travel agent handbook 810 eng

Travel Agent’s Handbook

Effective 1 June 2010

Resolution 810 Edition

International Air Transport AssociationMontreal — Geneva

Travel Agent’s Handbook

Effective 1 June 2010

Resolution 810 Edition

Travel Agent’s Handbook — Resolution 810 EditionRef. No: 9734-03ISBN 978-92-9233-408-6 © 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.

This edition of the Resolution 810 Travel Agent's Handbook has been radically restructured, with LocalCriteria having been moved from the main resolution and reflected in a separate section. The PassengerAgency Conference Resolutions and locally established criteria, which together form part of the PassengerSales Agency Agreement, can be found in Sections 2 and 3 respectively of this Handbook. The rules andcriteria contained in these sections are mandatory and must be adhered to by agents participating in theProgramme 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 in thehandbook which will strengthen travel agents' knowledge of their trade and make them more effective in theirwork, 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 810, Passenger Sales Agency Rules — Orient

Area of applicability amended to delete countries Hong Kong (SAR, China) and Macao (SAR, China) whichare now incorporated under Resolution 818g.

Various amendments and new ordering of sections to align with Resolution 818g.

Section 3 – (1) New provision allowing the Agency Administrator to immediately terminate an agent thatmaterially misrepresents their financial standing. (2) New provision in respect of branch locations in othercountries.

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

LOCAL ASSEMBLY CRITERIA

These criteria, as amended whenever changes have been introduced, are listed in Section 3 of thisHandbook. These criteria may be subject to change and it is recommended that prospective applicantscontact the respective Agency Services Office for up-to-date details of what is expected of them.

If the reader has any queries, he or she is welcome to contact their regional Agency Services Office or theAgency Services Office in Singapore: Tel. +65 6499 2400 or Fax +65 6438 4666.

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 .................................................................... 3

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 .......................... 5800e Cash Basis Provisions ...................................................................................................... 9800f Agents' Financial Evaluation Criteria ................................................................................ 9800o On-line Travel Agent ......................................................................................................... 11800z Electronic Ticketing ........................................................................................................... 12810 Passenger Sales Agency Rules — Orient ........................................................................ 13

Section 1 — Definitions .................................................................................................... 14Section 2 — Orient Assembly and Executive Councils .................................................... 14Section 3 — Qualifications for Accreditation and Retention ............................................. 16Section 4 — Procedures. .................................................................................................. 19Section 5 — Traffic Documents/Carrier Identification Plates ............................................ 21Section 6 — Application of Minimum Security Standards for Safe Custody of StandardTraffic Documents and Carrier Identification Plates ......................................................... 22Section 7 — Reporting and Remitting through the Billing and Settlement Plan ............... 24Section 8 — Reporting and Remitting Directly to Members in Non-BSP Countries ......... 24Section 9 — Consequences of Default ............................................................................. 25Section 10 — Conditions for Payment of Commission and Other Remuneration ............ 25Section 11 — Change of Ownership, Legal Status, Name or Location ............................ 26Section 12 — Reviews by the Travel Agency Commissioner ........................................... 31Section 13 — Arbitration ................................................................................................... 31Section 14 — Measures Affecting an Agent's Standing ................................................... 32Section 15 — Agency Fees .............................................................................................. 33Section 16 — Indemnities and Waiver .............................................................................. 34Attachment ‘A’ — Assembly Notice of Change ................................................................ 35

820d Office of Travel Agency Commissioner ............................................................................ 36820e Reviews by the Travel Agency Commissioner ................................................................. 38822 IATA Numeric Code .......................................................................................................... 42824 Passenger Sales Agency Agreement (Version II) ............................................................ 44824a Application of the Term ‘Commission’ .............................................................................. 49824d Deposit Receipts to be Issued by Agents ......................................................................... 49824r Refunds to Agents ............................................................................................................ 50824s Adherence to Minimum Security Standards — Applicable Indemnity Provisions ............. 50828 Remittance of Amounts Collected as Part or Full Special Advance Payment for

Special Fares .................................................................................................................... 51830a Consequences of Violation of Ticketing and Reservation Procedures ............................. 51830d Reservations Procedures for Automated Accredited Agents ............................................ 52

Table of Contents

Resolution PageNumber

832 Reporting and Remitting Procedures ................................................................................ 53Section 1 — Reporting and Remitting through the Billing and Settlement Plan (BSP) .... 54Section 2 — Reporting and Remitting Directly to Members in Non–BSP Countries ........ 63Section 3 — Consequences of Default to BSPs and to Members ................................... 66Attachment ‘A’ — Frequency of Agent Remittances ........................................................ 68

838 Change of Traffic Documents by Agents .......................................................................... 70842 Network Agent .................................................................................................................. 71850 Attachment ‘A’ — Airline Direct Web Sales Ticket Issuance for Agents .......................... 77850e Industry Settlement Systems ............................................................................................ 78850m Issue and Processing of Agency Debit Memos (ADMs) ................................................... 78850p Financial Securities ........................................................................................................... 80852 Designation and Selection of Ticketing Airline .................................................................. 81860a Passenger Agency Programme Global Joint Council (PAPGJC) ..................................... 81862 Joint Agent and Airline Consultative Meetings ................................................................. 83866 Definitions of Terms Used in Passenger Agency Programme Resolutions ...................... 83878 General Concurrence ........................................................................................................ 88880 Reduced Fares for Accredited Passenger Sales Agents ................................................. 90880a IATA Travel Agent Identity (ID) Card ................................................................................ 96

Attachment ‘A’ — Recognition and Acceptance of the IATA Travel Agent ID Card ......... 97Attachment ‘B’ — Countries where the IATA Travel Agent ID Card is in Circulation ....... 98Attachment ‘C’ — Application Form .................................................................................. 101

884 Reduced Fares for Delegates Attending Official Joint Industry Meetings ........................ 102886 Members' Group Vocational Training Trips for Accredited Passenger Sales Agents ...... 103886p Reduced Fare Transportation for Persons Officially Travelling to Travel Agency

Commissioner Hearings .................................................................................................... 105890 Card Sales Rules .............................................................................................................. 105892 Disclosure of Positions Taken at an IATA Meeting .......................................................... 108898a Electronic Reservation Services Providers ....................................................................... 108

Section 3 — Local Assembly Criteria — This is part of the contract between Travel Agentsand IATA MembersLocal Criteria ............................................................................................................................................ 110

Accreditation and Appointment Procedure

(e) IATA Agency Services Office,ACCREDITATION AND APPOINTMENTKoreaPROCEDURETel: 82-2 3782 5110

The regulations concerning the approval, accreditation, Fax: 82-2 3782 5191and retention of Agents are set forth in detail in IATA (f) IATA Agency Services Office,Resolutions and are reproduced in this Handbook. The Malaysiafollowing brief outline thus serves as an introduction to

Tel: 603 2288 1001those procedures.Fax: 603 2288 1010

(g) IATA Agency Services Office,SALES AGENCY RULES Pakistan

Tel: 92 21 530 1701/02IATA Passenger Sales Agency Rules regulate the rela-Fax: 92 21 530 1703tionship between IATA Accredited Agents and Member

Airlines. These rules set forth the rights and obligations of (h) IATA Agency Services Office,both parties as well as the procedures applicable to PhilippinesAgents seeking IATA accreditation for the sale of interna- Tel: 63-2 894 4282tional air passenger travel. Fax: 63-2 818 6437

(i) IATA Agency Services Office,SingaporeSTATUS OF IATA ACCREDITED AGENTTel: +65 6499 2400An IATA Accredited Agent is a passenger sales agent Fax: +65 6438 4666whose name has been entered on the Agency List in

(j) IATA Agency Services Office,accordance with the Rules.Sri Lanka

An Approved Location is a Head Office, Branch Office, or Tel: 94 11 243 8887/88Specific Activity Location, appearing on the Agency List. Fax: 94 11 243 8884(k) IATA Agency Services Office,

ThailandAPPLICATIONTel: 66-2 655 2316

Any person or organisation may become an Accredited Fax: 66-2 655 2311Agent by submitting an application which is in the form

(l) IATA Agency Services Office,of answers to a questionnaire. Copies of the question-Vietnamnaire and answers to enquiries can be obtained from the

IATA Agency Services Office and it is to this office that Tel: +84 8 3823 7685the application is sent. More detailed information Fax: +84 8 3823 7686regarding application procedures can be obtained from

or from:the local IATA Agency Services Office in the respectivecountry:

Agency Accreditation Services, Asia/PacificInternational Air Transport Association(a) IATA Agency Services Office, 111 Somerset RoadBangladesh #14-05 Somerset Wing

Tel: 880 2 883 7197 Singapore 238164Fax: 880 2 883 7196 Tel: +65 6499 2400

(b) IATA Agency Services Office, Fax: +65 6438 4666Chinese Taipei

Tel: 886-2 2503 0266 ACTION ON APPLICATIONSFax: 886-2 2503 0267(c) IATA Agency Services Office, An applicant will be granted recognition as an IATA

Hong Kong (SAR), Accredited Agent and consequently be appointed toChina represent Member Airlines, if it meets the qualifications

and criteria as outlined in the Sales Agency Rules andTel: 852 2528 9151executes an Agency Agreement. A person whoseFax: 852 2520 0329application has been disapproved is told the reasons for(d) IATA Agency Services Office, such action. The disapproved applicant may requestIndonesia reconsideration or a review of the decision. There is no

Tel: 62-21 526 6730 limit to the number of applications that can be made.Fax: 62-21 526 6741

EFFECTIVE 1 JUNE 2010 1


StaffNUMERIC CODEThe assessment of staff qualifications is made on theEach Approved Location of an Accredited Agent isbasis of a points system, from educational training and/orallocated an individual IATA numeric code and entered onpractical experience. A minimum of 35 points must bethe official IATA Agency List for the respective Area. Inachieved by at least one staff member, or by each ofrespect of the issue of Traffic Documents after approval,2 staff members (35 points each, not combined) when thean Agent shall comply with the provisions ofagent employs 4 or more staff members. The staffResolution 822 to the extent that they affect the Agent'smembers must be permanent full-time employees of theobligations or actions. Member Airlines are free to appointAgent, and must attend the place of business during allAccredited Agents from that list.the working hours of the Agency.

