jointly occupied with another travel agency,Members/Airlines participating in the BSP, STDs throughan Accredited Agent or an air carrier;



the use of an approved Electronic Ticketing System as Section 4 — Proceduresdefined in Resolution 854;

Upon request, the Agency Services Manager shall supply3.4.12 An Agent is required to safeguard manual STDs in each prospective applicant with an application form and aits possession by storing them in a lockable steel cabinet copy of the IATA Travel Agent's Handbook (at a nominalwhen not in use. An Agent that does not use manual charge) containing these Rules and other relevant infor-STDs is recommended to take all necessary precautions mation and guidance.to protect its business and business applications but isnot required to maintain any lockable device.

4.1 APPLICATION FOR ACCREDITATION3.4.13 where officially required, the applicant must be inpossession of a valid licence to trade; an applicant which wishes to be included on the Agency

List and have a place of business entered as an3.4.14 all material statements made in the application Approved Location on the Agency List, or an Agent whichshall be accurate and complete. wishes to have an additional place of business entered asan Approved Location on the Agency List, shall apply tothe Agency Services Manager who is empowered to3.5 ELECTRONIC TICKETING accredit the applicant or to reject such applications.

The following provisions shall apply in any country/area inwhich a BSP is in operation, where Electronic Ticketing 4.2 FORM OF APPLICATION —has been implemented.

PROCESSING3.5.1 Granting and Termination of Electronic

4.2.1 the applicant must complete the application formTicketing Authority prescribed. The submitted application shall be accompa-nied by financial statements as required under Section 3,3.5.1.1 a Member or Airline participating in the Billing andSubparagraph 3.4.1(a) of these Rules, other documentsSettlement Plan may issue an ET Authority to a Head oras set forth in the Handbook and by fees covering theBranch Office Location of the Agent.following:

3.5.1.2 any Member or Airline having issued an4.2.1.1 application fee which is non-refundable, andElectronic Ticketing Authority to an Agent, may cancel

such authority in respect of the Agent, or any Location of 4.2.1.2 entry fee, andthe Agent by so notifying the Agent in writing.4.2.1.3 the first annual agency fee;3.5.1.3 the Member or Airline shall simultaneously advise

the BSP of the removal of the Electronic Ticketing 4.2.2 upon receipt, the Agency Services Manager shallAuthority and the BSP Manager shall instruct the promptly consider whether such application is complete. IfSYSTEM to inhibit Electronic Ticketing issuance on behalf any of the required information or fees have not beenof that Member or Airline. included with the application the Agency Services Man-

ager shall so inform the applicant;3.5.2 Issuance of Electronic Tickets

4.2.3 if the Agency Services Manager finds thethe Agent shall comply with the instructions issued by the application is complete, he shall publish promptly toBSP and the Ticketing Carrier(s) in relation to the Members in a listing that such application has beenissuance and reporting of Electronic Tickets. received. Such listing shall be published as required;

4.2.4 the Agency Services Manager shall arrange for atleast one inspection report to assist him in determiningwhether the applicant meets the qualifications necessaryto become an Accredited Agent or Approved Location;

4.2.5 the Agency Services Manager shall consider eachapplication and supporting information and any otherinformation brought to his attention and decide within15 days of the application listing if the applicant meets thequalifications to become an Accredited Agent orApproved Location;

4.2.6 the applicant shall be notified promptly in writing ofthe Agency Services Manager's action and in the event ofrejection shall be given clear reasons why the applicationfailed;

4.2.7 a rejected applicant or an Agent whose applicationfor an additional location has been rejected may, within30 calendar days of the date of the Agency Services



Manager's notice, request reconsideration of the decision activity for which the additional numeric code is requiredby the Agency Services Manager or may invoke the is conducted solely at the Location concerned and inprocedures for review of the Agency Services Manager's compliance with the provisions for the safe custody ofaction by the Travel Agency Commissioner; traffic documents and security of premises set forth in

Section 6 of these Rules, and that the Agent has4.2.8 subsequent to approval and addition to the Agency developed adequate stock control procedures to ensureList any Member may register with the Agency Services that the separate stocks of STDs supplied to that LocationManager information concerning the Accredited Agent, in respect of the different numeric codes allocated to itwhere it feels that approval justifies further review. are not commingled.

4.3.5(a)(iii) if satisfied that the foregoing conditions are4.3 ACTION FOLLOWING ACCREDITATION met, the Agency Services Manager shall request the

Agency Administrator to allocate the numeric codeOF APPLICANTaccordingly,

4.3.1 if the Agency Services Manager determines that the4.3.5(a)(iv) an entry fee and an annual agency fee shallapplicant or location has shown that it meets the qualifica-be payable as though the numeric code applied to ations, he shall request the Agency Administrator to enterseparate Branch Office Location in accordance with 15.1the applicant or location on the Agency List;of Section 15 of these Rules;

4.3.2 the Director General, acting on behalf of such IATA4.3.5(b) the additional numeric code so allocated shall beMembers as may appoint Agents, shall execute a Salesentered on the Agency List but such entry shall not beAgency Agreement with each Person accredited as anconsidered as establishing a separate Branch OfficeAgent in accordance with these Rules and the AgencyLocation.Administrator shall promptly notify all Members of the

names of parties executing Sales Agency Agreementsand the dates of such Agreements;

4.4 APPOINTMENT OF AGENT BY4.3.3 the Agency Administrator shall maintain, publish INDIVIDUAL MEMBERSand circulate from time to time, an Agency List of allPersons with whom the Director General has entered into 4.4.1 Manner of Appointmenta Sales Agency Agreement in accordance with Subpara-graph 4.3.2 of this Paragraph, which will include, but not 4.4.1.1 a Member may appoint an Accredited Agentbe limited to, the following information: which is on the Agency List and such appointment shall,

unless otherwise specified, cover all Approved Locations4.3.3.1 name and postal address, of the Agent:

4.3.3.2 address of place of business, 4.4.1.1(a) the Member may deposit with the AgencyAdministrator a statement of general concurrence for the4.3.3.3 type (Head Office, Branch or Administrative appointment of all Accredited Agents. The Agency Admin-Office), istrator shall from time to time publish in the TravelAgent's Handbook a list of Members having deposited4.3.3.4 date of Accreditation,with him a statement of general concurrence,

4.3.3.5 Passenger Agent's Numeric Code;4.4.1.1(b) alternatively, a Member may deliver to suchAgent a Certificate of Appointment in the form prescribed4.3.4 for the purpose of these Rules, a Person's nameby the Conference;shall be deemed to be included on the Agency List from

the date when such Agreement is entered into until thedate when it is terminated, and a Location shall be 4.4.2 Effectiveness of Appointmentdeemed to be included on the Agency List from the date

4.4.2.1 individual appointments shall be effective:when the Agreement applies to that place of business tothe date when it ceases so to apply; 4.4.2.1(a) as to those Members who have deposited a

statement of general concurrence, immediately upon4.3.5(a) an Accredited Agent which operates under ainclusion of the Agent on the Agency List, or as from theBSP and wishes to identify a specific sales activitydate the statement is deposited if such date is subse-performed at an Approved Location, may request thequent to that of the Agent's inclusion on the Agency List,allocation of an additional IATA Numeric Code (herein-

after referred to as “numeric code”) for such purpose, on 4.4.2.1(b) as to any other Member, as from the date onthe following conditions:the Certificate of Appointment which shall not be datedearlier than the date when the Agent was included on the4.3.5(a)(i) the Agent shall apply in writing to the AgencyAgency List.Services Manager, describing the specific sales activity

referred to in Subparagraph 4.3.5(a) above and request-ing the allocation of an additional numeric code to identifysuch sales activity,

4.3.5(a)(ii) on receipt of such application, the AgencyServices Manager shall verify that the specific sales



4.5 TERMINATION OF INDIVIDUAL Section 5 — Custody and IssueAPPOINTMENT of Traffic Documents4.5.1 any Member having appointed an Accredited Agent Only Accredited Agents at Approved Locations may holdto act for it may cancel such appointment in respect of the Standard Traffic Documents and Carrier IdentificationAgent or any Location of the Agent: Plates. ISS Management shall provide Agents with stocks

of Standard Traffic Documents.4.5.1.1 in the case of appointment by general concur-rence, by so notifying the Agent in writing, with copy tothe Agency Administrator; 5.1 AIRLINES AND MEMBERS

PARTICIPATING IN THE BILLING4.5.1.2 in other cases, by delivering to the Agent a noticeof termination cancelling the Certificate of Appointment. AND SETTLEMENT PLAN

5.1.1 an Airline or Member participating in the Billing andSettlement Plan may place its Carrier Identification Plate4.6 CAPACITY AND INDEMNITYat a Head or Branch Office Location of the Agent

the Director General, the Agency Administrator, the appointed by it; provided also that a Carrier IdentificationAgency Services Manager and ISS Management, in Plate supplied to an Approved Location shall also author-performing any action pursuant to these Rules, to other ise the Agent, unless otherwise advised by the Airline orapplicable Resolutions and to Resolution 850 and its Member to the Agent in writing, to issue Standard TrafficAttachments, act not as principals but as agents for the Documents on any additional numeric codes assignedMembers concerned. under the provisions of Section 4 of Subpara-

graph 4.3.5(a) of the Sales Agency Rules to identifyMembers appointing Agents undertake to indemnify IATA, specific sales activities; conversely, the Airline or Memberits officers, employees and other appointees against is entitled to withdraw such Carrier Identification Plate;liability (including liability for legal costs) for any actiontaken or omitted in good faith in the performance of theirfunctions under these Rules (other than under Section 1 5.2 MEMBERS NOT PARTICIPATING INof Resolution 832) and under other applicable Resolu- THE BILLING AND SETTLEMENT PLANtions. Members and Airlines participating in a Billing andSettlement Plan undertake to indemnify IATA its officers, 5.2.1 a Member, not participating in the BSP, and wishingemployees and other appointees against liability to conduct business with Accredited Agent at Approved(including liability for legal costs) for any action taken or Locations, shall do so in accordance with the provisionsomitted in good faith in the performance of their functions of the Passenger Sales Agency Agreement. This agree-with respect to such Plan under Sections 1 and 3 of ment and the Travel Agent Handbook govern the relation-Resolution 832 and under Resolution 850 and its ship between the Member and the Agent;Attachments.

5.3 REMOVAL BY MEMBERthe removal by a Member of its Traffic Documents/CarrierIdentification Plates from an Agent's custody is governedby the Passenger Sales Agency Agreement. Exceptwhere withdrawal of electronic ticketing authority(including any material reduction in ticketing) is due to thefinancial position of the Agent, withdrawal (including anymaterial reduction) shall not be effected, except uponreasonable cause and upon at least 3 business days priornotice.

5.4 REMOVAL BY AGENCYADMINISTRATOR IN SPECIALCIRCUMSTANCESin the event a Member ceases all of its scheduled airservice operations for reason of financial failure, theAgency Administrator shall on instruction from the dis-abled Member or from the Director General cause theMember's Traffic Documents and/or Carrier IdentificationPlates to be removed from the possession of any or allApproved Locations known to be holding them.



5.5 ADDITIONAL RESPONSIBILITIES Section 6 — Application of MinimumOF AGENT Security Standards for Safe Custody of

Standard Traffic Documents and Carrier5.5.1 an Agent is responsible for the safe custody andcare of Traffic Documents and Carrier Identification Plates Identification Plateswhilst these are in its possession;

5.5.2 Traffic Documents shall be completed, validated 6.1 PREMISESand issued by the Agent only at an Approved Location.When issuing Standard Traffic Documents, the Agent An Agent shall take all reasonable precautions to secureshall use only such Carrier Identification Plates or other its business and prevent access to its premises orticketing authority as deposited by the Member or Airline systems by unauthorised parties.with the issuing Location. Traffic Documents and Identifi-cation Plates shall be stored at such Location, unlessotherwise authorised under these Rules; 6.2 SECURITY STANDARDS FOR MANUAL

TRAFFIC DOCUMENTS5.5.3 a Member or Airline or ISS Management acting onits behalf shall be entitled at any time to audit or procure As long as an Agent holds paper accountable Standardan audit of Traffic Documents and Identification Plates, or Traffic Documents the Agent is responsible for theirto ascertain that security standards are met; safe-keeping.

5.5.4 an Agent shall not sell, validate or issue a Traffic 6.2.1 Agents shall ensure that STDs and Agents' Valida-Document of or in the name of a Member or Airline for tor Plates shall not be accessible to unauthorised per-transportation solely on any other air carrier, unless the sons, nor left unprotected.Agent has been so authorised by the Member or Airlinewhose Traffic Document or Carrier Identification Plate has 6.2.2 All manual accountable Standard Traffic Docu-been used; ments, when not in use, shall be kept in a lockable steel

cabinet. If a safe is installed on the premises, paper5.5.5 an Agent shall not knowingly accept in any manner accountable Standard Traffic Documents should bewhatsoever unissued Traffic Documents assigned to and stored in the safe.or held by another Agent, whether or not such documentshave been validated. Should any Agent receive an 6.2.3 When not in use CIPs and Agents' validator platesoffer of the nature described above, such offer shall be shall be stored on the premises of the Approved Locationrefused and shall be reported in detail to the Agency under lock and key in a secure metal cabinet or secureAdministrator. metal chest separately from any supply of STDs;

5.5.6 an Agent that does not make use of StandardTraffic Documents in its possession for a period in excess 6.3 AGENT RESPONSIBILITIESof six months shall have such BSP stock removed by theAgency Administrator. In the event, subsequent to the The Agent, regardless of any security measures taken,action above, an Agent has reason to request provision of assumes full and absolute liability for any and all damage,new stock it shall be subject to a BSP inspection and a expenses or loss experienced by any carrier, its officers,review of its financial standing. agents or employees on account of the loss, misapplica-

tion, theft or forgery of such Standard Traffic Documents.The security and maintenance of Standard Traffic Docu-ments assigned to the Agent and the reporting andsettling of all such documents shall be the responsibilityof the Agent in accordance with the Passenger SalesAgency Rules as may be modified from time to time.

6.4 REPORT BY AGENT OF BREACHESOF SECURITY6.4.1 in the event that the premises of an AccreditedAgent suffer any form of unlawful entry irrespective ofwhether any material loss is incurred, the Agent shallimmediately notify the local police authorities, and theAgency Services Manager;

6.4.2 in the event that STDs or CIPs are removed fromthe premises of an Approved Location, or are destroyed,as a consequence of robbery, theft, burglary, fraud or anyother unlawful means, the Agent shall immediately notifythe local police authorities and shall simultaneouslyadvise the Agency Services Manager with respect to



STDs using the form prescribed in the Travel Agent's 6.6.3.3(a) conclude that the matter warrants no furtherHandbook. Upon discovering that an Agent failed to action in which case he shall notify the Agent and theobserve such notification requirement, the Agency Admin- party requesting the review accordingly and shall closeistrator shall initiate a review of the Agent by the Travel the file and so notify concerned BSP Airlines, orAgency Commissioner.

6.6.3.3(b) because the Agent does not contest its failureto fulfil its aforementioned obligations, the Agency Admin-istrator may endeavour to settle the matter with the Agent6.5 VERIFICATION ACTIONwithout reference to the Travel Agency Commissioner by

Upon receipt of advice from an Agent, IATA or a BSP entering into an agreement with the Agent to appoint aAirline that an Agent has suffered loss as the conse- sole arbitrator by mutual agreement and to stipulate aquence of robbery, theft, burglary, fraud or any other penalty to be imposed. In this event the said agreementunlawful means which might include loss of STDs, the together with all other relevant documents shall beAgency Services Manager shall immediately notify all submitted to the sole arbitrator who shall make anBSP Airlines in the country with copy to the Agency appropriate award. If the Agency Administrator is unableAdministrator. to reach such agreement with the Agent then he shall

refer the matter to the Travel Agency Commissioner, or

6.6.3.3(c) when the Agent denies its failure to fulfil its6.6 FAILURE TO FULFIL CONTRACTUALcontractual obligations related to custody and/or issuanceOBLIGATIONS RELATED TO THE CUSTODYof STDs, or where after 30 days from the date of theAND/OR ISSUANCE OF STANDARD notification the Agent has not submitted a written answer,

TRAFFIC DOCUMENTS the Agency Administrator shall refer the matter to theTravel Agency Commissioner.6.6.1(a) any BSP Airline or the Agency Administrator in

order to recover and prevent continuing loss of BSPAirlines’ revenue as result of:

6.6.1(a)(i) alteration of, or falsification of entries in STDswhilst in the custody of an Agent, or

6.6.1(a)(ii) theft of STDs or of CIPs from an Agent'spremises when there is no evidence of burglary or breakin or under the circumstances when the Agent failed tomaintain adequate security standards at the time of thetheft,

6.6.1(b) may request to have the matter reviewed by theTravel Agency Commissioner. BSP Airlines shall directsuch requests to the Agency Administrator;

6.6.2 if such review is requested the Agency Administra-tor shall undertake an investigation into the circumstancessurrounding the request;

6.6.3/6.6.3.1 if the conclusion of the Agency Administra-tor is that the Agent had fulfilled its contractual obligationsrelated to the custody and/or issuance of STDs, he shallso inform the BSP Airline requesting the review and closethe file,

6.6.3.2 if the conclusion of the Agency Administrator isthat the Agent has not fulfilled its aforementioned obliga-tions he shall within seven days send a written report tothe Agent together with a notification that he intends toplace the matter before the Travel Agency Commissionerand shall so notify the requesting BSP Airline and thoseBSP Airlines which the investigation revealed might beaffected by the alleged failure. The Agency Administratorshall invite the Agent to submit a written answer togetherwith such evidence as it wishes within 30 days from thedate of notification,

6.6.3.3 upon timely receipt of the Agent's written answerand after consultation with such authorities as he deemsappropriate, the Agency Administrator may either:



Section 7 — Reporting and Remitting Section 8 — (Intentionally left blank)through the Billing and Settlement PlanThe provisions regarding sales reports, billings, remit-tances and collections and defaults under a Billing andSettlement Plan are contained in Section 1 of Resolu-tion 832.



Section 9 — Consequences of Default Section 10 — Conditions for Paymentof Commission and other RemunerationThe provisions regarding the consequences of default are

contained in Section 3 of Resolution 832.10.1 RATE OF COMMISSION OR AMOUNTOF REMUNERATIONcommission and/or the amount of other remuneration paidto Agents for the sale of international air passengertransportation shall be as may be authorised from time totime by the Member, provided that the Agent complieswith the applicable rules governing sales of the transpor-tation. It is recommended that notification of changes tosuch commission or other remuneration will be given wellin advance. No commission or other remuneration shallbe paid on Miscellaneous Charges Orders unless the airtransportation for which they have been issued is specifi-cally described therein. Taxes on commission or otherremuneration, collectable by the Member on behalf of thecompetent fiscal authorities, shall be deducted from anycommission or other remuneration paid to or claimed bythe Agent.

10.2 AUTHORITY TO PAY COMMISSIONAND OTHER REMUNERATIONonly Agents duly appointed by the Member shall be paidcommission or other remuneration for the sale of interna-tional air passenger transportation.

10.3 INTERLINE SALESthe amount of fare on which commission shall becomputed may include, and the level of any otherremuneration may take into account, interline passengertransportation over the services of other Members withwhich the Agent's principal has an interline traffic agree-ment. A Member may also pay commission or otherremuneration to an Agent for passenger transportationsold on the services of an air carrier that is not a Memberwhen the Member has been so authorised by such aircarrier.

10.4 CONDITIONS FOR PAYINGCOMMISSION10.4.1 where commission is payable to an Agent it shallbe calculated on the amount of the fares applicable to theair passenger transportation or charter price paid over tothe Member, or to the Clearing Bank under the Billing andSettlement Plan, and collected by the Agent; providedthat this shall not prevent commission being paid wheresuch sale is made:

10.4.1.1 pursuant to the Universal Air Travel Plan or acredit plan recognised by the Member (provided theAgent has procured and forwarded to the Member theUniversal Credit Card Charge Form or other documentsrequired under the credit plan, validated by an imprint ofthe date of issuance and Agent's name), or pursuant toan instalment plan of a Member made available to thepublic by the Member concerned; or with respect to bona



fide immigrants to South Africa, pursuant to a government Section 11 — Change of Ownership,assisted passage loan or contribution plan wherein the Legal Status, Name or Locationgovernment lends or contributes part or all of the cost oftransportation to the passenger;

11.1 NOTIFICATION OF CHANGES10.4.1.2 on a prepaid ticket advice when the Agentissues the ticket or arranges for the issuance of the ticket

notification with respect to changes of ownership, legaland the fare is paid by the purchaser directly to thestatus, name or location of the Agent shall be given to theMember, the Member's Passenger General Sales AgentAgency Administrator prior to the change, and processedor to an air carrier with which the Member has an interlinein accordance with the provisions of this Section; providedtraffic agreement (or such carrier's General Sales Agent);that

10.4.2 the ‘fares applicable’ are the fares (including fare 11.1.1 when an Agent with more than one Approvedsurcharges) for the transportation in accordance with theLocation undergoes a change of ownership and/or statusMember's tariffs and shall exclude any charges for excessthe application for approval of such change shall bebaggage or excess valuation of baggage as well as allsubmitted only in respect of the Head Office Location andtaxes and other charges collected by the Agent.shall apply to all Approved Locations if the Agent confirmson its own letterhead that except for such new ownershipor status the information previously submitted in10.5 RECALL OF COMMISSION OR OTHERconnection with the other Approved Locations remainsREMUNERATION unchanged;

when a refund is made of all or any part of the fare or 11.1.2 when an Agent undergoes a change of ownershipcharge for any transportation, the commission or other or status which also includes a change of name orremuneration shall be recomputed on the unrefunded fare location, all changes shall be notified by the Agent in aor charge. If the commission or other remuneration has single notice of change and actioned by the Agencyalready been paid, any amount in excess of the recom- Administrator as one application.puted commission or other remuneration shall be paidback. When there is an involuntary change of routinginvolving a substitution of surface transportation for con- 11.2 PROCESSING OF CHANGESfirmed air transportation a recall of commission or otherremuneration shall not be deemed due. In case of 11.2.1 Changes requiring a new Passengerinvoluntary change of routing to other air services, nothing Sales Agency Agreemententsshall prevent the Member from passing on the commis-sion or other remuneration received from the new carrying the following changes of ownership shall require thecarrier. execution of a new Sales Agency Agreement, and shall

be processed in accordance with Paragraph 11.3 of thisSection:

11.2.1(a) in the case of a sole owner, partnership orother unincorporated firm:(i) the transfer of an interest in the Agent which has the

effect of transferring control of the Agent to a Personin whom it was not previously vested,

(ii) the admission or withdrawal of a partner,(iii) the incorporation of the Agent;

11.2.1(b) in the case of a corporation,(i) the disposal of the Agent's business and its acquisi-

tion by a Person who is not an Agent;(ii) the transformation of the Agent into a partnership or

other unincorporated firm,(iii) any change which reduced the liability of any Person

who was previously liable, directly or indirectly, forthe debts of the corporation,

(iv) any other change in the legal personality of theAgent, such that after the change, pursuant toapplicable national law the legal personality of theAgent is not that existing prior to the change of legalstatus;



more of the requirements set out in Subparagraphs11.2.2 Changes not requiring a new Passenger3.4.1(a), 3.4.2, 3.4.5, 3.4.6, 3.4.7, 3.4.8, 3.4.11 andSales Agency Agreement3.4.12 of Section 3 of these Rules. Nevertheless if prior to

the following changes of ownership in a corporation shall the final decision on the application the transferee elimi-not require the execution of a new Sales Agency Agree- nates the grounds for disapproval to the satisfaction ofment, and shall be processed in accordance with Para- the Agency Administrator, the Agency Administrator shallgraph 11.4 of this Section: execute a provisional Sales Agency Agreement with the

transferee;(a) a reduction of capital,(b) the disposal or acquisition by any Person of stock 11.3.3 the transferee's provisional Sales Agency Agree-

representing 30% or more of the total issued share ment shall take effect from the date when the change ofcapital of the Agent, ownership and/or status takes place. The transferor's

(c) unless the transfer of stock has the effect of vesting Sales Agency Agreement shall terminate or cease tothe control of the Agent in a Person in whom it was apply to the Location concerned as of the date when thenot previously vested, whether by means of a single change of ownership and/or status takes place, withouttransaction or as the result of a series of transac- prejudice to the fulfilment of all obligations accrued priortions, over a period of not more than three years; to the date of termination;

(d) the disposal or acquisition by any Person of stock 11.3.4 a provisional Sales Agency Agreement shall be inrepresenting 29% or less of the total issued sharethe same form and have the same effect as a Salescapital of the Agent, a current financial review shallAgency Agreement. The Agency Administrator shall notifynot be requiredall Members of the execution of the provisional agreementand on receipt of such notice Members may do business11.2.3 the following other changes shall be processed inwith the transferee as if he were an Accredited Agent.accordance with the appropriate Paragraph of this Sec-

tion as indicated:

11.2.3.1 death of sole owner or of a member of a 11.4 PROCEDURES FOR CHANGES NOTpartnership or other unincorporated firm; Paragraph 9; REQUIRING A NEW PASSENGER SALES

AGENCY AGREEMENT11.2.3.2 death of stockholder; Paragraph 10;when an Agent proposes to effect a change of ownership11.2.3.3 change of Location or name; Paragraph 11;as described in Subparagraph 11.2.2 of this Section:

11.2.3.4 sale of Location to another Accredited Agent; 11.4.1(a) the Agent shall give the Agency AdministratorParagraph 12;notice of the proposed change in the form of Appendix ‘A’to these Rules at least seven days before the change is11.2.3.5 sale of Branch Office Location to an outsideto be effected. As soon as possible the Agent shall alsoparty; Paragraph 14.provide a current financial statement. On receipt of thenotice, the Agency Administrator shall:

11.3 PROCEDURES FOR CHANGES 11.4.1(a)(i) bill the Agent for an application fee, asREQUIRING A NEW PASSENGER SALES provided in Subparagraph 15.1.1.4 of Section 15 of theseAGENCY AGREEMENT Rules, and

when an Agent proposes to effect a change of ownership 11.4.1(a)(ii) publish promptly to Members in a listing thatand/or status as described in Subparagraph 11.2.1 of this such a notice has been received,Section:

11.4.2 on receipt of a notice of change in time to enable11.3.1 the Agent (‘the transferor’) and the proposed new the Agency Administrator to process the change, theowner (‘the transferee’) shall jointly give the Agency Agency Administrator shall give provisional approval ofAdministrator notice of the proposed change in the form the change unless the notice reveals or the Agencyprescribed by Appendix ‘A’ to these Rules at least seven Administrator has reason to believe that the Agent shoulddays before the change is to be effected. At the same not be retained because it does not meet one or more oftime the transferee shall submit an application for the requirements set out in Subparagraphs 3.4.1(a),approval and inclusion in the Agency List in accordance 3.4.2, 3.4.5, 3.4.6, 3.4.7, 3.4.8, 3.4.11, and 3.4.12 ofwith Section 3 of these Rules and the application shall be Section 3 of these Rules. Nevertheless if prior to the finalconsidered and dealt with in accordance with the provi- decision on the change the Agent eliminates the groundssions of that Section; for disapproval to the satisfaction of the Agency Adminis-

trator, the Agency Administrator shall give provisional11.3.2 on receipt of a notice of change and a duly approval of the change;completed application in time to enable the AgencyAdministrator to process the application, the Agency 11.4.3 the provisional approval of the change shall takeAdministrator shall execute a provisional Sales effect from the date when the change takes place andAgency Agreement with the transferee unless the the Agency Administrator shall notify all Members accord-application reveals or the Agency Administrator has ingly.reason to believe that the application should be disap-proved because the transferee does not meet one or



withdraw a provisional approval that has been given and11.5 LACK OF PROVISIONAL AGREEMENTterminate the Agent's Sales Agency Agreement or itsOR APPROVALapplication to the Location concerned,

when pursuant to Subparagraph 11.3.2 or 11.4.2 of this 11.7.1(b) in all such notices the Agency AdministratorSection the Agency Administrator is unable to execute ashall give the reasons for his action and notify allprovisional Sales Agency Agreement or to giveMembers accordingly. A disapproved transferee or Agentprovisional approval as at the date of the change, themay within 30 days of the Agency Administrator's noticeAgency Administrator shall notify all Members and ISSrequest reconsideration of the decision by the AgencyManagement accordingly. With respect to the LocationAdministrator or invoke the procedures for review of theconcerned ISS Management shall arrange for all CarrierAgency Administrator's action by the Travel AgencyIdentification Plates and Standard Traffic Documents toCommissioner;be removed.11.7.2 upon request for reconsideration by the AgencyAdministrator or for review by the Travel Agency Commis-11.6 FINAL APPROVAL BY AGENCY sioner, the disapproval action shall be stayed and the

ADMINISTRATOR status quo ante restored pending the result of thereconsideration or of the review. If the Travel Agency11.6.1 in addition to any action taken by the Agency Commissioner confirms the disapproval, the transferee or

Administrator under Paragraphs 11.3 and 11.4 of this Agent may request review of such decision by arbitrationSection he shall obtain from such source and in such pursuant to Section 13 of these Rules in which case themanner as he may deem appropriate a report on the disapproval action shall continue to be stayed untiltransferee or Agent, as the case may be, indicating notification of the arbitration award;whether the requirements set out in Section 3 of theseRules are satisfied; 11.7.3 if the transferor or the Agent as the case may be

notifies the Agency Administrator that the change of11.6.2(a) if, the report shows that the said requirements ownership has been revoked and the Agent restored in allare satisfied, the Agency Administrator shall: respects to its previous ownership, the Agency Adminis-

trator shall reinstate the Agent's Sales Agency Agreement11.6.2(a)(i) in cases of a change as described in Sub-or its application to the Location concerned and, whenparagraph 11.2.1.1 or in Paragraph 11.2.2 of this Section,applicable, reinstate credit facilities and notify the Agentnotify the transferee that the provisional Sales Agencyand all Members accordingly.Agreement shall cease to be provisional and shall

become a Sales Agency Agreement,

11.8 UNDERTAKING BY TRANSFEREE11.6.2(a)(ii) in cases of a change as described in Sub-paragraph 11.2.1.1 of this Section, notify the Agent that 11.8.1 every application for approval shall be accompa-the provisional approval of the change shall cease to be

nied by an undertaking by the transferee to accept jointprovisional and shall become a full approval;and several liability with the transferor for any outstandingobligations of the transferor under its Sales Agency11.6.2(b) the Sales Agency Agreement or the finalAgreement as of the date when the transfer of ownershipapproval of the change shall take effect 60 days from thetakes place; anddate of the publication to Members of the intended

change by the Agency Administrator or on the date the 11.8.2 in cases where the transferor is employed by orchange takes place, whichever is the later. The Agencyretains a financial or beneficial interest directly orAdministrator shall notify all Members accordingly and,indirectly in the Agent after the change of ownership, thewhen required, make any necessary amendment to theapplication shall be accompanied by an undertaking byAgency List.the transferee to accept responsibility for any violation bythe transferor of its Sales Agency Agreement whichmay have occurred within a period of two years immedi-11.7 EFFECT OF DISAPPROVALately prior to the change of ownership as if such violationwere a violation of the transferee's Sales Agency Agree-11.7.1(a) if the Agency Administrator is unable to executement.a Sales Agency Agreement with a transferee or to give

final approval of a change to an Agent, as the case maybe, he shall promptly notify the transferee or Agent and

11.9 DEATH OF A SOLE OWNER OR OFshall, simultaneously:MEMBER OF A PARTNERSHIP OR OTHER

11.7.1(a)(i) in cases of a change as described in Sub- UNINCORPORATED FIRMparagraph 11.2.1.1 or in Paragraph 11.2.2 of this Section,by notice to the transferor confirm that its Sales Agency 11.9.1 in the event of the death of the sole owner of anAgreement or its application to the Location concerned Accredited Agent, or of a member of a partnership orterminated on the date when the change of ownership other unincorporated firm, the Agent shall promptly advisetook place, and by notice to the transferee, terminate the the Agency Administrator. In order to preserve the good-provisional Sales Agency Agreement, if executed, will of the Agent as far as possible, the Agency Adminis-

trator may, at the request of the person entitled to11.7.1(a)(ii) in cases of a change as described in Sub- represent the decedent's estate (in the case of a soleparagraph 11.2.1.1 of this Section, by notice to the Agent



ownership) or of the remaining member of the partnership Agreement, provided that if the Agent demonstrates toor other unincorporated firm, enter into a temporary Sales the Agency Administrator prior to the termination date thatAgency Agreement with the requesting party, and advise it meets the financial criteria incorporated in the TravelMembers accordingly. The temporary Sales Agency Agent's Handbook the termination shall not take effect;Agreement shall be in the same form and have the same

11.10.2 if the person entitled to represent the decedent'seffect as a Sales Agency Agreement except that:estate proposes to transfer or to confirm the transfer of

11.9.1.1 if the Agency Administrator at any time has the decedent's interest in the Agent to an heir, legatee orreason to believe that the financial situation of the estate, other person, such transfer shall be deemed a change ofpartnership or other unincorporated firm is unsatisfactory, ownership for purposes of this Section. The Agent shallhe shall give the Agent notice of termination of the give notice to the Agency Administrator as required undertemporary Sales Agency Agreement and notify all Mem- Subparagraph 11.4.1(a) of this Section and the provisionsbers accordingly, of Paragraphs 11.4, 11.5, 11.6 and 11.7 of this Section

shall apply.11.9.1.2 if prior to the date of termination of the tempo-rary Sales Agency Agreement the estate or partnership orother unincorporated firm submits evidence of a satisfac- 11.11 CHANGE OF LOCATION OR NAMEtory financial situation, the termination shall not take effectand the Agency Administrator shall notify the Agent and 11.11.1(a) when an Agent moves from an Approvedall Members that credit may be reinstated, Location to another location not so approved, such Agent

shall:11.9.1.3 if the termination of the temporary Sales AgencyAgreement takes effect, the Agency Administrator shall 11.11.1(a)(i) as far in advance as possible but in anyremove the Agent from the Agency List and notify the case before effecting the move, notify the Agency Admin-Agent and all Members accordingly. Upon receipt of such istrator of the new address and remit the appropriatenotice, Members shall take the same action as required application fee,on removal of an Agent from the Agency List;

11.11.1(a)(ii) submit as soon as practicable two photo-11.9.2 if the person entitled to represent the estate of the graphs of the interior and exterior of the new location,decedent proposes to transfer or to confirm the transfer of

11.11.1(b) the Agency Administrator shall obtain anthe decedent's interest in the Agent to an heir, legatee orinspection report of the new location and shall notify allother person, or notifies that the decedent's interest isMembers of the proposed new location. If the inspectionwithdrawn from the partnership or other unincorporatedreport is favourable, the new location shall be deemed anfirm, such transfer or withdrawal shall be deemed aApproved Location. If the investigation report is unfa-change of ownership for the purposes of this Section. Thevourable the new location shall not be approved and thesignatory of the temporary Sales Agency Agreement andAgency Administrator shall give the Agent notice ofthe transferee shall jointly give notice to the Agencytermination of the Sales Agency Agreement or of removalAdministrator as required under Subparagraph 11.3.1 offrom the Agency List in the case of a Branch Officethis Section and thereafter the provisionsLocation and notify all Members accordingly. Such termi-of Paragraphs 11.3, 11.5, 11.6, 11.7 and 11.8 of thisnation or removal shall not take effect if, prior to the dateSection shall apply;of termination or removal, the Agency Administrator is

11.9.3 subject to earlier termination under the provisions able to approve the application for change of location;of Subparagraph 11.9.1 or 11.9.2 of this Paragraph, a

11.11.1(c) the authority to act as an Approved Locationtemporary Sales Agency Agreement with the representa-shall continue to apply to the new location, pending thetive of the estate of a deceased sole owner shallaction taken under Subparagraph 11.11.1(b) of this Para-terminate if such representative ceases to carry on thegraph, provided that the move from the ApprovedAgent's business at the Location covered by the Agree-Location to the new location is effected on, but in noment.event more than five working days later than, the date theApproved Location is closed;

11.10 DEATH OF STOCKHOLDER 11.11.2(a) when an Agent changes its name, such Agentshall:11.10.1 in the event of the death of a stockholder holding

30% or more of the total issued stock of a corporate body 11.11.2(a)(i) notify promptly the Agency Administrator of(or in whom control of the Agent is vested), the Agentthe new name, andshall promptly advise the Agency Administrator who shall

notify all Members accordingly and request the Agent to 11.11.2(a)(ii) remit the appropriate application fee;submit current financial statements:

11.11.2(b) the Agency Administrator shall determine11.10.1.1 if the financial situation of the Agent is found to whether the new name can be approved pursuant to thebe satisfactory, the Agent may continue to do business provisions of Subparagraph 3.4.5(a), Section 3 of thesewith Members as an Accredited Agent, Rules. If affirmative, he shall approve the new name,

notify all Members accordingly and record the new name11.10.1.2 if the financial situation of the Agent is found toon the Agency List and in the Agent's Agreement. Ifbe unsatisfactory, the Agency Administrator shall givenegative, the Agency Administrator shall disapprove thethe Agent notice of termination of the Sales Agency



application and shall give the Agent notice of termination 11.14.1.1 apply to the Agency Services Manager, givingof the Sales Agency Agreement and notify all Members full details of the proposed change, andaccordingly. Such termination shall not take effect if, prior

11.14.1.2 on request from the Agency Services Manager,to the date of termination, the Agent reverts to itsshall remit the appropriate administration fee or suchapproved name or the Agency Administrator is able toother fee, appropriate to the change, as provided for inapprove the application for change of name;these Rules;

11.11.3 when an Agent's application for change of11.14.2 the Agency Services Manager shall determine iflocation or name is disapproved, or its Sales Agencythe change of Location Type requested by the Agent is ofAgreement is terminated or its Approved Location isan administrative nature or one requiring further investiga-removed from the Agency List, the Agent may, withintion and processing under another provision of these30 days of the Agency Administrator's notice, invoke theRules;procedures for review of the Agency Administrator's

action by the Travel Agency Commissioner; in such case 11.14.3 if the former, the Agency Services Manager shallthe Agency Administrator shall place the Agent or therecord the change of Location Type in the Agency ListLocation concerned on a non-commissionable Cashand notify the Agent and all Members accordingly;Basis pending the outcome of the review, and notify the

Agent and all Members accordingly. 11.14.4 if the latter, he shall so notify the Agent andproceed to process the change as provided for elsewhere11.11.4 Change of Head Office location to under these Rules;

another country

In the event a Head Office location changes from one 11.15 LATE NOTIFICATION OR ABSENCEcountry to another without prior notification, the Head OF NOTIFICATION OF CHANGEOffice and all of its Locations shall be suspended pendingreview of its changed circumstances and evidence con- 11.15.1 if the notification and, when required, the com-firming its principal place of business for the Head Office pleted application in respect of a change of ownership orand compliance with the criteria applicable to the country status is not received by the Agency Administrator or isconcerned. Such suspension may lead to removal from received after the change has taken place, the Agencythe agency list and termination of the current Passenger Administrator shall remove the Agent from the AgencySales Agency Agreement until such time as a new List and notify the transferor (in the case of changesapplication for accreditation, complying with all local pursuant to Subparagraph 11.2.1.1 or to Paragraph 11.3criteria in the other country, is reviewed and approved of this Section) or the Agent (in the case of changesand a new Passenger Sales Agency Agreement has been pursuant to Subparagraph 11.2.1.2 of this Section) that itssigned with the Head Office legal and business entity in Sales Agency Agreement is terminated as of the date ofthe new country. the change. The Agency Administrator shall notify all

Members accordingly and the provisions of Subpara-graph 14.4.1 of Section 14 of these Rules shall apply.11.12 SALE OF LOCATION TO ANOTHER The application from the transferee, if any, shall be

ACCREDITED AGENT processed in accordance with the provisions of Section 3of these Rules;

in the event that an Agent sells a Location to anotherAgent the latter shall give notice to the Agency Adminis- 11.15.2 failure to notify the Agency Administrator of atrator as required under Subparagraph 11.4.1(a) of this change of name within 30 days of the change being madeSection and thereafter the provisions of Paragraphs 11.4, can result in a double irregularity being recorded and a11.5, 11.6 and 11.7 of this Section shall apply. review to ensure such Agent continues to meet the

Accreditation criteria. The notice of double irregularity andthe cost of undertaking the review, which shall be paid for

11.13 SALE OF BRANCH OFFICE by the Agent, will be confirmed in writing. If within 30 daysLOCATION TO AN OUTSIDE PARTY the Agent does not revert to its Approved name or submit

the required application for a change of name then thein the event the Agent (‘the transferor’) sells a Branch Agent shall be given notice of termination of the SalesOffice Location to another person who is not an Agent Agency Agreement; provided that if prior to the date of(‘the transferee’) the provisions of Paragraphs 11.3, 11.5, termination the Agent reverts to its approved name or the11.6, 11.7 and 11.8 of this Section shall apply. Agent submits the requisite application for the change of

name and the Agency Administrator is able to approvethe application, the termination shall not take effect;

11.14 CHANGE OF LOCATION TYPE11.15.3 failure to notify the Agency Administrator of a

11.14.1 in the event that an Agent wishes to change the change of location within 30 days of the change beingLocation Type under which it is shown in the Agency List made can result in a double irregularity being recordedto another Location type by which Locations are identified and a review to ensure such Agent continues to meet thein the Agency List, such as Head Office to Branch Accreditation criteria. The notice of double irregularity andLocation, Branch Location to Satellite Ticket Printer the cost of undertaking the review, which shall be paid forLocation, or Satellite Ticket Printer Location to Implant by the Agent, will be confirmed in writing. If the report isLocation, or vice versa, the Agent shall: unfavourable the Agent shall be given notice of



termination of the Sales Agency Agreement or of removal Section 12 — Reviews by the Travelfrom the Agency List in the case of a Branch Office Agency CommissionerLocation; provided that if prior to the date of terminationor removal the Agency Administrator is able to approve The matters under the purview of the Travel Agencythe application for change of location, the termination or Commissioner are set out in Resolution 820e as are theremoval shall not take effect. procedures for conducting reviews.

