OPERATING A BSP

Antalya, 26/27 May 2009

Jordan Karamalakov

Country Manager BG - KZ

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Basic principles and governance BSP is ONLY ONE of IATA activities Passenger Agency Conference decisions Resolutions, local regulations and various information

Resolution 850 regulates BSP operations Resolution 832 gives detailed procedures in case of late

remittance or non-payment followed by default action. BSP Manual for Agents, where local KZ specifics can be found

in “Chapter 14”

http://www.iata.org/worldwide/cis/kazakhstan/

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Basic principles and governanceAny airline, who signed Counterindemnity Agreement and

Form of Concurrence may apply to join BSP

Any IATA Accredited Agent MUST operate in BSP in the area

Any exception is detailed specified in IATA resolutions 800/818g

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Ticketing authority (TA) maintenance Not the responsibility of IATA To be handled exclusively by individual airlines However, in case of default or suspension, IATA

removes the TA for all airlines Whenever an agent is newly accredited or whenever

default or suspension is lifted by IATA, the airline needs to review the TA for the agent concerned

TA is assigned or deleted via BSPlink only

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Agency default Detailed mechanism is listed in Resolution 818g –

Attachment A – Sections 1 & 2 Always done by IATA and based upon facts, not upon

hearsay or rumors Ticketing Authority is removed by IATA Airlines are notified by means of the weekly bulletin In case IATA has paid uncollected funds to the airlines,

claw back will happen during the next period

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Risk management Handled by IATA and considered as the main priority Financial requirements are listed in the “Locally

Established Criteria for Approval and Retention of Agents” and can be found the TAH

Changes can only be made by the PAConf Financial assessment is made on a yearly basis Outcome is not communicated to the airlines Based upon the financial assessment, agents are

required to improve the financial standing

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Bank guarantees

Bank guarantee covering 100% of Amount at Risk is required from any agent in BSP-KZ&KG

Amount of Risk is calculated as 1/16 from the total sales in previous 12 months

Minimum level of guarantee is USD 100,000 for KZ and USD 50,000 for KG

Periodic revision of the bank guarantee levels is done by IATA KZ

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Reso 850m and handling of ADM Reso 850m requires that all airlines make available their ADM

policies to agents Agent may dispute any ADM by following the airline’s stated and

communicated procedure or by using the dispute mechanism in BSPlink

All airlines should switch on the “dispute function” in BSPlink If an agent deducts ADMs from the remittance, IATA will not default

the agent concerned The basis for this is recorded in Resolution 818g – Attachment A –

1.7.12 All disputed ADMs further need to be handled outside of the BSP

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