Points are awarded for both training and experience asQUALIFICATIONS AND CRITERIAfollows:

Certain minimum criteria must be met if an application isSuccess in any training courses must result from formalto be successful. IATA accreditation will not be given tocontrolled testing within 5 years of the application/reviewan applicant who fails to meet these minimum criteria.date, and certificates must be provided. If the course wasThe criteria must continue to be met in order to ensuresuccessfully completed between 5 and 10 years of theretention on the IATA Agency List. The criteria fall into theapplication date, half of the applicable points may befollowing categories.earned.

Premises Educational TrainingThe place of business under application shall be open for

IATA Member basic Faresand Ticketing Course 10business on a regular basis, be identified and trade as atravel agency; provided that a place of business which Pre 2001 IATA/UFTAA Standard Diploma 15does not meet these conditions may nevertheless be IATA/UFTAA Travel & Tourism Foundationapproved if it meets all other qualifications and is: Certificate 15— solely devoted to the organizing of Inclusive Tours Other local equivalent course, as approved by

and performs the issuance of Traffic Documents local APJC in consultation with IATA (ITDI) 15related to such Inclusive Tours only, or IATA/UFTAA GDS Proficiency Certificate, OR 15

— an In-Plant Branch Location situated on the premises IATA/UFTAA GDS Fares & Ticketing Certificateof an organisation, plant or commercial firm and (20 points maximum for both GDS Certificates) 20dedicated substantially to the travel requirements of IATA Member Advanced Fares & Ticketing Course 20that organisation, plant or commercial firm.

Pre 2001 IATA/UFTAA Advanced Diploma 20The place of business shall not be located in office space IATA/UFTAA Travel & Tourism Consultantjointly occupied with another travel agency, an Accredited Certificate 20Agent or an air carrier. The place of business shall not be Other local equivalent Advanced course, aslocated at an airport. approved by local APJC in consultation with IATA

(ITDI) 20Security Standards

Practical ExperiencePlease refer to revised Security Standards contained inSection 6 of Resolution 810. Experience in airline fares and ticketing, airline proce-

dures and product knowledge gained in the permanentStaff Qualifications employment of an IATA accredited agent or scheduled

airline. References in connection with practical experi-The applicant must have in its employment at least one ence must be provided. A maximum of 25 points may becompetent, qualified staff member to be present at the earned under this category:place of business under application during the workinghours of such place of business. Such person must meet For each month's experience completed withinthe criteria of competence and experience determined by 5 years of application date 1 pointthe General Assembly in respect of the country wheresuch place of business is located. See Resolution 810,

FinancesSection 3 in this Handbook.

Only companies and firms whose financial standingIATA working with UFTAA have developed a trainingmeets with IATA's stipulated requirements will beprogramme based on a points system. The followingapproved.criteria may be used in some countries or areas as the

criteria for staff approval. It is also included here as aOnly companies and firms that are financially sound willguideline for any country or area considering adopting abe approved.similar scheme.

EFFECTIVE 1 JUNE 20102

Changes Within an Agency Requiring Prior IATA Approval

The applicant shall submit independently produced finan- CHANGES WITHIN AN AGENCYcial statements prepared in accordance with local REQUIRING PRIOR IATA APPROVALaccounting practices as specified and published in theHandbook. Such statements shall be evaluated and found Under the terms of the Passenger Sales Agency Agree-satisfactory pursuant to the methodology and standards ment entered into by each IATA Accredited Agent, anestablished from time to time by the Executive Council/ Agent proposing to effect certain changes within itsOrient Assembly. To obtain a satisfactory evaluation, the agency must so notify the Agency Administrator throughapplicant may be required to provide additional financial the IATA Office. The details of the procedural require-support in the form of recapitalization or of a bank or ments for cases of change of ownership, legal status,insurance guarantee. name or location are shown in the Sales Agency Rules.Further details of the financial and other criteria are The following brief summary of the provisions is given toavailable from the local IATA Agency Services Office. assist Agents to understand the importance of advising

IATA in advance of proposed changes in their agencies.Name Copies of the appropriate forms and notices together withanswers to enquiries can be obtained from the IATAThe name used by an applicant must not be the same as Office and it is to this office that the notification of changeor misleadingly similar to that of an IATA Member Airline, should be submitted.or IATA itself. The place of business must not be

identified as an office of a Member or a group of MemberAirlines. CHANGES OF OWNERSHIP/EQUITY OR

LEGAL STATUSBusiness StandardsAgents are reminded that they shall not assign any ofThe applicant, its managerial staff or its principal share-their rights or obligations under their Passenger Salesholders (or persons for whom they act as nominees),Agency Agreement without the consent of Members.directors or officers shall have no record of wilful viola-Therefore, if a change of ownership and/or legal status istions of fiduciary obligations incurred in the course ofproposed, notice of such change must be given to IATAbusiness nor be undischarged bankrupts.at least 30 days prior to its effective date.

ManagementCHANGES OF NAMENo person who is a director of or who holds a financial

interest or a position of management in the applicant shall If an Accredited Agent wishes to change its name, or thehave been a director of, or had a financial interest or held name under which any of its Approved Locations isa position of management in an Agent which has been operated, it must give prior notice of and make applicationremoved from the Agency List, or is under notice of for approval of the change.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 LOCATIONprovided that the applicant may nevertheless be approvedif the Agency Services Manager is satisfied that such If an Accredited Agent wishes to change the place of anyperson did not participate in the acts or omissions that of its Approved Locations it must give prior notice of andcaused such removal or default or if he is satisfied that make application for approval of the change.the applicant can be relied upon to comply with the termsof the Sales Agency Agreement and other Resolutions of Each Approved Location is inspected and this forms partthe Conference. 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.)

General

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.



MAINTAINING QUALIFICATIONS ANDCRITERIAIt 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. Failure tosubmit, 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.


Resolution 800a

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 □



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.


Resolution 800a

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?



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 800f

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



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


Resolution 800o

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.



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 810

SECTION 16 — INDEMNITIES AND WAIVERRESOLUTION 810ATTACHMENT ‘A’ — ASSEMBLY NOTICE OF

PASSENGER SALES AGENCY CHANGERULES — ORIENT The provisions shown in italics hereafter are under the

authority of the Orient Assembly.PAC3(46)810(Orient) Expiry: IndefiniteType: B

This Resolution is applicable in the following countriesand/or territories:

Bangladesh, Brunei Darussalam, Cambodia, ChineseTaipei, Indonesia, Korea, Peoples' Democratic RepublicLaos, Malaysia, Mongolia, Myanmar, Pakistan, Philip-pines, Singapore, Sri Lanka, Thailand, Timor Leste andVietnam.

WHEREAS the Conference wishes to enable the IATAIndustry Distribution System to respond quickly to thechanging needs of the customers and evolvingmarket-place requirements in certain designated Orientcountries, and to allow Members and other air carriersready access to all sources of revenue in the frameworkof a coherent industry distribution system, it is

RESOLVED that, the following Rules are adopted andimplemented;

Contents

SECTION 1 — DEFINITIONS

SECTION 2 — ORIENT ASSEMBLY AND EXECUTIVECOUNCILS

SECTION 3 — QUALIFICATIONS FORACCREDITATION AND RETENTION

SECTION 4 — PROCEDURES

SECTION 5 — TRAFFIC DOCUMENTS/CARRIERIDENTIFICATION PLATES

SECTION 6 — APPLICATION OF MINIMUM SECURITYSTANDARDS FOR SAFE CUSTODY OF STANDARDTRAFFIC DOCUMENTS AND CARRIERIDENTIFICATION PLATES

SECTION 7 — REPORTING AND REMITTINGTHROUGH THE BILLING AND SETTLEMENT PLAN

SECTION 8 — REPORTING AND REMITTINGDIRECTLY TO MEMBERS IN NON-BSP COUNTRIES

SECTION 9 — CONSEQUENCES OF DEFAULT

SECTION 10 — CONDITIONS FOR PAYMENT OFCOMMISSION AND OTHER REMUNERATION

SECTION 11 — CHANGE OF OWNERSHIP, LEGALSTATUS, NAME OR LOCATION

SECTION 12 — REVIEWS BY THE TRAVEL AGENCYCOMMISSIONER

SECTION 13 — ARBITRATION

SECTION 14 — MEASURES AFFECTING AN AGENT'SSTANDING

SECTION 15 — AGENCY FEES



Section 1 — Definitions Section 2 — Orient Assembly andExecutive CouncilsThe definitions of terms and expressions used in this

Resolution are contained in Resolution 866. The Orient Assembly (‘the Assembly’) is hereby estab-lished by the Conference and delegated authority overThe use of words and expressions in the singular shall, certain provisions of the IATA Industry Distribution Sys-where the context so permits, be taken to include their tem in designated countries as set forth in this Section.use in the plural and vice versa. The Assembly is assisted in the fulfilment of its terms ofreference in each country where this Resolution isParagraph headings are for ease of reference only andimplemented by an Executive Council as set forth indo not form part of these Rules.Paragraph 2.2 of this Section.