11.16 NOTICE TO ISS MANAGEMENT ANDAIRLINESthe Agency Administrator when giving any notice toMembers required under the foregoing provisions of thisSection shall give a copy of such notice to ISS Manage-ment and to all Airlines.



Section 13 — Arbitration Section 14 — Measures Affectingan Agent's Standing

13.1 RIGHT TO ARBITRATION14.1 RELINQUISHMENT BY AGENT13.1.1 Any party to a dispute settled in accordance with

Resolution 820e shall have the right to submit the Travel 14.1.1 an Accredited Agent may voluntarily relinquish itsAgency Commissioner's decision to de novo review by Accreditation in respect of all or any of its Approvedarbitration in accordance with this Section. Locations at any time by giving advance notice in writing

to the Agency Administrator who shall notify all Members.13.1.2 Where the Travel Agency Commissioner has The notice will state an effective date of withdrawal,granted interlocutory relief, such relief and any bank or without prejudice to fulfilment by the Agent and each ofother guarantee shall remain in effect pending the out- the Members having the Agent under appointment, of allcome of the arbitration. The arbitrators, however, will obligations accrued up to the date of withdrawal from thehave the power to vary the terms of the bank or other Agency List;guarantee as they deem appropriate including requestingadditional guarantees from the Appellant. 14.1.2 in the event an Agent voluntarily relinquishes any

Member's appointment it shall so notify the Member inwriting;13.2 AGREEMENT TO ARBITRATE14.1.3 in both instances the Agent shall surrender all

13.2.1 All disputes arising out of or in connection with a unissued Traffic Documents and Carrier Identificationdecision rendered by a Travel Agency Commissioner Plates in its possession together with all other equipment(a “Decision”) shall be finally settled under the Rules of that is the property of the Member to that Member.Arbitration of the International Chamber of Commerce byone or more arbitrators appointed in accordance with saidRules and judgment upon the award may be entered in 14.2 REMOVAL BY AGENCYany Court having jurisdiction thereof. ADMINISTRATOR13.2.2 Unless otherwise agreed by the parties, the lan- 14.2.1 the Agency Administrator may, in accordance withguage of the arbitration shall be English, but at the the provisions of these Rules, remove for cause an Agentrequest of a party, documents and testimony shall or a Location of an Agent from the Agency List by givingbe translated into such party's native language. notice in writing to the Agent to take effect in accordance

with these Rules. Such removal shall be without prejudice13.2.3 The place of arbitration shall be in the country ofto fulfilment by the Agent and each of the Membersthe Approved Location concerned or the location underhaving the Agent under appointment of all obligationsapplication, as the case may be, unless otherwise agreedaccrued up to the date of removal from the Agency List;by the parties. Notwithstanding the foregoing, in the event

that the laws of such country are inconsistent with the 14.2.2 notwithstanding the provisions contained in Para-effect of subparagraph 13.2.5 herein, then in the case of graph 4 of Resolution 824, when evidence is produceda Decision rendered with respect to Area 1, the place of that an Agent uses its IATA accreditation to engage in,arbitration shall be, at the election of the claimant, either and profit from, activities which, if associated with IATA,Montreal, Quebec or Miami, Florida; in the case of a may prove detrimental to the good standing of IATA, theDecision rendered with respect to Area 2, the place of Agency Administrator may remove the Agent from thearbitration shall be Geneva, Switzerland; and in the case Agency List and notify all members of the action beingof a Decision rendered with respect to Area 3, the place taken. The Agency Administrator shall give notice to theof arbitration shall be, at the election of the claimant, Agent and such removal shall be without prejudice toeither Singapore or Sydney, Australia. fulfilment by the Agent and each of the Members havingthe Agent under appointment of all obligations accrued up13.2.4 The Award of the arbitrator(s) shall be accompa-to the date of removal from the Agency List.nied by a statement of the reasons upon which the award

is based.

14.3 NOTICE OF SUSPENSION BY13.2.5 The arbitration award shall be final and conclu-sively binding on the parties and shall be complied with in AGENCY ADMINISTRATORaccordance with its terms.

when an Agent or Location is suspended for cause underthe provisions of these Rules, the Agency Administratorshall give notice thereof in writing to the Agent. The13.3 COMMENCEMENT OF THEsuspension will take effect from the time specified in thePROCEEDINGwritten notice.

13.3.1 Arbitration proceedings pursuant to this Section 13shall be commenced no later than thirty (30) calendardays from the date of the Travel Agency Commissioner'saward.



14.4 EFFECT OF REMOVAL, SUSPENSION 14.6 APPOINTMENT AND DUTIESOR REPRIMAND OF COORDINATOR

14.6.1 ISS Management shall appoint the Coordinator14.4.1 Removalupon the request of the Agency Administrator when anAgent or a Location which operates under the Billing and14.4.1.1 when notice has been served by the AgencySettlement Plan procedures:Administrator that an Agent or Location is to be removed

from the Agency List:14.6.1.1 is removed from the Agency List or suspendedunder these Rules; or14.4.1.1(a) the Agency Administrator shall by notice to

the Agent terminate the Agent's Sales Agency Agreement14.6.1.2 is declared in default under these Rules; oror exclude the Location from the application of the

Agreement and so notify Members, 14.6.1.3 has an application for change of ownershipdisapproved under these Rules;14.4.1.1(b) ISS Management shall appoint a Coordinator

to withdraw all Standard Traffic Documents and Carrier 14.6.2 the Coordinator shall immediately remove all Stan-Identification Plates deposited with the Agent or with the dard Traffic Documents and Carrier Identification PlatesLocation and require an immediate accounting and settle- from the Agent or the Location concerned and shall, whenment of monies due, so prescribed, require an immediate accounting andsettlement of all monies due.14.4.1.1(c) Members shall withdraw all their Traffic Docu-

ments deposited with the Agent or with the Location,revoke any authorisation given to the Agent or the 14.7 CHANGES TO AGENT'S OFFICIALLocation to issue its own Transportation Orders drawn on

LICENCEthe Member and require an immediate accounting andsettlement of monies due;

if the government authorities of the place where anAgent's Location is situated terminate, suspend or other-14.4.2 Suspensionwise condition the official licence granted to suchLocation, the Agency Administrator shall promptly notify14.4.2.1 when notice has been served by the Agencyall Members and the Agent of the effects of such action.Administrator that an Agent or Location is to be sus-

pended:

14.4.2.1(a) the Agency Administrator shall so notify Mem- 14.8 USE OF IATA LOGObers,

14.8.1 An IATA Accredited Agent may use the logo on its14.4.2.1(b) ISS Management shall appoint a Coordinator letterhead and publicity materials exactly as illustrated into withdraw for the period of suspension all Standard the Travel Agents Handbooks. No other forms of IATATraffic Documents and Carrier Identification Plates logo are authorised for Agent use.deposited with the Agent or with the Location,

14.8.2 The use of the logo is permitted only in connection14.4.2.1(c) in all other respects the provisions of these with activities of an IATA Accredited Agent's ApprovedRules and of other applicable Resolutions continue to Locations.apply to the Agent or Location during the period of

14.8.3 The IATA logo may not be used in any way tosuspension;misrepresent an existing industry service such as theIATA Travel Agent Identity (ID) Card.14.4.3 Reprimand

when a reprimand is issued to an Agent under any of the14.9 FORCE MAJEUREprovisions of these Rules, the Agency Administrator shall

record it against the Agent and notify the Agent that thisThe Agent shall not be liable for delay or failure to complyhas been done.with the terms of the Passenger Sales Agency Agreementto the extent that such delay or failure (i) is caused by anyact of God, war, natural disaster, strike, lockout, labor14.5 OTHER MEASURES AFFECTINGdispute, work stoppage, fire, third-party criminal act,OPERATION OF AGENT quarantine restriction, act of government, or any othercause, whether similar or dissimilar, beyond the rea-when an Agent is declared bankrupt, placed in receiver-sonable control of the Agent, and (ii) is not the result ofship or judicial administration, goes into liquidation orthe Agent's lack of reasonable diligence (an “Excusablebecomes subject to any other similar legal procedureDelay”). In the event an Excusable Delay continues foraffecting its normal operation, the Agency Administratorseven days or longer, the Agency Administrator shallshall, when allowed by the provisions of applicable law athave the right, at its option, to terminate this Agreementthe Agent's place of business, remove the Agent from theby giving the Agent whose performance has failed orAgency List and notify all members of the action beingbeen delayed by the Excusable Delay at least thirty days'taken;prior written notice of such election to terminate.



15.3.3 in the event an Agent refuses to remit the correctSection 15 — Agency Feeslevel of application fee, or administration fee, then theAgency Administrator shall promptly notify the Agent inwriting that its Sales Agency Agreement shall be terminat-15.1 TYPES OF FEESed within 30 days for failure to pay fees due;

15.1.1(a) the following agency fees, in the amounts15.3.4 if an Agent whose Agreement has beendetermined by the Conference in consultation with theterminated under Subparagraph 15.3.3 of this ParagraphDirector General, shall be payable:subsequently remits the correct fees within 30 days,following such termination, the Agency Administrator may15.1.1(a)(i) a non-refundable application fee in respect ofreinstate the accreditation of an Agent. Such Agent'seach application to become an Accredited Agent or anname shall then be re-entered on the Agency List andApproved Location and of applications for approval ofa Sales Agency Agreement shall be executed orchanges of name, ownership or Location;re-instated.

15.1.1(a)(ii) entry fees on application for entry in theAgency List of the Agent's Head Office Location and forentry of each Branch Office Location, and all other 15.4 USE OF AGENCY FEESlocations included within the Agency Programme;

agency fees collected by the Agency Administrator on15.1.1(a)(iii) annual agency fees with respect to the behalf of IATA will be expended by the Director GeneralHead Office Location, each Branch Office Location, and in accordance with directives given by the Board ofall other locations included within the Agency Programme; Governors of IATA to administer the Agency Programme.

15.1.1(b) no application for entry in the Agency List shallbe considered unless the application fee, the entry feeand the first annual agency fee have been received. If theapplication is rejected, the entry and annual agency feesshall be returned to the applicant.

15.1.2 A cost justified fee, the level to be agreed locally,will apply for each Agent that fails to comply withestablished criteria.

15.2 INVOICINGexcept in respect of the first assessment upon application,annual agency fees for each calendar year shall be paidnot later than December 1 of the preceding year inaccordance with the instructions of the Agency Adminis-trator. Invoices for such fees shall be sent out by theAgency Administrator not later than November 1 of eachyear.

15.3 NON-PAYMENT OF ANNUAL,APPLICATION OR ADMINISTRATIVE FEES15.3.1 if any Agent fails to pay the annual agency fee byDecember 1, the Agency Administrator shall promptlynotify the Agent in writing that its Sales Agency Agree-ment shall be terminated if such fee is not received byDecember 31. In the event payment is not made by suchdate, the Director General shall terminate the Agent'sSales Agency Agreement and the Agency Administratorshall remove the Agent's name from the Agency List;

15.3.2 if an Agent whose Agreement has beenterminated under Subparagraph 15.4.1 of this Paragraphsubsequently remits the annual agency fee by March 31following such termination, the Agency Administrator may,if he is satisfied that the late payment was caused byevents beyond the Agent's control, reinstate the accredi-tation of an Agent. Such Agent's name shall then bere-entered on the Agency List and a new Sales AgencyAgreement shall be executed;



Section 16 — Indemnities and Waiver16.1 the Agent agrees to indemnify and hold harmlessthe Member, its officers and employees from all damage,expense or loss on account of the loss, robbery, theft,burglary or fraudulent issue or misuse of Traffic Docu-ments supplied to the Agent pursuant to these Rules,which Traffic Documents have not been duly issued bythe Agent; provided that the Agent shall be relieved ofliability in respect of any damage, expense or lossincurred or suffered by the Member resulting from suchevent if the Agent can demonstrate that at the materialtime it met the minimum security standards prescribed inParagraph 6.1 of Section 6 of these Rules, and that suchunlawful removal was immediately reported in accordancewith the requirements of these Rules, or fraudulent issueor misuse of such Traffic Documents resulted solely fromthe action of persons other than the Agent, its officers oremployees.

16.2 the Agent recognises that Members (whether actingindividually or collectively) the Director General, theAgency Administrator and ISS Management are requiredto issue notices, give directions, and take other actionpursuant to these Rules and other applicable Resolutions,including in the circumstances therein provided givingnotices of irregularity and default, notices of allegedviolations and notices of grounds for removing an Agentor any of its Locations from the Agency List or forreprimanding an Agent. The Agent waives any and allclaims and causes of action against any Member andIATA and any of their officers and employees for any loss,injury or damage (including damages for libel, slander ordefamation of character) arising from any act done oromitted in good faith in connection with the performanceof any of their duties or functions under these Rulesand other applicable Resolutions, and indemnifies themagainst such claims by the Agent's officers, employees orany other person acting on the Agent's behalf.



RESOLUTION 810i

Attachment ‘A’

TO:Agency Administrator AGENCY NAME, ADDRESS &INTERNATIONAL AIR TRANSPORT ASSOCIATION NUMERIC CODE

NOTICE OF CHANGEPursuant to the provisions of Section 11 of the Passenger Sales Agency Rules we hereby give notice of the followingchange(s) in the legal status or ownership of the above-named IATA Agent (Transferor) as a consequence of contractualarrangements or negotiations:

PRESENT APPROVED FUTURE STATUSSTATUS

1. Sole Proprietorship/Partnership/ ........................................................ ........................................................Corporation/other (specify one)

2. Name(s) of owner/partners in case of ........................................................ ........................................................unincorporated firms

3. If corporation list:(a) issued share capital ........................................................ ........................................................

name amount of shares % name amount of shares %(b) name and address of owners of ........................................................ ........................................................

stock/ shares and amount of stockowned by each

(c) names of all officers and directors ........................................................ ........................................................4. Effective date of future status as shown above.5. Legal name, trading name and full address under new ownership.6. If the answer to (5) above represents a change of name or location or both, please give details.7. Will such change affect all Approved Locations? If not, please provide detailed explanation.8. Will such change affect the managers and staff at the Approved Locations under this change? If so, give details.9. Have any of the new owners, officer (directors), managers or any individual having authorisation to act or sign on

behalf of such firm been involved in bankruptcy or default proceedings? If so, give details.10. Will the change of ownership cause direct or indirect relationship with an organisation holding General Sales

Agency appointment from an air carrier? If so, give details.

The Transferor has informed the Transferee of the need to comply with the Sales Agency Rules if the Transferee wishesto be entered on the IATA Agency List as an Accredited Agent.In accordance with one of the requirements of the Sales Agency Rules, the Transferee hereby undertakes that it acceptsjoint and several liability with the Transferor for any outstanding obligations of the Transferor under its Sales AgencyAgreement as at the date the transfer of ownership takes place.Where the Transferor is employed by, or retains a financial or beneficial interest, directly or indirectly, in the agencyfollowing the change of ownership, the undersigned Transferee knows and hereby agrees to accept responsibility for anyviolation by the Transferor of his Sales Agency Agreement which may have occurred within a period of two yearsimmediately prior to the change of ownership as if such violation were a violation of the Transferee's Sales AgencyAgreement................................................................................................ ...............................................................................................Authorised Signature of Agent (Transferor) Witness

............................................................................................... ...............................................................................................Authorised Signature of Transferee Witness

Dated:.....................................................................................


Resolution 820d

Commissioner Programme Fund, held by the AgencyRESOLUTION 820d Administrator and expended in accordance with thepresent Resolution. Such regular contribution shall not beOFFICE OF TRAVEL AGENCY deemed to include any payment of fee or monetary

COMMISSIONER penalty decided by the Commissioner in the execution ofhis mandate.

PAC1(46)820d(except USA) Expiry: IndefinitePAC2(46)820d Type: B 7.2 Any travel required in the pursuit of CommissionerPAC3(46)820d duties is pre-authorised by the Director General of IATA,

the Chairman of the WTAAA and the Secretary GeneralRESOLVED that, of ECTAA. Every effort shall be made by the Commis-

sioner to use telecommunications to conduct review1. the Office of Travel Agency Commissioner, (‘the Com- proceedings.missioner’) is hereby established and shall be funded asprovided below. 7.3 The Conference, the PAPGJC, the UFTAA Chairman

and the Chairman of WTAAA shall each receive the2. at least one Commissioner shall be appointed for each annual written statement of accounts.IATA Conference Area.

8. each Commissioner shall conduct reviews in accor-3. any person may submit names of candidates for dance with Resolution 820e which provides for thevacant Commissioner positions to the Director General of Conduct of Review by Travel Agency Commissioner.IATA. Industry representatives, including the Chairman/CEO of UFTAA and the Chairman of WTAAA, will 9. a Commissioner may be assigned in writing by theevaluate each candidate and make appropriate recom- joint appointing authorities such further duties and func-mendations to the Director General. The Commissioner tions as may be agreed between them, with a view towill thereafter be appointed on the joint authority of the ensuring continuing openness, information flow and clarityDirector General and the Chairman/CEO of UFTAA and/ in the ongoing relationship between IATA and the globalor the Chairman of WTAAA, such appointment to be for a community of IATA Accredited Agents. Reasonableperiod of not less than two years, renewable by mutual expenses incurred in pursuing these goals may beagreement. A serving Commissioner shall not leave office defrayed from the Travel Agency Commissioner Pro-before a successor has been appointed. gramme Fund, subject to prior approval in writing of the

Director General the Chairman/CEO of UFTAA and the4. Deputy and Substitute Travel Agency Commissioners Chairman of WTAAA.may be appointed, to meet the demands of the office, inwhich event the appointment process shall be as for the 10. the Commissioner(s) shall be called upon to provideCommissioner described above. In this Resolution, a consolidated written report of all Commissionerthe term ‘Commissioner’ shall be deemed to include the activities to the Passenger Agency Conference and to theTravel Agency Commissioner, Substitute Travel Agency Passenger Agency Programme Global Joint Council.Commissioner and the Deputy Commissioner.

11. The Commissioner(s) shall maintain an information5. in the discharge of their duties the Commissioners website, funding for which will be provided from theshall be impartial and shall not be subject to the direction established budget.or supervision of IATA, any Member, Accredited Agent orassociation of travel agents, or any of their employees or 12. applicants for the role of Commissioner shall beofficers. assessed based on the job description and profile require-

ments listed in Attachment ‘A’ to this resolution.6. the term of office of a Commissioner may be curtailedby the Director General the Chairman/CEO of UFTAA and 13. each Commissioner shall be furnished in a timelythe Chairman of WTAAA acting jointly, upon the recom- manner with all the publications provided by the Agencymendation, for cause, of the appropriate body of industry Administrator to Accredited Agents situated in the area ofrepresentatives. the Commissioner's jurisdiction.

7. the costs of the Office of the Travel Agency Commis- 14. In order to preserve the integrity of the Commission-sioner shall be borne in equal proportions by Members ers and to safeguard the independence of each one ofand by Accredited Agents. them in exercising their office IATA, the Members and the

Accredited Agents recognize that each Commissioner7.1 each IATA Accredited Agent shall be called upon to shall have no liability whatsoever, whether for any actioncontribute towards the Commissioner fund in an amount taken or omitted, in good faith in the performance of theirdetermined by the Conference, such amount being not functions under the IATA Agency Programme. The Com-less than USD 5.00 nor more than USD 10.00, or missioners shall be indemnified against liability (includingacceptable equivalent per Approved Location, per year as liability for legal costs) and shall be held harmless froma regular contribution. The total amount of contributions any and all claims which should arise in connectionpaid by Members collectively in a given year shall be therewith for any action taken or omitted in good faith inequal to the total amount of contributions paid by IATA the performance of their functions under the IATA AgencyAccredited Agents collectively in the same year. All such Programme, exclusive of acts or omissions manifestlycontributions shall be paid into the Travel Agency outside of the required procedures and scope of authority



of the Commissioners in 820e and related Resolutions, or RESOLUTION 820dmanifestly in contravention of the contract terms inResolution 824. Indemnification shall be funded from the Attachment ‘A’Travel Agency Commissioners' Fund.

Travel Agency Commissioner Profile1. The Travel Agency Commissioner is an independentarbiter appointed jointly by the International Air TransportAssociation (IATA), the Universal Federation of TravelAgency Associations (UFTAA) and the World TravelAgency Associations Alliance (WTAAA) to conductreviews and act with respect to decisions and/or actionsaffecting Agents and applicants under the IATA AgencyProgramme.

1.1 The office of the Travel Agency Commissioner isestablished under the terms expressed in Reso-lution 820d.

1.2 The procedures under which the Travel AgencyCommissioner operates are contained in IATA Reso-lution 820e.

2. IATA, UFTAA and WTAAA will assess applicants forthe office of the Travel Agency Commissioner against thefollowing profile:

The ideal candidate will meet the following criteria:1. experience in the travel industry ideally gained from

previous employment with an airline or travel agency;2. at the time of application the applicant must not be

employed or have any involvement with an airline,travel agent, agency association or IATA;

3. good knowledge of the IATA Passenger AgencyProgramme and the associated rules and regulationsor a demonstrated ability to acquire knowledge of theProgramme;

4. experience in dispute resolution and/or legal back-ground;

5. independent contractor not associated with an airline,IATA or travel agency;

6. fluent in written and oral English with the same skillsin at least one other major language;

7. ability to travel at short notice.

Travel Agency Commissioner JobDescription1. A Commissioner shall act only as described to make

reviews requested under the terms of Resolu-tion 820e.

2. In the performance of his/her duties theCommissioner is not authorised to attend and/oraddress industry Conferences of agency associationsor of IATA except as required by the terms of therelevant Passenger Sales Agency Rules.

3. In the performance of his/her duties theCommissioner is not authorised to counsel, train,coach or in any similar capacity offer guidance toindividual agents, travel agencies, travel agencyassociations, airlines or IATA except as specificallyprovided under the terms of Resolution 820d.


Resolution 820e

However, the Commissioner may answer punctually RESOLUTION 820erequests for information from individual agents, travelagencies, travel agency associations, airlines or REVIEWS BY THE TRAVEL AGENCYIATA, if this request is not linked to any case of

COMMISSIONERreview or other dispute.4. In the pursuit of their activities the Travel Agency PAC1(45)820e(except USA) Expiry: IndefiniteCommissioner(s) shall be independent and not sub- PAC2(45)820e Type: Bject to supervision by any one party, however, the PAC3(45)820eTravel Agency Commissioner(s) shall provide regular

reports of activity to the Passenger Agency Pro- RESOLVED that, as established under Resolution 820d,gramme Global Joint Council, “the Council”. The the Travel Agency Commissioner (‘the Commissioner’)Council is entitled to review the activities of the shall conduct reviews and act with respect to decisionsCommissioner, and is responsible for approval of and/or actions affecting Agents and applicants under thethe budget and monitoring of expenditure. Agency Programme (it being understood that the defini-

5. Any travel conducted by the Travel Agency Commis- tions in Resolution 866 apply to this Resolution), withinsioner(s) is authorized under the terms of Resolu- the Commissioner's jurisdiction, in accordance with thetion 820d. following procedures:

6. The office of the Travel Agency Commissioner(s)Section 1 — Review Initiated by Agentshall maintain records of all commissioner proceed-

ings for a minimum of two years or as required under or Applicantlocal law. The Travel Agency Commissioner shallensure knowledge transfer and continuity with his/her 1.1 Subject to paragraph 1.4, the Commissioner shallsuccessor. Copies of Commissioner records shall be review and rule on cases initiated by:provided by the Commissioners to the IATA Agency

1.1.1 an applicant whose application to become anAdministrator and to the Secretariat of WTAAA andAccredited Agent has been disapproved by the AgencyUFTAA.Administrator, or has been disapproved upon reconsid-7. The Travel Agency Commissioner(s) shall maintaineration;an information website, funding for which will be

provided from the established budget. 1.1.2 an Agent whose application for approval of an8. Commissioners shall be entitled to obtain administra- additional location has been rejected by the Agency

tive support which support shall be funded from the Administrator, either on first consideration, or upon recon-established budget. sideration;

1.1.3 an applicant who has acquired ownership or isseeking to acquire ownership of an Agent or Location andwhose application for change of ownership has beendisapproved by the Agency Administrator, either on firstconsideration, or upon reconsideration;

1.1.4 an Agent, or applicant seeking review of the findingthat a person who is a director, or who holds a financialinterest or a position of management in the Agent orapplicant, is disqualified under the applicable PassengerSales Agency Rules because of that person's connectionwith an Accredited Agent who was removed from theAgency List for failure to fulfil its fiduciary obligations. Anyindividual who believes he is, or may be, a person whoseconduct would cause application of the exclusion provi-sions referred to above shall also be entitled to seekreview by the Commissioner, to determine whether anydisqualification whether actual or proposed should standor be disregarded, in light of the individual circumstances;

1.1.5 an Agent who has received formal notice from theAgency Administrator of impending removal of the Agentor an Approved Location of the Agent from the AgencyList, or of any action or impending action by the AgencyAdministrator with regard to the Agent, that unreasonablydiminishes the Agent's ability to conduct business in anormal manner;

1.1.6 an Agent whose application for change of locationand/or name has been disapproved by the AgencyAdministrator;



1.1.7 an Agent from whom stocks of Standard Traffic (c) the Commissioner decides that interlocutory reliefDocuments and Carrier Identification Plates have been can be granted without materially affecting any airlinewithdrawn by ISS Management, or its representative, credit riskpursuant to the Accounting Irregularity Safeguards provi-

the Commissioner may grant the interlocutory relief. Thesions of Resolution 818g or 832, as applicable; providedCommissioner may require that the Agent/applicant pro-that any review initiated under this subparagraph shall bevide a bank or any other form of guarantee as a conditionto decide on any interim relief pending a redeterminationfor granting such interlocutory relief. The bank or otherof the eligibility of the Agent or the Location to be retainedguarantee shall cover the amount in dispute or any otheron the Agency List under Paragraph 1.3 of this Resolu-amount deemed appropriate by the Commissioner in light,tion;in particular, of the financial risk associated with the

1.1.8 an Agent who considers that its commercial survival dispute. The Commissioner may, in addition or in theis threatened by a Member's individual decision prevent- alternative, require an immediate accounting and settle-ing it from acting as Agent for, or from issuing Traffic ment of all monies due at the time the interlocutory orderDocuments on behalf of, such Member; takes effect. If interlocutory relief is granted, as soon as

the Agent/applicant has complied with all conditions to1.1.9 an Agent who is aggrieved by an impending which interlocutory relief is subject, the Commissioner oramendment to its Passenger Sales Agency Agreement; Agency Administrator shall notify all BSP Airlines accord-

ingly that any previously notified action has been stayed1.1.10 an Agent who considers that the Agency Adminis- and the status quo restored pending the final determina-trator (as defined) has not followed correct procedure as tion of the Commissioner's review.delegated by the Passenger Agency Conference, to thatAgent's direct and serious detriment in order to determine 1.2.3 the Commissioner shall initially decide whether orwhether the decision under review was made in accor- not he has jurisdiction to determine the matter and if sodance with applicable Resolutions and based on credible whether a credible case for review has been made; if thefact. request for review is accepted, then the Commissioner

shall seek to ascertain to his own satisfaction all the factsrelevant to the matter in dispute, affording the parties

1.2 PROCESSING REVIEW REQUESTS reasonable opportunity to present their side of the case;FROM AN AGENT OR APPLICANT

1.2.4 acting on the basis of all probative evidence pre-The Commissioner shall apply the following rules to a sented during the proceeding, the Commissioner shallrequest for review from an Agent/applicant: decide, as appropriate to the circumstances, whether or

not the review is warranted and if so, what corrective1.2.1 for a review initiated under any of the sub provi- and/or remedial action, consistent with applicable Resolu-sions of Paragraph 1.1 of this Section, the person tions and with Section 3 of this Resolution, is to be takenauthorized to make the request shall do so, in writing to put matters right;addressed to the Commissioner, with copy to the AgencyAdministrator;

1.3 REVIEW INITIATED BY AGENCY1.2.2.1 for review of a decision or action of the Agency ADMINISTRATORAdministrator, except when initiated pursuant to theprovisions of Subparagraphs 1.1.6 and 1.1.10 of this The Agency Administrator, on his own initiative or at theSection, the request must be submitted within 30 calendar request of any Member, a group of Members, or of thedays of the date of the Agency Administrator's notice of Agency Services Manager, shall initiate a review tothe decision in question; determine whether the Agent or Location has breached

its Passenger Sales Agency Agreement, including IATA1.2.2.2 for review pursuant to the provisions of Subpara-Resolutions incorporated into it, when the Agency Admin-graph 1.1.6 of this Section, the request must be submittedistrator has determined that a credible case has beenwithin 10 calendar days of the withdrawal of the Standardmade, in particular, in respect of any of the following:Traffic Documents and Carrier Identification Plates;1.3.1 the Agent or Approved Location no longer fulfils the1.2.2.3 for review made pursuant to the provisions ofqualifying requirements for accreditation under the Pas-Subparagraph 1.1.8 of this Section, the request must besenger Sales Agency Rules;submitted within 30 calendar days of the date the Agent

first became aware of the decision/action of which he is 1.3.2 the Agent has used a credit card issued in theaggrieved; name of the Agent, or in the name of a person permitted

to act on behalf of the Agent, or in the name of the1.2.2.4 where a request for review is accompanied by anAgent's officer, partner or employee, in connection withapplication for interlocutory relief to stay action by thethe sale of air transportation on behalf of a Member toAgency Administrator, if:any customer of the Agent;

(a) acceptance of the request for review is within theCommissioner's jurisdiction; and

(b) the Applicant requests appropriate interlocutory relief;and


Resolution 820e

1.3.3 the Agent has failed to comply, to the satisfaction of 1.5 PROCESSING REVIEW REQUESTthe Agency Administrator, with financial requirements or FROM AGENCY ADMINISTRATORany other measure or condition prescribed by theCommissioner as a prerequisite for the retention of the Each request for review made by the Agency Administra-Agent on the Agency List following a review; tor to the Commissioner shall be in writing with copy

simultaneously sent to the Agent. The Commissioner1.3.4 the Agent refuses to surrender unissued Traffic shall conduct each such review in an adversarial proceed-Documents or Carrier Identification Plates on demand by ing and decide, on the basis of all probative evidencethe Member or ISS Management; presented during the proceeding, whether or not the

Agent has failed to comply with or is in breach of the1.3.5 the Agent has issued Traffic Documents or causedAgency Programme provisions alleged by the AgencyTraffic Documents to be issued at other than an ApprovedAdministrator. If the decision is affirmative, the Commis-Location or other authorized place of issue of that Agent;sioner shall also decide a penalty, in accordance with theprovisions of this Resolution, as he deems appropriate1.3.6 the Agent has failed to notify ISS Management andunder the circumstancesthe Member concerned immediately of the removal of

Traffic Documents, in the event of robbery, theft, burglary,Section 2 — Rules of Practice andfraud or other unlawful means, or of Traffic Documents

having been destroyed; Procedure1.3.7 the Agent has knowingly accepted unissued Traffic Each Commissioner shall publish rules of practice andDocuments consigned to another Agent; procedure designed to ensure prompt and impartial

review of all matters properly submitted to him.1.3.8 pursuant to the Accounting Irregularity Safeguardsprovisions of Resolutions 818g or 832, as applicable, an 2.1 In a review conducted pursuant to this Resolution,audit or other investigation has revealed irregularities in the Parties shall be the Agency Administrator or thethe Agent's accounting standards or practices; Member concerned, the applicant or Agent concerned or

the aggrieved Member, as the case may be. The Com-1.3.9 the Agent refuses to permit a Member or ISS missioner's rules shall grant the Petitioner and theManagement to audit or secure an audit of Traffic Respondent (‘the Parties’) the following minimum rights:Documents in the Agent's custody;

2.1.1 right to move for dismissal, whether based on lack1.3.10 the Agent has allegedly failed to fulfil its of jurisdiction or for any other reason;contractual obligations on the custody and/or issuance ofTraffic Documents; 2.1.2 right to move for summary judgement or other

appropriate relief;1.3.11 the Agent has persistently failed to settle amountsowing against Agency Debit Memos (ADMs) whether or 2.1.3 right to submit in writing any relevant informationnot such ADMs have been subject to dispute; which it deems appropriate;

1.3.12 pursuant to the provisions of Paragraph 1.8 of 2.1.4 right to call witnesses;Attachment “A” to Resolution 818g, and of Paragraph 1.8of Resolution 832, the Agency Administrator receives 2.1.5 right to appear in person and/or be represented bywritten information which leads him to the belief that counsel and present evidence and arguments in supportMembers' and Airlines' ability to collect monies from the of its position;Agent for Standard Traffic Documents may be prejudiced.

2.1.6 right to hear the evidence and arguments of theother party and its witnesses;

1.4 MATTERS OUTSIDE THE PURVIEW 2.1.7 right to cross examine the other party and itsOF THE TRAVEL AGENCY COMMISSIONER witnesses;The Commissioner shall decline to act on any of the 2.2 proceedings before the Commissioner shall befollowing: informal, and the Parties shall not be required to adhere

to strict rules of evidence;1.4.1 any matter in litigation in a court of competentjurisdiction; 2.3 the Commissioner shall be empowered, upon the

agreement of both parties, to waive oral hearing and base1.4.2 claims arising under restraint of trade law/regula-his decision on written submissions of the Parties. Hetions of the state or international authority having jurisdic-may also render a decision on written stipulationstion;between the Parties;

1.4.3 any matter in relation to which the Commissioner 2.4 the party who has initiated a request for review (‘thedoes not have jurisdiction under this Resolution.Petitioner’) may withdraw all or part of it, in writing, at anytime prior to the issuance of the Commissioner's decision,provided that if it is withdrawn by the Petitioner after thehearing, the Commissioner may make an appropriate



award to cover reasonable costs incurred by the Respon- 3.1.5 an Agent aggrieved by impending amendment to itsdent and the Commissioner; Passenger Sales Agency Agreement be granted such

relief as may be appropriate having regard to the need to2.5 except as the Commissioner may otherwise direct in maintain appropriate airline prudential requirements;writing, any person who is not a party, or a witness, whodesires to make relevant information available to the 3.1.6 conversely, on finding against the petitioning appli-Commissioner in connection with a pending review shall cant/Agent, the Commissioner shall uphold the Agencydo so only through one of the Parties. The party con- Administrator's/Member's decision which shall thereuponcerned shall promptly forward such information in writing be implemented;to the Commissioner, with a copy to the other party. Such

3.2 in arriving at any of the decisions outlined in Para-person shall be subject to cross examination;graph 3.1 above, the Commissioner shall have the

2.6 except for good cause stated in writing, the Commis- discretion to set such conditions as are consistent withsioner shall schedule each review proceeding not later and may be reasonably applied under the Passengerthan 45 days after receipt of the request for review. The Sales Agency Agreement and the Passenger SalesCommissioner shall normally render his decision within Agency Rules.30 days after the close of the record in the proceeding.

2.7 in making each decision, the Commissioner shall be 3.3 DECISIONS ON REVIEWS INITIATEDbound by the provisions of the applicable Resolutions, BY THE AGENCY ADMINISTRATORand may only make findings of fact and conclusions inaccordance with those Resolutions. Consequent on a review initiated by the Agency Adminis-

trator, the Commissioner may decide that one or more of2.8 the decision shall be in writing and shall include all the following actions be taken:such findings and conclusions and with respect to reviewsconducted under Paragraph 1.1 of this Resolution any 3.3.1 the Agent or Approved Location be removed orconditions imposed by the Commissioner. With respect to suspended for a stated period of time from the Agencyreview proceedings instituted pursuant to Paragraph 1.3 List;of this Resolution, the decision shall be in writing andshall include all such findings and conclusions and any 3.3.2 an Agent or Approved Location be required to meetpenalty imposed pursuant to Section 3 of this Resolution. specified requirements as a condition for retention on the

Agency List;2.9 a signed copy of the decision shall be served on eachparty. Subject to action taken under Section 4 of this 3.3.3 stocks of Standard Traffic Documents, Carrier Iden-Resolution, the Commissioner's decision shall be final tification Plates and/or ticketing authorities be ordered toand binding on the Parties, including Members of IATA. be removed from the Agent's custody;

3.3.4 the Agent be reprimanded;Section 3 — Courses Open to theCommissioner 3.3.5 the Agent's access to reduced fare air passenger

transportation be suspended for a specified period;The courses open to the Commissioner pursuant to aproceeding conducted under this Resolution will depend 3.3.6 the Agent, at its own expense, be required toon the nature of the review and the facts. The following is undergo an audit by an independent certified publican indicative summary of such possible courses. accountant;

3.3.7 where it is found that at the time of the hearing, the3.1 DECISIONS ON REVIEWS INITIATED Agent is improperly withholding money from a Member,

the Commissioner shall suspend the Agent until allBY AGENT OR APPLICANToutstanding amounts have been paid to the Member(s)

Consequent on a review initiated by an Agent or an concerned.applicant, the Commissioner may decide:

Section 4 — Review by Arbitration3.1.1 a disapproved applicant/Agent be approved;

4.1 an Agent or applicant which considers itself3.1.2 a removed Agent/Approved Location be reinstated aggrieved by a decision of the Commissioner taken underon the Agency List; the provisions of this Resolution, shall have the right to

have such decision reviewed by arbitration, in accordance3.1.3 an Agent from whom stocks of Standard Traffic with the procedures set out in the Passenger SalesDocuments, and Carrier Identification Plates and/or Agency Rules;ticketing authorities have been withdrawn may have themreturned; 4.2 a Member whose individual decision has been the

object of an Agent's action before the Commissioner3.1.4 an Agent who has appealed against the actions pursuant to the relevant provisions of the Passengerof an individual Member that threaten the Agent's Sales Agency Rules may, if the Member contests thecommercial survival be granted relief by order of the Commissioner's ruling, seek to have it reviewed byCommissioner; arbitration, in accordance with the procedures set out inthe Passenger Sales Agency Rules.


Resolution 822

4.3 where a decision of or an action by the Agency RESOLUTION 822Administrator or the Agency Services Manager has beenthe object of an Agent's action before the Commissioner IATA NUMERIC CODEtaken under the provisions of this Resolution and theAgency Administrator, or the Agency Services Manager, PAC1(46)822 Expiry: Indefinitecontest the Commissioner's decision, the Agency Admin- PAC2(46)822 Type: Aistrator or the Agency Services Manager shall have the PAC3(46)822right to have such decision reviewed by arbitration, inaccordance with the procedures set out in the Passenger AS the Passenger Agency Conference (‘Conference’)Sales Agency Rules. wishes to provide a code to identify places where Traffic

Documents, as defined in the Sales Agency Rules, areissued, and

AS the Conference also wishes to provide a designator tonon-IATA entities subscribing to recognised IATA industryschemes it is

RESOLVED that a recognised coding scheme, as pro-vided for below, shall be used to allocate IATA NumericCodes or designators.

Section 1 — COMPONENTS OF CODE1.1(a) the IATA Numeric Code shall consist of:

1.1(a)(i) a two-digit geographical designator;

1.1(a)(ii) a one-digit Area designator separated from1.1(a)(i) above by a dash;

1.1(a)(iii) a four-digit location designator separated from1.1(a)(ii) above by a space; and

1.1(a)(iv) a check digit separated from 1.1(a)(iii) aboveby a space. The check digit shall be calculated on anunweighted modulus seven system based on the two-digitgeographical designator, the one-digit Area designator,and the four-digit location designator.

1.1(b) when the IATA Numeric Code is imprinted onautomated Traffic Documents, the dash and spaces maybe omitted.

Section 2 — INTEGRITY OF IATANUMERIC CODENumeric Codes assigned to all users in accordance withthis Resolution are, and shall at all times remain theproperty of IATA. Such codes shall not be lent, sub-contracted or hired to a third party by the assignee.Neither shall such codes be used either as a form ofidentification or other purpose on a proprietary product ofany third party without express authorization to do so byIATA.

Section 3 — ALLOCATION OF CODE3.1 the Agency Administrator shall be responsible for theadministration and allocation of the IATA numeric code asfollows:

3.1.1 IATA Numeric Codes shall be allocated to eachApproved Location of IATA Agents, of non-IATA salesintermediaries holding Standard Traffic Documents pursu-ant to Resolution 850b and domestic-only agentsreporting their sales through a BSP;



3.1.2 all other categories subscribing to a recognised 4.1.2(b) Examples:IATA industry scheme shall be allocated a designatorbased on the Numeric Code structure; AGENT X Y Z AGENT X Y Z

20-2 0000 3 20-2 0000 33.1.3 blocks of IATA Numeric Codes shall be set aside30 APR 90 30 APR 90for allocation in the United States to entities that qualify

for such codes under the terms of this Resolution; RUE DE LYON 8 RUE DE LYON 8GENEVA/SWITZERLAND GENEVA/CH3.1.4 upon request of a Member or of a non-IATA airline,

the Agency Administrator shall allocate IATA Numeric 4.1.2(c) Exception:Codes to such Member's or airline's own sales offices, to

when passenger accountable forms are validated byTraffic Documents-issuing offices of such Member's orimprinter, the location information may be divided forairline's Passenger General Sales Agents, or airportentry in more than one position, with the order sequencehandling agents which are not themselves IATA Mem-varied as well,bers; provided that in the case of a request from a

non-IATA airline, the cost of allocation and publication of 4.1.2(d) Examples:the IATA Numeric Code shall be for the account of therequesting airline.

20-2 0000 3 20-2 0000 33.1.5 IATA Numeric Codes and designators shall be AGENT X Y Z AGENT X Y Zallocated according to the type of Location or user. 30 APR 90 30 APR 90

RUE DE LYON 8 RUE DE LYON 83.1.6 A change of Location or category may require theGENEVA/SWITZERLAND GENEVA/CHwithdrawal from use of the IATA Numeric Code or

designator, and the allocation of a different one.4.1.3 IATA Agents shall, upon request, furnish theAgency Administrator with an impression of the validatorSection 4 — VALIDATOR DIES ORdie or plate for each Approved Location;PLATES — OUTSIDE BILLING AND

SETTLEMENT PLAN Section 5 — VALIDATOR PLATES —UNDER BILLING AND SETTLEMENT4.1 validation of Traffic Documents at places to which an

IATA Numeric Code has been allocated shall be effected PLANby use of a validator with a metal or plastic die or plate.

in respect of Traffic Documents reported through a BillingThe use of a rubber or plastic stamp for such purposeand Settlement Plan, the information defined in 4.1.2(a)shall not be permissible. The specifications of the valida-hereof shall be imprinted by means of a validator plate astor die or plate shall be as follows:specified in the BSP Manual for Agents. Such validator

4.1.1 maximum size 3.5 cm. (1 in.) width by 2.8 cm. plate shall be capable of being set and operated in the(1 in.) depth; ticket imprinter selected for use in the particular Billing

and Settlement Plan concerned; both the ticket imprinter4.1.2(a) dies or plates shall set forth information as and the validator shall be procured by the user at its ownillustrated herein for each location in the following expense.sequence:

Section 6 — VALIDATION OF4.1.2(a)(i) name of issuing entity, AUTOMATED TRAFFIC DOCUMENTS4.1.2(a)(ii) IATA Numeric Code of location,

when automated Traffic Documents are issued, the data4.1.2(a)(iii) date of issue, with day and year in figures specified in Subparagraph 4.1.2(a) or Paragraph 5 of thisand month abbreviated in three alpha characters such as Resolution, if computer generated, shall be shown inJAN/APR/JUL/OCT/ etc., accordance with the provisions of the applicable Passen-

ger Services Conference Resolution.4.1.2(a)(iv) street address (optional),

Section 7 — LEGIBILITY OF IATA4.1.2(a)(v) city and country, NUMERIC CODENote: the country when abbreviated shall be shown by

particular care shall be exercised to ensure that the IATAusing the International Standards Organisation (ISO)Numeric Code is clearly legible on each coupon of thecodeTraffic Document issued.


Resolution 824

Section 8 — PUBLICATION RESOLUTION 824the IATA Numeric Codes allocated pursuant to Subpara- PASSENGER SALES AGENCYgraphs 3.1.1, and 3.1.3 of this Resolution shall be

AGREEMENT (VERSION II)published by the Agency Administrator as directed by thePassenger Agency Conference; ARC and IATAN shall be

PAC1(22)824(except USA) Expiry: Indefiniteresponsible for the publication of IATA Numeric CodesPAC2(22)824 Type: Bmade available to them pursuant to Subparagraph 3.1.2PAC3(22)824of this Resolution.

RESOLVED that, the following form of Passenger SalesSection 9 — THEFT OR Agency Agreement is adopted and shall be implementedDISAPPEARANCE OF VALIDATOR DIES upon notification by the Agency Administrator.OR PLATESin the event of the theft, loss or disappearance of a PASSENGER SALES AGENCYvalidator die or plate bearing an IATA Numeric Codes AGREEMENTallocated pursuant to Subparagraph 3.1.1 or 3.1.3 of thisResolution, the party to which such IATA Numeric Codes An Agreement made this ............day of ............20............has been allocated shall immediately notify the AgencyAdministrator and if applicable, the Billing and Settlement BETWEENPlan local manager in writing. Immediately upon receipt of

having its principal office at (hereinafter called “thesuch notification, the Agency Administrator shall, ifAgent”)circumstances warrant, allocate a new IATA Numeric

Codes and advise the notifying party, all Members, and ifANDapplicable, the Billing and Settlement Plan local manager

and all carriers participating in that Billing and Settlement each IATA Member (hereinafter called “Carrier”) whichPlan. The Billing and Settlement Plan local manager shall appoints the Agent, represented by the Director Generaladvise the Clearing Bank concerned accordingly. There- of IATA acting for and on behalf of such IATA Member.after, the notifying party shall, in respect of the locationconcerned, destroy any validator dies or plates in its WHEREBY IT IS AGREED AS FOLLOWS:possession and replace them by new validator dies orplates bearing the newly allocated IATA Numeric Codes.

1. EFFECTIVENESSSection 10 — REVIEW OF AGENT

this Agreement shall become effective between the Agentfailure by an IATA Agent without good cause to comply and the Carrier upon appointment of the Agent by suchwith any of the requirements provided herein shall consti- Carrier in accordance with the Sales Agency Rules intute adequate grounds for the Agency Administrator to effect in the country(ies) of the Agent's Location(s). Uponinitiate review under the provisions of the Sales Agency coming into effect this Agreement, including any amend-Rules. ments thereto, shall have the same force and effect

between the Carrier and the Agent as though they wereboth named herein and had both subscribed their namesas parties hereto.

2. RULES, RESOLUTIONS ANDPROVISIONS INCORPORATED INAGREEMENT2.1(a) the terms and conditions governing the relation-ship between the Carrier and the Agent are set forth inthe Resolutions (and other provisions derived therefrom)contained in the Travel Agent's Handbook (“the Hand-book”) as published from time to time under the authorityof the Agency Administrator and attached to this Agree-ment. The Handbook incorporates:

2.1(a)(i) the Sales Agency Rules,

2.1(a)(ii) the Billing and Settlement Plan rules, whereapplicable, as set forth in the BSP Manual for Agents,

2.1(a)(iii) such local standards as may be provided forunder the Sales Agency Rules,



2.1(a)(iv) other applicable IATA Resolutions; and conditions applicable to the sale of such transporta-tion as published in that other carrier's tariff;

2.1(b) such Rules, Resolutions and other provisions asamended from time to time are deemed to be 3.5 with respect to previously issued Traffic Documentsincorporated in this Agreement and made part hereof and the Agent, its officers or employees shall issue, accept,the Carrier and the Agent agree to comply with them; reissue, validate or revalidate (including by means of

reservation alteration stickers) all such Traffic Documents2.2 the Agent acknowledges that it has received a copy in accordance with the Carrier's tariffs, conditions ofof the current edition of the Handbook and has carriage and written instructions;acquainted itself with the contents thereof. The Agentspecifically acknowledges that it has read and under- 3.6 the Agent shall transmit to the Carrier such specificstands the contents of the Handbook, including but not requests or particulars in connection with each customerlimited to those dealing with: indemnities and waiver; as may be necessary to enable the Carrier to servicecustody, issuance and security of Traffic Documents; the each customer efficiently.reporting and remitting procedures; and the arbitrationprocedures;

4. OBSERVANCE OF LAWS AND2.3 the Agency Administrator shall provide the Agent with REGULATIONSsubsequent editions of the Handbook and all amend-ments thereto. The Agent shall be notified by the Agency the Agent shall observe all government laws and regula-Administrator of any amendments to the contents of the tions applicable to the sale of air transportation, or anyHandbook and such amendments shall be deemed to be other acts performed by the Agent under this Agreement,incorporated herein unless within 30 days of receipt of in the territory or territories where the Approved Locationssuch notification the Agent terminates this Agreement by of the Agent are situated and in all territories to or throughnotice in writing to the Agency Administrator; which the Agent may sell air passenger transportation.

2.4 the terms and expressions used in this Agreementshall, unless the context otherwise requires, have the 5. AGENCY DESIGNATIONmeanings respectively provided for in the Sales AgencyRules. In the event of any conflict, contradiction or the Agent shall not represent itself as a ‘General Agent’ orinconsistency between any provisions with which the use any other designation, such as ‘Air Lines TicketAgent is required to comply under Subparagraph 2.1 of Office’, which would indicate or imply in any way that itsthis Paragraph, and any of the provisions of this Agree- office is an office of the Carrier or any Member.ment, the provisions of this Agreement shall prevail.

6. CUSTODY AND ISSUE OF TRAFFIC3. SELLING CARRIER'S SERVICES DOCUMENTS AND CUSTODY OF CARRIER

IDENTIFICATION PLATES3.1 the Agent is authorised to sell air passenger transpor-tation on the services of the Carrier and on the services 6.1 Traffic Documents deposited by the Carrier or by ISSof other air carriers as authorised by the Carrier. The sale

Management on behalf of the Carrier as the case may be,of air passenger transportation means all activities neces-are and remain the sole property of the Carrier or ISSsary to provide a passenger with a valid contract ofManagement until duly issued and delivered pursuant to acarriage including but not limited to the issuance of a validtransaction under this Agreement; similarly IdentificationTraffic Document and the collection of monies therefor.Plates deposited with the Agent are the sole property ofThe Agent is also authorised to sell such ancillary andthe Carrier at all times. The Agent acknowledges andother services as the Carrier may authorise;agrees that it has no proprietary rights to such TrafficDocuments and Plates. The Carrier or ISS Management3.2 all services sold pursuant to this Agreement shall beacting on its behalf may, at any time, require that thesold on behalf of the Carrier and in compliance withAgent return such Traffic Documents and IdentificationCarrier's tariffs, conditions of carriage and the writtenPlates, and the Agent agrees to return them immediately;instructions of the Carrier as provided to the Agent. The

Agent shall not in any way vary or modify the terms and 6.2 the Carrier or ISS Management acting on its behalfconditions set forth in any Traffic Document used forshall be entitled at any time to audit or procure an audit ofservices provided by the Carrier, and the Agent shallTraffic Documents and Identification Plates, or to ascer-complete these documents in the manner prescribed bytain that security standards are met;the Carrier;6.3 where the Carrier participates in an automated3.3 the Agent shall make only such representations asticketing system for the issuance of Standard Trafficare authorised in this Agreement and by the Carrier.Documents or other neutral Traffic Documents and theAgent issues such Traffic Documents through the system3.4 with regard to any transportation the Agent, itson behalf of the Carrier, the Carrier may at any timeofficers or employees may procure on the services ofwithdraw from the Agent the authority to issue neutralanother air carrier which does not have the Agent underTraffic Documents on its behalf. In the event that theappointment, the Agent undertakes that it will not directlyAgent is declared in default or is suspended inor indirectly procure the sale of such transportationaccordance with the Sales Agency Rules the Agent shallotherwise than strictly in accordance with the fares, rules


Resolution 824

immediately cease issuing neutral Traffic Documents relates. This shall not, however, apply where the Trafficthrough the system on behalf of the Carrier as of the date Document or Transportation Order is issued under thesuch default or suspension is effective; Universal Air Travel Plan or similar credit plan recognised

or made available to the public by the Carrier (except with6.4 in the event any part of an automated ticketing respect to the initial amount payable under such plan)system is provided to the Agent by a third party, other and the Agent has procured and forwarded to the Carrierthan an airline participating in such system, the Agent the duly executed documents required under such plan,undertakes to obtain written confirmation from the Carrier or where the Traffic Document or Transportation Order isor the Coordinator that the relevant specifications, func- issued by the Agent in response to a prepaid tickettion and mode of operation of such system and any advice. In such cases the Carrier accepts responsibilitychanges thereto, conform with standards that are for collection;acceptable. The Agent shall not issue Traffic Documentson behalf of the Carrier through the system until such 7.2 except as otherwise provided in Subparagraph 7.1 ofwritten confirmation has been obtained. this Paragraph, the Agent shall collect the amount pay-

able for the transportation or other service sold by it onbehalf of the Carrier. All monies collected by the Agent for

7. EXCEPT AUSTRALIA AND transportation and ancillary services sold under thisAgreement, including applicable commissions which theGERMANY — MONIES DUE BY AGENTAgent is entitled to claim thereunder, shall be the propertyTO CARRIERS — REMITTANCEof the Carrier and shall be held by the Agent in trust forthe Carrier or on behalf of the Carrier until satisfactorily7.1 a Traffic Document shall be issued immediatelyaccounted for to the Carrier and settlement made. Themoney is received by the Agent for specified passengerCarrier may, subject to applicable currency regulations,air transportation or ancillary services sold under thisdesignate the currencies in which remittances are to beAgreement and the Agent shall be responsible for remit-made. Unless otherwise instructed by the Carrier thetance to the Carrier of the amount payable in respect ofAgent shall be entitled to deduct from remittances thesuch Traffic Document;applicable commission to which it is entitled hereunder;

7.2 all monies collected by the Agent for transportation7.3 the Agent shall remit to the Carrier such monies atand ancillary services sold under this Agreement,such times and under such conditions as the Carrier mayincluding applicable remuneration which the Agent isdesignate from time to time in accordance with theentitled to claim thereunder, are the property of theprovisions of the Sales Agency Rules;Carrier and must be held by the Agent in trust for the

Carrier or on behalf of the Carrier until satisfactorily 7.4 a Traffic Document shall be issued immediatelyaccounted for to the Carrier and settlement made;money is received by the Agent for specified passengerair transportation or ancillary services sold under this7.3 the Agent shall not pledge, cede, promise or other-Agreement and the Agent shall be responsible for remit-wise transfer to a third party any claims to monies due totance to the Carrier of the amount payable in respect ofthe Agent or to the Carrier, but not yet collected, forsuch Traffic Document;transportation and ancillary services sold under this

Agreement, including applicable remuneration, which the 7.5 in the event that the Agent becomes the subject ofAgent is entitled to claim hereunder;bankruptcy proceedings, is placed in receivership orjudicial administration, goes into liquidation or becomes7.4 in the event that the Agent becomes the subject ofsubject to a similar legal process affecting the normalbankruptcy proceedings, is placed in receivership oroperation of the Agent, then notwithstanding the normaljudicial administration, goes into liquidation or becomesremittance procedures under this Agreement, all moniessubject to a similar legal process affecting the normaldue to the Carrier or held on behalf of the Carrier inoperation of the Agent, then notwithstanding the normalconnection with this Agreement shall become immediatelyremittance procedures under this Agreement, all moniesdue and payable.due to the Carrier or held on behalf of the Carrier in

connection with this Agreement shall become immediatelydue and payable;

8. REFUNDSor

the Agent shall make refund only in accordance with theCarrier's tariffs, conditions of carriage and written instruc-tions, and against receipt. The Agent shall only refund7. AUSTRALIA AND GERMANY ONLY —Traffic Documents issued by such Agent.MONIES DUE BY AGENT TO CARRIERS —

REMITTANCE9. REMUNERATION7.1 on the issue by the Agent of a Traffic Document on

behalf of the Carrier, or on the issue by the Agent of its for the sale of air transportation and ancillary services byown Transportation Order drawn on the Carrier, the the Agent under this Agreement the Carrier shall remu-Agent, irrespective of whether it collects a corresponding nerate the Agent in a manner and amount as may beamount, shall be responsible for payment to the Carrier of stated from time to time and communicated to the Agentthe amount payable for the transportation or other service by the Carrier. Such remuneration shall constitute fullto which the Traffic Document or Transportation Order compensation for the services rendered to the Carrier.



13.1.4 the Agent relinquishes its IATA Approval/10. RECORDS AND INSPECTIONAccreditation;

the Agent shall maintain adequate records and accounts,13.2 notice of termination of the Agreement as abovetogether with supporting documents, recording the detailsmay be given at any time by notice in writing. Unlessof all transactions effected under this Agreement. Suchotherwise specified in the Sales Agency Rules, suchrecords, accounts and documents shall be preserved bynotice shall take effect no sooner than the last day of thethe Agent for at least two years from the date of themonth following the month in which the notice of termina-transactions to which they relate and shall be available fortion is given, and such notice shall include the effectiveinspection or for copying by the Carrier whose Trafficdate of termination, without prejudice to fulfilment by eachDocuments have been issued.party of all obligations accrued prior to the date oftermination.

11. CONFIDENTIALITY11.1 the Carrier agrees that the Carrier and its officers, 14. ARBITRATIONemployees and agents, including ISS Management where

if any matter is reviewed by arbitration pursuant to theapplicable, will treat information and data relating to theSales Agency Rules, the Agent hereby submits to arbitra-Agent coming into its possession as confidential except totion in accordance with such Rules and agrees to observethe extent required by law;the procedures therein provided and to abide by any

11.2 notwithstanding Subparagraph 11.1 of this Para- arbitration award made thereunder.graph, the Agent agrees that the Carrier, its officers,employees and agents, including ISS Management whereapplicable, may collect, process and disclose to other 15. INDEMNITIES AND WAIVERparties participating in the BSP, except to other Agents,

15.1 the Carrier agrees to indemnify and hold harmlesssuch information and data for purposes of financialthe Agent, its officers and employees from and againstassessment of the Agent or of the orderly operation ofliability for any loss, injury, or damage, whether direct,agency administration or of the Billing and Settlementindirect or consequential, arising in the course of trans-Plan;portation or other ancillary services provided by the

11.3 the Agent agrees that the Agent and its officers, Carrier pursuant to a sale made by the Agent hereunderemployees and any other person acting on the Agent's or arising from the failure of the Carrier to provide suchbehalf will treat information and data relating to the transportation or services, except to the extent that suchCarrier coming into its possession as confidential except loss, injury or damage is caused or contributed to by theto the extent required by law. Agent, its officers, employees or any other person acting

on the Agent's behalf;

15.2 the Agent agrees to indemnify and hold harmless12. TRANSFER, ASSIGNMENT, CHANGEthe Carrier, its officers and employees from and againstOF LEGAL STATUS, OWNERSHIP, NAMEliability for any loss, injury, or damage, whether direct,OR LOCATION indirect or consequential, arising from any negligent act oromission of the Agent, its officers, employees or any12.1 this Agreement shall not be assigned or otherwiseother person acting on the Agent's behalf, or from anytransferred in whole or in part by the Agent to any otherbreach by the Agent of this Agreement, except to theperson or persons;extent that such loss, injury or damage is caused orcontributed to by the Carrier, its officers or employees;12.2 in the event that the Agent proposes to effect any

change(s) in the legal status, ownership, name(s) and/or 15.3 where the Carrier participates in an automatedaddress(es) (within the meaning of these expressions asticketing system for the issuance of neutral Traffic Docu-used in the Sales Agency Rules under which the activitiesments and the Agent issues such Traffic Documentsof any of its Approved Locations are conducted) thethrough the system on behalf of the Carrier, the AgentAgent undertakes to give prior notice in accordance withfurther agrees to indemnify and hold harmless the Carrier,the detailed procedures set forth in those Rules.its officers and employees for all loss, injury or damage,whether direct, indirect or consequential, resulting fromthe negligent or unauthorised use of the system or any13. TERMINATIONpart thereof by the Agent, its officers, employees orcontractors (including independent contractors) or any13.1 this Agreement or its application to a specificother person acting on the Agent's behalf.Location(s) of the Agent shall be terminated if, in accor-

dance with the Sales Agency Rules:

13.1.1 the Carrier withdraws its appointment of theAgent,

13.1.2 the Agent withdraws from its appointment by theCarrier,

13.1.3 the Agent is removed from the Agency List,


Resolution 824

by16. NOTICESall notices to be sent under this Agreement from theCarrier or from the Agency Administrator to the Agent, orfrom the Agent to the Carrier or to the Agency Administra-tor shall be sufficient if sent by any means that providesproof of despatch or receipt addressed, as appropriate to:— the principal office of the Agent,— the principal office of the Carrier, or

the Agency Administrator at the address shown in thisAgreement, which address may be changed by noticegiven in writing from time to time by the Agency Adminis-trator to the Agent.

17. APPLICABLE LAWthis Agreement shall be interpreted and governed in allrespects by the law of the principal place of business ofthe Agent, except that, in regard to any matter of disputearising solely in connection with the activities of a branchoffice location situated in a place other than that of theAgent's principal place of business, the law of the placewhere the branch office is situated shall apply.

18. SEVERABILITYif any provision of this Agreement is held to be invalid,this shall not have the effect of invalidating the otherprovisions which shall nevertheless remain binding andeffective between the parties.

19. OTHER AGREEMENTS SUPERSEDEDthis Agreement shall supersede any and all prior Passen-ger Sales Agency Agreements between the parties heretowith respect to Approved Locations of the Agent otherthan in the USA, without prejudice to such rights andliability as may exist at the date hereof.

IN WITNESS WHEREOF the parties hereto haveexecuted this Agreement as of the date first above written

Director General of the International Air Transport Asso-ciation acting as agent for the Carriers referred to in thepreamble hereto.



RESOLUTION 824a RESOLUTION 824d

APPLICATION OF THE TERM DEPOSIT RECEIPTS TO BE ISSUED BY‘COMMISSION’ AGENTS

PAC1(29)824a(except USA) Expiry: Indefinite PAC1(24)824d(except USA) Expiry: IndefinitePAC2(29)824a Type: B PAC2(24)824d Type: BPAC3(29)824a PAC3(24)824d

RESOLVED that, for the purpose of the Passenger NOTWITHSTANDING the requirement of the PassengerAgency Conference Resolutions, where applicable, the Sales Agency Agreement that the Agent issue a Trafficterm “commission” shall be deemed to include any form Document immediately money is received by the Agentof remuneration. for specified passenger air transportation or ancillary

services sold under the Agreement, it is

RESOLVED that,

1. In the event that the Agent accepts money from acustomer up to the maximum value of USD80, or equiva-lent amount, and retains such money on account of thecustomer without obligating the carrier to provide passen-ger air transportation or ancillary services, the Agent may,instead of issuing a Traffic Document, issue a writtenreceipt,

2. Such receipt shall be duly signed by the Agent andshall include:— Name and Address of Agent— Date— Name of Customer— Amount received— A notice to the following effect:

“this receipt is issued by the Agent acting on its ownbehalf and not as agent for an air carrier. Issuance ofsuch receipt does not impose or imply any obligation orliability on an air carrier to provide air transportationand/or ancillary services”.


Resolution 824s

RESOLUTION 824r RESOLUTION 824s

REFUNDS TO AGENTS ADHERENCE TO MINIMUM SECURITYSTANDARDS — APPLICABLE

PAC1(44)824r(except USA) Expiry: Indefinite INDEMNITY PROVISIONSPAC2(44)824r Type: BPAC3(44)824r

PAC1(25)824s(except USA) Expiry: IndefinitePAC2(25)824s Type: BWHEREAS the relationship between Members and theirPAC3(25)824sappointed Accredited Agents is based on mutual coopera-

tion and understanding of each other's business practicesRESOLVED that,and on adherence to agreed rules and procedures and1. the indemnities and waivers given by the Agent andWHEREAS the Passenger Sales Agency Agreement andthe Carrier in respect of lost, stolen, misused or fraudu-Sales Agency Rules, which largely govern that relation-lently issued Traffic Documents, as set forth in the Salesship, require Accredited Agents to make timely remittanceAgency Rules, shall be those in effect as at the date ofto Members of monies payable to Members for salesexecution of the Agent's Passenger Sales Agency Agree-made on their services under the Passenger Salesment in the form prescribed in Resolutions 824,Agency Agreement anddesignated in Paragraph 3 hereof, and shall not beamended or varied except as agreed between the AgentWHEREAS, the Passenger Sales Agency Agreement andand the Carrier.the Sales Agency Rules and the procedures related,

thereto, provide for refunds to be made or authorised by 2. the Resolutions designated in Paragraph 3 hereof shallMembers to their Agents without stipulating a time-limit forremain effective only if this Resolution becomes andeffecting such refunds, now it isremains effective, and if any of these Resolutions isdisapproved, rescinded or a Government approval isRESOLVED thatwithdrawn, all such Resolutions shall simultaneously bevoided or rescinded, as the case may require.Section 1 — REFUNDS3. Resolutions:1.1 Members are recommended to authorise the use of

PAC1(25)824 (except USA)GDS refunding applications for totally unused trafficdocuments. In all cases Members shall expedite refunds PAC2(25)824 (except EU and EEA countries)on unused or partly used Traffic Documents in accor- PAC3(25)824dance with the following practices:

1.1.1 Unused Traffic Documentsensure that valid refunds on totally unused Traffic Docu-ments are made or authorised not later than the followingremittance schedule after the refund application isreceived from the Agent by the Carrier,

1.1.2 Partly Used Traffic Documentswill ensure that refunds on partly used Traffic Documentsare made or authorised by not later than two months afterthe refund application is received from the Agent by theCarrier.

1.1.3 Inability to Processnotwithstanding the provisions of 1.1.2 above if a Memberis unable to process a refund on partly used trafficdocuments within the proscribed time-frame, the reasonswill be communicated to the Agent by the Carrier.



RESOLUTION 828 RESOLUTION 830a

REMITTANCE OF AMOUNTS CONSEQUENCES OF VIOLATION OFCOLLECTED AS PART OR FULL TICKETING AND RESERVATIONSPECIAL ADVANCE PAYMENT FOR PROCEDURESSPECIAL FARES

PAC1(45)830a(except USA) Expiry: IndefinitePAC2(45)830a Type: BPAC1(43)828(except USA) Expiry: IndefinitePAC3(45)830aPAC2(43)828 Type: A

PAC3(43)828 WHEREAS IATA Members are granting IATA AccreditedAgents access to Standard Traffic Documents; andRESOLVED that, in respect of any special fares included

in a Member's tariff, the terms of which specifically require WHEREAS custody, completion, issue, reissue, validationpart or full payment to be made, either to the Member or and revalidation of such traffic documents are governedto its approved Passenger Sales Agent (‘Agent’) by a by Members' tariffs and the ticketing procedures furnisheddeadline prior to the date of commencement of travel, the to Agents through ticketing systems, and as described infollowing provisions shall apply: the Travel Agent's Handbook, copies of which are fur-nished to Agents by the Agency Administrator and compli-ance with which is mandatory upon each Agent under the1. WHERE PART-PAYMENT IS terms of the Passenger Sales Agency Agreement; it is

REQUIREDRESOLVED that,

1.1 an MCO (or, if the part-payment is made directly1. all Agents be reminded that practices such as thoseto the Member, such Member's own permissiblelisted herein, in other applicable Resolutions, or in Car-accountable document or receipt) shall be issued inriers' written instructions, but not limited thereto, violaterespect of the amount collected. If the collection is madethe governing conditions referred to above. They harmby an Agent, the MCO shall be included in such Agent'sMembers' legitimate interests and can accordingly resultnext Sales Report in accordance with applicable reportingin action being taken under the provisions of the Salesprocedures. The exchange coupon of the MCO (or itsAgency Rules and Passenger Sales Agency Agreement.equivalent if the Member's own accountable document ore.g. charging the Agent with the difference between thereceipt is used) shall be delivered to the prepayer;fare applied and the fare applicable to the service in

1.2 the Member or its Agent: accordance with Members' tariffs.