2.1 ORIENT ASSEMBLY

2.1.1 Area of Jurisdiction

2.1.1.1 the Assembly is a permanent body conducting itsactivities under the authority of the Conference to which itshall report annually. The area over which the Assemblyexercises the authority delegated by the Conferenceconsists of those countries listed in the preamble to thisResolution.

2.1.1.2 the Conference may amend the list of countriesset out in the preamble to this Resolution.

2.1.2 Composition

2.1.2.1 each Member operating services or having TrafficDocuments issued in one or more of the countries listedin Subparagraph 2.1.1 of this Paragraph and each Airlineparticipating in a Billing and Settlement Plan in one ormore such countries shall, by notice to the AgencyAdministrator, nominate a person of senior managementstanding to represent it on the Assembly. Alternates mayalso be designated to attend Assembly meetings in theabsence of the nominated representative;

2.1.2.2 the designated quorum Members of theAssembly shall consist of 15 such Members or Airlinesdesignated by the Agency Administrator every secondyear from among the Members and Airlines nominating arepresentative to the Assembly, always taking intoaccount the necessity to ensure continuity of expertiseand of equitable geographical representation; providedthat all other persons nominated as representatives inaccordance with the provisions of Subparagraph 2.1.2.1above shall be entitled to attend Assembly meetings andvote, in accordance with Subparagraph 2.1.4.2 below;

2.1.2.3 nine of the 15 shall be designated from Membersand Airlines represented in the Assembly whose regis-tered Head Offices are situated in the Area of theassembly and the remaining six shall be designated fromMembers and Airlines whose registered Head Offices aresituated outside that Area;

2.1.2.4 the Assembly shall have a quorum at its meetingsif ten or more of the designated quorum members arepresent;

2.1.3 Authority and Terms of Reference

2.1.3.1 the Assembly shall meet at least once a year andsubmit its report to the Agency Administrator in time for its


Resolution 810 — Section 2

inclusion in the agenda of the regular annual meeting of 2.2.2 Compositionthe Conference. Additional meetings of the Assembly may

the Executive Council shall consist of not less than 10be called by its Chairman in consultation with its Secre-and not more than 15 elected members, including:tary or by its Secretary at the request of an Executive

Council. The Assembly shall be free to consider all — a representative of the national carrier(s). In addition,aspects of the IATA Industry Distribution System and is the national carrier provides a Chairman with noempowered to make final decisions in respect of the voting rights,following provisions thereof in each individual country — up to seven representatives of air carriers which arelisted in Subparagraph 2.1.1 of this Paragraph: Members or Airlines operating in the country,

— up to seven representatives each of whom is an2.1.3.1(a) qualifications for accreditation and retention ofAccredited Agent operating in the country designatedIATA Accredited Agents,1

1

by the national agents' association(s) recognised orlicensed by the respective Government, where appli-

2.1.3.1(b) provided that all decisions of the Assembly cable;affecting Accredited Agents shall be consistent with the

all of whom shall be elected/reelected biennially by theirIATA ‘Passenger Sales Agency Agreement’. Suchrespective delegation to the Executive Council, provideddecisions shall be included, as part of the applicable IATAthat the Assembly may adjust the number of representa-Resolutions, in the Travel Agent's Handbook;tives on the Executive Council from time to timekeeping the same proportion of members; and provided2.1.4 Proceduresfurther that no Member or Airline shall have more thanone voting representative on the Executive Council at any2.1.4.1 the Assembly shall determine its own rules andone time. The Agency Administrator shall be an ex officioprocedures and those of the Executive Council. Thenon-voting member of the Executive Council;Secretary shall be supplied by the Agency Administrator

from the IATA Secretariat and shall keep a written recordof the meetings, 2.2.3 Terms of Reference

2.1.4.2 each person nominated as a representative in the Executive Council shall meet on a regular scheduleaccordance with the provisions of Subparagraph 2.1.2.1 and Make recommendations to the Assembly to assist inof this Paragraph is entitled to vote and decisions thereof the fulfilment, in the country concerned, of the terms ofshall be adopted by a unanimous vote of such represen- reference set forth in Subparagraph 2.1.3 of this Section.tatives present at the meeting,

2.2.4 Procedures2.1.4.3 the Assembly shall monitor and coordinate theactivities of the Executive Council and take action on the 2.2.4.1 The Secretary shall be supplied by the Agencyrecommendations submitted for its consideration by such Administrator and shall keep a written record of theCouncil, meetings,

2.1.4.4 the Assembly may initiate recommendations to 2.2.4.2 a simple majority of the Executive Council mem-the Conference for improvements to those provisions bership shall constitute a quorum and decisions shall beof the IATA Industry Distribution System which remain adopted by a two-thirds majority vote of the membersunder the undelegated authority of the Conference. The present at the meeting.Conference shall inform the Assembly of action taken on

2.2.4.3 the IATA Secretary shall formally call meetings ofsuch recommendations, with reasons.the Council and shall establish the date and venue inconsultation with the Chairman. The Secretary shallcompile and distribute the agenda in a timely manner.2.2 EXECUTIVE COUNCILS2.2.4.4 minutes of each meeting shall be compiled by the2.2.1 ConstitutionSecretary and presented to the Chairman forapproval. Thereafter such minutes shall be circulatedthe Assembly shall set up an Executive Council for eachpromptly to the membership who shall be free to providecountry where it plans to implement this Resolution;comments to those minutes for consideration at the nextprovided that the Executive Councils for Cambodia, Laos,formal meeting of the Council where such minutes shallMyanmar and Vietnam shall be established on thealso be tabled for approval of the Council.recommendation of the Orient Assembly, with the subse-

quent endorsement of the Conference;

1 Editorial Note: This provision expires 31 May 2011.



2.3 EFFECTIVENESS AND Section 3 — Qualifications forIMPLEMENTATION Accreditation and Retention

3.1 any Person may become an Accredited Agent by2.3.1 Effectivenessmeeting the qualifications established from time to time by

notwithstanding Resolution 001: the Assembly and published in the Travel Agent's Hand-book and by submitting an application to the Agency

2.3.1.1 the following Resolutions shall become effective Administrator in the prescribed form. The qualificationsonly if all such Resolutions become simultaneously effec- must continue to be met in order to ensure retention astive: an Accredited Agent (in which event the term ‘applicant’

PAC3(15)810 where used in this Section shall be understood to includean Accredited Agent);PAC1(38)820e (except USA)

PAC2(38)820e 3.1.1 The applicant must demonstrate and/or providePAC3(38)820e evidence of compliance in respect of the following;

2.3.1.2 if, in any country where the Resolutions listed in Registration/LicenceSubparagraph 2.3.1.1 above have been implemented,

3.1.2 The applicant's business entity and/or its ownersany such Resolution is disapproved, rescinded, or theand managers must have the requisite official registrationGovernment approval is withdrawn, all those Resolutionsand/or licence to trade and offer travel agency services,shall simultaneously be voided or rescinded, as the caseas prescribed by applicable law.may require, in respect of that country; provided that such

action shall not affect the validity of such Resolutions inStaffrespect of other countries where they have been, or may

become, implemented; 3.1.3 the applicant must have at the location concernedat least two full-time travel staff members qualified and2.3.2 Implementation competent to sell international air transportation and issuetravel documents, in accordance with the standards laid2.3.2.1 upon the Resolutions listed in Subpara-down by the Assembly;graph 2.3.1.1 of this Paragraph becoming effective, the

Orient Assembly shall be authorised to meet and to set 3.1.3.1 the Agency Administrator may at his discretionup such Executive Council(s) as it decides; accredit an applicant in an area or community where

there are no persons who could meet the requirements2.3.2.2 the Resolutions listed in Subparagraph 2.3.1.1 offor an Accredited Agent, although such applicant wouldthis Paragraph shall be implemented simultaneously innot otherwise be accredited because of the provisions ofany country listed in Subparagraph 2.1.1 of this SectionSubparagraph 3.1.3 of this Section.upon notification by the Agency Administrator of the date

of implementation recommended by the Orient Assembly; Finances2.3.2.3 upon all Resolutions listed in Subpara- 3.1.4 The financial stability of the applicant is assessed ingraph 2.3.1.1 of this Paragraph being implemented in a relation to the funds at risk, taking into account net equity,country, Resolutions PAC3(02)800 (amended) and net current assets compared to the net cash sales of anPAC3(02)800a (amended) shall be suspended with re- average prescribed reporting and remitting period. Suchspect to such country; provided that if the Resolutions evaluation shall be in accordance with established locallisted in Subparagraph 2.3.1.1 of this Paragraph are criteria, as adopted by the Assembly and as recom-subsequently voided or rescinded in such country pursu- mended by the Executive Councils, and published in theant to Subparagraph 2.3.1.2 of this Paragraph, or Travel Agent's Handbook.if the authority delegated to the Orient Assembly issubsequently withdrawn by the Conference pursuant to 3.1.4.1 The applicant must provide accounts showing aParagraph 2.4 of this Section, in either case Resolutions satisfactory financial standing and ability to remain sol-PAC3(02)800 (amended), and PAC3(02)800a (amended) vent and pay bills. The applicant shall submit indepen-shall be reinstated and the status quo ante restored in dently produced financial statements prepared in accor-such country. dance with local accounting practices.

3.1.4.2 To obtain a satisfactory evaluation, the applicant2.4 AUTHORITY OF THE CONFERENCE may be required to provide further information and

additional financial support in the form of recapitalization,the Conference may, at its discretion, expand or reduce, and/or bank or insurance bonds or guarantees to coverin respect of one or more of the countries listed in the funds at risk.Subparagraph 2.1.1 of this Section, the authoritydelegated to the Orient Assembly pursuant to Subpara- Branch Locations in Other Countriesgraph 2.1.3 thereof or withdraw such authority in respect

3.1.4.3 An applicant that opens Branch Locations in aof one or more of such countries.country, that is different from where the Head Office legalentity is located, will be assessed against the financialcriteria established for the country of the Branch Location.