1.2.1 shall collect by the applicable specified date, the 1.1 entering incomplete or incorrect reservation entries,outstanding balance; withdraw the MCO exchange cou- such as reservation booking designators that do notpon (or other document); and issue the ticket(s). correspond to the fare paid, or reservation requests on a

ticket/miscellaneous charges order (MCO), thereby1.3 If this balance collection and ticket issuance is made allowing travel at less than the applicable fare,by an Agent, the transaction shall be included in suchAgent's next Sales Report in accordance with applicable 1.2 inaccurately completing or omitting to complete thereporting procedures. ‘not valid before’ and/or ‘not valid after’ boxes on a ticket

contrary to the conditions governing the fare applied,2. where full payment of the fare is required by a thereby allowing travel at less than the applicable fare,specified date, such payment must be effected and theticket(s) (or Member's own permissible accountable docu- 1.3 issuing a ticket or MCO for more than one passenger,ment or receipt) shall be issued not later than such date. except as authorised for certain MCOs,

3. the normal reporting and remittance procedures pro- 1.4 changing or omitting the name of the passenger,vided for in the Sales Agency Administration Rules shall

1.5 changing the “Form of Payment” or failing to carryapply in respect of all advance payment collections andthis forward to the new ticket or MCO,issuances to which the terms of this Resolution apply.

1.6 changing the currency of payment or failing to carryEditorial Note: Any references to MCO in the provi-this forward to the new ticket or MCO,sions contained in this Resolution mean the Neutral

Multiple Purpose Document (MPD).1.7 failing to carry forward all restrictions to the new ticketor MCO,

1.8 failing to obtain endorsement(s) from carriers whenrequired,

1.9 failing to complete correctly the “Issued in ExchangeFor” entries and/or the “Original Issue” entries, and/orfailing to carry these forward to the new ticket or MCO,


Resolution 830d

1.10 failing to ensure that when conjunction tickets or RESOLUTION 830dMCOs are issued, the conjunction ticket or MCO numbersare shown on all conjunction tickets or MCOs, RESERVATIONS PROCEDURES FOR1.11 changing the point of origin, AUTOMATED ACCREDITED AGENTS1.12 issuing/selling a ticket with a fictitious point of origin PAC1(07)830d(except USA) Expiry: Indefiniteor destination in order to undercut the applicable fare PAC2(07)830d Type: B(cross border selling), PAC3(07)830d

1.13 failing to observe the applicable rules for Designa- RESOLVED that,tion and Selection of Ticketing Airline (Resolution 852)and/or designating transportation on such parties' ser- 1. when an Accredited Agent (hereinafter ‘Agent’) isvices where a valid interline agreement between the connected to a Member's automated reservations system,ticketing airline and the transporting party does not exist, the Agent is acting on behalf of the Member(s) in using

that system and, therefore, shall adhere to the appropri-1.14 cancelling or amending a customer booking and/or ate reservations procedures contained in IATA Resolu-Electronic Ticket without the express permission of that tions. These procedures shall be provided by the Mem-customer, ber(s) to the Agent.

1.15 deliberately making duplicate reservations for the 2. the Agent shall request or sell airline space and/orsame customer, associated services of a passenger handling nature only

when the Agent has a request to do so from a customer.1.16 when reservations for a group are not confirmed, The Agent shall make such transaction in accordanceattempting to secure the required service by requesting with his system provider agreement.this in smaller numbers in individual transactions,

3. the Agent shall ensure that the reservations booking1.17 making reservation transactions without the specific designator used in booking space corresponds to therequest of a customer and/or, applicable fare quoted to the customer.1.18 making an amendment to a booking that has previ- 4. Members must have the passenger's contact in theously been issued as an eticket without either revalidating event there are any operational difficulties or it is eitheror reissuing, as applicable, the original ticket to reflect the too late or not practical to advise the Agent. For thisnew itinerary and/or, reason, in addition to its own telephone contact, the

booking Agent shall enter in the Passenger Name Record1.19 voiding tickets without cancelling corresponding res-(PNR) the customer's home and/or business telephoneervations and/or,contact whenever available.

1.20 failing to split PNRs in cases where not all passen- 5. the Agent shall notify the customer of the reservationsgers included in the PNR are ticketed and/or,status of all segments and associated services and of anychanges thereto.1.21 failing to observe the prescribed minimum con-

necting times. 6. all reservations for a specific itinerary and changesthereto shall, whenever possible, be processed through2. In this Resolution the use of the singular may also beone Member. When this is not possible, the Agent shalltaken to include the use of the plural, where the text soinform each Member involved that the reservation is inpermits and vice versa.connection with an itinerary.

Editorial Note: Any references to MCO in the provi-7. the Agent shall ensure that the ticket will be issued insions contained in this Resolution mean the Neutralaccordance with the reservations status of each segmentMultiple Purpose Document (MPD) or a similar documentand in accordance with the applicable ticketing time limit.available to Agents in a BSP.

8. the Agent shall be solely liable for the consequencesof its failure to comply with any Resolution governingreservations.



1.7.7 Agent in Default as an IATA Cargo AgentRESOLUTION 8321.7.8 Other Defaults

REPORTING AND REMITTING1.7.9 Accounting Irregularity SafeguardsPROCEDURES1.7.10 Disputed Agency Debit MemoPAC1(46)832(except USA) Expiry: Indefinite

PAC23(46)832(except 818g Type: B 1.8 Prejudiced Collection of Fundscountries)

1.9 Notification of IrregularityThe purpose of this resolution is to govern the proceduresfor all aspects of Reporting and Remittance under the 1.10 Default Actionprocedures of Billing and Settlement Plans (BSPs), andreporting directly to Members in a single resolution, 1.11 Remittance delayed by Government Actionnotwithstanding variations in the Passenger Sales Agency

1.12 Responsiblity for Settlement of Card TransactionsRules,

It is RESOLVED that the following reporting and remit-SECTION 2 REPORTING AND REMITTING DIRECTLYtance procedures are adopted for application in a consis-TO MEMBERS IN NON-BSP COUNTRIEStent manner in conjunction with the applicable Passenger

Sales Agency Rules and that the Agency Administrator is 2.1 Monies due on issue of Traffic Documentsempowered to supervise and take corrective actions asdetermined by the Conference. 2.2 Sales Reports and RemittancesAll references to Paragraphs and Sub-Paragraphs are to 2.3 Agents on Billing Basisthose contained within this Resolution unless statedotherwise. 2.4 The Remittance Date

Contents 2.5 Irregularities and Default

This resolution is contained within three main sections: 2.5.1 Overdue Sales Report/Remittance

1 Reporting and Remitting through BSPs 2.5.2 Dishonoured Cheque or other Method of Payment

2. Reporting and Remitting directly to Members 2.5.3 Accumulated Irregularities

3. The consequences of defaults 2.5.4 Agent in default as an IATA Cargo Agent

SECTION 1 REPORTING AND REMITTING THROUGH 2.5.5 Failure to include Sales – subsequent detection/THE BILLING AND SETTLEMENT PLAN (BSP) discovery

1.1 Monies Due on issue of Standard Traffic Documents 2.5.6 Notice of Default

1.2 Length of Reporting Period: Reporting Date 2.6 Default Action

1.3 Agency Sales Transmittals 2.7 Indemnity

1.4 Frequency for Submission of Agency Sales Data 2.8 Remittance delayed by Government Action

1.5 Billing SECTION 3 CONSEQUENCES OF DEFAULT

1.6 Settlement — the Remittance date 3.1 Determination of Agent's Indebtedness to Membersand BSP Airlines1.6.2 Frequency of Remittance3.2 Settlement of Amounts Due1.7 Irregularities and Default3.3 Review by Agency Administrator1.7.1 Charges3.4 Effects of Retention after Default1.7.2 Overdue or Dishonoured Remittance3.5 Review by Travel Agency Commissioner1.7.3 Dishonoured Cheque or other Method of PaymentATTACHMENT ‘A’ — FREQUENCY OF AGENT1.7.4 Accumulated Instances of Late Remittance and/or REMITTANCES

Dishonoured Payment (Philippines only)

1.7.5 Bona Fide Bank Error

1.7.6 Accumulated Irregularities


Resolution 832 — Section 1

Traffic Document. Thereupon monies for such sale shallSection 1 — Reporting and Remittingbe deemed due and settlement shall be made in accor-through the Billing and Settlement Plan dance with the provisions of Subparagraph 1.1.1(a);

(BSP)1.1.4 (India only) On the issuance by the Agent of a

This Section is applicable to all Approved Locations of an Standard Traffic Document on behalf of a Member, theAgent, except those covered by Resolution 818g, with Agent shall be responsible for payment to the Member ofrespect to all sales on behalf of Airlines and Members any related non-transportation charges applicable in theparticipating in the BSP. The BSP Manual for Agents country of issuance, irrespective of whether such Stan-contains the administrative and procedural rules to be dard Traffic Document is subsequently voided orfollowed by Agents and constitutes part of this Resolution. refunded.

1.1 MONIES DUE ON ISSUE OF 1.2 LENGTH OF REPORTING PERIOD:STANDARD TRAFFIC DOCUMENTS REPORTING DATEThe provisions of this Paragraph govern monies due to The provisions of this Paragraph govern the reporting ofBSP Airlines arising from Accountable Transactions. Transactions within the Reporting Periods and Reporting

Dates as determined for each BSP.In all instances the preferred method of remittance shallbe by Electronic Funds Transfer, or by Business- 1.2.1 for each BSP, reporting shall be as frequent asto-Business Direct Debit. In this context Business- possible and the Conference shall establish the length ofto-Business Direct Debit is defined as a Direct Debit the Reporting Period most suitable to the efficient opera-system and jurisdiction which imposes strict conditions tion of such Plan.and time limits not exceeding 2 banking days for revoca-tion of the transfer by the payer or the payer's bank.When either of these systems are available in a marketand unless required by applicable local law other methods 1.3 AGENCY SALES TRANSMITTALSof remittance are discouraged.

Agency sales are provided to the BSP Date Processing1.1.1(a) monies for sale against which an Agent issues Centre in an automated report by the Ticketing SystemStandard Traffic Documents shall be deemed due by the Providers.Agent to the BSP Airline whose Carrier Identification Plateis used when they are issued and shall be settled inaccordance with the provisions of this section.

1.4 FREQUENCY FOR SUBMISSION OF1.1.1(a)(i) monies for sales made by an Agent, where the AGENCY SALES DATAticket is issued by the BSP Airline on behalf of the Agentand reported using the facility of the BSP, shall be The frequency by which Agency Sales Data is transmitteddeemed due buy the Agent to the BSP Airline and shall to the Data Processing Centre is established by Resolu-be settled in accordance with the provisions of this tion 854 which requires the System Providers to reportsection in the same way as if the Agent had issued an daily.STD.

1.1.1(b) in the event that the Agent is declared insolvent,bankrupt, is placed in receivership or judicial administra- 1.5 BILLINGtion, goes into liquidation or becomes subject to any othersimilar legal process affecting its normal operation, thennotwithstanding the normal remittance procedures set out 1.5.1 the Data Processing Centre shall compute andin this Section all such monies shall become immediately prepare a Billing in respect of each Approved Location indue and payable. accordance with the requirements of the Conference.

Such Billings shall incorporate all Accountable Transac-1.1.1(c) in circumstances where a BSP Airline deter- tions reported by the System Provider with respect tomines that its ability to collect monies for Standard Traffic each Approved Location of an Agent;Documents may be prejudiced by the Agent's financialposition such BSP Airline may demand immediate settle- 1.5.2 the frequency at which Billings shall be rendered toment of all such monies; Agents shall be established by the Conference.

1.1.2 in circumstances where an Airline is suspendedfrom the BSP (‘BSP Airline’) the monies due to the BSPAirline are handled according to the applicable proce- 1.6 SETTLEMENT — THE REMITTANCEdures within Resolution 850, Attachment ‘F’. DATE1.1.3 in circumstances where an Agent collects full or The provisions of this Paragraph govern the dates, andpart payment for transportation in respect of which their frequencies, by which Billings will be settled byreservations have been made on the services of a BSP AgentsAirline, the Agent shall issue an appropriate Standard



1.6.1(a) Agents shall settle all amounts due in respect of calendar days to meet the special requirements whichAccountable Transactions and any applicable local shall be demonstrated of a particular BSP,charges directly with the Clearing Bank.

1.6.1(b) ISS Management, following consultation, (which 1.6.2.1(d) if the remittance frequency so established orincludes receiving comments from the local Joint Agency so elected pursuant to Subparagraph 1.6.2.1(a) is greaterLiaison Working Group), may require the Agent to provide than twice monthly, Remittances shall be made by thethem with Agent so as to reach the Clearing Bank not later than its

close of business on the fifth day following the Reporting• the necessary information andDates so determined; any transactions not processed in• an authorisation form as may be prescribed by them, previous reporting periods will be included in the finalpermitting the Clearing Bank to draw cheques on, or billing;debit the Agent's trust account or other bank account,

in favour of IATA, or the institution designated by ISS 1.6.2.1(e) if the Clearing Bank is closed for business onManagement, in payment of all amounts due to BSP the day on which the remittance is required to reach theAirlines. Clearing Bank under the provisions of Subpara-

graph 1.6.2, if applicable, the remittance shall be made by1.6.1(c) When the Agent intends to change its bank(s), or the Agent so as to reach the Clearing Bank before itsbank accounts(s), the Agent shall give ISS Management close of business on the first subsequent day when the30 days' advance notice by certified/registered mail, or Clearing Bank is open for business;certified letter with return receipt, or in countries whereregistered/certified mail is not available by use of regular 1.6.2.1(f) an Agent having more than one Approvedpostage and e-mail as appropriate; Location subject to the same BSP may apply to ISS

Management for authorization to remit monies due on1.6.2 Frequency of Remittance behalf of all such Approved Locations through one

designated office of the Agent to the Clearing Bank;The Conference shall establish the standard frequency ofAgents' Remittances under such BSP, and these are as 1.6.2.2 — 1.6.2.4 (except Resolution 814shown at Attachment A. The Remittance Date will be countries and Canada & Bermuda)communicated to all agents participating in each BSP.

the Agent shall remit, by the Remittance Date the amount1.6.2.1 Resolution 814 countries only specified on the Billing for the Remittance Period undersettlement. If, exceptionally, the Agent has not receivedthe frequency so established by the Conference shall not such Billing by the Remittance Date the Agent shall:be less than once each calendar month, or at such

greater frequency as the Conference shall determine; 1.6.2.2(a) on the Remittance Date, remit the amount itsprovided that individual Agents may elect to remit at such records indicate is owing in respect of such Remittancegreater frequency and for such length of time as the Period or, in a direct debit situation, the amount deter-Agency Administrator shall deem appropriate acting on mined by ISS Management, andthe requirements of the Agent; and

1.6.2.2(b) immediately upon receipt of the delayed Bill-1.6.2.1(a) if the Remittance frequency so established is ing, remit any shortage between the remittance mademonthly, Remittances shall reach the Clearing Bank not pursuant to Subparagraph 1.6.2.2(a) above and thelater than its close of business on the date established by amount of the Billing.the Conference. This date shall not be earlier than thetenth nor later than the fifteenth day of the month 1.6.2.2(c) if the Agent fails to remit any such shortagefollowing the month covered by the Billing, immediately it shall be deemed to be an overdue remit-

tance and Irregularity and Default procedures shall apply1.6.2.1(b) MOROCCO ONLY if the remittance frequency in accordance with Subparagraph 1.7.3.so established is once monthly, Remittances shall bemade so as to reach the Clearing Bank not later than its 1.6.2.2(d) if the extent of the shortage is such as to leadclose of business on the 16th day of the following month ISS Management to believe that the Agent attemptedor as provided for on the local calendar; provided that the deliberately to circumvent the settlement requirements ofmethod of payment used, which is limited to Electronic this Section, ISS Management shall instruct the ClearingBank Transfers and/or Direct Debit, assures that the Bank to debit the Agent for Clearing Bank chargesfunds are in the Clearing Bank for good value on the day incurred as a result of the shortage. Such charges shallof remittance; be included in the Clearing Bank's next Billing to the

Agent and shall be due and payable by the Agent on the1.6.2.1(c) if the remittance frequency so established is Remittance Date applicable to such Billing;twice monthly, Remittances shall be made so as to reachthe Clearing Bank not later than its close of business 1.6.2.3 (except Canada & Bermuda) if the Clearingon the last day of the month in respect of Billings covering Bank is closed for business on the day on which thethe first 15 days of the month and the 15th day of the remittance is required to reach the Clearing Bank underfollowing month, in respect of Billings covering the period the provisions of Subparagraph 1.6.2, the remittance shallfrom the 16th to the last day of the month. The Confer- be made by the Agent so as to reach the Clearing Bankence may adjust the period within which Remittances are before its close of business on the first subsequent dayrequired to reach the Clearing Bank by not more than five when the Clearing Bank is open for business;



1.6.2.4 an Agent having more than one Approved Example:Location subject to the same BSP may apply to ISS

ADSS = length of Settlement Period in days divided byManagement for authorisation to remit monies due ontwo plus days to Settlement Datebehalf of all such Approved Locations through one

designated office of the Agent to the Clearing Bank;e.g.

1.6.2.5 — 1.6.2.13 (Canada & Bermuda only:Processing and Settlement)

1.6.2.10 the Conference may, provided also that the1.6.2.5 The Agent shall remit all settlements owing to theNational Carrier(s) supports the recommendation, author-Clearing Bank with a value date for each correspondingise changes to the Reporting Period, Settlement Period,Settlement Date, in accordance with the Calendar ofReporting Date, Submission Date and Settlement DateSettlement Dates for Canada published yearly and inapplicable to the BSP, subject to the following:advance by IATA as part of the local Chapter 14 of the

BSP Manual for Agents, as prescribed by ISS Manage-1.6.2.11 except as provided below the ADSS shall bement. The following provisions shall govern the remit-uniform for all Agents,tance process:

1.6.2.5.1 In order to settle with the Clearing Bank throughautomated debits, the Agent shall issue all appropriate

1.7 IRREGULARITIES AND DEFAULTauthorisations, and in particular the Agent shall enter intoagreement providing for pre-authorised debits to be

The provisions of this Paragraph govern failures bydrawn from its designated account, such authorizationsAgents to adhere to the reporting and remitting proce-and agreement to be substantially in the form as may bedures set out in Paragraphs 1.2 to 1.6 inclusive, for whichprescribed from time to time by ISS Management.an Agency can be served with Notices of Irregularity, orbe declared in Default, as appropriate. Agents may also1.6.2.5.2 The Agent who chooses not to settle throughbe liable for charges arising from them. The circum-automated debits shall duly settle all amounts outstandingstances for this may include:by wire transfer, at its own costs, with a value date for

each corresponding Settlement Date.• Overdue Remittance or Cheque

1.6.2.6 the Data Processing Centre shall, in accordance• Dishonoured Remittance or Chequewith instructions prescribed by ISS Management,• Accumulation of the above Irregularities(i) process the contents of the Agent's sales transmit-

tals; 1.7(a) the Agency Administrator's actions described in(ii) provide to the Agent a summary of all transactions this Paragraph, in respect of the non-receipt by the

contained therein; Clearing Bank of Remittances by the due date, shall notapply when the Agency Administrator can determine that(iii) compute the net amount due to BSP Airlines;the Agent had adequately undertaken all of the required(iv) draw a cheque in or otherwise debit such amount onremittance procedures, and that such non-receipt hadthe Agent's trust account or other bank account forbeen caused by extraneous factors.presentation on the ‘Settlement Date’, published in

the BSP Manual for Agents; 1.7(b) Conference, or the Assembly where so delegated,may provide for variations from BSP to BSP in respect of1.6.2.7 an Agent having more than one Approvedthe sanctions applicable to such failures, and any suchLocation subject to the BSP may apply to ISS Manage-variations shall be notified to all Agents in the relevantment for authorisation to submit Sales Transmittals onBSPs, and incorporated in the relevant provisions of thebehalf of all such Approved Locations through oneapplicable BSP Manual for Agents.designated office of the Agent to the Processing Centre;1.7(c) for the purposes of this Paragraph, where the1.6.2.8 the average number of days between the date ofAgency Administrator issues:issue of a Standard Traffic Document and the date on• a demand for payment orwhich settlement therefore is due to a BSP Airline, or its

designated intermediary acting on its behalf, is referred to • immediate payment, orhereinafter as the ‘average delay from sales to settlement’ • a demand for immediate reporting(ADSS).

and/or1.6.2.9 It is determined by dividing the length of the • accounting and settlement,Settlement Period in days by two, and adding thereto the the deadline for the Clearing Bank's receipt for such fromnumber of days following the end of the Settlement the Agent is the close of business on the first day it isPeriod to the date on which settlement (payment) in open for business following the day of the Agencyrespect of all Accountable Transactions made by the Administrator's demand.Agent during such Settlement Period is to be made to theMember, Airline or designated intermediary;



1.7.1 Charges 1.7.1(d) Notification of Charges

The Conference, or the Assembly where so delegated, when ISS Management is required under any of themay, subject to the provisions set forth in this Resolution provisions of this Section to debit an Agent for charges, itand following local consultation, (which includes receiving shall simultaneously notify the Agent and Location con-comments from the local Joint Agency Liaison Working cerned.Group), implement a programme of cost-recoverycharges to be levied on Agents under the followingcircumstances: 1.7.2 Overdue or Dishonoured Remittance

(except Canada & Bermuda — see Paragraph1.7.1(a) Administrative Charges 1.7.3)

(i) for excessive voiding of Standard Traffic Documents,as established from time to time by ISS Manage- 1.7.2.1 (except Philippines) if the Clearing Bank doesment, in consultation with the Local Customer Advi- not receive a remittance due by: the Remittance Date, orsory Group — Passenger (LCAG-P), and published immediately on receipt by the Agent of a delayed Billing,in the BSP Manual for Agents, a remittance in respect of a shortage as provided for in

Subparagraphs 1.6.2, or if an instrument of paymentreceived by the Clearing Bank to effect such remittance is(ii) for any other failures to comply with BSP proceduresdishonoured on or after the Remittance Date, the Agencyand instructions, which generate additional cost toAdministrator who shall thereupon demand payment fromairlines;the Agent including any Clearing Bank charges incurredand shall then:1.7.1(a)(i) the levels of such charges shall be determined

by the Conference or, where applicable, the Assembly1.7.2.1(a) send to the Agent a Notice of Irregularity infrom time to time and, then notified by ISS Managementrespect of the Location concerned (or, where the Agentto all Agents subject to the Plan and published in the BSPhas been authorised to remit through one designatedManual for Agents;office under the provisions of Subparagraph 1.6.2.1(e) or1.6.2.4 in respect of all Approved Locations covered byANDsuch authorisation), A Notice of Irregularity sent pursuant

1.7.1(a)(ii) (Philippines only) the amount of the charge to this Subparagraph shall count as two listed instancesshall escalate with the repetition of the same type of of Irregularity for the purposes of the lists provided for inincident by the same Location during the same calendar Subparagraph 1.7.6,year; provided that the level applicable to the fourth

1.7.2.1(b) If payment is not received on demand, theinstance shall apply to all subsequent instances duringAgency Administrator shall immediately notify ISS Man-the same calendar year. ISS Management shall keep aagement and the Agent, and shall take Default Actionrecord of administrative charges debited to each Locationwith respect to all Locations of the Agent in accordanceduring a calendar year. The record shall be closed at thewith Paragraph 1.10.end of each calendar year and entries therein shall not be

carried forward to the following calendar year;1.7.2.1(c) in addition to any action prescribed in thisSubparagraph, the Agency Administrator shall debit the1.7.1(b) Clearing Bank ChargesAgent for costs incurred as a consequence of the late ordishonoured payment;Clearing Bank Charges, which shall be in the amount

debited to ISS Management by the Clearing Bank as a1.7.2.1(d) if it is established that such non-payment orresult of the Agent's failure to remit as prescribed. Thesedishonouring is due to a bona fide bank error, as providedwill be increased, if applicable, by an amount to compen-for in Paragraph 1.7.5, and settlement of all amounts duesate for any extra efforts incurred by ISS Management inis received on demand, the Irregularity if recorded, shallrelation to such failure; andbe rescinded;

1.7.1(b)(i) (Philippines only) Clearing Bank Charges1.7.2.1(e) if it is subsequently established that suchshall accrue from the Remittance Date applicable to thenon-payment or dishonouring is due to a bona fide bankdate of receipt of the remittance by the Clearing Bank, orerror, as provided for in Paragraph 1.7.5, and settlementto the date when the Agent is declared in Default,of all amounts due is received, but after Default Actionwhichever is earlier, and shall be proportional to thehas been taken, the Agency Administrator shall immedi-amount (less tax, if any) remitted late;ately withdraw such Default and the Notice of Irregularity,if recorded in accordance with Subparagraph 1.7.3.1;1.7.1(c) Billing and Settlement of Charges1.7.2.1(f) if, subsequent to an Agent's relinquishment ofsuch charges debited to Agents shall, except as may, its accreditation, that Agent fails to remit any monies due,wise specified, be included by ISS Management in its first it shall be held to be in default, and the provisions ofsubsequent Billing to the Agent/Location concerned and Paragraph 1.10 shall apply. The Agency Administratorshall be due and payable by the Agent by the Remittance shall thereby cause the termination to be amended to oneDate applicable to such Billing. Such charges shall, for of default.the purpose of Subparagraph 1.10.2(b), be deemed to be

part of all amounts owing by the Agent;



OR 1.7.3 Dishonoured Cheque or other Methodof Payment (Canada, Bermuda and Philippines

1.7.2.2 (Philippines only) only)if the Clearing Bank does not receive a remittance due by 1.7.3.1 (Canada & Bermuda only)the Remittance Date, or immediately on receipt by theAgent of a delayed Billing, a remittance in respect of a if a cheque or other debit in settlement of amounts due isshortage as provided for in Subparagraphs 1.6.2.2(b), (c) dishonoured by non-payment by the drawee bank, theand (d), or if an instrument of payment received by the Agency Administrator shall without delay send a Notice ofClearing Bank to effect such remittance is dishonoured on Irregularity in respect of the location concerned andor after the Remittance Date, the Clearing Bank shall demand immediate payment from the Agent. Such Noticeimmediately so advise the Agency Administrator who of Irregularity shall count as two instances of Irregularityshall thereupon demand payment from the Agent for the purposes of the lists provided for in Subpara-including any Clearing Bank charges incurred and shall graph 1.7.6.then:

1.7.3.1(a) If payment is not received on demand, the1.7.2.2(a) notify the Agent that an instance of overdue Agency Administrator shall immediately notify ISS Man-remittance will be entered in the record kept under the agement and the Agent and he/she shall take Defaultprovisions of Subparagraph 1.7.4. A Notice of Irregularity Action with respect to all Locations of the Agent insent within the terms of this Subparagraph shall count as accordance with Paragraph 1.10. In addition to any actiontwo listed instances of Irregularity for the purpose of the prescribed in this Subparagraph, the following additionallist provided for in Subparagraph 1.7.6, for which its provisions shall apply:provisions shall then apply; (i) a charge as determined annually by the Conference

to recover all costs incurred as a consequence of the1.7.2.2(b) if payment is not received on demand, thedishonoured cheque, or other debit shall be due andClearing Bank shall immediately so advise the Agencypayable by the Agent,Administrator who shall thereupon notify the Agent and

Default Action with respect to all Locations of the Agent (ii) the charge so determined shall be included in theshall be taken in accordance with Paragraph 1.10; settlement amount due by the Agent,

1.7.2.2(c) notwithstanding such Default Action, the 1.7.3.1(b) if it is established within 90 days of receipt byAgency Administrator shall debit the Agent for Clearing the Agent of the Notice of Irregularity that non-paymentBank charges calculated as specified in Subpara- by the drawee bank of such cheque or other debit is duegraph 1.7.1(b). The charges so debited shall, for the to a bona fide bank error and settlement of all amountspurpose of Subparagraph 1.10.2, be deemed part of all due is received on demand, the Irregularity so recordedamounts owing by the Agent; and the charge set forth in Subparagraph 1.7.7.1 shall be

rescinded,1.7.2.2(d) in addition to any action prescribed in thisSubparagraph, the Agency Administrator shall debit the 1.7.3.1(c) if it is established within 90 days of receipt byAgent for costs incurred as a consequence of the late or the Agent of the Notice of Irregularity that non-paymentdishonoured payment; by the drawee bank of such cheque or other debit is due

to a bona fide bank error and settlement of all amounts1.7.2.2(e) if it is established that such non-payment or due is received, but after Default Action has been taken,dishonouring is due to a bona fide bank error, as provided the Agency Administrator shall immediately withdrawfor in Paragraph 1.7.5, and settlement of all amounts due such Default and Notice of Irregularity recorded in accor-is received on demand, the Irregularity if recorded, shall dance with Subparagraph 1.7.3.1 rescind the charge setbe rescinded; forth in Subparagraph 1.7.3.1(a),

1.7.2.2(f) if it is subsequently established that such ORnon-payment or dishonouring is due to a bona fide bankerror, as provided for in Paragraph 1.7.9, and settlement 1.7.3.2 (Philippines only)of all amounts due is received, but after Default Actionhas been taken, the Agency Administrator shall immedi- If a cheque (except cheques not cleared locally) or otherately withdraw such Default and the Notice of Irregularity, method of payment in settlement of amounts due isif recorded in accordance with Subparagraph 1.7.5.2(a); dishonoured after the Remittance Date by non-payment

by the drawee bank, the Clearing Bank shall immediately1.7.2.2(g) if, subsequent to an Agent's relinquishment of so advise the Agency Administrator who shall demandits accreditation, that Agent fails to remit any monies due, payment from the Agent. For the purpose of this Subpara-it shall be held to be in default, and the provisions of graph, payment on demand means payment received byParagraph 1.10 shall apply. The Agency Administrator the Clearing Bank before its close of business on theshall thereby cause the termination to be amended to one first day the Clearing Bank is open for business followingof default. the day of its demand:

1.7.3.2(a) if payment is received on demand the ClearingBank shall immediately so advise the Agency Administra-tor who shall thereupon notify the Agent that an instanceof dishonoured payment will be entered in the record kept



under the provisions of Subparagraph 1.7.4 of this Para- notification pursuant to Subparagraph 1.7.5 the followinggraph. A Notice of Irregularity sent within the terms of this provisions shall apply:Subparagraph shall count as two listed instances of

1.7.4(b) the Agency Administrator shall conduct anIrregularity for the purpose of the list provided for inexamination of the financial standing of the Agent inSubparagraph 1.7.6, for which its provisions shall thenaccordance with the provisions of Resolution 810,apply;Section 3, Subparagraph 3.4.1; in addition to documents

1.7.3.2(b) if payment is not received on demand the necessary for such examination, the Agency Administra-Clearing Bank shall immediately so advise the Agency tor shall request the Agent to submit a written explanationAdministrator who shall thereupon notify the Agent and of the reasons for the instances of late remittance and/orhe shall take default action with respect to all Locations of dishonoured payment;the Agent in accordance with Paragraph 1.10.1 of this

1.7.4(c) if, following the examination of the Agent's finan-Section.cial standing by the Agency Administrator the Agent is

1.7.3.2(c) if a cheque not cleared locally is dishonoured retained on the Agency List, the record shall be cleared ofafter the Remittance Date by non-payment by the drawee all instances of late remittance and of dishonouredbank, the Clearing Bank shall immediately so notify the payment recorded against the Agent prior to the examina-Agency Administrator who shall thereupon demand pay- tion and, for the purpose of this Subparagraph, thement from the Agent and, furthermore, notify the Agent commencement of the six months period shall be the datethat an instance of dishonoured payment will be entered of the decision to retain the Agent.in the record kept under the provisions of Subpara-graph 1.7.4 of this Paragraph. A Notice of Irregularity sent 1.7.5 Bona Fide Bank Errorwithin the terms of this Subparagraph shall count as two

a bona fide bank error is one of the following circum-listed instances of Irregularity for the purpose of the liststances substantiated by evidence acceptable to theprovided for in Subparagraph 1.7.6, for which its provi-Agency Administrator:sions shall then apply;

1.7.3.2(d) if the Agent has paid on or before demand, the 1.7.5.1 Credit Arrangement or AutomaticAgency Administrator shall require the Agent to submit a Transfer of Fundsvalidated deposit slip as proof of payment and, in addi-tion, the Agency Administrator shall also notify the Agent when on the date the cheque or other method of paymentthat no cheque payment written in any currency other was presented to the Bank for payment, sufficient fundsthan Philippine Pesos will be accepted for payment for a should have been available in the account on which theperiod of 12 months; provided further that if, during the cheque or other method of payment was drawn by virtuesix months' period, subsequent to the first 12 months of a valid written line of credit or other written arrange-period, any cheque payment made by the Agent is ment, dated and executed between the bank and thedishonoured, whether or not subsequent to the issuance Agent prior to the Reporting Period involved, and theof the unfunded cheque and prior to it being dishonoured, bank erroneously fails to honour such line of credit orthe Agent deposits with the Clearing Bank sufficient funds other arrangement, orto cover the value of the cheque or, payment is receivedon demand, default action shall be taken with respect to 1.7.5.2 Sufficient Fundsall Locations of the Agent in accordance with Para-graph 1.10.1 of this Section; if the bank erroneously fails to honour a valid cheque or

other method of payment when sufficient collected funds1.7.3.2(e) if payment is not received on or before are in the Agent's account on which the cheque or otherdemand, default action with respect to all Locations of the method of payment was drawn and available for immedi-Agent shall be taken in accordance with paragraph 1.10.1 ate withdrawal at the time the cheque or other method ofof this Section, payment was presented to the bank for payment;

1.7.3.2(f) In addition to any action prescribed in this Note: ‘uncollected funds’ shall not be considered fundsSubparagraph, the Agency Administrator shall debit the available for immediate withdrawal;Agent for costs incurred as a consequence of thedishonoured cheque or other method of payment. 1.7.6 Accumulated Irregularities

The provisions of this Paragraph govern the procedures1.7.4 Accumulated Instances of Late that shall apply when an Agent accumulates Notices of

Irregularities. Accumulated Irregularities may, ultimately,Remittance and/or Dishonoured Paymentlead to an Agent being placed in Default.(Philippines only)1.7.6.1 after each Remittance Date, or Settlement Date,1.7.4(a) the Agency Administrator shall keep a record ofthe Agency Administrator shall compile and publish toinstances of late remittance and of dishonoured paymentBSP Airlines a list containing the names of all the Agentsnotified to Agents pursuant to Paragraphs 1.7.2.2(a) and(and the addresses of the Approved Locations con-1.7.3.2. When the record indicates that an Agent hascerned) that have been sent Notice of Irregularity underreceived two such notifications pursuant to Para-any of the provisions of these Rules since the precedinggraphs 1.7.2.2(a) and 1.7.3.2. during any six consecutiveRemittance Date.months, or whenever an Agent has received one such



1.7.6.2 if four (4), instances of Irregularity, or six (6) for (v) permitting alteration, omission or other falsification ofResolution 804 countries are recorded on such lists in Card data or other required information in the ‘form ofrespect of a Location during any 12 consecutive months, payment’ box on all coupons of original Standardthe Agency Administrator shall immediately advise ISS Traffic Documents or on any reissues thereof,Management and he/she shall take Default Action with (vi) issuing or reissuing single or multiple Standard Traf-respect to that Location in accordance with Para- fic Documents reflected as Card sales having angraph 1.10; aggregate face value exceeding the established ‘floor

limit’ without full disclosure to and the authority of the1.7.6.3 Resolution 810i and 814 countries only pertinent Card company; or complicity in the issuing

or reissuing of Standard Traffic Documents reflectedif three instances of irregularity are recorded on such lists as Card sales to circumvent credit or reportingin respect of a location during any 12 consecutive procedures,months, the Agency Administrator shall immediately

(vii) falsification of reports or documents,advise ISS Management.(viii) violation of Standard Traffic Document exchange or

1.7.6.3.1 the Agent shall be required to meet more refund procedures as specified in the applicable IATAfrequent reporting and remitting procedures determined Resolutions and their Attachments, or as published inby the Agency Administrator until such time as the carriers' tariffs, instructions or elsewhere, and pro-Agent's financial and credit standing has been reviewed vided to the Agent, orand found satisfactory. (ix) failure to prevent the unauthorised or fraudulent use

of computer-generated document numbers for issu-1.7.6.3.2 notwithstanding paragraph 1.7.6.3 above, ance of Electronic Tickets,immediately upon a fourth instance of Irregularity being(x) falsification and/or manipulation of issued Electronicrecorded on such list in respect of a Location during any

Tickets, such that electronic ticketing data reported12 consecutive months the Agency Administrator shalldiffers from electronic ticket data provided to theadvise ISS Management and he/she shall take Defaultcarrier whose Electronic Ticket has been issued,Action with respect to that Location in accordance with

Paragraph 1.10; (xi) failure to comply with Card sales instructions pro-vided by BSP Airlines, as prescribed in the TravelAgent's Handbook, the BSP Manual for Agents and1.7.7 Agent in Default as an IATA Cargo AgentResolution 890,

if an Agent which is also registered as an IATA Cargo (xii) persistent failure to comply with the format and theAgent under the IATA Cargo Agency Rules is declared in instructions of ISS Management in the calculation ofDefault under those Rules in connection with its cargo the sales settlement authorisation amounts, resultingactivities (other than by reason of accumulated irregu- in the frequent and regular issuance of Shortagelarities) such Agent shall also be deemed in Default under Notices,this Section, and Default Action with respect to all

(xiii) persistent failure to settle amounts properly owingLocations of the Agent shall be taken in accordance withagainst Agency Debit Memos (ADMs).the provisions of Paragraph 1.10 of this Section;

1.7.9.2 under circumstances which lead the Agency1.7.8 Other Defaults Administrator to believe that the Agent is attempting tocircumvent the reporting and settlement requirements ofif an Agent is in Default under another Section either of this Section, with the result that Members' or Airlines'these or of other IATA Passenger Sales Agency Rules, ability to collect for Standard Traffic Documents sold isDefault Action shall be taken in accordance with the seriously prejudiced.provisions of Paragraph 1.10 with respect to all Locations

of the Agent or, in the case of Default arising from 1.7.9.3 the Agency Administrator, in consultation with theaccumulated irregularities, with respect to the Location LCAG-P shallconcerned; (i) instruct the Ticketing System to prevent further use of

Standard Traffic Documents and cause the removal1.7.9 Accounting Irregularity Safeguards of ticketing authority from the Agent,(ii) demand an immediate accounting and settlement of1.7.9.1 in the event an audit or other investigation reveals

all amounts owing by the Agent, whether or not thesuch irregularities on the part of an Agent as:Remittance Date for payment thereof has arrived,(i) failure to submit all Standard Traffic Documents

(iii) account for any monies received andissued during the Reporting Period,(iv) notify all BSP Airlines of the action taken.(ii) falsely reporting Standard Traffic Documents as

having been sold against UATP or other Cards,1.7.9.4 and in circumstance where the Agency Adminis-(iii) post-validating Standard Traffic Documents, altera- trator is notified by a BSP Airline of irregular activity bytion of the validation date on Standard Traffic Docu- the Agent, which causes chargeback underments, or consistent or extensive reporting of Stan- Resolution 890, to immediately invoke default action asdard Traffic Documents out of numerical sequence, described under paragraph 1.10 of these rules.