In such event the Agent will be required to submit the General Requirementfinancial documents of the Head Office legal entity.

3.1.14 All material statements made in the applicationWhere the Agent is unable to meet the applicable localshall be accurate and complete.criteria of the country of the Branch Location, it shall be

required to furnish additional security in the form of a Reviews and Consequences of Non Compliancebank or insurance bond or guarantee to cover the fundsat risk for that location. 3.2 The Agency Administrator, hereinafter referred to as

IATA, shall conduct periodic examinations of the financialPremisesstanding of Agents. IATA may request and the Agentconcerned shall be under obligation to provide, by a date3.1.5 The applicant shall be identified as a place ofno earlier than seven days from the date specified in thebusiness for a travel agency in accordance with appli-letter of request, the documents deemed necessary tocable laws.conduct such examination. Failure by the Agent to submit

3.1.6 The Agency and/or place of business shall not be such documents as prescribed shall be grounds for IATAidentified, or represent itself, as an office of an airline or to apply two instances of irregularity and to give the Agentgroup of airlines, nor have a name the same as that of a 30 days to comply. Failure by the Agent to comply withinMember of IATA, or of IATA. 30 days shall be grounds for IATA to give the Agent

written notice of removal from the Agency List, provided3.1.7 The location where business is conducted shall not that if the Agent submits the required documents prior tobe in office space jointly occupied with an airline or an the removal date the removal shall not take effect.airline's General Sales Agent. Where a location is jointly Where the Agency Administrator gives notice of removaloccupied with another Travel Agency, each Agent shall under this provision, the notice shall specify the date atbe responsible to report its sales under its separate IATA which it will be effective, which shall not be before theNumeric Code and be responsible to secure its separately date specified in clause 13.2 of the Passenger Salesallocated manual Standard Traffic Documents. Agency Agreement;

Trading History 3.2.1 when the financial position of an Agent is subject toexamination by IATA, and the Agent is unable to meet the3.1.8 No person who is a director of, or who holds a applicable financial criteria published in the Travel Agent's

financial interest or a position of management in the Handbook, IATA shall take normal business fluctuationsApplicant, shall have been a director of, or had a financial into account and provide the Agent with a reasonableinterest, or held a position of management in an Agent period of time to meet those criteria;which has been removed from the Agency List or is undernotice of default and still has outstanding commercial 3.2.2 when IATA determines that an Agent no longerdebts. satisfies the applicable financial criteria incorporated in

the Handbook, IATA shall immediately inform the Agent in3.1.9 The applicant may nevertheless be approved if the writing of conditions as are deemed appropriate to beAgency Services Manager is satisfied that such person complied with by the Agent by a specified date. This datewas not responsible for the acts or omissions that caused shall be no earlier than 30 days and no later than 60 dayssuch removal or default and is satisfied that the applicant from the date of such written notification. On finding thatcan be relied upon to comply with the terms of the Sales the Agent failed to comply, the failure shall be grounds forAgency Agreement, these Rules and other Resolutions of IATA to apply two instances of irregularity and IATA shallthe Conference; withdraw all Standard Traffic Documents (STDs) and

cause the removal of Carrier Identification Plates (CIPs)3.1.10 The applicant shall not trade as a General Salesand require the agent to comply with the conditions withinAgent for any air carrier in the country where it is30 days. Failure by the agent to comply within 30 daysestablished.shall be grounds to give the Agent notice of removal fromthe Agency List, which removal shall take effect on a dateSecuritythat is not before the date specified in clause 13.2 of the

3.1.11 An applicant shall undertake to provide sufficient Passenger Sales Agency Agreement, and to notify allprotection for its business, and for the supply of Traffic BSP Airlines accordingly;Documents in its possession, in accordance with the

3.2.3 if subsequent to the action taken under Subpara-provisions detailed in Section 6 of this Resolution.graph 3.2.2 above, but prior to the removal date, the

3.1.12 The applicant shall have, at the place of business Agent satisfies IATA that the prescribed conditionsunder application, the facility to issue on behalf of have been met, the removal shall not take place, theMembers/Airlines participating in the BSP, STDs through double irregularity shall remain in place and IATA shallthe use of an approved Electronic Ticketing System as notify the Agent and all BSP Airlines accordingly;defined in Resolution 854.

3.2.4 in the circumstances described in Subpara-3.1.13 An Agent is required to safeguard manual STDs in graph 3.2 through 3.2.3 above, IATA shall, if so agreed byits possession by storing them in a lockable steel cabinet the Conference, using the procedures of the BSP, levy anwhen not in use. An Agent that does not use manual administrative charge on the Agent to cover additionalSTDs is recommended to take all necessary precautions workload caused by the late submission of financialto protect its business and business applications but is documents and/or caused by delay in meeting the pre-not required to maintain any lockable device. scribed conditions referred to in Subparagraph 3.2.3



above. The charge shall be as recommended by the provision of such bank or other guarantee as the Com-Assembly through the Executive Council and agreed by missioner may deem appropriate.the Conference;

3.4.4 in the event an Agent or applicant materially mis-3.2.5 where pursuant to the provisions of Subpara- represents its financial standing, providing that writtengraph 3.2 or 3.2.3 above STDs and CIPs are withdrawn evidence of such action is presented and can be verified,or an Agent receives notice of removal, the Agent may the Agency Administrator shall take action to remove thewithin 30 days of the date of such withdrawal, notice of Agent from the Agency List and to serve immediate noticeremoval or of removal, invoke the procedures set out in of suspension. Such notice shall take effect on the dateResolution 820e for review of IATA's action by the Travel so described by the Agency Administrator.Agency Commissioner including the possibility of seekinginterlocutory relief. Before granting an interlocutory orderunder this Subparagraph, the Travel Agency Commis-sioner shall require the Agent to provide a bank or otherfinancial guarantee;

3.3 when IATA receives evidence that an AccreditedAgent or Approved Location has changed status or doesnot continue to meet the accreditation qualifications IATAshall initiate a review of the Agent or Location. If,following written notice by the Agency Administrator of thequalification criteria that are at issue, the Agent is unableto demonstrate to IATA, by a reasonable date specifiedby IATA, that it meets the qualifications, by a datespecified in that notice, which shall be no earlier than15 days from the date of the notice, IATA shall give theAgent notice of removal from the Agency List. The noticeof removal shall specify the earliest date at which removalshall be effective, which shall be not be before the datespecified in clause 13.2 of the Passenger Sales AgencyAgreement. Removal from the Agency List here, andelsewhere in this Section, means that IATA shall withdrawall Standard Traffic Documents and cause the removal ofCarrier Identification Plates (CIPs). Such removal shallnot take effect if, prior to the date of removal, IATAdetermines that the Agent or Location meets the qualifica-tions. The Agent or Location may, within 30 days of thedate of the notice of removal, invoke the procedures setout in Resolution 820e for review of the Agency Adminis-trator's action by the Travel Agency Commissioner andmay also apply for an interlocutory order staying theremoval action pending the outcome of the review;

3.4 if at any time IATA becomes aware that anapplication, which resulted in accreditation of the appli-cant, contained a material statement that was inaccurateor incomplete in respect of the criteria set out in Subpara-graph 3.1.8 and 3.1.13 of this Paragraph, it shall begrounds for IATA, if it considers that the circumstances sowarrant, to remove the Agent, or the Location concerned,from the Agency List. IATA shall give the Agent up to30 days advance notice in writing of removal from theAgency List, provided that such removal shall not takeeffect if, prior to the date of removal:

3.4.1 the Agent eliminates the grounds for such removalto the satisfaction of IATA, or

3.4.2 IATA is satisfied that the Agent can be relied uponto comply with the terms of the Sales Agency Agreement,these Rules and other Resolutions in the Travel Agent'sHandbook.

3.4.3 the Agent invokes the procedures set out in Reso-lution 820e for review of the Agency Administrator'saction by the Travel Agency Commissioner andsuccessfully applies for interlocutory relief including



3.5 ELECTRONIC TICKETING (ET) Section 4 — ProceduresThe following provisions shall apply in any country/area in Upon request, the Agency Administrator shall supply eachwhich a BSP is in operation, where Electronic Ticketing prospective applicant with an application form and a copyhas been implemented. of the IATA Travel Agent's Handbook (at a nominal

charge) containing these Rules and other relevant infor-3.5.1 Granting and Termination of Electronic mation and guidance.Ticketing Authority

3.5.1.1 a BSP Airline participating in the Billing and 4.1 APPLICATION FOR ACCREDITATIONSettlement Plan may issue an ET Authority to a Head or

an applicant which wishes to be included on the AgencyBranch Office Location of the Agent;List and have a place of business entered as an

3.5.1.2 any BSP Airline having issued an Electronic Approved Location on the Agency List, or an Agent whichTicketing Authority to an Agent, may cancel such wishes to have an additional place of business entered asauthority in respect of the Agent, or any Location of the an Approved Location on the Agency List, shall apply toAgent by so notifying the Agent in writing; the Agency Services Manager who is empowered to

accredit the applicant or to reject such applications.3.5.1.3 the BSP Airline shall simultaneously advise theBSP of the removal of the Electronic Ticketing Authorityand the BSP Manager shall instruct the Ticketing System 4.2 FORM OF APPLICATION —to inhibit Electronic Ticketing issuance on behalf of that PROCESSINGBSP Airline;

4.2.1 the applicant must complete the application form3.5.2 Issuance of Electronic Tickets prescribed. The submitted application shall be accompa-

nied by financial statements as required under Section 2,The Agent shall comply with the instructions issued by the Subparagraph 2.4.1(a) of these Rules, other documentsBSP and the ticketing BSP Airline(s) in relation to the as set forth in the Handbook and by fees covering theissuance and reporting of Electronic Tickets. following:

4.2.1.1 application fee which is non-refundable, and3.6 FAILURE TO COMPLY WITH

4.2.1.2 entry fee, andREQUIREMENTS OR TO CONTINUETO MEET QUALIFICATIONS 4.2.1.3 the first annual Agency fee;In the event an Agent fails to comply with any of the 4.2.2 upon receipt, the Agency Services Manager shall,requirements or qualifications listed in the passenger within one month subject to external influences, considersales agency rules or with any of the terms of the whether such application is complete. If any of thePassenger Sales Agency Agreement suspension action required information or fees have not been included withmay be taken in accordance with Section 14 of these the application the Agency Services Manager shall sorules. In situations where an Agent fails to meet the inform the applicant;requirements of the reporting and remittance rules irregu-larity and/or default action will be taken as described in 4.2.3 if the Agency Services Manager finds the ap-those rules. plication is complete, he shall publish, within one month

subject to external influences, to Members and BSPAirlines in a listing that such application has beenreceived. 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 working days of the application listing if the applicantmeets the qualifications to become an Accredited Agentor Approved 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 application requesting the allocation of an additional numeric code tofor an additional location has been rejected may, within identify such sales activity,30 calendar days of the date of the Agency Services

4.3.5(a)(ii) on receipt of such application, the AgencyManager's notice, request reconsideration of the decisionAdministrator shall verify that the specific sales activity forby the Agency Services Manager or may invoke thewhich the additional numeric code is required is con-procedures for review of the Agency Services Manager'sducted solely at the Location concerned and in compli-action by the Travel Agency Commissioner;ance with the provisions for the safe custody of Traffic

4.2.8 subsequent to approval and addition to the Agency Documents and security of premises set forth in Section 6List any Member or BSP Airline may register with the of these Rules, and that the Agent has developedAgency Services Manager information concerning the adequate stock control procedures to ensure that theAccredited Agent, where it feels that approval justifies separate stocks of STDs supplied to that Location infurther review. respect of the different numeric codes allocated to it are

not commingled,

4.3.5(a)(iii) it satisfied that the foregoing conditions are4.3 ACTION FOLLOWING APPROVALmet, the Agency Administrator shall allocate the numericOF APPLICANTcode accordingly,

4.3.1 if the Agency Administrator decides the applicant or 4.3.5(a)(iv) an entry fee and an annual agency fee shalllocation has shown that it meets the qualifications, thebe payable as though the numeric code applied to aAgency Administrator shall enter the applicant or locationseparate Branch Office Location in accordance withon the Agency List of Accredited Agents;Paragraph 4 of this Section;

4.3.2 the Director General, acting on behalf of such IATA 4.3.5(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 AGENT4.3.3 the Agency Administrator shall maintain, publish BY 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-

a Member may appoint an Agent which is on the Agencygraph 4.3.2 of this Paragraph, which will include, but notList and such appointment shall, unless otherwisebe limited to, the following information:specified, cover all Approved Locations of the Agent:

4.3.3.1 name and postal address,4.4.1.1 the Member may deposit with the Agency Admin-

4.3.3.2 address of place of business, istrator a statement of general concurrence for theappointment of all Accredited Agents. The Agency

4.3.3.3 type (Head Office, Branch or Administrative Administrator shall from time to time publish in the TravelOffice). Agent's Handbook a list of Members having deposited

with him a statement of general concurrence,4.3.3.4 date of accreditation,4.4.1.2 alternatively, a Member may deliver to such4.3.3.5 IATA numeric code; Agent a Certificate of Appointment;

4.3.4 for the purpose of these Rules, a Person's name 4.4.2 individual appointments shall be effective:shall be deemed to be included on the Agency List fromthe date when such Agreement is entered into until the 4.4.2.1 as to those Members who have deposited adate when it is terminated, and a Location shall be statement of general concurrence, immediately upondeemed to be included on the Agency List from the date inclusion of the Agent on the Agency List, or as from thewhen the Agreement applies to that place of business to date the statement is deposited if such date is subse-the date when it ceases so to apply. quent to that of the Agent's inclusion on the Agency List,

4.3.5/4.3.5(a) an Accredited Agent which operates under 4.4.2.2 as to any other Member, as from the date on thea BSP and wishes to identify a specific sales activity Certificate of Appointment which shall not be dated earlierperformed at an Approved Location, may request the that the date when the Agent was included on the Agencyallocation of an additional IATA numeric code (hereinafter List.referred to as numeric code) for such purpose, on thefollowing conditions:

4.3.5(a)(i) the Agent shall apply in writing to the AgencyAdministrator, describing the specific sales activityreferred to in Subparagraph 4.3.5/4.3.5(a) above and



4.5 TERMINATION OF INDIVIDUAL Section 5 — Traffic Documents/CarrierAPPOINTMENT Identification Platesany Member having appointed an Agent to act for it maycancel such appointment in respect of the Agent or any 5.1 DELIVERY BY MEMBERApproved Location of the Agent:

the provision of Traffic Documents to an Agent shall be at4.5.1 in the case of appointment by general concurrence the option of the Member; provided that no Member shallprocedures, by so notifying the Agent in writing; deliver to an Agent stocks of its Traffic Documents and/or

authorise an Agent to issue its own Transportation Orders4.5.2 in other cases, by delivering to the Agent a noticeor deliver its Carrier Identification Plates to a Head orof termination cancelling the Certificate of Appointment.Branch Office Location situated in the area of a Billingand Settlement Plan unless and until the Member hasappointed the Agent as provided in Section 4 of this4.6 CAPACITY AND INDEMNITYResolution; provided also that Carrier Identification Platesupplied to an Approved Location shall also authorise thethe Director General, the Agency Administrator and ISSAgent, unless otherwise advised by the Member to theManagement, in performing any action pursuant to theseAgent in writing, to issue Standard Traffic Documents onRules, to other applicable Resolutions and to Resolu-any additional numeric codes assigned under the provi-tion 850 and its Attachments, act not as principals but assions of Section 4, of Subparagraph 4.3.5(a) of the Salesagents for the Members concerned. Members appointingAgency Rules to identify specific sales activities; con-Agents undertake to indemnify IATA, its officers, employ-versely, the Airline or Member is entitled to withdraw suchees and other appointees against liability (includingCarrier Identification Plates.liability for legal costs) for any action taken or omitted in

good faith in the performance of their functions underthese Rules (other than under Resolution 832, Section 1)

5.2 REMOVAL BY MEMBERand under other applicable Resolutions. Members partici-pating in a Billing and Settlement Plan undertake to

the removal by a Member of its Traffic Documents/Carrierindemnify IATA its officers, employees and other appoint-Identification Plates from an Agent's custody is governedees against liability (including liability for legal costs) forby the Passenger Sales Agency Agreement.any action taken or omitted in good faith in the perfor-

mance of their functions with respect to such Plan underSections 1 and 3 of Resolution 832 and under Resolu- 5.3 REMOVAL BY AGENCYtion 850 and its Attachments.

ADMINISTRATOR IN SPECIALCIRCUMSTANCESin the event a Member ceases all of its scheduledinternational air service operations for reason of financialfailure, the Agency Administrator shall on instruction fromthe disabled Member or from the Director General causethat Member's Traffic Documents and/or Carrier Identifi-cation Plates to be removed from the possession of anyor all Approved Locations known to be holding them.

5.4 STANDARD TRAFFIC DOCUMENTSISS Management shall provide Agents in Billing andSettlement Plan countries/areas with stocks of StandardTraffic Documents.

5.5 ADDITIONAL RESPONSIBILITIESOF AGENT5.5.1 an Agent is responsible for the safe custody andcare of Traffic Documents and Carrier Identification Plateswhilst these are in its possession;

5.5.2 Traffic Documents shall be completed, validatedand issued by the Agent only at an Approved Location.When issuing Standard Traffic Documents, the Agentshall use only such Carrier Identification Plates or otherticketing authority as deposited by the Member or Airlinewith the issuing Location. Traffic Documents and



Identification Plates shall be stored at such Location, Section 6 — Application of Minimumunless otherwise authorised under these Rules; Security Standards for Safe Custody5.5.3 a Member or Airline or ISS Management acting on of Standard Traffic Documentsits behalf shall be entitled at any time to audit or procure and Carrier Identification Platesan audit of Traffic Documents and Identification Plates, orto ascertain that security standards are met;

6.1 PREMISES5.5.4 an Agent shall not sell, validate or issue a TrafficDocument of or in the name of a Member or Airline for An Agent shall take all reasonable precautions to securetransportation solely on any other air carrier, unless the its business and prevent access to its premises orAgent has been so authorised by the Member or Airline systems by unauthorised parties.whose Traffic Document or Carrier Identification Plate hasbeen used;

6.2 SECURITY STANDARDS FOR MANUAL5.5.5 an Agent shall not knowingly accept in any mannerTRAFFIC DOCUMENTSwhatsoever unissued Traffic Documents assigned to and

or held by another Agent, whether or not such documentsAs long as an Agent holds paper accountable Standardhave been validated. Should any Agent receive anTraffic Documents the Agent is responsible for theiroffer of the nature described above, such offer shall besafe-keeping.refused and shall be reported in detail to the Agency

Administrator. 6.2.1 Agents shall ensure that STDs and Agents' Valida-tor Plates shall not be accessible to unauthorised per-5.5.6 an Agent that does not make use of Standardsons, nor left unprotected.Traffic Documents in its possession for a period in excess

of six months shall have such BSP stock removed by the 6.2.2 All manual accountable Standard Traffic Docu-Agency Administrator. In the event, subsequent to the ments, when not in use, shall be kept in a lockable steelaction above, an Agent has reason to request provision of cabinet. If a safe is installed on the premises, papernew stock it shall be subject to a BSP inspection and a accountable Standard Traffic Documents should bereview of its financial standing. stored in the safe.