(iv) inability to account for missing Standard TrafficDocuments or to account for all coupons of Standard 1.7.9.5 thereupon, the Agency Administrator shall requestTraffic Documents reported as void, the Travel Agency Commissioner, except in cases



described under paragraph 1.7.9.4, to review and 1.8.2 the Agency Administrator shall so advise ISS Man-re-determine the approval of the Agent or Approved agement and, thereupon, the Agency Administrator shallLocation. Pending this review, the Agent may request an request an immediate review by the Travel Agencyinterlocutory review of the Agency Administrator's action Commissioner;by the Travel Agency Commissioner.

1.8.3 the Travel Agency Commissioner shall review suchwritten information and other factors and shall commence1.7.10 Disputed Agency Debit Memoa review under the terms of Review by Travel AgencyCommissioner of the applicable Passenger Sales AgencyThe provisions of this paragraph should be read inRules within three working days from receipt of such aconjunction with the provisions concerning ADMs asrequest.provided in Resolution 850m.

1.7.10.1 An Agent may for reason dispute an ADM.1.9 NOTIFICATION OF IRREGULARITY

1.7.10.2 An Agent shall have a minimum of 14 days inwhich to review and dispute an ADM prior to its submis- The provisions of this Paragraph govern the proceduression to BSP for inclusion in the billing, when the Agency Administrator is required under any of

the provisions of Paragraph 1.7 to send to an Agent a1.7.10.3 When an ADM is disputed prior to it being Notice of Irregularity.submitted to the BSP for processing, it will be recorded asdisputed, and will not be included in the Billing. 1.9.1(a) (Except 810 Countries) he/she shall

immediately send the Agent a registered letter, or certified1.7.10.4 if an Agent disputes an ADM within the minimum letter with return receipt, or in countries where registered/dispute period it shall be suspended from the BSP certified mail is not available by use of regular postageprocess and settlement of the dispute will be for resolu- and e-mail as appropriate in the form prescribed fromtion between the Agent and Airline concerned. time to time.(i) in the event an Agent disputes an ADM and after

1.9.1(b) (810 Countries only) he/she shall immediatelyagreement between the Airline and the Agent, it issend the Agent a registered letter, as well as a fax ordetermined that the purpose of that ADM was cor-email copy, in the form prescribed from time to time.rect, the Airline will advise the Agent and the BSP

accordingly and the ADM as originally submitted will1.9.2 the Notice of Irregularity shall be in respect of thebe processed;Approved Location concerned, except that a Notice of

(ii) if as a result of an Agent dispute it is determined Irregularity resulting from overdue Remittance by anafter agreement between the Airline and the Agent Agent authorised to remit through one designated officethat the ADM needs adjustment, the Airline will shall be in respect of all Approved Locations covered bysubmit to the Agent and the BSP the adjusted ADM, the authorisation.in the form of a new ADM, in which case only thenew ADM shall be processed. 1.9.3 the Agency Administrator shall at the same time

send a copy of the letter to the Approved Location1.7.10.5 An ADM that has been included in the BSP concerned, to ISS Management.Billing will be processed for payment.

1.9.4 such irregularity shall be recorded against the1.7.10.6 If after 60 days of receipt of a disputed ADM by Location concerned by the Agency Administrator on thean Airline the dispute has not been resolved, despite list maintained pursuant to Subparagraph 1.7.6 of thisconsultation between the Airline and the Agent, such Section.ADM will no longer be suspended and will be withdrawnfrom the BSP process.

1.10 DEFAULT ACTION1.7.10.7 Such ADM dispute is now for bilateral resolutionbetween the airline and the agent. The provisions of this Paragraph govern the procedures if

Default Action is required to be taken in accordance withany of the provisions of Paragraph 1.7, when the proce-1.8 PREJUDICED COLLECTION dures prescribed below shall be followed:

OF FUNDS1.10.1 the Agency Administrator shall immediately advise

The provisions of this Paragraph govern the procedures all BSP Airlines and ISS Management that the Agent is infor the protection of BSP Airlines' monies in situations Default at all Locations or at the Location concerned.where the ability, or intent, of an Agent to pay them are in Airlines and Members which have appointed the Agentdoubt. shall be notified by e-mail or similar fast method of

communication;1.8.1 in the event that the Agency Administrator receiveswritten information, which can be substantiated, leading to 1.10.2 the Agency Administrator on declaring an Agent inthe belief that Members' and Airlines' ability to collect Default or receiving Notice from a Member that an Agentmonies for Standard Traffic Documents may be preju- is in Default shall immediately take the following action:diced, the Agency Administrator may remove all Standard (i) advise the Agent in writing, with a copy to ISSTraffic Documents and Carrier Identification Plates in the Management, that Default Action has been invokedAgent's possession,



and withdraw from the Approved Location(s) con- 1.10.4(d) thereafter the dispute shall be for bilateralcerned all Carrier Identification Plates supplied by resolution between the Airline and Agent outside theBSP Airlines and all Standard Traffic Documents, BSP.

(ii) demand an immediate accounting and remittance of 1.10.4.1 if the Default is withdrawn, the Agency Adminis-all amounts owing by the Agent in respect of the trator shall, alsoLocation(s) concerned whether or not the Remittance(i) reinstate credit facilities and notify the Agent, all BSPDate for payment thereof has arrived,

Airlines accordingly. Any prior debits to the Agent for(iii) notify the local representatives of BSP Airlines par- Clearing Bank charges incurred as a result of theticipating in the BSP concerned, and the local repre- overdue remittance shall be cancelled (and, insentative of any Member having the Agent under Philippines, the instance of late remittance shall beappointment but not participating in such Plan, of the deleted from the record maintained pursuant to theDefault Action, provisions of 1.7.2), and BSP Airlines shall pay anycommission withheld from the Agent.

1.10.3 on establishing that an Agent is in default, the (ii) remove the Notice of Irregularity, if any, giving rise toAgency Administrator shall immediately take the following the withdrawn declaration of Default from the listaction: maintained pursuant to the provisions of Subpara-

graph 1.7.6;(i) establish an up-to-date statement of indebtedness foreach of the Approved Locations concerned and bill 1.10.4.2 thereafter, if the Default is not withdrawn pursu-the Agent for charges incurred as a result of the ant to Subparagraph 1.10.5 the provisions of Section 3 ofAgent's failure to make complete settlement by the this Resolution shall apply.Remittance Date,

(ii) establish from its records the ticket serial numbersheld at each of the Approved Locations concerned, 1.11 REMITTANCE AND SETTLEMENT

(iii) check any accounting and remittance obtained from DELAYED BY OFFICIAL GOVERNMENTthe Agent and identify any discrepancies, ACTION (except Canada & Bermuda)

(iv) distribute any monies obtained from the Agentamong the BSP Airlines concerned in accordance notwithstanding any other provision contained in thiswith the standing instructions of the Conference; resolution an Agent shall not be sent a Notice of

Irregularity, debited for administrative or Clearing Bankcharges, nor declared in Default with respect to all or any1.10.4 Disputes and Withdrawal of Defaultspart of a remittance to the extent that the Agent is unable

1.10.4(a) an Agent may register the existence of a to make full settlement because of official Governmentdispute with the Agency Administrator over a billing of a action which directly prevents such settlement; providedspecified amount as part of its billing. Provided written that the Agent demonstrates that the amount has beenevidence of such dispute is provided by the Agent to the made available for Remittance at a recognised bank butAgency Administrator the Agency Administrator will cannot be remitted owing to such official Governmentensure that no irregularity or default action will be applied, action.except where notification is received that the Agent hasfailed to comply with the provisions of Resolution 890 andaction as proscribed under Paragraph 1.7.9 of these rules 1.12 RESPONSIBILITY FOR SETTLEMENTis being taken by the Agency Administrator; OF CREDIT AND CHARGE CARD (‘CARD’)

TRANSACTIONS MADE AGAINST A1.10.4(b) if the Agency Administrator becomes aware,CARRIER'S MERCHANT AGREEMENTthrough any source, that there exists between a BSP

Airline and the Agent any dispute arising solely fromThe provisions for Credit Card and Charge Card transac-amounts due or claimed to be due to such Airline fromtions are provided for by Resolution 890.the Agent, or vice versa, in respect of the Reporting/

Billing Periods for which the Agent was declared inDefault, he/she shall withdraw the declaration of Default.In the event that the BSP Airline does not admit theexistence of such a dispute, the Agency Administratorshall require the Agent either, to submit documentedevidence demonstrating the existence of the dispute or, topay the amount of the short payment to the BSP.Provided that either of such conditions is met, the AgencyAdministrator shall withdraw the declaration of Default;

1.10.4(c) pending resolution of the dispute betweenthe BSP Airline and Agent, and where the Agent hasremitted the disputed amount to the BSP, the AgencyAdministrator shall hold such amount for 60 days. If after60 days the dispute has not been resolved the AgencyAdministrator shall return the disputed amount to theAgent;



2.1.7 should the Agent be able to demonstrate that theSection 2 — Reporting and Remittingfare, for which the Traffic Document was issued andDirectly to Members in non–BSP accounted for, was the subject of either a fare quotation

Countries obtained from an applicable airline tariff or reservationsystem, it will be deemed correct within the context of

This Section is applicable to all Approved Locations these Rules.reporting sales transactions directly to Members innon-BSP countries only.

2.2 SALES REPORTS AND REMITTANCES2.1 MONIES DUE ON ISSUE OF TRAFFIC The provisions of this Paragraph govern the procedures

in which Traffic Documents are reported by Agents, andDOCUMENTSthe monies for them remitted to Members.

The provisions of this Paragraph govern the issue of2.2.1(a) Agents appointed by the Member may beMembers' Traffic Documents by Agents, and the moniessupplied with such Member's Traffic Documents and suchdue to Members.Agents shall provide Sales Reports as well as the

2.1.1(a) monies for any sales against which an Agent remittance due, and all supporting documents. Remit-issues its own Transportation Order or a Member's Traffic tances shall be made at a frequency and date asDocument shall be deemed due by the Agent to the prescribed by the Member and Sales Reports shall beMember when it is issued and shall be settled in submitted with the same frequency and by the same dateaccordance with the provisions of this Section. as Remittances.

2.1.1(b) in the event that the Agent is declared bankrupt, 2.2.1(b) the provisions governing Irregularities andplaced in receivership or judicial administration, goes into Defaults are as set out under Section 2.5 of this Resolu-liquidation or becomes subject to any other similar legal tion. If there were no transactions during the Reportingprocess affecting its normal operation, then, notwithstand- Period, the Agent shall submit a written ‘no sales’ reporting the normal remittance provisions set out in this in lieu of a Sales Report;Section, all such monies shall become immediately due

2.2.2 Sales Reports shall cover the Reporting Period soand payable.prescribed or permitted, and Sales Reports and Remit-

2.1.1(c) in circumstances where a Member determines tances shall be furnished, so as to reach the Member bythat its ability to collect monies for Traffic Documents may the respective times set forth in the applicable provisionsbe prejudiced by the Agent's financial position such of Subparagraph 2.2.1.Member may demand immediate settlement of all suchmonies;

2.3 AGENTS ON BILLING BASIS2.1.2 in circumstances where an Agent collects full orpart payment for transportation in respect of which The provisions of this Paragraph govern the proceduresreservations have been made on the services of a for Members to bill Agents for the Transportation OrdersMember, such Agent shall issue an appropriate Traffic issued by them in Members' names.Document. Monies for such sale shall then be deemed

2.3.1 Agents that have been authorised by the appointingdue and settlement shall be made in accordance with theMember to issue their own Transportation Orders drawnprovisions of Subparagraph 2.1.1;on the Member shall be billed by the Member for them at

2.1.3 the Member may, subject to applicable currency the end of the Remittance Period, as prescribed by theregulations, designate the currencies in which remittances Member, in which the Orders were accepted by themay be made; Member.

2.1.4 where an Agent requests a Member to issue a 2.3.2 the Billings shall be issued so as reasonably toTraffic Document on its behalf, monies for such sale shall permit settlement by Agents by the Remittance Datebe due and settled by the Agent when the document is prescribed by the Member for the relevant Remittanceissued. Period. Any Agent which is billed on this basis shall have

been required by the Member to draw all such Orders2.1.5 when a Member incurs a loss of revenue attrib- only on the appointing Member's office nearest to theutable to an Agent's failure to apply the correct fare, rules Agent's Approved Location where they are issued. Theand conditions applicable to the sale of transportation, for Member shall require the Agent to forward them to thatwhich the Agent issued the Member's Traffic Document, office without delay.the Member shall invoice the Agent for the amount of theundercollection. OR

2.1.6 settlement of the invoice shall be due and payable 2.3.3 Remittances shall be made by the Agent to reachby the Agent by the Remittance Date applicable to the the Member not later than:Reporting Period in which the invoice was issued and

2.3.3(a) when a frequency greater than once a month isshall be subject to the Irregularity and Default provisionsprescribed the Remittance shall be made by the Agent toset out in Paragraph 2.5 for Irregularities and Defaults.



reach the Member not later than the fifteenth day after 2.5.1.2 the Member shall simultaneously demand imme-each such Billing Period; diate submission of the overdue Sales Report and pay-

ment of the amounts due, if any. If submission andOR payment are not made by the Agent on demand, the

Member shall immediately declare the Agent in Default by2.3.3(b) notwithstanding anything above, with respect to e-mail or similar fast method of communication (andits own Billings and/or Remittances a Member may confirming in a full report by registered mail or inestablish a greater frequency than that prescribed herein countries where registered/certified mail is not availablein which case such Member may elect to use the shorter by use of regular postage and e-mail as appropriate) toreporting and Remittance Period which results as a basis the Agency Administrator, and Default Action shall befor determining the Agent's irregularities pursuant to taken with respect to all Locations of the Agent inParagraph 2.5. accordance with Paragraph 2.6.

2.5.1.3 at the end of each Reporting Period, the Agency2.4 THE REMITTANCE DATE Administrator shall compile a list of all Approved

Locations in respect of which such notices were sentThe provisions of this Paragraph govern and define as during the previous Reporting Period, and shall send athe dates by which Remittances shall reach Members. As copy of such list to all Members.used in this Section, the term ‘Remittance Date’ shalldesignate either: 2.5.1.4 if four instances of Irregularity (including Irregu-

larities reported under these Rules) are recorded on such2.4.1 the day by which Sales Reports (or ‘no sales’ lists in respect of a Location during any 12 consecutivereports) and Remittances shall reach the Member as months, Default Action shall be taken with respect to suchspecified in Paragraph 2.2 or 2.3; or Location of the Agent in accordance with Paragraph 2.6;2.4.2(a) when such day falls on a Saturday, Sunday or 2.5.2 Dishonoured Cheque or Other Methodpublic holiday, the first working day thereafter,

of PaymentOR

2.5.2(a) if a cheque or other method of payment in2.4.2(b) in countries where the recognised weekly settlement of amounts due by an Agent hereunder isholiday is not a Saturday and/or Sunday, the Remittance dishonoured after the Remittance Date by a non-paymentDate shall be the first working day after the recognised by the drawee bank, the Member shall without delay sendweekly holiday. to the Agent a Notice of Irregularity in the form prescribed

and demand immediate payment from the Agent. SuchNotice shall count as two listed instances of Irregularity

2.5 IRREGULARITIES AND DEFAULT for the purposes of the lists provided for in Subpara-graph 2.5.3.

The provisions of this Paragraph govern failures byAgents to adhere to the Reporting, Remitting and settle- 2.5.2(b) if payment is not received on demand or is soment payment procedures. These can include: received, but more than ten calendar days after the

Remittance Date, the Member shall immediately declare• Overdue Sales Reportthe Agent in Default by e-mail or similar fast method of• Overdue Remittance communication to the Agency Administrator, and by

• Dishonoured cheque or payment sending a registered letter, or in countries where registe-• Failure to include sales red/certified mail is not available by use of regular

postage, fax and e-mail as appropriate, to the Agent (with• Accumulation of the above Irregularities.copy to the Agency Administrator) in the form prescribedfrom time to time and Default Action shall be taken withFor the purpose of this Paragraph, submission andrespect to all Locations of the Agent in accordance withpayment on demand means submission and paymentParagraph 2.6.received by the Member before the close of business of

its office on the first day such office is open for business2.5.2(c) for the purpose of this Paragraph submissionfollowing the day of the demand;and payment on demand means submission and paymentreceived by the Member before the close of business of2.5.1 Overdue Sales Report/Remittanceits office on the first day such office is open for businessfollowing the day of the demand;2.5.1.1 if a Sales Report and full remittance, or where

applicable a ‘no sales’ report, has not been received by a2.5.2.1 provided that the Member's actions describedMember by the Reporting Date or Remittance Date asherein in respect of the non-receipt of Settlements orapplicable, the Member shall immediately send to theRemittances by the due dates shall not apply when theAgent a Notice of Irregularity in respect of that LocationMember or the Agency Administrator determines fromwith a copy to the Agency Administrator, as a registeredfactual evidence that the Agent or location had arrangedletter, or certified letter with return receipt, or in countriesfor the payment or remittance of monies, in due time towhere registered/certified mail is not available by use ofreasonably ensure receipt by the Member by the submis-regular postage, fax and e-mail as appropriate, in thesion date or by the Remittance Date as the case may be,form prescribed from time to time.



and that such non-receipt had been caused by extrane- irregularities), such Agent shall also be deemed in Defaultous factors or bona fide bank error; at all Locations under these Rules and Default Action

shall be taken with respect to all Locations of the Agent in2.5.2.1(a) if it is established that non-payment by the accordance with Paragraph 2.6 of this Section;drawee bank of such cheque or other debit is due to abona fide bank error or was caused by extraneous 2.5.5 Failure to Include Sales — Subsequentfactors, and settlement of all amounts due is received on Detection/Discoverydemand, the irregularities so recorded above shall berescinded by the Agency Administrator; 2.5.5.1 if an Agent fails to include on its Sales Report any

of the Traffic Documents issued by the period covered by2.5.2.1(b) if it is subsequently established that non- it, and to remit monies due and such failure is detectedpayment by the drawee bank of such cheque or other after the Remittance Date applicable to the Reportingdebit is due to a bona fide bank error or was caused by Period, the following provisions shall apply:extraneous factors and settlement of all amounts due is

(i) on learning of such failure, the Member shall immedi-received, but after Default Action has been taken, theately send to the Agent by registered mail, or inAgency Administrator shall immediately withdraw thecountries where registered/certified mail is notDefault and irregularities so recorded above and shallavailable by use of regular postage, fax and e-mailnotify all Members;as appropriate, a Notice of Irregularity in the formprescribed from time to time, with a copy to the2.5.2.2 Bona Fide ErrorAgency Administrator, for the Reporting Period inwhich such failure was detected/discovered.a bona fide bank error is one of the following circum-

stances substantiated by evidence acceptable to the (ii) the Notice shall demand immediate payment (if notAgency Administrator: yet made) in respect of the document not reported,(i) Credit Arrangements or Automatic Transfer of (iii) such Irregularity shall be recorded by the Agency

Funds Administrator against the Location concerned on theWhen on the date that the cheque or other debit was list maintained pursuant to Subparagraph 2.5.3,presented to the bank for payment, sufficient funds

2.5.5.2(a) if payment is not received from the Agent onshould have been available in the account on whichdemand, the Member shall immediately declare the Agentthe cheque or other debit was drawn by virtue of ain Default and Default Action shall be taken with respectvalid written line of credit or other written arrange-to all Locations of the Agent in accordance with Para-ment, dated and executed between the bank and thegraph 2.6 orAgent prior to the Reporting Period involved, and the

bank erroneously fails to honour such line of credit or 2.5.5.2(b) if payment is not received from the Agentother arrangement, orwithin 10 days of the Notice of Irregularity, the Member

(ii) Sufficient Funds shall immediately declare the Agent in Default and Defaultwhen sufficient collected funds were in the Agent's Action shall be taken with respect to all Locations of theaccount on which the cheque or other debit was Agent in accordance with Paragraph 2.6;drawn and available for immediate withdrawal at thetime the cheque or other debit was presented to the 2.5.6 Notice of Defaultbank for payment, and the bank erroneously fails to

the Agency Administrator's notice to Members advising ofhonour the cheque or other debit,an Agent's Default shall be sent by appropriate communi-

Note: ‘uncollected funds’ shall not be considered funds cation medium, immediately upon discovery of theavailable for immediate withdrawal. Default.

2.5.3 Accumulated Irregularities2.6 DEFAULT ACTION

2.5.3.1 at the end of each Reporting or Billing Period, theAgency Administrator shall compile a list of all Approved The provisions of this Paragraph govern the proceduresLocations in respect of which such Notices were sent that shall be taken if Default Action to be taken induring the previous Reporting/Billing Period, and shall accordance with any of the provisions of Paragraph 2.5.send a copy of such list to all Members. The procedures prescribed in this Paragraph shall be

followed:2.5.3.2 if four instances of Irregularity are recorded onsuch lists in respect of an Approved Location during any 2.6.1 the Agency Administrator shall immediately:twelve consecutive months, Default Action shall be taken (i) advise all Members that the Agent is in Default at allwith respect to such Location of the Agent in accordance Locations or at the Location concerned, andwith Paragraph 2.6. (ii) notify the Agent in writing by registered mail, or in

countries where registered/certified mail is not2.5.4 Agent in Default as an IATA Cargo Agent available by use of regular postage and e-mail asappropriate, of the declaration of Default and of theif an Agent which is also registered as an IATA Cargoconsequences thereof;Agent under the IATA Cargo Agency Rules is declared in

Default under those Rules in connection with its cargo 2.6.2 upon receipt of such Notice from the Agencyactivities (other than by reason of accumulated Administrator that an Agent is in Default Members shall in



respect of all Locations of the Agent or of the particular Section 3 — Consequences of DefaultLocation specified in the notice: to BSPs and to Members(i) discontinue credit, withdraw all Traffic Documents

supplied and revoke any authorisation to the Agent toissue its own Transportation Orders drawn on Mem- 3.1 DETERMINATION OF AGENT'Sbers, INDEBTEDNESS TO MEMBERS/AIRLINES

(ii) demand an immediate accounting and settlement ofall amounts owing by the Agent in respect of the The provisions of this Paragraph govern the proceduresLocation(s) concerned whether or not the Remittance that shall be implemented when an Agent declared inDate therefor has arrived, Default owes monies to BSP Airlines.

(iii) notify the Agency Administrator of all amounts owing3.1.1 When Settlement has been madeto them by the Agent and thereafter advise the

Agency Administrator whether proper accounting andwhen the Agency Administrator has determined that ansettlement have been made;Agent declared in Default under any of the provisions ofthese Rules has effected settlement of amounts due, if2.6.3 if at any time, the Agency Administrator becomesany, as provided for in Default Actions (Subpara-aware that there exists between the declaring Membergraphs 1.10.2(ii) and/or 2.6.2(ii)), the provisions of Para-and the Agent any dispute arising solely from amountsgraphs 3.3 through 3.5 inclusive shall apply;due or claimed to be due to the Member from the Agent

or vice versa in respect of the Reporting/Billing Period forwhich the Notice of Irregularity was sent, and/or in 3.1.2 When Settlement has not been maderespect of previous Reporting/Billing Periods, he shall

3.1.2(a) when the Agency Administrator has determined(i) withdraw the declaration of Default,that an Agent declared in Default under any of the

(ii) notify the Agent and all Members accordingly. provisions of these Rules has failed to settle amounts dueas provided for in Default Actions (Subpara-2.6.4 upon receipt of such notification Members shall pay graphs 1.10.2(ii) and/or 2.6.2(ii)), he/she shall give theany commission withheld from the Agent. Agent notice of termination of the Sales Agency Agree-ment; Paragraph 3.2 below provides for the settlement of2.6.5 The Notice of Irregularity giving rise to the impropermonies due, including minimum repayment amounts anddeclaration of Default shall be removed by the Agencya schedule for the balance. Provided that the AgentAdministrator from the list maintained pursuant to theeffects settlement agreed under Paragraph 3.2, the termi-provisions of Subparagraph 2.5.3.nation will not take place.

3.1.2(b) if an Agent dishonours a repayment schedule2.7 INDEMNITY the original termination notice will be deemed valid eventhough the termination may occur at a date other thanif a Member sends a Notice of Irregularity to an Agent orthat specified originally, and the provisions for this in thedeclares an Agent in Default and such action is foundapplicable Passenger Sales Agency Rules shall apply.subsequently to have been wrongly taken, the Member

taking such action shall indemnify IATA, its officers andemployees and other Members against all claims 3.2 SETTLEMENT OF AMOUNTS DUE(including legal costs) arising from acts performed inreliance on such action; provided that in case of an out of The provisions of this Paragraph govern the settlement ofcourt settlement such indemnifying Member shall have monies due by an Agent declared in Default.approved the terms of the settlement;

3.2.1 when an Agent declared in Default is able todemonstrate to the Agency Administrator prior to the2.8 REMITTANCE AND SETTLEMENT termination date specified in his notice of termination that:

DELAYED BY OFFICIAL GOVERNMENT (i) either all outstanding amounts, if any, have beenACTION settled, or

(ii) at least 50% of the outstanding amount has beennotwithstanding any other provision contained herein ansettled and a firm schedule for repayment by install-Agent shall not be sent a Notice of Irregularity, debited forments within six months of the balance plus interestadministrative or Clearing Bank charges nor declared inat the official (prime) bank rate plus one percent hasDefault with respect to all or any part of a remittance tobeen agreed between the Agency Administrator andthe extent that the Agent is unable to make full settlementthe Agent;because of official Government action which directly

(iii) an alternative repayment schedule and conditionsprevents such settlement; provided that the Agent demon-have been agreed between the Agent and either thestrates that the amount has been made available forAgency Administrator or the Agency Services Man-remittance at a recognised bank but cannot be remittedager, or, in the case of Canada & Bermuda uponowing to such official Government action.unanimous agreement of the BSP Airlines to whomthe outstanding amount is due, a fraction of suchamount has been settled and a firm schedule forrepayment by instalments over an agreed period of



the balance plus interest at the official (prime) bank 3.3.1(e) after reinstatement Agents may be required torate plus one percent has been agreed between the continue to provide a guarantee subject to the results ofAgency Administrator and the Agent; such alternative any financial review.repayment schedule shall extend over no more than

AND (All Countries)12 months;

3.3.2 ISS Management shall redeposit stocks of STDs3.2.2 the Agency Administrator shall notify Members,upon advice of a Member or Airline that it has placed itsAirlines and ISS Management accordingly.CIP with the Agent at the Location(s) concerned,

3.2.3 ISS Management or the Agency Services Manager,3.3.3 Agents not able to demonstrate financial qualifi-as the case may be, shall immediately advise the AgencycationAdministrator of any failure of the Agent to honour the

repayment schedule; he/she shall also immediatelyif the Agent having settled all outstanding amounts, if any,advise the Agency Administrator when total settlement ofis unable to demonstrate to the Agency Administrator bythe balance due (including interest) has been completed.a specified date that its financial and credit standingsatisfies the qualifications set forth in the applicableTravel Agent's Handbook or Passenger Sales Agency3.3 REVIEW BY THE AGENCYRules and, in the case of Default resulting from accumu-ADMINISTRATOR lation of Notices of Irregularity, that it has taken adequatemeasures to prevent recurrence of such irregularities, the3.3(a) – 3.3.2 Agents able to demonstrate financialAgency Administrator shall give the Agent notice ofqualificationtermination of the Sales Agency Agreement or of removalfrom the Agency List as the case may be. If, prior to the3.3(a) when the Agency Administrator is satisfied that thedate of termination or removal, the Agent eliminates theAgent has effected settlement of all outstanding amounts,grounds for such termination or removal to the satisfac-he/she shall require the Agent to furnish a bank guaran-tion of the Agency Administrator, the termination ortee or an approved insurance guarantee or bond equiva-removal shall not take effect.lent to sales at risk;

3.3.1(a) (Canada & Bermuda only) if the Agent haspreviously supplied to the Agency Administrator a tempo- 3.4 EFFECTS OF RETENTION AFTERrary financial security under any provisions of these DEFAULTRules, the Agent shall be required to demonstrate to theAgency Administrator that its financial and credit standing a Defaulting Agent whose Agreement has not beenmeet the requirements specifed within the applicable terminated shall be cleared of all irregularities recordedPassenger Sales Agency Rules by the submission of against all its Locations prior to the Default. For thesatisfactory financial statements. When the Agent satis- purposes of Subparagraphs 1.7.10, the commencementfies those requirements the Agency Administrator shall so of the 12-month period (or 6-month period for thenotify BSP Airlines; Philippines) shall be the date of the Agency Administra-

tor's notification pursuant to Subparagraph 3.3.1; provided3.3.1(b) provided the Agent satisfies the qualifications set that when the review arose out of Default at individualforth in 3.3(a) and furnishes a bank or insurance guaran- Locations through accumulation of Notices of Irregularity,tee and, in the case of Default resulting from accumula- the clearance of irregularities shall apply only in respecttion of Notices of Irregularity demonstrates it has taken of the Locations concerned.adequate measures to prevent recurrence of such irregu-larities, the Agency Administrator shall so notify BSPAirlines; 3.5 REVIEW BY TRAVEL AGENCY

COMMISSIONER3.3.1(c) following reinstatement the Agency Administratorshall conduct a financial review of the Agent to determine when an Agent's Sales Agency Agreement is terminatedif the Agent is still required to furnish a guarantee. Such or its Approved Location is removed from the Agency Listreview will only be conducted based on the financial pursuant to the provisions of Subparagraph 3.1.2 orposition and audited accounts of the Agent dated fol- Paragraph 3.3, the Agent may, within 30 days of thelowing the reinstatement and full settlement of all previous termination or removal, invoke the procedures for reviewoutstanding amounts. He/she may, by letter to the Agent, of the Agency Administrator's action by the Travel Agencyrequest that documents be provided by a specific date Commissioner.which date shall be no earlier than seven days from thedate of the request.

3.3.1(d) if the results of the financial review detailed in3.3.1(c) above determine that the Agent's financial situa-tion is sufficiently secure the Agency Administrator mayremove the requirement for the Agent to continue fur-nishing a guarantee.


Resolution 832 — Attachment ‘A’

RESOLUTION 832

Attachment ‘A’

FREQUENCY OF AGENT REMITTANCES


Resolution 838

the routing, only to change the carrier named for transpor-RESOLUTION 838 tation to become the carrier shown in the ‘Original Issue’box of the ticket;CHANGE OF TRAFFIC DOCUMENTS

BY AGENTS 3.3 the reissued document shall be issued only in thename of the carrier which issued the document presented

PAC1(46)838(except USA) Expiry: Indefinite for reissue, or the carrier shown in the ‘Original Issue’PAC2(46)838 Type: B box;PAC3(46)838

3.4 any restrictive remark shown on the document, pre-RESOLVED that the following provisions shall govern sented for reissue, must be carried forward on the newchanges by Agents to traffic documents; provided that document;nothing in this Resolution shall preclude Members from

3.5 an Agent shall not issue a miscellaneous documentestablishing additional restrictive conditions on aagainst an unused or partly used document;unilateral or multilateral basis.

3.6 when authorisation to reissue is required, writtenevidence of such authorisation shall be obtained and1. GENERAL made available on request by the respective carrier,except where Electronic Ticketing processes are used.1.1 at a passenger's request, an Agent may effect a

change of reservation or effect a rerouting (withoutchanging the point of origin) under the conditions 4. INVOLUNTARY REROUTINGspecified in the following paragraphs. In such case, theAgent shall ensure that all space originally reserved in

(change due to special airline operational circumstances)respect of the segment affected by the change ispromptly cancelled. 4.1 in the case of involuntary rerouting, reissuance of

tickets and change of reservations data on the ticket are1.2 all documents presented for reissue shall be checkedrestricted to air carriers;against the official record of Traffic Documents which are

not to be honoured, to the extent such record is locally 4.2 reissuance of involuntarily rerouted tickets andaccessible to the Agent. change of reservations data on such tickets are also

restricted to air carriers.

Editorial Note: Amendments to Resolution 838 are2. CHANGE OF RESERVATION subject to unanimous concurrence by the PassengerServices Conference.ELECTRONIC TICKETS ONLY

alterations to electronic tickets/flight coupons shall bemade in accordance with Members specific instructionsand as provided for by the automated ticketing systems.

3. VOLUNTARY REROUTING(change made at passenger's request)3.1 an Agent shall not reissue a traffic document

3.1.1 when the document presented for reissue wasissued or originally issued in currencies or countries withexchange control restrictions,

3.1.2 when the document presented for reissue is notvalid or is restricted for reissue by the fare rule, thediscount applied or the form of payment or shows anyother remarks restricting issue,

3.1.3 when the effect of reissue would be to change thetype of fare (e.g. normal fare into excursion fare) or granta reduction (e.g. normal fare into youth fare) for anitinerary involving a sector already flown;

3.2 in all other cases, an Agent may reissue a trafficdocument, provided authorisation to do so has beenrequested from and given by the issuing airline shown onthe document presented for reissuance, or by the airlineshown in the ‘Original Issue’ box. Such authorisation isnot required if a document is reissued, without changing



within its application for classification as NetworkRESOLUTION 842 Agent, and for any Locations subsequently added;(f) will provide any financial guarantees as may beNETWORK AGENT

determined by IATA;PAC1(45)842(except USA) Expiry: Indefinite (g) must include all its Approved Locations in all of thePAC2(45)842 Type: B country/countries contained within its application;PAC3(45)842 (h) confirms that all its Locations meet all the criteria

mandated for accreditation required within the appli-THE Passenger Agency Conference (‘the Conference’) cable Passenger Sales Agency Rules, andwishes to provide consumers with a range of reliable and(i) understands its classification as Network Agent isprofessionally managed sales outlets for air transportation

limited to the country/countries contained within itsproducts in an efficient and cost-effective manner that isapplication.responsive to evolving individual market place require-

ments, and The use of words and expressions in the singular shall,where the context so permits, be taken to include theirACCEPTING that certain travel agents, with an Estab-use in the plural and vice versa.lished BSP Performance including previous operating

experience of IATA's Passenger Sales Agency Rules,desire automatic accreditation approval, and 2. QUALIFICATIONS FOR APPROVALACCEPTING that they may be recognised within the AND RETENTION AS A NETWORKAgency Programme through the provision of a separate AGENTAccredited Agent classification, it is therefore

2.1 Agents that wish to be classified as Network Agents,RESOLVED that the classification of Network Agent isare required to meet the criteria described above. Suchhereby established. It will be governed by the definitions,criteria must continue to be met in order for therules and provisions set forth in this Resolution, as well asAccredited Agent to retain this classification. The Agencythe Definitions, rules and provisions set forth in theServices Manager has the discretion to acceptPassenger Sales Agency Rules and/or elsewhere whichapplications where the qualifications of the applicantare applicable to all individual locations, to the extentapproximate to the definition of Network Agent.those Passenger Sales Agency Rules are not inconsistent

with this Resolution. In the event of any inconsistency 2.2 Network Agents are not permitted to use such clas-between those Passenger Sales Agency Rules and this sification in promotional material or infer any superiority toResolution, the provisions of this Resolution shall apply. Accredited Agent status.