6.2.3 When not in use CIPs and Agents' validator platesshall be stored on the premises of the Approved Locationunder lock and key in a secure metal cabinet or securemetal chest separately from any supply of STDs.

6.3 AGENT RESPONSIBILITIESThe Agent, regardless of any security measures taken,assumes full and absolute liability for any and all damage,expenses or loss experienced by any carrier, its officers,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 BREACHES OFSECURITY6.4.1 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 upon timely receipt of the Agent's written answerHandbook. Upon discovering that an Agent failed to and after consultation with such authorities as he deemsobserve such notification requirement, the Agency Admin- appropriate, the Agency Administrator may either:istrator shall initiate a review of the Agent by the Travel

6.6.3.3(a) conclude that the matter warrants no furtherAgency Commissioner.action in which case he shall notify the Agent and theparty requesting the review accordingly and shall closethe file and so notify concerned BSP Airlines, or6.5 VERIFICATION ACTION6.6.3.3(b) because the Agent does not contest its failureUpon receipt of advice from an Agent, IATA or a BSPto fulfil its aforementioned obligations, the Agency Admin-Airline that an Agent has suffered loss as the conse-istrator may endeavour to settle the matter with the Agentquence of robbery, theft, burglary, fraud or any otherwithout reference to the Travel Agency Commissioner byunlawful means which might include loss of STDs, theentering into an agreement with the Agent to appoint aAgency Services Manager shall immediately notify allsole arbitrator by mutual agreement and to stipulate aBSP Airlines in the country with copy to the Agencypenalty to be imposed. In this event the said agreementAdministrator.together with all other relevant documents shall besubmitted to the sole arbitrator who shall make anappropriate award. If the Agency Administrator is unable6.6 FAILURE TO FULFIL CONTRACTUALto reach such agreement with the Agent then he shallOBLIGATIONS RELATED TO THE CUSTODYrefer the matter to the Travel Agency Commissioner, orAND/OR ISSUANCE OF STANDARD

TRAFFIC DOCUMENTS 6.6.3.3(c) when the Agent denies its failure to fulfil itscontractual obligations related to custody and/or issuance

6.6.1(a) any BSP Airline or the Agency Administrator in of STDs, or where after 30 days from the date of theorder to recover and prevent continuing loss of BSP notification the Agent has not submitted a written answer,Airlines' revenue as result of: the Agency Administrator shall refer the matter to the

Travel Agency Commissioner.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,



Section 7 — Reporting and Remitting Section 8 — Reporting and Remittingthrough the Billing and Settlement Plan Directly to Members in Non-BSP

CountriesThe provisions regarding sales reports, billings, remit-tances and collections and defaults under a Billing and The provisions regarding sales reports, billings, remit-Settlement Plan are contained in Section 1 of Resolu- tances and collections and defaults for sales directly totion 832. Members in non-BSP countries are contained in Section 2

of Resolution 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 REMUNERATIONAny commission or other remuneration for the sale ofinternational air passenger transportation paid to Agentsshall be as may be authorised from time to time estab-lished by the Member or BSP Airline; provided that theAgent complies with the applicable rules governing salesof the transportation. Such commission or other remu-neration shall be established in advance and communi-cated in writing to the Agent. Any changes in the level ofcommission or other remuneration or associated conditionshall be notified in advance by giving written notice to theAgent. Taxes on commission or other remuneration,collectable by the Member on behalf of the competentfiscal authorities, shall be deducted from any commissionor other remuneration paid to or claimed by the Agent;

10.2 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 or BSPAirlines with which the Agent's principal has an interlinetraffic agreement. A Member or BSP Airline may also paycommission or other remuneration to an Agent for pas-senger transportation sold on the services of an air carrierthat is not a Member or BSP Airline when the Member orBSP Airline has been so authorised by such air carrier.

10.3 CONDITIONS FOR PAYINGCOMMISSION10.3.1 Where commission is payable to an Agent it shallbe calculated on the amount of the fares applicable to theair passenger transportation.

10.3.2 The ‘fares applicable’ are the fares (including faresurcharges) for the transportation in accordance with theMember's or BSP Airline's tariffs and shall exclude anycharges for excess baggage or excess valuation ofbaggage as well as all taxes and other charges collectedby the Agent.

10.4 RECALL OF COMMISSION OR OTHERREMUNERATIONwhere a refund is made of all or any part of the fare orcharge for any transportation, the commission or otherremuneration shall be recomputed on the unrefunded fareor charge. If the commission or other remunerationhas already been paid, any amount in excess of therecomputed commission or other remuneration shall bepaid back. Where there is an involuntary change ofrouting involving a substitution of surface transportationfor confirmed air transportation a recall of commission or



other remuneration shall not be deemed due. In case of Section 11 — Change of Ownership,involuntary change of routing to other air services, nothing Legal Status, Name or Locationshall prevent the Member from passing the commission orother remuneration received from the new carryingcarrier. 11.1 NOTIFICATION OF CHANGES

notification with respect to changes of ownership, legalstatus, name or location of the Agent shall be given to theAgency Administrator prior to the change, and processedin accordance with the provisions of this Section; providedthat

11.1.1 when an Agent with more than one ApprovedLocation undergoes a change of ownership and/or statusthe application for approval of such change shall besubmitted only in respect of the Head Office Location andshall apply to all Approved Locations if the Agent confirmson its own letterhead that except for such new ownershipor status the information previously submitted in connec-tion with the Branch Office Locations remains unchanged;

11.1.2 when an Agent undergoes a change of ownershipor status which also includes a change of name orlocation, all changes shall be notified by the Agent in asingle notice of change and actioned by the AgencyAdministrator as one application.

11.2 PROCESSING OF CHANGES

11.2.1 Changes requiring a new PassengerSales Agency Agreement

the following changes of ownership shall require theexecution of a new Sales Agency Agreement, and shallbe 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;



requirements set out in Subparagraphs 3.4.1.1, 3.4.1.6,11.2.2 Changes not requiring a new Passenger3.4.1.7, 3.4.1.11, or 3.4.1.12. Nevertheless if prior to theSales Agency Agreementfinal decision on the application the transferee eliminates

the following changes of ownership in a corporation shall the grounds for disapproval to the satisfaction of thenot require the execution of a new Sales Agency Agree- Agency Administrator, the Agency Administrator shallment, and shall be processed in accordance with Para- execute a provisional Sales Agency Agreement with thegraph 10.4 of this Section: transferee;(a) a reduction of capital, 11.3.3 the transferee's provisional Sales Agency Agree-(b) the disposal or acquisition by any Person of stock ment shall take effect from the date when the change of

representing 30% or more of the total issued share ownership and/or status takes place. The transferor'scapital of the Agent, Sales Agency Agreement shall terminate or cease to

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

11.3.4 a provisional Sales Agency Agreement shall be in(d) the disposal or acquisition by any Person of stockthe same form and have the same effect as a Salesrepresenting 29% or less of the total issued shareAgency Agreement. The Agency Administrator shall notifycapital of the Agent, a current financial review shallall Members of the execution of the provisional agreementnot be requiredand on receipt of such notice Members may do businesswith the transferee as if he were an Accredited Agent.11.2.3 the following other changes shall be processed in

accordance with the appropriate Paragraph of this Sec-tion as indicated:

11.4 PROCEDURES FOR CHANGES NOT11.2.3.1 death of sole owner or of a member of a REQUIRING A NEW PASSENGER SALESpartnership or other unincorporated firm; Paragraph 11.9; AGENCY AGREEMENT11.2.3.2 death of stockholder; Paragraph 11.10; when an Agent proposes to effect a change of ownership

as described in Subparagraph 11.2.2 of this Section:11.2.3.3 change of Location or name; Paragraph 11.11;11.4.1(a) the Agent shall give the Agency Administrator11.2.3.4 sale of Location to another Accredited Agent;notice of the proposed change in the form of AttachmentParagraph 11.12;‘A’ to those Rules at least 30 days before the change is tobe effected. As soon as possible the Agent shall also11.2.3.5 sale of Branch Office Location to an outsideprovide a current financial statement. On receipt of theparty; Paragraph 11.13.notice, the Agency Administrator shall:

11.4.1(a)(i) bill the Agent for an application fee as pro-11.3 PROCEDURES FOR CHANGESvided in Subparagraph 14.1.1 of Section 14 of theseREQUIRING A NEW PASSENGER SALES Rules, and

AGENCY AGREEMENT11.4.1(a)(ii) publish promptly to Members in a monthly

when an Agent proposes to effect a change of ownership listing that such a notice has been received,and/or status as described in Subparagraph 11.2.1 of thisSection: 11.4.2 on receipt of a notice of change in time to enable

the Agency Administrator to process the change, the11.3.1 the Agent (‘the transferor’) and the proposed new Agency Administrator shall give provisional approval ofowner (‘the transferee’) shall jointly give the Agency the change unless the notice reveals or the AgencyAdministrator notice of the proposed change in the form Administrator has reason to believe that the Agent shouldas prescribed by Attachment ‘A’ to these Rules at least not be retained because it does not meet one or more of30 days before the change is to be effected. At the same the requirements set out in Subparagraphs 3.4.1.1,time the transferee shall submit an application for 3.4.1.6, 3.4.1.7, 3.4.1.8, 3.4.1.11, or 3.4.1.12. Neverthe-approval and inclusion in the Agency List in accordance less if prior to final decision on the change the Agentwith Section 3 of these Rules and the application shall be eliminates the grounds for disapproval to the satisfactionconsidered and dealt with in accordance with the provi- of the Agency Administrator, the Agency Administratorsions of Section 4 of these Rules; shall give provisional approval of the change;

11.3.2 on receipt of a notice of change and a duly 11.4.3 the provisional approval of the change shall takecompleted application in time to enable the Agency effect from the date when the change takes place andAdministrator to process the application, the Agency the Agency Administrator shall notify all Members accord-Administrator shall execute a provisional Sales ingly.Agency Agreement with the transferee unless the ap-plication reveals or the Agency Administrator has reasonto believe that the application should be disapprovedbecause the transferee does not meet one or more of the



11.7.1(a)(ii) in cases of a change as described in Sub-11.5 LACK OF PROVISIONAL AGREEMENTparagraph 11.2.1.2 of this Section, by notice to the AgentOR APPROVALwithdraw a provisional approval that has been given andterminate the Agent's Sales Agency Agreement or itswhen pursuant to Subparagraph 11.3.2 or 11.4.2 of thisapplication to the Location concerned,Section the Agency Administrator is unable to execute a

provisional Sales Agency Agreement or to give provision- 11.7.1(b) in all such notices the Agency Administratoral approval as at the date of the change, the Agencyshall give the reasons for his action and notify allAdministrator shall notify all Members and ISS Manage-Members accordingly. A disapproved transferee or Agentment accordingly. With respect to the Location concernedmay within 30 days of the Agency Administrator's noticeISS Management shall arrange for all Carrier Identifica-request reconsideration of the decision by the Agencytion Plates and Standard Traffic Documents to beAdministrator or invoke the procedures for review of theremoved and Members shall withdraw their Traffic Docu-Agency Administrator's action by the Travel Agencyments and discontinue credit.Commissioner;

11.7.2 upon request for reconsideration by the Agency11.6 FINAL APPROVAL BY AGENCY Administrator or for review by the Travel Agency Commis-ADMINISTRATOR sioner, the disapproval action shall be stayed and the

status quo ante restored pending the result of the11.6.1 in addition to any action taken by the Agency reconsideration or of the review. If the Travel AgencyAdministrator under Paragraphs 11.3 and 11.4 of this Commissioner confirms the disapproval, the transferee orSection he shall obtain from such source and in such Agent may request review of such decision by arbitrationmanner as he may deem appropriate a report on the pursuant to Section 13 of these Rules in which case thetransferee or Agent, as the case may be, indicating disapproval action shall continue to be stayed untilwhether the requirements set out in Section 3 of these notification of the arbitration award;Rules are satisfied;

11.7.3 if the transferor or the Agent as the case may be11.6.2(a) if, the report shows that the said requirements notifies the Agency Administrator that the change ofare satisfied, the Agency Administrator shall: ownership has been revoked and the Agent restored in all

respects to its previous ownership, the Agency Adminis-11.6.2(a)(i) in cases of a change as described in Sub-trator shall reinstate the Agent's Sales Agency Agreementparagraph 11.2.1.1 or in Paragraph 11.2 of this Section,or its application to the Location concerned and, whennotify the transferee that the provisional Sales Agencyapplicable, reinstate credit facilities and notify the AgentAgreement shall cease to be provisional and shalland all Members accordingly.become a Sales Agency Agreement,

11.6.2(a)(ii) in cases of a change as described in Sub-11.8 UNDERTAKING BY TRANSFEREEparagraph 11.2.1.2 of this Section, notify the Agent that

the provisional approval of the change shall cease to be 11.8.1 every application for approval shall be accompa-provisional and shall become a full approval;nied by an undertaking by the transferee to accept jointand several liability with the transferor for any outstanding11.6.2(b) the Sales Agency Agreement or the final ap-obligations of the transferor under its Sales Agencyproval of the change shall take effect 45 days from theAgreement as of the date when the transfer of ownershipdate of the publication to Members of the intendedtakes place; andchange by the Agency Administrator or on the date the

change takes place, whichever is the later. The Agency 11.8.2 in cases where the transferor is employed byAdministrator shall notify all Members accordingly and,or retains a financial or beneficial interest directly orwhen required, make any necessary amendment to theindirectly in the Agent after the change of ownership, theAgency List.application shall be accompanied by an undertakingby the transferee to accept responsibility for any violationby the transferor of its Sales Agency Agreement which11.7 EFFECT OF DISAPPROVALmay have occurred within a period of two years immedi-ately prior to the change of ownership as if such violation11.7.1(a) if the Agency Administrator is unable to executewere a violation of the transferee's Sales Agency Agree-a Sales Agency Agreement with a transferee or to givement.final approval of a change to an Agent, as the case may

be, he shall promptly notify the transferee or Agent andshall, simultaneously:

11.9 DEATH OF A SOLE OWNER OR OF11.7.1(a)(i) in cases of a change as described in Sub- MEMBER OF A PARTNERSHIP OR OTHERparagraph 11.2.1.1 or in Paragraph 11.2 of this Section, UNINCORPORATED FIRMby notice to the transferor confirm that its Sales AgencyAgreement or its application to the Location concerned 11.9.1 in the event of the death of the sole owner of anterminated on the date when the change of ownership Accredited Agent, or of a member of a partnership ortook place, and by notice to the transferee, terminate the other unincorporated firm, the Agent shall promptly adviseprovisional Sales Agency Agreement, if executed, the Agency Administrator. However, in order to preserve

the good will of the Agent as far as possible, the Agency



Administrator may, at the request of the person entitled to 11.10.1.2 if the financial situation of the Agent is found torepresent the decedent's estate (in the case of a sole be unsatisfactory, the Agency Administrator shall takeownership) or of the remaining member of the partnership action in accordance with of Section 3 of this Resolutionor other unincorporated firm, enter into a temporary Sales and notify all Members, ISS Management and airlinesAgency Agreement with the requesting party and advise accordingly;Members accordingly. The temporary Sales Agency

11.10.2 if the person entitled to represent the decedent'sAgreement shall be in the same form and have the sameestate proposes to transfer or to confirm the transfer ofeffect as a Sales Agency Agreement except that:the decedent's interest in the Agent to an heir, legatee or

11.9.1.1 if the Agency Administrator at any time has other person, such transfer shall be deemed a change ofreason to believe that the financial situation of the estate, ownership for purposes of this Section. The Agent shallpartnership or other unincorporated firm is unsatisfactory, give notice to the Agency Administrator as required underhe shall give the Agent notice of termination of the Subparagraph 11.4.1 of this Section and the provisions oftemporary Sales Agency Agreement and notify and all Paragraphs 11.4, 11.5, 11.6 and 11.7 of this Section shallMembers accordingly, apply.

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

11.9.1.3 if the termination takes effect the Agency Admin- 11.11.1(a)(i) as far in advance as possible but in anyistrator shall remove the Agent from the Agency List and case before effecting the move, notify the Agency Admin-notify the Agent and all Members accordingly. Upon istrator of the new address and remit the appropriatereceipt of such notice, Members shall take the same application fee,action as required on removal of an Agent from the

11.11.1(a)(ii) submit as soon as practicable two photo-Agency List;graphs of the interior and exterior of the new location,

11.9.2 if the person entitled to represent the estate of the11.11.1(b) the Agency Administrator shall obtain andecedent proposes to transfer or to confirm the transfer ofinspection report of the new location and shall notify allthe decedent's interest in the Agent to an heir, legatee orMembers of the proposed new location. If the inspectionother person, or notifies that the decedent's interest isreport is favourable, the new location shall be deemed anwithdrawn from the partnership or other unincorporatedApproved Location. If the investigation report is unfa-firm, such transfer or withdrawal shall be deemed avourable the new location shall not be approved and thechange of ownership for purposes of this Section. TheAgency Administrator shall give the Agent notice ofsignatory of the temporary Sales Agency Agreement andtermination of the Sales Agency Agreement or of removalthe transferee shall jointly give notice to the Agencyfrom the List of Approved Agents in the case of a BranchAdministrator as required under Subparagraph 11.3.1 ofOffice Location in accordance with Section 12 of thesethis Section and thereafter the provisions of Para-Rules. Such termination or removal shall not take effect if,graphs 11.3, 11.5, 11.6, 11.7 and 11.8 of this Sectionprior to the date of termination or removal, the Agencyshall apply;Administrator is able to approve the application for

11.9.3 subject to earlier termination under the provisions 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 thisterminate if such representative ceases to carry on theParagraph, 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 is in accordance with the provi-be satisfactory, the Agent may continue to do business sions of Subparagraph 3.1.5 of Section 3 of these Rules.with Members as an Approved Agent, If the name change is approved the Agency Administrator

shall notify all Members of the new name and record the



new name on the Agency List and in the Agent's in accordance with the provisions of Section 4 of theseAgreement. If the Agency Administrator disapproves the Rules;application he shall give the Agent notice of termination of