Procedures1. DEFINITIONS

There are two procedures within this resolution providingIn this Resolution: for:

(a) Applications to obtain the classification of Network‘NETWORK AGENT’ means a group of Accredited Pas- Agentsenger Sales Agents, or Person, which meets the fol-(b) Applications for additional Locations after classifica-lowing criteria:

tion has been received.(a) the same corporate head office to which they areultimately subordinate; Upon request, the Agency Services Manager shall supply

(b) effective control of the Agents and Locations each prospective applicant with the appropriatespecified within its application for Network Agent application form.classification;

(c) majority ownership, either directly or indirectly, of3.1 Application for the Classification51% or more in all of those Agents and Locations,

and whose names are entered on the Agency List in of Network Agenteither

Applications for classification as a Network Agent shall be(i) three or more countries, ORmade to the Agency Services Manager of the IATA

(ii) a minimum of one hundred Head Office and Regional Office supervising IATA's Agency activities inBranch Locations, if in less than three countries, the country where the Agent conducts its operations. TheOR Agency Services Manager shall determine if the Agent

(iii) which, if in a single country, contributes 10% or and its specified Locations meet criteria, and ismore of that country's BSP net sales; empowered to approve or reject such applications in

accordance with those criteria.AND(d) has an Established BSP Performance, as defined in

Resolution 866;(e) accepts full financial responsibility to IATA and its

Members for the performance of all of the Locations


Resolution 842

3.1.1 Form of application for classification 3.2.4 Processing

3.1.1.1 the applicant must 3.2.4.1 upon receipt, the Agency Services Manager shallconsider whether such application is complete. If any of(a) complete the application form, prescribed in Attach-the required information has not been included with thement ‘A’ to this Resolution, furnish the requiredapplication the Agency Services Manager shall so informinformation as stated on the application form, andthe applicant;submit it to the appropriate IATA Agency Services

Manager; 3.2.4.2 the Agency Services Manager shall consider(b) pay the non-refundable application fee; each application and supporting information and will, if the(c) pay the sum of the applicable annual agency fees application form is complete and the established criteria

that may be due (refer to Paragraph 5). met, immediately approve the application.

3.2.4.3 The Agency Services Manager shall notify the3.1.2 Processingapplicant promptly in writing of the decision on theapplication, and in the event of rejection, shall give clear3.1.2.1 upon receipt, the Agency Services Manager shallreasons for so doing.promptly consider whether such application is complete. If

any of the required information or fees has not been3.2.4.4 The Agency Services Manager will, withinincluded with the application, the Agency Services Man-60 days of approving such an application, arrange for atager shall so inform the applicant;least one inspection report to assist him in determiningwhether the applicant meets the qualifications required at3.1.3 Termination of Classificationan Approved Location.

3.1.3.1 The classification of an Agent as a Network Agentshall cease immediately upon that Agent ceasing to meet

4. CHANGE OF OWNERSHIPany of the specified criteria for such classification.

4.1 Where a change of ownership materially affects the3.1.3.2 An individual Approved Location of a Networkclassification of the Agent as a Network Agent, IATAAgent may lose its classification by ceasing to meet anyreserves the right to either require a re-application to thisof the specified qualifying criteria for such classification,classification, or to rescind the membership of this clas-and may cause the Accredited Agent to lose suchsification.classification in that country, dependent on the individual

circumstances involved.

5. AGENCY FEES3.2 Application for Approval of AdditionalLocations

5.1 Annual Agency Fees3.2.1 A Network Agent that wishes to have an additional

5.1.1 The sum of the applicable annual agency fees dueplace of business accepted as an Approved Location onfor the Network Agent classification shall be quoted, inthe Agency List, shall apply to the appropriate AgencyUS Dollars as one collective amount, but may be payable,Services Office (ASO). The ASO shall determine, fromat the discretion of IDFS, at an equivalent rate in a localthe information provided, whether the location meets thecurrency.established criteria for such entry. The ASO is

empowered to automatically approve all applications for5.1.2 The combined Annual Agency Fees shall include alladditional Branch Locations, provided that suchagreed Approved Locations nominated by the applicant,applications are received from the recognised registeredplus any additional Branch Locations subsequently addedoffice or principal office of the Network Agent for theto the Agency List during the year for which the feecountry concerned.applies.

3.2.2 An Agent that may be classified as a Network5.1.3 The combined Annual Agency Fees shall alsoAgent in one or more countries, and that wishes to applyinclude all Changes of Name, and Changes of Locationfor an Approved Location in a country for which it is notthat may apply in the year for which the fee applies.classified as a Network Agent, shall not have such

application automatically approved. Instead, the full provi-sions of the applicable Passenger Sales Agency Rules 6. REVIEWSshall apply.

6.1 An Agent whose application for classification as a3.2.3 Form of Application for additional Network Agent, or a Network Agent whose application forlocations an additional location has been rejected may, within30 calendar days of the date of the Agency ServicesThe applicant must complete the application form pre- Manager's notice, request the Agency Services Managerscribed under the applicable Passenger Sales Agency to reconsider his decision. Such request shall be made inRules. writing, stating the grounds for a reconsideration.



6.2 Where, following the request for reconsideration, the RESOLUTION 842Agency Services Manager confirms his original decision,the Agent or Network Agent, as the case may be, may Attachment ‘A’refer the matter directly to the Travel Agency Commis-sioner for review. The administrative procedures for suchreferral for review shall be those specified in the appli- APPLICATION FORM TO BECOMEcable Passenger Sales Agency Rules.

A NETWORK AGENT6.3 An Agent or Network Agent which considers itself

The information requested below is required by IATA toaggrieved by a decision of the Travel Agency Commis-assist in determining the eligibility of the applicant and itssioner, shall have the right to have this decision reviewedLocations for inclusion in the classification of Networkby arbitration under the IATA Arbitration Rules in force atAgent. Print clearly the answers to all the questions onthe time of the decision.this form. Where additional space is required, or whereyou wish to supplement your answer and there is insuffi-cient space, attach additional sheets containing the7. CAPACITY, INDEMNITY AND WAIVERrequired information to this form. Retain a copy of this

7.1 The provisions governing capacity, indemnity and application at the office making this application, for yourwaiver, which are fully described in the Passenger Sales own record.Agency Rules applicable to the relevant Agent's activitiesshall apply with full force and effect to this Resolution as if Section 1 — Requirementsfully described herein for every situation applicable to

1.1 The applicant satisfies the Definitions of NetworkAgents and Network Agents, jointly and severally, in theirAgent and Established BSP Performance as provided forrelations with IATA Members and IATA.in this Resolution or elsewhere.

1.2 Applicants are required to certify that any statementsmade in respect of this application, and futureapplications for Approved Locations, are true and trust-worthy in all respects.

1.3 Applicants are required to meet the financial guaran-tees that shall be determined by IATA.

1.4 Applicants will be required to make payment of theirAnnual Agency Fees, when due, as one consolidatedamount. The fee, quoted in US Dollars, will include:(i) all existing Approved Locations covered by this

application,(ii) all future Branch Locations including their entry,

application, and annual fees approved in the samefee year in the country/countries covered by thisclassification,

(iii) all future Changes of Name and Changes of Locationapproved in the same fee year in the country/coun-tries covered by their Network Agent classification,

(iv) automatic approval of all future Branch Locationapplications in the country/countries covered by thisapplication, subject to the provision of all of therequired information, and provided that all applicableaccreditation criteria are met.

1.5 The provisions of 1.4 (ii), (iii) and (iv) shall not applyshould such future applications be either incomplete orsubsequently rejected. In such instances, re-applicationsshall be subject to the applicable Passenger SalesAgency Rules, and fees.

1.6 A one-off Application Fee, as advised by IATA, isrequired with this application.


Resolution 842 — Attachment ‘A’ — Section 3

Section 2 — Details of ownership, and Section 3 — DeclarationIdentification of Agencies and It is declared thatLocations, for which classification is

3.1 we, the undersigned, are authorised by the organisa-requested. Please complete thetion(s) identified in the answers to section 2 above toseparate form (Form S.2) at the end, make these statements and file this document, and

which forms part of this application understand that IATA reserves the right to require furtherevidence of qualification as may be appropriate;form.3.2 we understand that only the Locations identifiedForm S.2 requires the following information to be providedwithin this application may be included in the classificationfor each country, and for each legal entity, included in thisof Network Agent at this time, and that any otherapplication.Approved Locations trading elsewhere under the same

2.1 The Legal name(s) in each country; name, or ownership, at this time are specifically excluded.All such excluded Locations are subject to all of the rules

2.2 Trading names, if different from 2.1 above; and provisions of the applicable Passenger Sales AgencyRules, including those appertaining to processes and2.3 The name, address, telephone fax number, e mail fees;

address, and IATA Numeric Code of the office makingthis application. 3.3 we understand that the classification of Network

Agent may not be used in promotional material, or to infer2.4 Details of each legal entity to be included in this superiority over Accredited Agents.application, e.g. Sole ownership, Partnership, LimitedCompany, Corporation, franchisee or licencee. 3.4 we understand that any location listed as Network

Agent that does not adhere to any applicable Passenger2.5 The principal address and contact details of each Sales Agency Rules, may be de-listed from this classifica-entity tion, and revert to that of Accredited Agent;2.6 The percentage financial interests of the applicant 3.5 we accept full financial responsibility to IATA and itsand other shareholders. Members for all Locations classified as Network Agent,

especially in respect of any default situation that may2.7 The countries in which IATA currently requires finan-occur;cial security from you, and the level(s) of bond(s) and/or

guarantees that apply. 3.6 we hereby certify that the foregoing statements(including statements made in any attachment hereto) are2.8 A list of all Locations included with this application,true and correct to the best of our knowledge and belief;showing its IATA Numeric Code and Location type e.g.

Head Office, Branch. 3.7 we agree that this document shall become a part ofevery Sales Agency Agreement signed with Members ofIATA for the sale of international air passenger transpor-tation;

3.8 we hereby expressly agree to the provisionsdescribed in this Resolution governing Capacity, Indem-nity and Waiver, which include agreement to waive anyand all claims, causes of actions or rights to recovery andagreements to indemnify and hold harmless IATA or anyof its Members, their officers, employees, agents orservants, for any loss, injury or damage based upon libel,slander or defamation of character by reason of anyaction taken in good faith pursuant to this application,including but not limited to a notice of disapproval; and



3.9 we understand and agree that if the application forthe classification of Network Agent is disapproved, nocompensation from IATA will be claimed.

.......................................... ..........................................(Signature) Signature.......................................... ..........................................(Name of Applicant) (Name of Applicant).......................................... ..........................................Title Title.......................................... ..........................................

Note: In the first instance the application should bemade to the Agency Services Office in Geneva, Miami orSingapore, as appropriate to the applicant's office.


Resolution 842 — Attachment ‘A’ — Section 3



6.1 All other conditions for use of the BSP Airline's webRESOLUTION 850 application are outside of the scope of these resolutionsand are a matter for the bilateral agreement to beAttachment ‘A’ established between the parties. The existence, but notthe content, of such agreements will be advised to theBSP.AIRLINE DIRECT WEB SALES TICKET

ISSUANCE FOR AGENTSNotwithstanding any specific conditions described underany other rules of the Passenger Agency Programme, theprovisions of this Attachment will apply to the sales ofAccredited Agents ticketed by a BSP Airline on behalf ofan Agent through its web application where the BSPAirline chooses to report and settle such sales throughthe BSP.

Therefore it is RESOLVED that,

1. When in accordance with paragraph 12.4 of thisResolution, a BSP Airline reports ticket sales to the BSP,issued by the BSP Airline through its web basedapplication on behalf of Accredited Agents, such salesshall be processed by the BSP.

2. The BSP will reconcile the sales received from theBSP Airline together with the standard reported BSPsales issued by Accredited Agents.

3. All reporting and remittance conditions, includingirregularity and default provisions, relevant to a marketwill apply to both the BSP Airlines and the AccreditedAgents.

4. Any financial securities in place with Accredited Agentsshall, to the extent provided by the Passenger SalesAgency Rules, apply equally to the ticket sales issued onbehalf of the Agents by the BSP Airline's web basedapplication and reported to the BSP.

4.1 In the event of any default by an Agent where afinancial security is called on to cover the Agent shortfall,such security shall, in the first instance, be allocated tocover core BSP sales effected using Standard TrafficDocuments, Thereafter any residual will be used to coverthose web sales reported by BSP Airlines.

5. Any BSP Airline web sales that remain unreported tothe BSP by a BSP Airline will not be considered in anysuspension processing. In such an event the Agent andBSP Airline will resolve these unreported sales bilaterally.

5.1 Settlement to BSP Airlines of their web sales shall beperformed on a “funds received” basis.

5.2 the BSP will ensure that, in the event of a negativesettlement from such web transactions, no impactaccrues to the core BSP sales.

6. the BSP Airline will notify its Agents when it decides toprocess the web sales through the BSP and will ensuresuch notification clearly indicates to the Agent that thosesales will be subject to the reporting, remittance, defaultand irregularity provisions of the Passenger Sales AgencyRules.


Resolution 850m

RESOLUTION 850e RESOLUTION 850m

INDUSTRY SETTLEMENT SYSTEMS ISSUE AND PROCESSING OF AGENCYDEBIT MEMOS (ADMS)

PAC1(42)850e(except USA) Expiry: IndefinitePAC2(42)850e Type: B PAC1(45)850m(except USA) Expiry: IndefinitePAC3(42)850e PAC2(45)850m Type: B

PAC3(45)850mWHEREAS the 1998 IATA Annual General Meetingagreed to restructure the IATA Industry Settlement Sys- WHEREAS the Passenger Agency Conference (“the Con-tems and has delegated responsibility to IATA Settlement ference”) wishes to promote a consistent and standardSystems Management (hereinafter “ISS Management”) set of rules for BSP practices,for the management and efficient operation of this busi-ness activity and, to that end, has authorized changes in It is RESOLVED that the following principles will bethe management and operation of the IATA Industry followed,Settlement Systems (hereinafter “ISS”), and

WHEREAS, it is therefore necessary to recognize the 1. INTRODUCTIONresponsibility of ISS Management for all ISS administra-tion and operational functions, such as: 1.1 The ADM serves to notify an Agent that unless there

is some justification to the contrary, the Agent owes the— ISS budgets (cost and revenues)issuing BSP Airline the amount shown on the ADM for the— ISS staffingreasons indicated.— ISS contracts (service agreements) to include signa-

ture authority 1.2 ADMs are a legitimate accounting tool for use by all— ISS office management and administration BSP Airlines to collect amounts or make adjustments to

Agent transactions in respect of the issuance and use ofand further to recognize that ISS matters will be super- Standard Traffic Documents issued by the Agent. Alterna-vised by the IATA Board of Governors, now it is tive uses of ADMs may exist provided that consultation

has taken place either individually with the Agent or aRESOLVED that upon this Resolution becoming effective: local representation of Agents, or through the applicable

local joint consultative forum.1. All authority and responsibilities previously delegatedby the PAConf to the BSPC and through the BSPC to theBSP Panels and their Steering Panels are subject to 2. AIRLINE POLICYthe condition that no such authority or responsibility shallbe exercised with respect to the administrative and 2.1 Airlines are required to publish and communicate inoperational functions to be performed by ISS Manage- writing their ADM policies to Agents in advance ofment on ISS matters at the direction of the IATA Board of implementation.Governors, who shall act on the advice of the IATASettlement Systems Advisory Committee (ISSAC). 2.2 Where possible the model shown in the Attachment

to this Resolution should be applied.2. This condition is without prejudice to, and shall notlimit, all other authority and responsibilities currentlyexercised by the PAConf including the relationship 3. BSP PROCESSING OF ADMSbetween airlines and agents, provided, however, thatPAConf shall take action to identify and amend the 3.1 ADMs shall only be processed through the BSP ifPassenger Sales Agency Rules and other PAConf Reso- issued within nine months of the final travel date. Anylutions as required to implement the condition imposed in debit action initiated beyond this period shall be handledParagraph 1. directly between the BSP Airline and Agent.3. PAConf hereby establishes, wherever a BSP is inoperation, a Local Customer Advisory Group (LCAG), to 4. ISSUANCE PRINCIPLESprovide advice to ISS Management on customer serviceissues, and to ISS Management and the PAConf on 4.1 Airlines should consider establishing policies for aIndustry Settlement Systems standards. Rules and Proce- minimum value for the issuance of a single ADM. Wheredures, for these groups, will be developed by the PAConf. such minimum is established it may be published toThe PAConf shall determine the procedures for establish- Agents.ing membership of the CAGs.

4.2 In principle ADMs should not be raised for thecollection of administration fees.

4.3 If there is an administrative cost associated with theraising of an ADM it should be incorporated in the sameADM document raised for the adjustment. The inclusion



of the administration fee must be communicated to the RESOLUTION 850magent.Attachment ‘A’4.4 Airlines shall provide Agents with the phone or fax

number and email address of a person or department thathas knowledge of the concerned ADM. MODEL ADM INDUSTRY PROCEDURES4.4.1 Whenever a Fare Calculation Mode Indicator(FCMI) has been provided by a ticketing system to theAirline, the Airline shall include the FCMI in any ADM 1. DESCRIPTIONraised to an Agent.

1.1 ADMs are a legitimate accounting tool for use by all4.5 Where possible electronic BSP functionality will be BSP Airlines and should only be used to collect amountsused by the issuing airline. or make adjustments to agent transactions in respect of

the issuance and use of Traffic Documents issued by or4.6 An Agent shall have a minimum of 14 days in which at the request of the Agent.to review an ADM prior to its submission to BSP forprocessing. 1.2 Alternative uses of ADMs may exist provided that

consultation has taken place either individually with the4.7.1 Except countries under Resolution 808 or Agent or through the applicable local joint consultativeLATAM countries under 818g Any disputes are to be forum.raised by Agents within 30 days of receipt of an ADM,and 1.3 ADMs are to be specific in their detail as to why a

charge is being made.4.7.1.1 all disputes are to be settled by the Airline within60 days of receipt. 1.4 Any ADM relates to a specific transaction only, and

may not be used to group unrelated transactions4.7.2 Countries under Resolution 808 or LATAM together, however, more than one charge can be includedcountries under 818g only Any disputes are to be on one ADM if the reason for the charge is the same, andraised by Agents within two reporting periods of receipt of a detailed supporting list is provided with the ADM.an ADM, and

1.5 In the event an airline decides to apply a charge for4.7.2.1 all disputes are to be settled by the Airline within under-collection or incorrect ticketing on a sale or for the60 days of receipt. adjustment of a refund issued incorrectly or incorrectly

calculated, such charges must be clearly explained in the4.8 If it is established that an ADM is not valid it must be carriers published ADM policy or must be agreed withcancelled. Agents bilaterally in writing.4.9 Where ADMs are withdrawn by BSP Airlines, any 1.6 No more than one ADM should be raised in relationadministration fee that may have been levied will be to the same original ticket issuance. When more than onewithdrawn, or refunded to the Agent. In the event the ADM is raised in relation to the same ticket it shall beADM is refunded to the Agent, the Airline cannot charge specified for a different adjustment to previous issues.an administrative fee associated to the refund.

1.7 All rejected or disputed ADMs must be handled by4.10 Following consultation and if both parties agree a BSP Airlines in a timely manner.disputed ADM may be referred to the Travel AgencyCommissioner to be resolved. 1.8 Except where otherwise agreed in a market ADMs

should not be used to collect third party costs not directly4.11 An ADM that has been included in the BSP billing associated with the initial ticket issuance of a passengerwill be processed for payment. Any subsequent dispute of journey.such ADM, if it is upheld by the Airline, will be dealt withdirectly and where applicable may result in the issue of an 1.9 When ADMs are raised for administration fees theAgency Credit Memo (ACM). level of such fees should be commensurate with the cost

of the work incurred.

1.10 When the Agent has used an automated pricingsystem to generate the total ticket price including fare,tax, fees and charges specific to the purchase, andsubsequent issuance, of a ticket for a journey, and therehas been absolutely no manipulation by the Agent, onsuch price the ticketing systems shall send a FareCalculation Mode Indicator (FCMI) to the airline, inaccordance with the provisions of IATA PSC Resolu-tions 722f and 722g, to identify automated pricing hasbeen used. The airline shall ensure the FCMI indicator ispassed to an Agent in the event an ADM is issued.


Resolution 850p

2.4 The result of the evaluation shall be advised to theRESOLUTION 850p Provider, LCAGP and APJC/Executive Council as appli-cable.FINANCIAL SECURITIES

PAC1(43)850p(except USA) Expiry: IndefinitePAC2(43)850p Type: BPAC3(43)850p

WHEREAS certain Sales Agency Rules provide that anAgent may meet the financial criteria by the provision ofadditional financial security in the form of a bank guaran-tee, insurance bond or other instrument; and

WHEREAS the Passenger Agency Conference (hereafterreferred to as “the Conference”) wishes to make a widerange of financial securities available to Agents; and

WHEREAS non-payment of a claim against a provider ofsuch financial security will result in financial loss toMembers and Airlines;

It is hereby RESOLVED that,

1. DEFINITIONS1.1 The definitions of terms and expressions used in thisResolution are contained in Resolution 866.

1.2 “FINANCIAL SECURITY PROVIDER” (hereafterreferred to as “Provider”) means any entity that guaran-tees payment to Members or Airlines, through provision ofan insurance bond or other instrument (excluding bankguarantees), in the event of the default of an Agent.

2. EVALUATION OF PROVIDERSAND THEIR PRODUCTS2.1 IATA shall establish criteria for the consistent evalua-tion and approval of Providers and Provider products, andshall make such criteria available to all interested parties.Criteria shall be subject to review and amendment byIATA annually, or more frequently as may be necessarydue to changes in the financial security and/or insurancemarkets;

2.1.1 No Provider or Provider product shall be acceptedfor the purposes of an Agent meeting the financial criteriaby the provision of additional financial security wherepermitted by the applicable Sales Agency Rules unlesssuch Provider or Provider product has been approved byIATA in accordance with this Resolution.

2.2 IATA shall conduct, at a minimum, an annual reviewof all Providers and Provider products previouslyapproved by IATA. After such review(s), IATA shalldetermine whether such Provider or Provider productmeets criteria in effect at that time;

2.3 The result of the initial and periodic evaluation shallbe reported to the LCAGP and APJC/Executive Councilas appropriate. Their views shall be relayed to IATA, whoshall decide whether to accept financial security instru-ments from the Provider after consultation and recom-mendations developed, with local Airlines;




DESIGNATION AND SELECTION PASSENGER AGENCY PROGRAMMEOF TICKETING AIRLINE GLOBAL JOINT COUNCIL (PAPGJC)

PAC1(46)852(except USA) Expiry: Indefinite PAC1(46)860a(except USA) Expiry: IndefinitePAC2(46)852 Type: B PAC2(46)860a Type: BPAC3(46)852 PAC3(46)860a

The following covers all types of tickets issued under Resolved that the Passenger Agency Programme GlobalBilling and Settlement Plan conditions: Joint Council be established to manage the agent/airline

relationship, provide a consultation forum for Conferencedecisions and jointly promote the IATA PassengerAgency Programme to airlines and agents.1. METHOD OF DESIGNATING A

TICKETING AIRLINE1. THE JOINT COUNCIL1.1 For issue of electronic tickets designation of the

ticketing airline shall be accomplished by specifying toThe Joint Council, hereinafter referred to as the “Council”,the ticketing system, either prior to or at the time ofis responsible for providing oversight on those aspects ofrequesting generation of the ticket(s), the identity of thethe Passenger Agency Programme relevant to the Agent/airline selected.Airline relationships.

1.2 For manual issuance of Standard Traffic Documents(STDs), designation of the ticketing airline shall beaccomplished by use of the Carrier Identification Plates 2. COMPOSITION(CIPs) provided by Billing and Settlement Plan Airlines

2.1 The Council shall be composed of a maximum ofwhere such manual STDs are still in use.18 members and shall include equal representation ofMember Airlines and Travel Agency representatives:

2. ORDER OF PRIORITY IN SELECTION 2.1(a) the Airline delegates shall be selected from Mem-OF THE TICKETING AIRLINE bers serving on the Steering Group of the PassengerAgency Conference and to the extent possible shall

The selection of the ticketing airline shall be governed by represent the three IATA Conference areas,the following strict order of priority, which must beobserved at all times: 2.1(b) Travel Agency representation shall be as designat-

ed by recognised agency associations, and to the extent2.1 the ticketing airline shall be any BSP Airline partici- possible shall represent the three IATA Conferencepating in the transportation, or a BSP Airline acting as the areas,General Sales Agent for any airline participating in anysector of the transportation in the country of ticket 2.1(c) the Council shall nominate its own Chairman andissuance, provided that the selection of Validating Carrier deputy Chairman. The position of Chairman shall beconforms to the requirements of the fare rules where non-voting. In the event the Chairman is elected fromapplicable and subject to the existence of a valid interline voting members, an alternate voting member shall beagreement between the ticketing airline and each trans- nominated to take the voting seat vacated by theporting airline, Chairman. The initial renewable term of the Chairman

shall be two years;2.2 if none of the situations described in Subpara-graph 2.1 apply, the ticketing airline may be any other 2.2 The Chairman of the Passenger Agency ConferenceBSP Airline providing the Agent has received written shall be invited to attend Council meetings in an observerauthorisation from that BSP Airline to issue Standard capacity;Traffic Documents for such transportation.

2.3 the Council shall set its rules and procedures, pro-2.3 When an Electronic Miscellaneous Document (EMD) vided that the quorum necessary to take action shall beis issued, the ticketing airline shall be any BSP Airline, or not less than two-thirds of the members of each of its twoa BSP Airline acting as the General Sales Agent for the constituencies. The Chairman may authorise the pres-Airline, delivering a service on the EMD. In the event that ence of observers, where he deems it advantageous tonone of these situations apply, the provisions docu- address the issues before the Council;mented in paragraph 2.2 shall apply.

2.4 the Council shall act by submitting recommendationsNote: Where a BSP Airline has given written authority to that must first be approved by a simple majority presentuse its CIP/ticketing authority under the alternative in of each of the two constituencies;Subparagraph 2.2 of this Attachment, STDs may be usedfor all airline passenger transportation and associated 2.5 the Council shall meet not less than twice annually,services. and at least one meeting shall be arranged to coincide


Resolution 860a

with the publication of the Passenger Agency Conference arise, the Council composition will be adjusted to allow forAgenda; additional delegates representing countries in Europe to

attend. Thereafter and where appropriate, such issues will2.6 IATA shall provide adequate Secretariat support for be addressed as a separate meeting. The Agency Admin-meetings of the Council. Reports and recommendations istrator and the Chief Executive of ECTAA shall be exof the Council shall be placed on the agenda of the officio members.Passenger Agency Conference.

3.4 The Council may recommend to Conference changesto agency fees.

3. RESPONSIBILITIES3.5 The Travel Agency Commissioner Programme (here-inafter TAC Programme) is under the purview of the3.1 The Council shall be responsible for making recom-Council.mendations to Conference on the development,

management and marketing of the Passenger Agency3.6 The Council shall receive and approve the budget ofProgramme which shall include the consideration andthe TAC Programme in compliance with the followingdevelopment of an Ombudsman. The Council may makeprinciples:recommendations to Conference for improvements to all• the costs of the TAC Programme shall be borne inaspect of the Agency Programme.

equal proportions by Members and Accredited3.2 The Council shall review the Conference agenda Agentsimmediately after publication and in any event no later • funding for the Programme shall be furnished throughthan 30 days from publication. IATA, which shall provide 50% from monies contrib-

uted by all IATA Members, and 50% from monies3.2.1 The Council shall be authorised to review allcontributed by all IATA Accredited Agentsagenda items, and recommend changes to proposed

• each IATA Accredited Agent may be called upon toresolution amendments having a direct impact on thecontribute up to USD5.00 per year or acceptableAgent/Airline relationship. The procedure for taking for-equivalent per locationward Council recommendations shall be as per the

following provisions:3.7 The Council shall control the budget and associatedexpenditures. It will in particular monitor that expenditures3.2.1(a) any recommendations shall be included with theare in line with the terms and objectives of the TAC office.next Conference agenda submittal by the Secretary;

3.7.1 Part of the expenditures should be associated to3.2.1(b) the Conference will review both the originalthe establishment and update of a public database ofproposal and the amended proposal submitted by theTAC decisions.Council. If Conference takes action to adopt the original

proposal the matter will be referred back to the Council,3.8 The Council shall receive regular reports provided byand the resolution amendments shall be held suspendedIATA on TAC's activities in a format and at a frequencypending review by the Council;determined by the Council.

3.2.1(c) provided there are issues to be addressed, theCouncil shall convene to review the decisions of PAConf

4. IMPLEMENTATIONimmediately following such Conference, and in any eventno later than 30 days following that Conference;

Upon implementation of this resolution, the followingresolution shall become simultaneously rescinded.3.2.1(d) following the review any changes to the propo-

sal, including any recommendation for deferral of imple- PAC1(38)860 (except USA)mentation, shall be presented to the Conference for PAC2(38)860consideration by mail vote, or as a recommendation for

PAC3(38)860an agenda submission to the next PAConf;

3.2.1(e) thereafter the Secretary will declare the result,whether in favour of the Council recommendation or thatagreed at Conference, and the new or amended resolu-tion change will be adopted;

3.2.1(f) the Council shall also review any on-site itemsconsidered by the Conference and recommend anychanges as per the procedure listed above;

3.2.1(g) the Council is not authorised to change or ignoreResolutions.

3.3 European IssuesIf a significant issue or number of issues relating purely toEurope or the European Union/European Economic Area



RESOLUTION 862 RESOLUTION 866

JOINT AGENT AND AIRLINE DEFINITIONS OF TERMS USED INCONSULTATIVE MEETINGS PASSENGER AGENCY PROGRAMME

RESOLUTIONSPAC1(46)862(except USA) Expiry: IndefinitePAC2(46)862 Type: B PAC1(46)866(except USA) Expiry: IndefinitePAC3(46)862 PAC2(46)866 Type: B

PAC3(46)866WHEREAS there are a number of joint airlines and travelagent consultative bodies established by the Conference WHEREAS the Passenger Agency Conference inunder separate resolutions, now it is application of the procedures established with global and

regional joint bodies, has defined terms and expressionsRESOLVED that all such consultative meetings shall commonly used in Resolutions of the Conference, andcomprise of equal representatives from both Airlines andTravel Agents. This shall include, but is not limited to, WHEREAS it is in the interest of transparency andExecutive Councils, Agency Programme Joint Councils convenience that all such definitions be published in a(APJCs) and Joint Agency Liaison Working Groups. single global Resolution of the Conference,

AND noting that they are published below to be read withspecific reference to the Resolution(s) in which they areused, it is

RESOLVED that the following definitions shall apply toterms and expressions used in, and with reference to, theResolutions of the Conference, and which defined termsand expressions shall be made readily identifiable by theuse of upper case initial letters:

ACCOUNTABLE TRANSACTION means any transactionin respect of which a Standard Traffic Document isissued, and/or Agency Credit/Debit Memorandumreceived, by the Agent during the period covered by anAgency Reporting Period.

ACCREDITED AGENT (sometimes referred to as ‘Agent’)means a Passenger Sales Agent whose name is enteredon the Agency List.

ADMINISTRATIVE OFFICE means the principal office ofan Accredited Agent which is not an Approved Location,but which is entered on the Agency List.

AGENCY ADMINISTRATOR means the IATA officialdesignated by the Director General as the holder of thatoffice, or authorised representative.

AGENCY INVESTIGATION PANEL (sometimes referredto as ‘AIP’) means a panel consisting of representativesof Members in a territory which is established from time totime by the Agency Administrator and performs duties setforth in Section 3 of Resolution 800.

AGENCY LIST means the list maintained by the AgencyAdministrator giving the names and addresses of Accred-ited Agents and their Approved Locations and, whenapplicable, the addresses of their Administrative Offices.

AGENCY PROGRAMME (sometimes referred to as ‘IATAAgency Distribution System’, ‘IATA Agency Programme’,‘IATA Industry Distribution System’, or ‘IATA PassengerAgency Programme’) means the various IATA Resolu-tions and rules and procedures adopted by the Confer-ence to maintain overall standards and industry practicesfor the sale of international air transportation byAccredited Agents. This includes accreditation, BSP mat-ters, and training.


Resolution 866

AGENCY PROGRAMME JOINT COUNCIL (sometimes BILLING means a billing to Agents, according to dataknown as ‘APJC’) means a Council consisting of an equal reported by the Ticketing System Provider, incorporatingnumber of representatives of air carriers and Agents all Accountable Transactions for the Billing Period.established to assist the Conference in the performance

BILLING AND SETTLEMENT PLAN (sometimes referredof its functions by making recommendations on anyto as BSP) means the method of providing and issuingaspect of the Agency Programme in the country or areaStandard Traffic Documents and other accountable formsconcerned.and of accounting for the issuance of these documents

AGENCY SALES DATA (means that data which is between BSP Airlines on the one hand and Accreditedcollated from ticket issuance by Agents and submitted by Agents on the other, as described in the Passenger Salesthe Ticketing System Providers to the BSP on a daily Agency Rules and in Resolution 850 — Billing andbasis. Settlement Plans, and its Attachments.

AGENCY SALES TRANSMITTAL (sometimes referred to BILLING DATE means the date on which the Dataas ‘Sales Transmittal’) means the Agent's list for a Processing Centre must produce billings to Agents,Reporting Period in non-BSP Countries, of all Traffic according to data submitted by the System Provider.Documents and Standard Administrative Forms used, and

BILLING PERIOD means the time span, comprising oneaccompanied by the required administrative forms andor more Reporting Periods, for which a billing is rendered.supporting documentation.Its duration is established by the PAConf.

AGENCY SERVICES MANAGER means the IATA officialBRANCH OFFICE LOCATION means an Accrediteddesignated by the Agency Administrator to manage theAgent's place of business entered on the Agency List asaccreditation programme locally in the country (area).a Branch Office location which, has the same corporateWhen so decided by the Agency Administrator, thisstructure or ownership as that Head Office Location, withperson may also act as the local representative of ISSsuch Head Office having full legal and financial respon-Management.sibility of the administration, staff, liability maintenance

AGENT See ‘Accredited Agent’ and operational expense of the Branch Office.

AIRLINE means an air carrier, operating scheduled BSP see Billing and Settlement Plan.passenger services, which is not a Member of IATA, but

BSP AIRLINE means a Carrier whose Airline Designatorwhich has been admitted to participate in the Billing andis recorded as the transporting carrier on the flightSettlement Plan.coupon(s) of a ticket and which participates in the BSP.

ANCILLARY SERVICES means services sold on behalfBSP MANUAL FOR AGENTS (usually called the ‘BSPof an airline, secondary to the sale of air transportation,Manual’) means the publication outlined in Attachment ‘I’the price of which is included in the overall amount paidto Resolution 850 — Billing and Settlement Plans. Itto the carrier but which may involve the issuance of acontains the rules and procedures applicable to Agentsseparate Traffic Document. They typically include excessoperating under BSP conditions and is issued on thebaggage, surface transportation and car hire.authority of the Passenger Agency Conference with

APPOINTED means the Agent is authorised to represent global, regional and local procedure oversight.the Member in promoting and selling air passenger

CARD means an Airline/Member approved credit card,transportation in accordance with, and subject to, all thecharge card, debit card, purchasing card, or any other airterms and conditions of the Passenger Sales Agencyindustry card used and accepted as payment by an AgentAgreement.for the purchase of international air transportation, against

APPROVED LOCATION (sometimes referred to as the Member's or Airline's merchant agreement.‘Location’) includes Head Office and Branch Office

CARD HOLDER means the person whose name isLocations appearing on the Agency List.shown on the Card, and whose signature is on the

ARC means the Airlines Reporting Corporation. reverse, used as payment against a Member's or Airline'smerchant agreement for the purchase of international air

AREA means one of the three geographical areas transportation.described in Section 1, Paragraph 3 of the Provisions forthe Conduct of the IATA Traffic Conferences. CARRIER means an IATA Member as specifically used

within the provisions of Resolution 824 — PassengerAREA OF BILLING AND SETTLEMENT PLAN means Sales Agency Agreement, or any resolution of that namethe country or group of countries in which a Billing and that supersedes it.Settlement Plan operates.

CARRIER IDENTIFICATION PLATE (sometimes referredASSEMBLY refers to the Regional Assembly, Orient to as ‘CIP’) means a plate owned by a Member or Airline,Assembly, IATA General Assembly or IATA National made available through an electronic ticketing system toAssembly. an Agent and/or deposited with an Agent, for use in the

issue of Standard Traffic Documents under a Billing andATA means the Air Transport Association of America. Settlement Plan.



CERTIFICATE OF APPOINTMENT means the form used and related services (electronic miscellaneous docu-by a member appointing an Agent as provided for in ments).Resolution 820.

ELECTRONIC TICKETING AUTHORITY (sometimesCHARGES means either Administrative Charges, or referred to as ‘ET Authority’) means a written authorityClearing Bank Charges, as shown in the relevant Section provided to an ET Agent by a Member or Airline partici-of Resolution 832 or Attachment A, to Resolution 818g, pating in a BSP, which authorises one or more Locationsas authorised by the Conference, or the Assembly where of the Agent to issue Electronic Tickets. A copy or parallelso delegated. advice must be sent to the BSP Manager.

CLEARING BANK means the bank or other organisation ELECTRONIC TICKETING SYSTEM (sometimesappointed under the applicable Billing and Settlement referred to as SYSTEM) means an automated method,Plan to receive remittances from Agents and settle funds including programmes and procedures, which has accessto Airlines; and to perform such other functions as are to airline PNR data, stored in a CRS or airline reservationprescribed within these Rules, and in Resolution 850 and system for the issuance of Electronic Tickets.its Attachments.

ESTABLISHED BSP PERFORMANCE means a mini-COMPUTER RESERVATIONS SYSTEM (sometimes mum of three years as an Accredited Passenger Salesreferred to as ‘CRS’) means a computerised system Agent (‘Agent’), without any consistency of irregularitycontaining information about schedules, availability, fares reports being issued, or default action taken, against suchand related services, and through which reservations can Agent or any of its Approved Locations (Locations) in thebe made, or tickets issued, and which makes some, or all, last three years.of these facilities available to subscribers.

EUROPE ACCREDITED AGENT (EAA) means a legalCONFERENCE means the Passenger Agency Confer-entity established in one country within the EU/EEA andence.Switzerland, with financial responsibility for Locations in

COORDINATOR means a person appointed by ISS other countries in the EU/EEA and Switzerland.Management from time to time to act in accordance with

EXECUTIVE COUNCIL see Joint Executive Council.these Rules on behalf of Members/Airlines participating inthe Billing and Settlement Plan.

FACE-TO-FACE TRANSACTION means an Agent mak-ing a sale by a Card against a Member's or Airline'sDATA PROCESSING CENTRE (DPC) means the entitymerchant agreement when the Card and the Cardholdercontracted by ISS Management under a BSP to manageare simultaneously present at the time of the transactionand process reported Agency sales; to provide reports to(see also ‘Non-Face-to-Face Transaction’).the BSP and the Clearing Bank of the amounts due.

FORM OF CONCURRENCE means that form to beDAYS means calendar days unless otherwise specifiedcompleted by non-IATA air carriers wishing to participateas working days or business days.in IATA Billing and Settlement Plans as provided for by

DEFAULT means that an Agent, or one if its Locations, Resolution 850 Attachment ‘E’.has breached the provisions of the Sales Agency Rules to

GENERAL CONCURRENCE (appointment by) meansthe extent that remedial action is required, and for whichthe process whereby a Member automatically appointsfailure to take such action may ultimately result in theAccredited Agents, without further procedural formality, astermination of that Agent's Sales Agency Agreement.described in Resolution 878. The names of the Members

DIRECTOR GENERAL means the Director General of using the General Concurrence method of appointment,IATA or authorised representative. and any prior conditions they may have set, are published

in the Travel Agent's Handbook.ELECTRONIC RESERVATION SERVICES PROVIDER(ERSP) means a Person established on the Internet or GENERAL SALES AGENT (sometimes referred to asother on-line service, promoting reservation information in ‘GSA’) means, for the purposes of the Sales Agencythe same format as provided by a Member's, or other Rules, any Person to whom a Member or a non-IATAtravel principal's system or CRS. The ‘ERSP’ provides the carrier has delegated general authority to represent it foruser with instruction, screen formats, real-time display purposes of sales of passenger and/or cargo air transpor-capability or other information in respect to a travel tation in a defined territory. This may include a non-Airlinesupplier's inventory. The ‘ERSP’ provides to its user a GSA appointed under the provisions of Resolution 876.reservations facilitation service and the referral of the

GLOBAL DISTRIBUTION SYSTEM (sometimes referreduser's ticketing requirements to the Member, or otherto as ‘GDS’) means a computerised system containingtravel principal, or its agent.information about schedules, availability, fares and

ELECTRONIC TICKET means an electronic record related services, and through which reservations can beissued by an Approved Location, in accordance with made, or tickets issued, and which makes some, or all, ofapplicable tariffs for the issuance of the passenger ticket. these facilit ies available to subscribers.

ELECTRONIC TICKETING means a method to document HEAD OFFICE LOCATION means an Accredited Agent'sthe sale of passenger transportation (electronic ticket) principal place of business which is an Approved

Location.


Resolution 866

HINGE ACCOUNT means the bank account into which Virgin Islands, Cayman Islands, Chile, Colombia, Costaagents' remittances are paid and from which monies are Rica, Cuba, Dominica, Dominican Republic, Ecuador, Eldistributed to participating Airlines. Salvador, Falkland Islands/Malvinas, Grenada,

Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico,IATA means the International Air Transport Association. Montserrat, Netherlands Antilles, Nicaragua, Panama,

Paraguay, Peru, St Kitts-Nevis, Saint Lucia, St VincentIATA AGENCY DISTRIBUTION SYSTEM see Agency and the Grenadines, Surinam, Trinidad and Tobago,Programme. Turks and Caicos Islands, Uruguay, Venezuela.IATA AGENCY PROGRAMME see Agency Programme. MEMBER means an airline that is a Member of IATA.

MISSING DOCUMENT means an accountable TrafficIATA INDUSTRY DISTRIBUTION SYSTEM see Agency Document which may or may not be in the possession ofProgramme. the person lawfully entitled to present such document forcarriage or refund, and for which research is in progress,IATA NUMERIC CODE (sometimes called the ‘Numericpending its recovery or its reclassification as lost orCode’) means the numeric code allocated and attributedstolen.to each Approved Location of an Agent, in accordance

with Resolution 822. NETWORK AGENT the definition for Network Agent iscontained in Resolution 842.IATA PASSENGER AGENCY PROGRAMME see

Agency Programme. NON-AIRLINE PASSENGER GENERAL SALES AGENT(hereinafter referred to as ‘GSA’) means a PersonIATA SETTLEMENT SYSTEMS MANAGEMENT (usually(including any individual, partnership, firm, association,called ‘ISS Management’) means the functional areas ofcompany or corporation) who has been delegated generalIndustry Distribution and Financial Services (IDFS) thatauthority for the promotion and sale of passenger airare responsible for management and operation of thetransportation for the appointing Member, either directlyIATA Settlement Systems. This definition includes theor through subcontraction, as expressly provided forcentral and regional ISS Management as well as the localunder the provisions of Resolution 876.ISS representatives who have overall responsibility for the

BSP. NON-FACE-TO-FACE TRANSACTION means aSignature-On-File transaction, and/or any other form ofIATAN means the International Airlines Travel AgentCard sale in which a Card and Cardholder are notNetwork which is the trading name of the Passengersimultaneously present at the time of the transaction (seeNetwork Services Corporation, a wholly owned subsidiaryalso ‘Face-to-Face Transaction’).of the International Air Transport Association.

NOTICE OF IRREGULARITY means a warning letterIDFS see Industry Distribution and Financial Servicessent to an Agent to inform him that some failure has beendetected on his part in matters such as reporting orINDUSTRY DISTRIBUTION AND FINANCIALremittance.SERVICES (sometimes referred to as ‘IDFS’) means the

department of IATA that has the administrative andON-LINE TRAVEL AGENT - means a travel agencyoperational functions of the IATA Settlement Systemsapplicant, duly registered/licensed in the country of opera-included in its responsibilities.tion authorised to sell travel services, that facilitates thesale of Members and Airlines services through an InternetISS MANAGER means the IATA official designated byportal.ISS Management as the person that manages a BSP.

ORIENT ASSEMBLY means an assembly of air carriers,JOINT AGENCY LIAISON WORKING GROUP means amore fully described in Section 2 of Resolution 810, togroup, comprising local airline and agent representatives,which Conference has delegated, pursuant to such Sec-set up by a Billing and Settlement Plan, in accordancetion, authority over certain provisions of the Agencywith procedures set forth in the BSP Manual for Agents.Programme.

JOINT EXECUTIVE COUNCIL is a Council comprisingPASSENGER AGENCY CONFERENCE (PACONF)representatives of air carriers and of Accredited Agents,(usually called the ‘Conference’) means the body of IATAestablished in a country or area to assist the Assembly inMembers established by virtue of the Provisions for thethe performance of its functions.Conduct of the IATA Traffic Conferences. It has respon-

LOCAL CUSTOMER ADVISORY GROUP — PASSEN- sibility for matters concerning the relationships betweenGER (LCAGP) means a group of airline representatives airlines and recognised passenger sales agents and otherestablished by the Conference in each country/area intermediaries, under the IATA Agency Programme.where a BSP is operated, to provide advice to ISS

PASSENGER AGENCY PROGRAMME GLOBAL JOINTManagement on customer service issues and in estab-COUNCIL (sometimes referred to as PAPGJC or ‘thelishing and addressing local needs, and functions inCouncil’) means that council established by theaccordance with Resolution 850 Attachment ‘B’.Passenger Agency Conference to manage the agent/air-

LATIN AMERICA AND THE CARIBBEAN means in this line relationship, provide a consultation forum for Confer-Resolution Anguilla, Antigua and Barbuda, Argentina, ence decisions and jointly promote the IATA PassengerAruba, Bahamas, Barbados, Belize, Bolivia, Brazil, British



Agency Programme to airlines and agents, and which Documents against a Card, and where a clear writtenfunctions under the provisions of Resolution 860a. arrangement between Cardholder, Card company and the

Agent exists (see also ‘Non-Face-to-Face Transaction’).PERSON means an individual, partnership, firm associa-tion, company or corporation. SOUTH WEST PACIFIC that is the area composed of

Australia, Cook Islands, Fiji, French Polynesia, KiribatiPRINCIPAL for the purposes of Resolution 876, means (Canton and Enderbury Islands), Marshall Islands, Feder-an appointing Member or, in the case of subcontraction, ated State of Micronesia, Nauru, New Caledoniathe original appointing Member. (including Loyalty Islands), New Zealand, Niue, Palau,

Papua New Guinea, Samoa (Independent State of),Solomon Islands, Tonga, Tuvalu, Vanuatu, Wallis andQUALIFYING MANAGEMENT PERSON means the per- Futuna Islands.son qualifying an Agent or applicant for approval under

the requirements of Resolution 804. SPONSORED SALES INTERMEDIARIES (sometimesreferred to as ‘SSI's’) means GSAs, which are not IATAQUALIFYING TICKETING AGENT means the person Accredited Agents, sponsored by an airline participatingqualifying an Agent or an applicant for approval under the in the BSP Gulf under the provisions of Resolution 850a,requirements of Resolution 804. supplied with Standard Traffic Documents for issue underthe applicable BSP.REGIONAL ASSEMBLY (‘the Assembly’) means an

assembly of airlines, more fully described in Section 2 of STANDARD ADMINISTRATIVE FORMS (sometimesResolution 808, to which the Conference has delegated, referred to as ‘SAFs’) mean accountable forms originatedpursuant to such Section, authority over certain provisions by Members/Airlines or Agents for adjusting sales trans-of the Agency Programme. actions (eg. Agency Credit/Debit Memos, Refund Notices)and other forms used to substantiate sales (e.g. UCCCF,REMITTANCE DATE means the Clearing Bank's close ofGroup sales Summary).business on the latest date by which the Agent's remit-

tance must reach the Clearing Bank or, in cases where STANDARD CHARGING UNIT (usually called SCU)authorised by the Passenger Sales Agency Rules, the equates to one transaction passing through the Datavalue date on which the Clearing bank draws cheques on Processing Centre (DPC) and included on the BSP Agentor debits the Agent's bank account. and Airline Billing Reports.REMITTANCE PERIOD means the time span in respect STANDARD TRAFFIC DOCUMENTS means the fol-of which a remittance is made to the Clearing Bank. It lowing BSP documents:shall not be shorter than one Billing Period, but may cover

Manual MPDsmore than one Billing Period.Electronic tickets

REPORTING DATE means the last day of the Reporting Other accountable formsPeriod.They are issued by ISS Management, and do not bearREPORTING PERIOD means the time span established any carrier identification until after validation by the Agent.by the Conference for reporting of Agent sales.STOCK means electronic ticket number ranges and/orSALES AGENCY AGREEMENT (sometimes referred to manual documents where in use in a market.as ‘Agreement’) means an Agreement in the form pre-

scribed in Resolution 824, as may be amended from time STOCK and STOCKHOLDER in relation to a company orto time, and includes where the context so permits, a other corporate body include ‘share’ and ‘shareholder’Supplementary Agreement to the Passenger Agency respectively.Agreement in the form prescribed in a Resolution of theConference. SUBCONTRACTION, as quoted in Resolution 876,

means the delegation of general authority for the promo-SALES AGENCY RULES means the contents of the tion and sale of international passenger air transportationrelevant Passenger Agency Conference Resolution of the for the appointing Member by a General Sales Agent tosame name. another party by virtue of an agreement which shall be

subject to the conditions of this Resolution and the priorSALES TRANSMITTAL see Agency Sales Transmittal. written authority of the original appointing Member.SCANDINAVIA is the area comprised of Denmark, Nor-way and Sweden. SYSTEM see ELECTRONIC TICKETING SYSTEM.SETTLEMENT DATE means the date on which BSP SYSTEM DESCRIPTION means a written specification ofAirlines are credited with monies due. the functions and mode of operation of the System.SETTLEMENT PERIOD (CANADA ONLY) means the SYSTEM PROVIDER means the person, company corpo-time span in respect of which settlement is to be made ration or other legal entity which supplies the system,through the Clearing Bank. approved by the Participating Airlines as may be appli-

cable, and which is party to this Agreement.SIGNATURE-ON-FILE means a transaction where theCardholder empowers the Agent to issue Traffic


Resolution 878

TOUR OPERATOR means a person/entity which organ- RESOLUTION 878ises, advertises and/or promotes tours and makes themavailable for the sale to the general public by combining GENERAL CONCURRENCEair transportation with surface arrangements; providedthat in the following countries a Member shall not function PAC1(38)878(except USA) Expiry: Indefiniteas a tour operator: Brazil, Germany, Greece, Israel, Italy, PAC2(38)878 Type: BTunisia and Turkey. PAC3(38)878TRAFFIC DOCUMENTS means the following forms Recognising that Agents may be appointed by Membersissued manually, mechanically or electronically for air through a statement of General Concurrence andpassenger transportation over the lines of the Member orAirline and for related services, whether or not they bear Recognising that the provisions of such method ofa pre-printed individual Member's identification: appointment need to be published, it is(a) Carriers' own Traffic Documents — Passenger Ticket

RESOLVED that the following provisions shall apply:and Baggage Check forms, Automated Ticket/Boarding Passes, Miscellaneous Charges Orders,Multiple Purpose Documents, Agents Refund Vouch-

1. STATEMENT OF GENERALers and OnLine Tickets supplied by Members toAccredited Agents for issue to their customers, and CONCURRENCE

(b) Standard Traffic Documents — as defined.1.1 A Member has the option to appoint Agents bysigning a statement of General Concurrence, as shown inAttachment ‘A’.TRAFFIC DOCUMENTS DISTRIBUTOR means the Per-

son approved by the Participating Airlines as the author-1.2 A statement of General Concurrence by a Memberised distributor of Traffic Documents to Approvedshall normally be required for each IATA Area.Locations.1.3 A Member is not obliged to include all of the countriesTRANSPORTATION ORDER means an Agent's ownin each such Area, but will identify such exceptions whenorder form authorised by a Member for use by the Agent,they apply.against which the Member issues its ticket, and con-

taining at least the following information: the name of the 1.4 A Member, by the signing of a statement of Generalpassenger, the routing itinerary, the class of travel and Concurrence, is not obliged to provide an Agent, eitherthe fare. directly or via ISS Management, with any type of TrafficDocuments, or the authority to issue Traffic DocumentsTRAVEL AGENCY COMMISSIONER means the personon its behalf,designated under a procedure involving the Director

General of IATA and the Chairman/CEO of UFTAA or the 1.5 A statement of General Concurrence, deposited withPresident of WTAAA, as the holder of that office, or his IATA, provides the authority to promote and sell thatauthorised representative, as provided for in Member's flights and services. The decision on whetherResolution 820d, and who exercises jurisdiction over or not to place Traffic Documents or Carrier Identificationmatters described in the Resolution 820e (reviews by the Plates with the Agent rest with the Member and is subjectTravel Agency Commissioner). to the rules and procedures in the applicable PassengerSales Agency Rules.TRAVEL AGENT'S HANDBOOK (usually called the

‘Handbook’) means the publication issued under theauthority of the Passenger Agency Conference, con- 2. PROCEDUREStaining the established accreditation criteria, and the IATAResolutions concerning the Agency Programme. A copy 2.1 A statement of General Concurrence, as shown inof the Handbook is provided to each Approved Location, Attachment ‘A’, shall be completed and signed in dupli-and to each applicant seeking IATA Accreditation, and cate by the Member, and deposited with IATA.forms part of the IATA Agency Agreement.

2.2 The Member shall retain a copy for its own records.TRAVEL COMPENSATION FUND means the TravelCompensation Fund established under a trust settled by 2.3 A list of Members appointing Agents by Generalresponsible Ministers in various States and/or Territories Concurrence shall be published in the relevant Travelin Australia. Agent's Handbooks.UNIVERSAL CREDIT CARD CHARGE FORM (some-times referred to as ‘UCCCF’) means the approved form, 3. REVISIONS AND WITHDRAWALspecified within the BSP Manual for Agents, for Card

OF GENERAL CONCURRENCEsales.

3.1 A Member wishing to amend its statement of GeneralUSER is the individual making an enquiry to the ‘ERSP’.Concurrence shall advise the Agency Administrator in

WTAAA means the World Travel Agents Associations accordance with Paragraph 2 of the statement of GeneralAlliance. Concurrence.



RESOLUTION 878

Attachment ‘A’


Resolution 880

Location of the Agent or at the Agent's listed Administra-RESOLUTION 880 tive Office within the same country; and

REDUCED FARES FOR ACCREDITED 2.3 be salaried and/or paid on a commission basis andPASSENGER SALES AGENTS be shown on appropriate disbursement records of the

Agent; andPAC1(46)880(except USA) Expiry: Indefinite

2.4 in the case where he is an employee whose full-timePAC2(46)880 Type: Bemployment is not on the premises of the ApprovedPAC3(46)880Location or the listed Administrative Office of the Agent:

RESOLVED that, for the purpose of facilitating the con-2.4.1 work hours not less than those normal for otherduct of business operations relative to international aireligible staff at such Agent's Approved Location, and hetransportation for Accredited Agents situated elsewheremust be assigned to such Approved Location or listedthan in the USA, Members may, at their option andAdministrative Office and report there in person at leastsubject to the conditions contained in this Resolution,once a month, and have no other gainful employment.grant to Accredited Agents international air passengerAdditionally he must be carried regularly and in good faithtransportation at a discount.on the payroll or other relevant disbursement records ofthe Agent, or

DEFINITIONS 2.4.2 have been transferred directly from an ApprovedLocation where he met the requirements of Subpara-The definitions of terms and expressions used in thisgraph 2.1 of this Paragraph, to another location of theResolution are contained in Resolution 866.Agent for which an application for accreditation has beenmade but is still pending; provided that such employee'seligibility shall cease upon the first disapproval of the1. AGENT ELIGIBILITYapplication; provided further that any tickets issued tosuch an employee shall not increase the total number ofeach Approved Location of an Agent may qualify fortickets permitted by this Resolution.reduced fare transportation under this Resolution pro-

vided all the following minimum eligibility requirementsare met:

3. SUBORDINATES OF ELIGIBLE1.1 at the time of application the Agent shall have had at PERSONSleast one Approved Location on the Agency List continu-ously for a period of not less than 12 months; and the eligibility of a person shall not in itself render eligible

such person's subordinates who shall be eligible only if1.2 at the time of application, through to the time of they meet all the applicable requirements of thisproposed travel, the Agent must not be under notice of Resolution.default; or

1.3 at the time of application, through to the time of 4. FARE REDUCTION FOR SPOUSEproposed travel, the Approved Location of the Agent mustnot be under suspension. the spouse of a person travelling under the provisions of

this Resolution may also be granted reduced fare trans-portation provided that;2. ELIGIBILITY OF PERSON4.1 the couple travel together from the point of origin toTRAVELLINGthe point of destination in case of one way trips, or to the

a reduced fare ticket may be issued under the provisions point of turnaround in case of round trips, or to theof this Resolution to the sole proprietor, partner, director highest rated point in case of circle trips;and/or employee of an Agent when they meet all the

4.2 the discount granted is not greater than 50% of thefollowing requirements; the person travelling must:applicable fare; provided that the discount shall only be

2.1 have been in the service of the said Accredited Agent applied to fares on which the discount for Agents pro-continuously and without interruption for not less than vided for in this Resolution also applies;12 months immediately prior to the date of such

4.3 under this Paragraph no person shall receive moreApplication; provided that a period of not less than threethan one reduced fare ticket per calendar year from anymonths' service with the Agent shall suffice where theone Member;person travelling was in the service of another Accredited

Agent not more than 60 calendar days before commenc-4.4 such ticket shall not be deducted from the Agent'sing his present employment and was eligible under thisannual allotment described below;Resolution; and

4.5 nothing herein shall preclude a spouse who is inde-2.2 devote in a full-time capacity all or substantially all ofpendently eligible for reduced fare transportation underhis time directly to the promotion and sale of travel,the provisions of Paragraph 2 from applying and travellingincluding air transportation, on behalf of the Accreditedin accordance with the provisions of this Paragraph.Agent making such application, either at an Approved



a person qualified to benefit under the provision of this5. ANNUAL ALLOTMENTResolution.AND DISCOUNT

5.1 an annual allotment of two tickets, for one way, round 8. TICKET ALLOTMENT —or circle trip transportation in respect of each ApprovedLocation of the Agent may be issued by each Member per DEDUCTIONScalendar year at a discount of not more that 75% of the

8.1 a deduction shall be made by each Member partici-applicable air fare for the class of service used; providedpating in the transportation granted from the Approvedthat notwithstanding any conditions governing specialLocation's annual allotment with such Member. However,fares, such tickets may not be issued using specialwhere a reduced fare ticket is issued, in whole or in partinclusive tour basing fares. Where the charge for airover a line which is operated in pool the deductiontransportation consists of a fare and a surcharge, e.g.pertaining to the pool sector shall be made by the poolweekend, business class, the discount shall be based onpartner Member issuing the ticket, whether or not thatthe fare and such surcharge, but shall not be applied toMember operates the actual pool service used; further-excess baggage charges or to any surcharge specificallymore, where in an interchange service the aircraft of oneexcluded by the Member from the application of theMember operate a through service from points on itsdiscount. Any tickets issued to an eligible person attachedroutes to points on another Member's routes, underto an Agent's listed Administrative Office shall notcharter to such other Member, the deduction shall beincrease the total number of tickets permitted by thismade only by the Member operating the flight, when theResolution;person travels exclusively on the interchange service;

5.2 ICELAND ONLY notwithstanding Subparagraph 5.18.2 irrespective of the actual Approved Location or listedof this Paragraph, Members operating services to andAdministrative Office where the passenger works, uponfrom Iceland may provide Accredited Agents having oneagreement between the Member and the Agent theor more Approved Locations in that country with andeduction may be made from the annual allotment of anyunlimited number of tickets at a 50% discount over theirApproved Location of the Agent in the same country, aslines between Iceland and UK/Scandinavia; provided thislong as the aggregate number of tickets which theshall apply as long as there are not more than threeMember may grant the Agent pursuant to Subpara-Members serving Iceland.graph 5.1 of this Resolution is not exceeded;

8.3 an Agent shall not be allowed to reimburse a Member6. APPLICATION FORM AND for a reduced fare ticket(s) issued and used for thePROCEDURE purpose of reinstating any of its annual allotment for otherreduced fare transportation.6.1 when applying for reduced fare transportation the

responsible official of the Agent shall fully complete andsign the Application Form prescribed in Attachment ‘A’ to 9. ISSUANCE, REPORTINGthis Resolution and submit it in advance to all air carriers AND REMITTANCE OF REDUCEDparticipating in the itinerary. All such carriers shall beresponsible for granting approval and for the arrange- FARE TICKETSments for issuance of their own Traffic Document on their

the ticket issuing Member may either issue the reducedown services and on the services of another air carrier, iffare ticket directly or instruct the Agent to issue it.applicable. In the latter instance the Agent, if so requiredCommission or other remuneration shall not be claimed orby the ticketing Member, shall obtain and submit to theretained by the Agent nor paid by a Member in respect ofticketing Member the written concurrence of all other airthe reduced fare transportation provided in accordancecarriers participating in the itinerary;with this Resolution. The reporting and remitting proce-

6.2 whereas only a Member or where applicable the dures applicable under the Passenger Sales AgencyMember's General Sales Agent having duly appointed the Rules shall apply in respect of reduced fare tickets;Agent pursuant to the Passenger Sales Agency Rules provided that:may issue or cause to be issued reduced fare

9.1 where the Member issues the ticket a billing shall betickets under the provisions of this Resolution, otherpromptly sent to the Agent and shall be settled directly byMembers participating in the transportation need not havethe Agent with the Member within 15 days of billing; orso appointed the Agent. The Member receiving the

Application shall not grant the reduced fare transportation9.2 where the Agent is instructed to issue the ticket fromif it knows or reasonably should have known that theStandard Traffic Document stock such issue shall beeligibility requirements or other requirements have notincluded in the next Agency sales report under Billing andbeen met.Settlement Plan reporting procedures and remittanceshall be made accordingly; or

7. ACCEPTANCE PROCEDURE 9.3 where the Agent is instructed to issue the Member'sTraffic Document the Agent shall report the issue in thethe Member to which the Application is made need notnext Sales report due to the Member and remit theaccept it for processing. The Member may accept theamount due in accordance with the remitting provisionsApplication if, in the Member's opinion, it covers travel byset forth in the applicable Passenger Sales Agency Rules.


Resolution 880

9.4 the ticket must be issued in the calendar year of Application shall obtain from the Agent and maintain onapplication; and file for at least two years a letter explaining the

exceptional and compelling reasons for such retroactive9.5 in no case shall the ticket validity be more than three Application.months from date of issue.

13. RECORDS10. BILLING WHERE ISSUANCEeach Accredited Agent shall maintain, for not less thanPRECEDES CONCURRENCE(S)two years from the date of Application and hold immedi-OF PARTICIPATING AIR CARRIERS ately accessible, adequate records to substantiate theAgent's certification that a person named in anynotwithstanding the provisions of Paragraph 8 of thisApplication qualifies for reduced fare transportation. SuchResolution where one or more participating air carriers'records shall be open to inspection by a Member to whichconcurrences have been requested by a Member butan Application is made and shall include the following:have not been received prior to departure date, such

Member may cause the ticket to be issued, subject to the 13.1 payroll ledger and cancelled cheques, money ordersfollowing conditions: or other proof of payment of salary, wages and/or

commissions as well as all deductions for taxes and10.1 the ticket is issued not earlier than ten days after thesocial security (or equivalent) in the case of an employee;Application for the reduced fare transportation has been

received; the Agent gives a written guarantee he will pay, 13.2 cash disbursement books and cancelled cheques,within 15 days of billing to the issuing Member, the full money orders or other proof of payment of salary or otherapplicable fare for each sector for which a concurrence remuneration for services rendered, made in the case ofhas been refused; the Member must render such billing a sole proprietor, partner and/or director, eligible aswithin 30 days of the date of receipt of any such refusal; defined herein;10.2 the Agent must, within 15 days of the billing date, 13.3 service agreements, contracts, time sheets or othersettle the remittance due directly with the issuing Member documentary proof of the degree of service required fromto be passed to the respective air carrier concerned. If the each sole proprietor, partner, director and/or employee toAgent does not remit within such 15 day period, the whom payment of remuneration is shown under Subpara-irregularity and/or default procedures otherwise applicable graphs 14.1 and 14.2 of this Paragraph;to the Agent under the provisions of the Passenger SalesAgency Rules shall apply. 13.4 copies of all Applications accepted by the Member

to which the Application was made.

11. CHANGE IN ELIGIBILITY14. LIABILITY FOR ACCURACY

if at any time prior to the commencement of the travel OF APPLICATIONthere is a change affecting the eligibility of the persontravelling, either as a consequence of a change in status the Agent shall be solely responsible for the accuracy ofof such person (e.g. discontinued employment) or of the each and every Application. In the event that the Agencystatus of the Agent or Approved Location (e.g. the Agent Administrator receives a complaint in writing that theor Approved Location comes under notice of default, or is Agent, in an Application for reduced fare transportationsuspended) the Agent shall immediately so notify the under the provisions of this Resolution, has made aMember whose ticket is used and shall immediately return material misrepresentation, and the Agency Administratorthe ticket to that Member. The travel approval granted by finds that a prima-facie case has been established,the Member shall no longer be valid; provided that the he shall initiate a review by the Travel Agency Commis-Member shall be responsible for cancelling the reduced sioner. If the Commissioner determines that the Agent didfare transportation only if it knows or reasonably should make a material misrepresentation in its application, thehave known of the changed eligibility. Agent in respect of its Approved Locations in the country

concerned shall be deemed to have forfeited all reducedfare transportation privileges available under the provi-12. RETROACTIVE APPLICATION sions of this Resolution for a period of two yearscommencing 30 days after the date of the Commission-notwithstanding the Application in advance requirement iner's decision. For purposes of this Paragraph a materialParagraph 6 of this Resolution it shall be permissible for amisrepresentation is any statement in or omission from anMember to accept an Agent's retroactive ApplicationApplication which conveys or implies that the Agent, orwhere there were exceptional and compelling reasonsthe person on whose behalf the reduced fare transporta-why the Agent was unable to make Application intion is requested, is eligible for the grant of such reducedadvance; such retroactive acceptance may be granted iffare transportation when in fact either the Agent or suchan Application is submitted not later than three monthsperson is not so eligible.after date of purchase of the full fare ticket, in which case

it must be deducted from the annual allotment of the yearwhen the full fare ticket was issued; provided (i) that theAgent is in all other respects eligible for such reduction;and (ii) that the Member accepting such retroactive



GOVERNMENT RESERVATIONS

CANADA

Nothing in said Resolution or acceptance thereof shall beconstrued as limiting in any way the statutory power and duty ofThe National Transportation Agency of Canada to approve theissuance of any and all free and reduced fare transportation byair carriers subject to the Agency's jurisdiction and under suchterms, conditions and forms as the Agency may direct, and thatthe issuing of such other free or reduced rate transportation shallnot be deemed by the International Air Transport Association orany Member thereof to be contrary to any Resolution or Rule ofthe Association or to the provisions of any agreement to whichsuch air carriers are party as Members of the Association.(10.6.76)

INDIA

A sole proprietor, partner or director of an IATA approved agentor any other official deputed by such an approved agent in Indiawill be exempt from the eligibility requirements stipulated inSubparagraph 2.2 in respect of travel from/to India, provided thatDepartment of Tourism and the Government of India hasreleased exchange to the agency for promotion of tourism toIndia. (13.04.81)

MEXICO

Nothing in Resolution 203 (now 880) will limit in any way thelaws or the regulatory authority of the Secretary of Communica-tions and Transport to issue one or more passes for airtransportation. (5.3.79)

SOUTH AFRICA

Its terms shall not be construed as having any bearing on thetransportation of an IATA Sales Agent (including its directors,officers and employees or the spouse or dependents of anythereof) exclusively on or over the domestic air services operatedwithin the Republic of South Africa or the Territory of South WestAfrica, or between the Republic and the said Territory.


Resolution 880 — Attachment ‘A’

RESOLUTION 880

Attachment ‘A’

XYZ TRAVEL AGENT (use Travel Agency letterhead)

APPLICATION FORM — REDUCED FARE TRANSPORTATION RESOLUTION 880

IATA Airline to which Application is made: ..............................................................................................................................Address of Approved Location/Administrative Office where person travelling (passenger) is employed (or to which hereports).................................................................................................................................................................................................Office Telephone No.: ..............................................................................................................................................................Family name of passenger ............................... ............................... ............................... .. Mr/Mrs/Miss...............................First name and initial of passenger: .........................................................................................................................................Position/title of passenger: .......................................................................................................................................................Given name of accompanying spouse, (if applicable): ............................................................................................................Details of Itinerary Requested (reservations to be made by the Agent):

From To Airline Flight No. Date...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

The undersigned being duly authorised to sign on behalf of the Accredited Agent has read and understood the terms andconditions of Resolution 880 and declares that this Application is made in accordance with those terms and conditions. Inparticular, the clauses relating to eligibility of the Agent and eligibility of the person travelling have been noted.

We undertake to pay the amount of fare due to the Airline as a consequence of this Application.

We further undertake to pay the full applicable fare for each sector for which the transporting Airline's concurrence hasbeen refused and to remit such amount within 15 days of billing by the Airline whose ticket has been issued.

It is understood that we must inform you of any change in eligibility and we will thereupon return any tickets issued inresponse to this Application.

We certify that the information submitted in this Application is complete and accurate in all respects. We understand thatany material misrepresentation on this Application will result in action being taken under Resolution 820e as appropriate.Such action may include forfeiture of reduced fare transportation privileges.

Name:.........................................................................................................................................................................................

Position in agency: .....................................................................................................................................................................

Signature: ...................................................................................................................................................................................

Official Stamp of the Agent ........................................................................................................................................................

If held, Travel Agent ID Card Nbr. ............................................................................................................................................□ IATA

□ Other (specify)...................................................................................................................................................................................................

Date of this Application: .............................................................................................................................................................



CERTIFICATION TO AIRLINE FOR SPOUSE TRAVEL

I hereby certify that the person above and accompanying me on the travel applied for is my spouse. I am familiar with therestrictions governing our joint travel as outlined in Resolution 880, Subparagraph 4. I have not received from you areduced fare spouse's ticket during this calendar year.

Mr/Mrs ........................................................................................................................................................................................

...................................................................................................................................................................................................

(Signature of passenger named in Application)

* This form is to be reproduced exactly as appears in the IATA publication with no omissions deletions or alterations. It isto be completed either by typewriter or by hand, in ink, using block letters.


Resolution 880a

1.3 the Agency Administrator shall, on request from theRESOLUTION 880a Member(s) concerned, make revisions to the lists shownand information provided in Attachments ‘A’ and ‘B’.IATA TRAVEL AGENT IDENTITY (ID)

CARD2. ISSUANCE, RECORDS, REPORTING

PAC1(42)880a(except USA) Expiry: Indefinite AND REMITTANCE OF REDUCED FAREPAC2(42)880a Type: BTICKETSPAC3(42)880a

2.1 pursuant to the provisions of Paragraph 9 of Resolu-WHEREAS Members, from time to time and subject totion 880, it shall also be required that;certain conditions, grant concessional travel to staff of

their appointed Agents and2.1.1 where the Agent is instructed to issue the ticket, inaccordance with Paragraph 9.2 or 9.3 of Resolution 880:WHEREAS other travel industry principals similarly grant

concessions to travel agency staff and2.1.1.1 it shall be issued in accordance with the Mem-ber's rules and procedures for reduced fare transportationWHEREAS IATA Members and other travel industryas soon as space has been reserved for any sectorprincipals wish to ensure that applicants seeking suchcovered by the ticket, andconcessional privileges are bona fide travel agency staff

and meet the applicable conditions related to such2.1.1.2 where the Member whose ticket is being issuedconcessions andso requires, the appropriate coupons of the form atAttachment ‘C’ to this Resolution shall be attached to theWHEREAS IATA has developed an IATA Travel Agent IDAgent, Audit and Passenger coupons of the ticket;Card which serves to identify such travel agency staff and

to enable their bona fides to be easily verified, now it is2.1.2 the Agent shall be responsible for observing anyrestriction applicable to such sales, including theirRESOLVED that, notwithstanding any other Passengeravailability, and for subsequent deduction from the annualAgency Conference Resolution governing reduced fareallotment provided for under Paragraph 8 of Resolu-transportation for Passenger Sales Agents, Memberstion 880 and the payment requirements of Paragraph 10may, additionally, indicate their acceptance of the IATAof Resolution 880.Travel Agent ID Card as evidence of the status of an

applicant for concessional travel and/or require an appli-2.2 in accordance with the requirements of Paragraph 13cant to hold a valid IATA Travel Agent ID Card and toof Resolution 880, and where applicable, copies of allsupport application for reduced fare tickets by writtenApplications accepted by the Member to which thedetails of any IATA Travel Agent ID Card held by theApplication was made should also include the coupon ofapplicant.the form at Attachment ‘C’.

1. PARTICIPATING MEMBERS 3. FARE REDUCTION FOR SPOUSE1.1 Members who, in one or more countries, recognise

3.1 when the spouse of a person travelling under thethe IATA Travel Agent ID Card as evidence of the statusprovisions of this Resolution and Resolution 880 is alsoof an applicant for concessional travel and/or requiregranted reduced fare transportation:applications for reduced fare transportation over their

services in accordance with Resolution 880, to be sup- 3.1.1 the spouse shall, when travelling separately, carryported by details of an IATA Travel Agent ID Card shall and make available upon demand by a representative ofso notify the Agency Administrator; a Member providing the transportation a photocopy ofthe IATA Travel Agent ID Card used to support the1.2 the Agency Administrator shall maintain, publish andapplication.circulate, from time to time, lists of:

1.2.1 Members, as shown at Attachment ‘A’ to thisResolution, who have indicated their recognition of the 4. PUBLICATION IN THE TRAVELCard as a travel agency employee credential, together AGENT'S HANDBOOKSwith an indication of the extent to which and the circum-stances under which, for those Members, an IATA Travel the information provided in Attachments ‘A’ and ‘B’ to thisAgent ID Card is a requisite to support an application for Resolution shall also be recorded in the Travel Agent'sreduced fare transportation, and Handbooks.

1.2.2 countries, as shown at Attachment ‘B’ to thisResolution, where the IATA Travel Agent ID Card is incirculation and where one or more Members haveindicated their recognition of the Card as a travel agencyemployee credential;



IB IBERIA 6adeRESOLUTION 880a

IB Iberia 14a

D6 Inter Air 2eAttachment ‘A’IR Iran Air 1a

KQ Kenya Airways 1abcde

RECOGNITION AND ACCEPTANCE KL KLMOF THE IATA TRAVEL AGENT ID CARD LA Lan Chile/Lan Peru 14a

TE Lithuanian Airlines 6aeThe following Members have advised that they recognise

LH Lufthansa 14athe IATA Travel Agent ID Card as a travel agentemployee credential and/or require it to support an LH Lufthansa 6c

application, in specific countries, for reduced fare trans- LG Luxair 6a

portation on their services. Those specified countries are ME MEA 1ace

shown in an appropriate note which corresponds to theYM Montenegro Airlines 6ace

figure shown alongside the Member's name. Their indi-NW Northwest Airlines 8abcdevidual policies governing the extent to which the IATA

Travel Agent ID Card is a requisite for granting reduced OA Olympic Airways S.A. 1abc

fare transportation on their services, are as indicated in PR PAL 1abc

the second note corresponding to the letter shown along- QF Qantas *1side the Member's name:

RJ Royal Jordanian 1a

SQ SIA 6a

LIST OF MEMBERS SN SN Brussels Airlines 6a

PY Surinam Airways Ltd 5,6,8,9 ce

AF Air France 14a

TG Thai Airways 3,4,6,7,10 acd

AM Aeromexico 14a

TU Tunis Air 1abce

AR Aerolineas Argentinas 14a

UL Sri Lankan1

AV Avianca 14a

AZ Alitalia 14a AREAA3 Aegean Airlines 6ce

1. WorldwideEI Aer Lingus 1abcd

2. AfricaAC Air Canada 8acde

3. AsiaKM Air Malta p.l.c. 6,7a

4. AustraliaNZ Air New Zealand 4,10abcde

5. CaribbeanPX Air Niugini 3,4,10 abce

6. EuropeFJ Air Pacific 1ace

7. Middle EastPZ Transportes Aereos del Mercosur 14a

8. North AmericaTA TACA 13a

UA United 12a 9. South America5L Aerosur 14a 10. South PacificZ8 Amaszonas 14a 11. Domestic onlyAA American Airlines 14a 12. For travel from ThailandTC Air Tanzania 1abcde 13. For travel for agents in El SalvadorVT Air Tahiti 11be

14. For travel from BoliviaUM Air Zimbabwe 2,6 abce

AA American Airlines 8a

OS Austrian 1abcde

UY Cameroon Airlines 2,6,7 abcde

CX Cathay Pacific 1abcde

XK CCM Airlines 2e

CO Continental Airlines 1ace

MS Egyptair 1ab

EK Emirates 1ac

ET Ethiopian Airlines 1abcde

EA European Air Express EAE 6ace

AY Finnair 3,4,6 8ade1 This denotes that the Travel Agent ID Card is recognised by theHR Hahn Air Lines GmbH 6a

Member in a variety of regions. Please contact the Member concernedfor details of the countries where the IATA Travel Agent ID Card isT4 Hellas Jet 6ae

recognised.


Resolution 880a — Attachment ‘B’

IATA TRAVEL AGENT ID CARD RESOLUTION 880aa. Recognised as a credential for proof of eligibility for Attachment ‘B’reduced fare transportation

b. Recognised as a credential for proof of eligibility fordomestic reduced fare transportation COUNTRIES WHERE THE IATA TRAVEL

AGENT ID CARD IS IN CIRCULATIONc. Recognised as proof of eligibility when travellingAd. Required for self ticketing for reduced fare domesticAlbaniatransportationAlgeria

e. Required as proof of eligibility at check-in and when AndorratravellingAngolaAntiguaArgentinaArmeniaArubaAustralia 1

1

Austria 1

Azerbaijan

BBahamasBahrainBangladeshBarbadosBelarusBelgium 1

BelizeBeninBermudaBolivia2

2

Bosnia HerzegovinaBotswanaBrazilBulgariaBurkina FasoBurundi

CCambodiaCameroon 1

Canada 1

Cape VerdeCayman IslandsChadChileChina, PRCChinese TaipeiColombiaCongo

1 Indicates those countries where one or more IATA Members requireapplications by travel agency staff, for Reduced Fare Transportation, tobe supported by an IATA Travel Agent ID Card.

2 All carriers except TACA honour the card for travel from Bolivia to anydestination.



Congo, Dem. Republic of Ireland 1

Cook Islands IsraelCosta Rica ItalyCôte d'Ivoire 1

JCroatia JamaicaCyprus JapanCzech Republic Jordan 1

D KDenmark KazakhstanDominica Kenya 1

Dominican Republic KiribatiE Korea, Republic ofEcuador 1 KuwaitEgypt 1 KyrgyzstanEl Salvador LEritrea LatviaEstonia Lebanon 1

Ethiopia 1Lesotho

F LibyaFiji 1 LiechtensteinFinland 1 Lithuania 1

France Luxembourg 1

French Guiana MFrench Polynesia 1

Macau (SAR)G Macedonia (FYROM)Gabon MadagascarGambia MalawiGeorgia MalaysiaGermany 1

1 MaliGhana MaltaGibraltar Marshall IslandsGreece 1 MartiniqueGrenada MauritaniaGuadeloupe MauritiusGuatemala MexicoGuinea MicronesiaGuyana Moldova

MonacoHMongoliaHaitiMoroccoHondurasMozambiqueHong Kong (SAR) 1

MyanmarHungaryNINamibiaIcelandNepalIndiaNetherlandsIran

Indonesia



Resolution 880a — Attachment ‘B’

New Caledonia Suriname 1

New Zealand 1 SwazilandNicaragua SwedenNiger Switzerland 1

Nigeria SyriaNL Antilles TN. Ireland TanzaniaNorway Thailand 1

O TogoOman Tonga 1

Trinidad & TobagoPTunisia 1

PakistanTurkeyPalestinian Territory, Occ.Turks & Caicos IslandsPanama

Papua New Guinea 1 UParaguay UgandaPeru United Arab Emirates 1

Philippines 1 United Kingdom 1

Poland United States of America 1

Portugal UkraineUruguayQ

Qatar VVenezuelaRVietnamReunionVirgin Islands, BritishRepublic of Palau

Romania WRussian Federation XRwanda

YS YemenSamoa

ZSan MarinoZambiaSaudi ArabiaZimbabwe 1Senegal

Serbia and Montenegro 1

Sierra LeoneSingapore 1

1

Slovakia 1

SloveniaSoloman IslandsSouth Africa 1

Spain 1

Sri Lanka 1

St. KittsSt. LuciaSt. VincentSudan




RESOLUTION 880a

Attachment ‘C’

APPLICATION FORM


Resolution 884

6. in all other respects such transportation shall beRESOLUTION 884 subject to the conditions of Resolution 880 except that inrespect of such persons as described in Subpara-REDUCED FARES FOR DELEGATES graph 1.3 of this Resolution no charge will be made

ATTENDING OFFICIAL JOINT against the Agent's annual allotment.INDUSTRY MEETINGS

PAC1(33)884(except USA) Expiry: Indefinite(amended) Type: BPAC2(33)884 (amended)PAC3(33)884 (amended)

RESOLVED that,

1. for the purpose of attending a properly convened jointIATA/UFTAA meeting, or any other meeting under theauspices of IATA, the following persons may be providedby Members with international air passenger transporta-tion to and from the point where such meeting is beingheld:

1.1 the Secretary General of UFTAA;

1.2 any professional official employed by a national orregional Travel Agent Association (e.g. Secretary Generalor his titular equivalent);

1.3 any person eligible for travel under Resolution 880who will be representing UFTAA, or any other TravelAgent's Association as provided in Subparagraph 1.2above, in an official capacity at such a meeting.

2. the delegate shall be listed and his function identifiedin the official convening notice of the joint meeting issuedby the Agency Administrator in advance of the meetingand such convening notice shall serve as authority for thedelegate to request a Member to provide reduced fare airtransportation hereunder.

3. the names of such delegates to be included in ameeting convening notice shall be duly given in writing inadvance by the Secretary General, or titular equivalent,of the participating organisation, to the Agency Adminis-trator.

4. the international air passenger transportation may beprovided at a discount up to 100% of the applicable airfare for the class of service provided. Where the chargefor air transportation consists of a fare and a surcharge,e.g. weekend, business class, the discount shall bebased on the fare and such surcharge, but the discountshall not be applied to excess baggage charges or to anysurcharge specifically excluded by the Member from theapplication of the discount.

5. the outward portion of travel must be commenced notearlier than five days before the date of commencementof the meeting as stated in the said convening notice andtravel is to be completed within five days from the close ofthe meeting; provided that no break of journey shall beallowed except at connecting points and such travel shallbe on a direct routing.



4.2 Destination Familiarisation ToursRESOLUTION 886persons in the group may depart individually from theirMEMBERS' GROUP VOCATIONAL point(s) of origin but not earlier than 48 hours prior to the

TRAINING TRIPS FOR ACCREDITED start of the destination familiarisation tour, to the assem-bly point where such tour is to commence, and shallPASSENGER SALES AGENTStravel together on subsequent sector(s) until such organ-ised destination familiarisation tour programme has beenPAC1(38)886(except USA) Expiry: Indefinitecompleted. Thereafter participants may return individually(amended) Type: Bto their point(s) of origin;PAC2(38)886 (amended)

PAC3(38)886 (amended)

RESOLVED that, 4.3 Aircraft/Route Familiarisation Trips1 free or reduced fare transportation for groups of not persons in the group may depart individually from theirless than six persons travelling on a trip organised by one point(s) of origin, but not earlier than 24 hours, to theMember or jointly by two or more Members may be assembly point where the aircraft/route familiarisation tripgranted by the Member(s), provided each such person is to commence. All persons in the group shall howeverissued with a ticket under the provisions of this Resolution travel together on all subsequent outbound sectors andis a sole proprietor, a partner, director or employee of an on the inbound journey to the original assembly point.Accredited Agent (but not necessarily of the same Agent),and subject to the following conditions:

5. ELIGIBILITYnotwithstanding Paragraph 1 of this Resolution, persons2. DEFINITIONSwho are employed by Accredited Agents which are not

The definitions of terms and expressions used in this under notice of default at the time of departure may beResolution are contained in Resolution 866. included in a group set up under this Resolution;

3. TRIP SOLELY ON MEMBER'S 5.1 Courses of InstructionINITIATIVE in respect of travel directly associated with a course of

instruction no limitation on the area of origin shall apply;3.1 the trip is organised solely upon the initiative of theMember(s) and not at the request or for the convenienceof an Agent and is either: 5.2 Destination Familiarisation Tours3.1.1 to permit attendance at an organised course of

only persons who are working for Accredited Agentsinstruction at destination; orlocated in the Area where travel is to commence may beincluded in the group;3.1.2 to permit participation in an organised destination

familiarisation tour; or

3.1.3 to familiarise the group with a particular aircraft/ 5.3 Aircraft/Route Familiarisation Tripsroute operation; in such instances only one person per

only persons who are working for Accredited AgentsLocation is permitted on such trip;located in the Area where travel is to commence may be

3.2 provided that no Member shall furnish transportation included in the group.under the auspices of this Resolution for any reason otherthan those described in Subparagraphs 3.1.1, 3.1.2 or3.1.3 of this Paragraph. 6. CHANGES IN ELIGIBILITY

6.1 if at any time prior to commencement of travel thereis a change affecting the eligibility of the Agent or4. ASSEMBLY POINT RULESApproved Location or person travelling (e.g. the Agent orApproved Location comes under notice of default or theperson travelling leaves the employ of the Agent) the4.1 Courses of InstructionAgent shall immediately so notify the organising Member

persons in the group may depart individually from their to which it shall also immediately return the ticket. Thepoint(s) of origin but not earlier than 48 hours prior to the Member shall be responsible for cancelling the free orstart of the course of instruction and may travel to the reduced fare transportation only if it knows or reasonablyassembly point where the instruction is to be given. should have known of the changed eligibility;Travel may however begin earlier than 48 hours before-

6.2 notwithstanding Paragraph 1 of this Resolution, in thehand in those instances where the organising Memberevent that pursuant to Subparagraph 6.1 of this Para-does not operate a later flight which would ensure arrivalgraph a group organised in accordance with this Resolu-prior to the start of the course of instruction;tion is reduced to less than six persons, the remaining


Resolution 886

members of the group shall nevertheless be permitted to organised course of instruction or a destination famil-travel under the terms of this Resolution. iarisation tour whether or not such travel is at the discount

provided for in Resolution 880.

7. DEDUCTION FROM ANNUAL12. ESCORTSALLOTMENTa Member may provide one or more of its employees totickets issued hereunder shall be deducted from theact as escort, guide or instructor for groups travellingannual allotment of the Agent under the provisions ofunder the provisions hereof.Resolution 880; provided that two tickets per Member per

calendar year for each Approved Location are exemptedfrom this requirement; provided further that prior to the 13. TICKET VALIDITY, DISCOUNTAgent becoming eligible for reduced fare transportationunder Resolution 880, not more than two tickets per AND CONCURRENCESMember for each Approved Location may be issued

the ticket validity shall be from seven days before untilunder this Resolution.seven days after any trip listed in Paragraph 4: exceptthat for any persons returning individually as provided forin Subparagraph 4.2 and travelling with other than the8. APPOINTMENT BY ISSUINGorganising Member, the discount, concurrence procedureMEMBER and ticket validity shall be in accordance with theprovisions of Subparagraph 5.1 and Paragraph 8 ofnotwithstanding the fact that not all Members participatingResolution 880.in the carriage may have appointed the Agent(s) con-

cerned, free or reduced fare transportation may neverthe-GOVERNMENT RESERVATIONSless be granted under the terms of this Resolution

provided that the Member issuing or arranging for theCANADAissue of the ticket has duly appointed the Agent in

accordance with the Passenger Sales Agency Rules.Nothing in Resolution 203b (now 886) or approval thereof shallbe construed as limiting in any way the statutory power and dutyof The National Transportation Agency of Canada to approve the9. PASSENGER EXPENSES issuance of any and all free and reduced fare transportation byair carriers subject to the Agency's jurisdiction and under such

9.1 for travel involving an organised course of instruction terms, conditions and forms as the Agency may direct, and thatat destination or participation in a destination familiarisa- the issuing of such other free or reduced rate transportation shalltion tour, Members are permitted to arrange and to pay not be deemed by the International Air Transport Association or

any Member thereof to be contrary to any Resolution or Rule offor, if necessary, the hotel expenses, meals, surfacethe Association or to the provisions of any agreement to whichtransportation, local taxes, sightseeing and airport servicesuch air carriers are party as Members of the Association.charges, limited to points along the route over which the(10.6.76)passenger travels on the flight, for a maximum of ten

days except that for journeys wholly within geographicalMEXICOEurope such absorption of expenses is permitted for a

maximum of eight days; Nothing in Resolution 203b (now 886) will limit in any way thelaws or the regulatory authority of the Secretary of Communica-9.2 where early arrival for a full-time course of instruction tions and Transport to issue one or more passes for airis necessitated by the circumstances described in Sub- transportation. (5.3.79)

paragraph 4.1 of this Resolution, the organising Membermay additionally pay for expenses incurred between time UNITED STATESof arrival and time of commencement of the course up toa maximum of 48 hours only. Order 71-12-39 dated 16 December 1971: Approval of said

Resolution, insofar as it is applicable in air transportation asdefined by the Federal Aviation Act of 1958, shall not beconstrued as:10. EXPENSES EN ROUTE(a) an exemption from the requirements of filing tariff provisions

as a condition precedent under Section 403 of the Federalin addition to the expenses provided for in Paragraph 9.Aviation Act of 1958 to the issuance of passes to anyof this Resolution, Members may, for all categories ofperson described in said Resolution;trips organised under this Resolution, pay any en-route

(b) a determination as to whether a violation of Section 404 ofexpenses permissible under Members' tariffs.the Federal Aviation Act of 1958 would result from theissuance of passes pursuant to such Resolution whether ornot tariff provisions applicable thereto have previously been11. TRANSPORTATION TO/FROM filed with the Board; and

ASSEMBLY POINT (c) an exemption from the provisions of the Board's EconomicRegulations relating to tariffs for free or reduced rate

the organising Member is permitted to pay the cost of transportation.ground and/or air transportation to and from the assemblypoint on other carriers' services, when such tour is an



RESOLUTION 886p RESOLUTION 890

REDUCED FARE TRANSPORTATION CARD SALES RULESFOR PERSONS OFFICIALLY

PAC1(46)890(except USA) Expiry: IndefiniteTRAVELLING TO TRAVEL AGENCY PAC2(46)890 Type: BCOMMISSIONER HEARINGS PAC3(46)890

RECOGNISING that Members/Airlines wish to grantPAC1(23)886p(except USA) Expiry: Indefiniteauthority to Agents to transact Card sales against thePAC2(23)886p Type: Bmerchant agreements of Members and Airlines andPAC3(23)886p

RECOGNISING that Members/Airlines and Agents seekRESOLVED thatto establish a defined series of procedures in order to

1. for the purpose of attending a hearing called by the eliminate or substantially reduce their exposure to fraud,Travel Agency Commissioner the following persons may

IT IS RESOLVED that the following conditions shall apply,be provided by Members with reduced fare internationaland the following procedures shall be adhered to, in theair passenger transportation pursuant to this Resolution tosale of passenger air transportation for which payment isand from the point where such hearing is being held:made by a Card that is accepted by the Agent on behalf

1.1 the sole proprietor, partner, director or employee of of a Member/Airline in the country concerned.an Agent which is party to a Commissioner hearing, whohas been designated by the Agent as its representative atsuch hearing, Credit/Charge Card Sales Rules1.2 the sole proprietor, partner, director or employee of The purpose of this Resolution is to provide the authorityan applicant which is party to a Commissioner hearing, for Agents to make use of merchant agreements of IATAwho has been designated by the applicant as its repre- Member airlines (“Members”), and of non-IATA Airlinessentative at such hearing. who participate in the BSP (“Airlines”), hereinafter collec-

tively referred to, as applicable, as “Member(s)/Airline(s)”2. the representatives shall be listed in a notice issued by when accepting payment for passenger air transportation.the Agency Administrator in advance of the hearing andsuch notice shall serve as authority for the representativeto request a Member to provide reduced fare air transpor- 1. CARD ACCEPTANCEtation pursuant to the provisions of this Resolution.

1.1 The Agent may accept Cards as payment for ticket3. the names of such representatives to be included in sales on behalf of the Member/Airline whose ticket isthe notice shall be duly given in writing in advance by the being issued, subject to the Rules and ProceduresAgent or applicant to the Agency Administrator. outlined in this Resolution and in Chapters 10 and/or 14

of the Billing and Settlement Plan Manual for Agents4. the international air passenger transportation may be(hereinafter collectively referred to as “Rules and Proce-provided at a discount not in excess of 75% of thedures”).applicable air fare for the class of service provided;

notwithstanding any conditions governing special fares, 1.2 The Agent shall ensure that the type of Card beingtickets issued for such transportation may not be issued processed during the sale is accepted for payment by theusing special inclusive tour basing fares. Where the Member/Airline whose Traffic Document is being issued.charge for air transportation consists of a fare and a If necessary, the Agent may wish to seek clarification by‘weekend’ surcharge, ‘stopover’ surcharge or ‘peak’ sur- contacting the Member/Airline concerned directly.charge, the discount shall be based on the fare and suchsurcharge; however, the discount shall not be applied to 1.3 In the event of an Agent accepting a Card which isany other surcharge or charge such as a sleeper sur- not accepted by the Member/Airline whose Traffic Docu-charge or excess baggage charge. ment is being issued, the Member/Airline shall charge the

non-payment from the Card Company to the Agent by5. the dates of outbound and return travel shall be at the means of an Agency Debit Memo, or, in non-BSPdiscretion of the representative concerned; provided that countries, a subsequent adjustment will be made by thethe total duration of the journey shall not exceed that of Member whose Traffic Document was issued.the hearing, plus seven days; provided further that nobreak of journey shall be allowed except at connecting 1.4 No Card issued in the name of the Agent, or in thepoints and such travel shall be on a direct routing. name of a person permitted to act on behalf of the Agent,

or in the name of the Agent's officer, partner or employee,6. in all other respects such transportation shall be shall be used in connection with the sale of air transporta-subject to the conditions of Resolution 880 except that in tion on behalf of a Member/Airline to any customer of therespect of the persons described in Subparagraph 1.1 no Agent.charge shall be made against the Agent's annual allot-ment.


Resolution 890

2.1.7 A Member/Airline, in its sole discretion, has the2. SALES MADE AGAINST CARDSright to deny any given Agent the authority to use itsmerchant agreement, provided it gives the Agent con-2.1 Authoritycerned reasonable advanced written notice of suchdenial.The Agent is authorised to accept sales against Cards

only:2.2 Liability

2.1.1(a) when the Card and the Card Holder are simulta-neously present at the time of the transactions (herein- 2.2.1 Face-to-face transactionsafter referred to as “face-to-face transactions”), or

The Agent shall not be held liable for payment to the2.1.1(b) for signature-on-file transactions, and any other airlines for a face-to-face transaction, provided that theform of Card sales in which a Card and Card Holder are procedures set out in Paragraph 2.4, and any other Rulesnot simultaneously present, (hereinafter referred to as and Procedures set out in the BSP Manual for Agents,“Non Face to Face Transactions”), which shall be made have been adhered to by the Agent.under the sole responsibility and liability of the Agent.

2.2.2 Non-Face-to-face transactions2.1.2 For signature-on-file transactions, where the Cardholder empowers the Agent to issue Traffic Documents The Agent may, at its sole discretion, and subject to theagainst a Card, whereby the charge form bears the provisions of this Paragraph 2.2.2, and of Para-remark “signature on file” in the place of the signature, a graphs 2.1.1(b), 2.1.2 and 2.1.3 above, choose to acceptclear written arrangement between Card Holder, Card non face to face Card transactions including, but notcompany and the Agent must exist. Disputes between the limited to, signature-on-file and other Card-not-presentCard Holder and the Agent do not release the Card transactions.Holder from its liability towards the Card company.

2.2.2(a) Although Card details may have previously been2.1.3 Signature on file-type agreements enable Agents to verified by the Agent, ticket sales of a non-face-to-facesign the charge form on behalf of the Card Holder. Such transactions shall be undertaken under the sole respon-agreements must contain the following information: sibility and liability of the Agent;2.1.3(i) definition of agreement's duration, 2.2.2(b) In the event of a disputed transaction and its

subsequent rejection by the Card Company, the relevant2.1.3(ii) provision for termination (by both parties),Member/Airline shall chargeback the loss to the Agentwhich issued the Traffic Document by means of an2.1.3(iii) requirement for changes to be made in writing,Agency Debit Memo, or, in non-BSP countries, a subse-

2.1.3(iv) an imprint of the card on the signed sales draft quent adjustment shall be made by the Member whose(the imprinted draft should be signed by the same person ticket has been issued (as already provided in Para-who signs the agreement), graph 1.3 above).

2.1.3(v) the expiration date of the card, 2.2.2(c) Failure by the Agent to settle any chargebackresulting from a non-face-to-face transaction shall be

2.1.3(vi) names and sample signatures of all parties dealt with in accordance with the reporting and remittanceauthorised to make purchases under the agreement, procedures concerning Accounting Irregularities and

Default Action as described in Resolutions 818g or 832.2.1.3(vii) Authorisations must be obtained for all salesregardless of the floor limit. In addition, and if available 2.2.2(d) The Agent recognises that receipt of an approvalthrough their GDS, it is strongly recommended that code from the Card Company does not guarantee theAgents (in order to reduce their own risk) also validate the transaction, and that any such approval code or otherCard Verification Value (the 3-digit code printed on authorisation does not (and shall not be deemed to)signature panel) for all non-face-to-face transactions. guarantee that the charge will go undisputed. In the case

of a rejected transaction, a chargeback shall be made by2.1.4 The authority for payment of sales made by Cards the Member/Airline.over the Internet are not covered by this resolution, andAgents should contact Members/Airlines to obtain their 2.2.2(e) The Member/Airline must make all reasonablespecific instructions. efforts to ensure that only valid chargebacks are trans-

acted, and must provide all reasonable documentation in2.1.5 The Agent shall ensure their full compliance with support of them. Any error by a Member/Airline or BSPthe Payment Card Industry (PCI) Data Security Stan- processes may not be charged back under the terms ofdards, as provided by the Card companies and made this sub-Paragraph 2.2.2(d).available to agents through IATA, and that all sensitivecard data obtained during the process of completing a 2.3 Approved Credit Card Charge Formcard sales transaction is handled, stored, and transmittedwith due regard to the security of the data. When issuing a Traffic Document against a Card, the

Agent shall raise an approved Credit Card Charge Form2.1.6 Charges against a Member's/Airline's merchant (“CCCF”), or other signed authority, in the manneragreement are not authorised in respect of an Agent's specified in the BSP Manual for Agents, or, in non-BSPown fees or charges. countries, as specified by the individual Member.



2.4 Procedures 3. RESPONSIBILITY FOR SETTLEMENTOF CARD TRANSACTIONSCard sales shall be subject to the Rules and Procedures

set forth in the BSP Manual for Agents as well as those 3.1 The Agent is not responsible for the remittance fromwithin this Paragraph 2.4, provided, however, that in case the Card Company to Members/Airlines of amountsof any conflict or inconsistency between the language of payable under sales made by Cards approved for suchthe BSP Manual for Agents and the language of this sales by the Member/Airline whose Traffic Document isParagraph, then the language of this Paragraph shall issued, provided the Agent adheres to all applicableprevail. Rules and Procedures for handling Card sales, including,

but not limited to, the correct and punctual reporting2.4.1 All permitted transactions actions specified within the relevant BSP Manual for

Agents;2.4.1(a) For Face-to-Face transactions the Agent shallcapture the Card details (card number, cardholder name, 3.2 Notwithstanding Paragraph 3.1 above, an Agent stillexpiry date and, where applicable, effective date) by use has a duty to provide reasonable assistance to aof a card imprinter, or electronic card reader (card swipe). Member/Airline that may have difficulty in receiving theCard details may, in addition, be entered into the GDS settlement due to it.PNR by the Agent for the purpose of card authorisation,and for billing by the BSP. 3.3 When a sale is made by an Agent operating in a

BSP, the Agent shall submit the Universal Credit Card2.4.1(b) The Agent shall obtain authorisation for each Charge Form described in Paragraph 2.3 of this Resolu-transaction from the Card Company, and subsequently tion, in accordance with the local Rules and Proceduresrecord it in the assigned space on the CCCF. set forth in the BSP Manual for Agents (Chapter 14), so

as to ensure receipt within the deadline established for2.4.1(c) The Agent shall verify the expiry date, and where that purpose. If, as a result of any failure on the Agent'sappropriate the effective date, of the Card. part to adhere to all applicable Rules and Procedures, the

relevant Member/Airline is unable to collect the transac-2.4.1(d) In face-to-face transactions the signature of thetion amount due, the Member/Airline shall charge the lossCard Holder on the validated CCCF shall be witnessed byto the Agent that issued the Traffic Document by meansthe Agent, and matched against the signature on theof an Agency Debit Memo.reverse of the Card.3.4 For non-BSP transactions, the Agent shall follow the2.5 Reporting instructions of the Member. Such instructions will be inaccordance with the reporting and remitting rules con-The Agent shall adhere to the local reporting procedures, tained in Resolutions 818g and 832.as contained in the BSP Manual for Agents, or, for

non-BSP transactions, as detailed by the Member/Airlinewhose ticket has been issued. 4. REFUNDING2.6 Records 4.1 When effecting refunds against sales made by credit

card the Agent shall in addition to the obligations2.6.1 In order to demonstrate its adherence to the proce- described under its Passenger Sales Agency Agreementdures contained in this Resolution in reference to a observe the following rules and such other rules as arerejected transaction, the Agent shall retain all supporting detailed in the BSP Manual for Agentsdocumentation relating to the Card transaction for aminimum period of thirteen (13) months. 4.2 Refund amounts of totally unused and partly used

tickets shall only be refunded to the credit card number2.6.2 As the principal to the merchant agreement, the which was originally used for payment.Member/Airline is the rightful owner of all such supportingdocumentation.

2.6.3 In the event of material changes to the status of anAgent including, without limitation, the ceasing of opera-tion, there is a continuing obligation on the part of theAgent to ensure that supporting documentation isretained, and can subsequently be made available toMembers/Airlines as required.

2.6.4 If the ticketing Member/Airline receives a notice of adispute relating to a transaction submitted to the CardCompany, the Member/Airline will notify the Agent within7 days and request appropriate supporting documentationand information, and the Agent shall promptly comply withany such request within 7 days.


Resolution 898a


DISCLOSURE OF POSITIONS TAKEN ELECTRONIC RESERVATIONAT AN IATA MEETING SERVICES PROVIDERS

PAC1(37)892 Expiry: Indefinite PAC1(41)898a(except USA) Expiry: IndefinitePAC2(37)892 Type: B PAC2(41)898a Type: BPAC3(37)892 PAC3(41)898a

RESOLVED that, no Member, Airline or Agent shall The purpose of this Resolution is to identify the point ofdisclose the position taken by a specific Member or Agent sale of international air transportation, and related travelor Airline at an IATA Meeting concerning passenger and tourism arrangements, on the services of Members,agency matters. and other travel principals, by reservation services provid-

ers who operate through an on-line information service,andGOVERNMENT RESERVATIONSRecognising the travel industry needs to identify entitiesUNITED STATESthat make reservations using electronic media by theprovision of a unique numeric designator, it isOrder 80-5-143 issued 21 May 1980 approved Resolution 816

(now 892) subject to the following conditions:RESOLVED that an ERSP (Electronic Reservation Ser-(a) That each IATA Member may, at its discretion divulge itsvices Provider) designator shall be provided to an entityown vote or position taken at any IATA meeting; andthat provides the ability for an individual consumer and/or(b) That a vote tally be included in minutes of IATA meetings corporation to make airline reservations, and/or relatedfiled with the Board and made available to the public.travel and tourism arrangements, via any electronicmedium (Internet, Intranet, on-line service, direct connec-tion, LAN, WAN, etc.) without the direct participation of anairline or travel agency employee.

DEFINITIONSThe definitions of terms and expressions used in thisResolution are contained in Resolution 866.

1. APPLICATION1.1 Any Person in possession of the appropriate officiallicence, where required, wishing to be listed by IATA asan Electronic Reservation Services Provider, may do soby applying to the Agency Administrator, providing detailsof its name, mailing address and, where applicable, itsInternet address and by paying the appropriate listing fee.

1.2 Nothing in this Resolution shall be deemed to consti-tute appointment of the Electronic Reservation ServicesProvider as an IATA Accredited Agent of the Member, ortravel principal. Nothing in this Resolution shall bedeemed to require or to foreclose an agreement onremuneration between the Member, and/or travel principaland the Electronic Reservation Services Provider. Mem-bers shall use ERSP data solely for the identification ofthe source of sale for inventory control purposes.

1.3 Entities performing airline reservations functionsunder the terms of this Resolution shall follow theprocedures outlined in the Passenger Services Confer-ence Resolutions Manual governing the purchase of airtransportation via electronic commerce.



2. ELECTRONIC RESERVATION SERVICESPROVIDERS' LISTThe Agency Administrator shall thereupon allocate uniquenumeric designator to the Electronic Reservation ServicesProvider, solely for administrative purposes, and enter thename, address and the numeric code on the ElectronicReservation Services Providers' List. The Agency Admin-istrator shall maintain, publish and circulate such list fromtime to time, as determined by the Passenger AgencyConference.

The designator assigned to the Electronic ReservationServices Provider shall be used exclusively for communi-cations. Any misuse of the designator shall result in itswithdrawal.

3. TRAFFIC DOCUMENTSAn Electronic Reservation Services Provider shall not beprovided with Standard Traffic Documents.

4. ACCREDITED AGENTS ON THEINTERNETAn IATA Accredited Agent, established on the Internetand wishing to provide on-line international air transporta-tion services, shall do so in accordance with the proce-dures provided for in its IATA Passenger Sales AgencyAgreement and in the Passenger Sales Agency Rules. Anaccredited Travel Agent operating an online service, asdescribed above, shall register the online service as anERSP. Each website location used by the Agent for thatpurpose and identified uniquely by its website address(the URL, Uniform Resource Locator) shall be registeredas a separate ERSP. The unique numbers will be passedto airlines in all interactions between an Electronic Reser-vations Services Provider and airline host system.

5. TICKETING PROCEDURESAn Electronic Reservation Services Provider shall notifyto its user that the ticketing of the reservation processedunder the terms of this Resolution is conducted by aMember or an IATA Accredited Agent when this is thecase.


Section 3 — Local Criteria

SECTION 3 — LOCAL CRITERIAResolution 810i, Section 2, provides for standards for the accreditation and retention of Agents laid down by the localAgency Programme Joint Council (APJC) and endorsed by the Passenger Agency Conference.

The Local Criteria for India are detailed on the following pages.

Please note, Local Criteria set out in this Section and the Resolutions contained in Section 2 of this Handbook are part ofthe contract between Travel Agents and IATA Members.


Local Criteria for the Approval and Retention of Agents


INDIA

(Effective 1 June 2010) Computation of the quantum of financial support by way of Bank Guarantee or Default Insurance Cover to be provided by any IATA Accredited Agent in India shall be in accordance with the following criteria:

1. Bank Guarantee or Insurance Cover shall cover the Agent’s average 35 days cash sales (productivity) during the 12 months immediately preceding the date when such computation/determination is made.

2. Agents desirous of participating in a Default Insurance Programme or providing

insurance cover against the risk of default as an alternative to providing a Bank Guarantee may do so subject to complying with all requirements of the lead insurer.

NB: All providers of Financial Guarantees or insurance cover shall be only those approved by IATA and financial evaluation by the financial assessor of IATA will be final. Staff Qualifications The Agent must have in its employment competent and qualified staff able to sell international air transportation and correctly issue electronic travel documents and report these to the BSP. The recommendation on standards of staff qualification is as follows: Adequate staff members in the applicant’s employment present at the place of business during the working hours of such place of business, able to demonstrate competence and experience in the following elements: (i). Completion of an IATA/UFTAA Diploma Course or a member airline's course where a

certificate is issued by the Head Office of the member airline of having successfully passed its course in ticketing, reservations, fare constructions, etc. OR Two years’ experience within the past four years, in international ticketing, reservations, fare construction etc. with an approved IATA Agent or an IATA Airline.

(ii). The following attainments are considered appropriate for course curriculum of any

airline course completed:

a. To have a working knowledge of IATA documentation including completion of tickets and other accountable documents

b. Be able to apply the fare construction principles up to calculating one way, normal economy and mixed class fares,

c. A complete understanding of the principles of currency adjustments and conversions,

d. A complete understanding of the principles of round and circle trip check rule. e. The ability to interpret and apply the principles of excursion fare regulations.

Local Criteria for the Approval and Retention of Agents


f. The ability to apply rebated fares e.g. infants, children, students, young passenger, spouse etc.

g. To re-route, re-issue, revalidate and obtain relevant endorsements for tickets and in the case of complicated re-routings to be conversant with the required procedures.

BSP Procedures Information on the procedures and responsibilities of agents in respect of the reporting and settlement rules is contained in the BSP Manual for Agents supplied to each Approved Location. IATA offers regular BSP procedural training sessions. Any agent wishing to undertake such training is encouraged to contact the local BSP office.