11.14.2 failure to notify the Agency Administrator of athe Sales Agency Agreement in accordance with Sectionchange of name within 30 days of the change being made12 of these Rules. Such termination shall not take effectcan result in a double irregularity being recorded and aif, prior to the date of termination the Agency Administra-review to ensure such Agent continues to meet thetor is able to approve the application for change of name.Accreditation criteria. The notice of double irregularity andthe cost of undertaking the review, which shall be paid forby the Agent, will be confirmed in writing. If within 30 days11.11.3 Change of Head Office location tothe Agent does not revert to its Approved name or submitanother countrythe required application for a change of name then theAgent shall be given notice of termination of the SalesIn the event a Head Office location changes from oneAgency Agreement; provided that if prior to the date ofcountry to another without prior notification, the Headtermination the Agent reverts to its approved name or theOffice and all of its Locations shall be suspended pendingAgent submits the requisite application for the change ofreview of its changed circumstances and evidence con-name and the Agency Administrator is able to approvefirming its principal place of business for the Head Officethe application, the termination shall not take effect;and compliance with the criteria applicable to the country

concerned. Such suspension may lead to removal from 11.14.3 failure to notify the Agency Administrator of athe agency list and termination of the current Passengerchange of location within 30 days of the change beingSales Agency Agreement until such time as a newmade can result in a double irregularity being recordedapplication for accreditation, complying with all localand a review to ensure such Agent continues to meet thecriteria in the other country, is reviewed and approvedAccreditation criteria. The notice of double irregularity andand a new Passenger Sales Agency Agreement has beenthe cost of undertaking the review, which shall be paid forsigned with the Head Office legal and business entity inby the Agent, will be confirmed in writing. If the report isthe new country.unfavourable the Agent shall be given notice of termina-tion of the Sales Agency Agreement or of removal fromthe List of Approved Agents in the case of a Branch11.12 SALE OF LOCATION TO ANOTHEROffice Location; provided that if prior to the date ofAPPROVED AGENT termination or removal the Agency Administrator is able toapprove the application for change of location, the termi-in the event that an Agent sells a Location to anothernation or removal shall not take effect.Agent the latter shall give notice to the Agency Adminis-

trator as required under Subparagraph 11.4.1 of thisSection and thereafter the provisions of Paragraphs 11.4, 11.15 NOTICE TO ISS MANAGEMENT11.5, 11.6 and 11.7 of this Section shall apply.

AND AIRLINESthe Agency Administrator when giving any notice to11.13 SALE OF BRANCH OFFICEMembers required under the foregoing provisions of thisLOCATION TO AN OUTSIDE PARTY Section shall, where applicable, give a copy of suchnotice to ISS Management and to all Airlines.in the event the Agent (‘the transferor’) sells a Branch

Office Location to another person who is not an Agent(‘the transferee’) the provisions of Paragraphs 11.3, 11.5,11.6, 11.7 and 11.8 of this Section shall apply.

11.14 LATE NOTIFICATION OR ABSENCEOF NOTIFICATION OF CHANGE11.14.1 if the notification and, when required the com-pleted application in respect of a change of ownership orstatus is not received by the Agency Administrator or isreceived after the change has taken place, the AgencyAdministrator shall remove the Agent from the AgencyList and notify the transferor (in the case of changespursuant to Subparagraph 11.2.1.1 or to Paragraph 11.2of this Section) or the Agent (in the case of changespursuant to Subparagraph 11.2.1.2 of this Section) that itsSales Agency Agreement is terminated as of the date ofthe change. The Agency Administrator shall notify allMembers accordingly and the provisions of Para-graph 12.4 of Section 12 of these Rules shall apply. Theapplication from the transferee, if any, shall be processed



Section 12 — Reviews by the Travel Section 13 — ArbitrationAgency Commissioner

13.1 RIGHT TO ARBITRATIONThe matters under the purview of the Travel AgencyCommissioner are set out in Resolution 820e as are the

13.1.1 Any party to a dispute settled in accordance withprocedures for conducting reviews.Resolution 820e shall have the right to submit the TravelAgency Commissioner's decision to de novo review byarbitration in accordance with this Section.

13.1.2 Where the Travel Agency Commissioner hasgranted interlocutory relief, such relief and any bank orother guarantee shall remain in effect pending the out-come of the arbitration. The arbitrators, however, willhave the power to vary the terms of the bank or otherguarantee as they deem appropriate including requestingadditional guarantees from the Appellant.

13.2 AGREEMENT TO ARBITRATE13.2.1 All disputes arising out of or in connection with adecision rendered by a Travel Agency Commissioner(a “Decision”) shall be finally settled under the Rules ofArbitration of the International Chamber of Commerce byone or more arbitrators appointed in accordance with saidRules and judgment upon the award may be entered inany Court having jurisdiction thereof.

13.2.2 Unless otherwise agreed by the parties, the lan-guage of the arbitration shall be English, but at therequest of a party, documents and testimony shall betranslated into such party's native language.

13.2.3 The place of arbitration shall be in the country ofthe Approved Location concerned or the location underapplication, as the case may be, unless otherwise agreedby the parties. Notwithstanding the foregoing, in the eventthat the laws of such country are inconsistent with theeffect of subparagraph 13.2.5 herein, then in the case ofa Decision rendered with respect to Area 1, the place ofarbitration shall be, at the election of the claimant, eitherMontreal, Quebec or Miami, Florida; in the case of aDecision rendered with respect to Area 2, the place ofarbitration shall be Geneva, Switzerland; and in the caseof a Decision rendered with respect to Area 3, the placeof arbitration shall be, at the election of the claimant,either Singapore or Sydney, Australia.

13.2.4 The Award of the arbitrator(s) shall be accompa-nied by a statement of the reasons upon which the awardis based.

13.2.5 The arbitration award shall be final and conclu-sively binding on the parties and shall be complied with inaccordance with its terms.

13.3 COMMENCEMENT OF THEPROCEEDING13.3.1 Arbitration proceedings pursuant to thisSection 13 shall be commenced no later than thirty (30)calendar days from the date of the Travel AgencyCommissioner's award.



14.4 EFFECT OF REMOVAL, SUSPENSIONSection 14 — Measures AffectingOR REPRIMANDan Agent's Standing14.4.1 Removal

14.1 RELINQUISHMENT BY AGENT14.4.1.1 when notice has been served by the AgencyAdministrator that an Agent or Location is to be removed14.1.1 an Accredited Agent may voluntarily relinquish itsfrom the Agency List;Accreditation in respect of all or any of its Approved

Locations at any time by giving advance notice in writing14.4.1.1(a) the Agency Administrator shall by notice toto the Agency Administrator who shall notify all Members.the Agent terminate the Agent's Sales Agency AgreementThe notice will state an effective date of withdrawal,or exclude the Location from the application of thewithout prejudice to fulfillment by the Agent and each ofAgreement and so notify Members,the Members having the Agent under appointment, of all

obligations accrued up to the date of withdrawal from the 14.4.1.1(b) ISS Management shall appoint a CoordinatorAgency List; to withdraw all Standard Traffic Documents and CarrierIdentification Plates deposited with the Agent or with the14.1.2 in the event an Agent voluntarily relinquishes anyLocation and require an immediate accounting and settle-Member's appointment it shall so notify the Member inment of monies due,writing;

14.4.1.1(c) in all other respects the provisions of these14.1.3 in both instances the Agent shall surrender allRules and of other applicable Resolutions continue toun-issued Traffic Documents and Carrier Identificationapply to the Agent or Location during the period ofPlates in its possession together with all other equipmentsuspension;that is the property of the Member to that Member.

14.4.1.1(d) a new application for approval of the Agent orthe Location shall not be accepted within six months from14.2 REMOVAL BY AGENCY the date of removal from the Agency List;ADMINISTRATOR14.4.2 Suspension14.2.1 the Agency Administrator may, in accordance with

the provisions of these Rules, remove for cause an Agent 14.4.2.1 when notice has been served by the Agencyor a Location of an Agent from the Agency List by giving Administrator that an Agent or Location is to be sus-notice in writing to the Agent to take effect in accordance pended;with these Rules. Such removal shall be without prejudiceto fulfillment by the Agent and each of the Members 14.4.2.1(a) the Agency Administrator shall so notify Mem-having the Agent under appointment of all obligations bers,accrued up to the date of removal from the Agency List;

14.4.2.1(b) ISS Management shall appoint a Coordinator14.2.2 notwithstanding the provisions contained in Para- to withdraw for the period of suspension all Standardgraph 4 of Resolution 824, when evidence is produced Traffic Documents and Carrier Identification Platesthat an Agent uses its IATA accreditation to engage in, deposited with the Agent or with the Location,and profit from, activities which, if associated with IATA,may prove detrimental to the good standing of IATA, the 14.4.3 ReprimandAgency Administrator may remove the Agent from theAgency List and notify all members of the action being when a reprimand is issued to an Agent under any of thetaken. The Agency Administrator shall give notice to the provisions of these Rules, the Agency Administrator shallAgent and such removal shall be without prejudice to record it against the Agent and notify the Agent that thisfulfillment by the Agent and each of the Members having has been done.the Agent under appointment of all obligations accrued upthe date of removal from the Agency List. 14.5 OTHER MEASURES AFFECTING

OPERATION OF AGENT14.3 NOTICE OF SUSPENSION when an Agent is declared bankrupt, placed in receiver-

ship or judicial administration, goes into liquidation orBY AGENCY ADMINISTRATORbecomes subject to any other similar legal procedure

when an Agent or Location is suspended for cause under affecting its normal operation, the Agency Administratorthe provisions of these Rules, the Agency Administrator shall, when allowed by the provisions of applicable law atshall give notice thereof in writing to the Agent. The the Agent's place of business, remove the Agent from thesuspension will take effect from the time specified in the Agency List and notify all members of the action beingwritten notice. taken.



14.6 APPOINTMENT AND DUTIES Section 15 — Agency FeesOF COORDINATOR14.6.1 ISS Management shall appoint the Coordinator 15.1 TYPES OF FEESupon the request of the Agency Administrator when an

15.1.1 the following agency fees, in the amounts deter-Agent or a Location which operates under the Billing andmined by the Conference in consultation with the DirectorSettlement Plan procedures;General and upon the recommendations of the Orient

14.6.1.1 is removed from the Agency List or suspended Assembly, shall be payable:under these Rules; or

15.1.1(a) a non-refundable application fee in respect of14.6.1.2 is declared in default under these Rules; or each application to become an Accredited Agent or an

Approved Location of an Accredited Agent and of14.6.1.3 has an application for change of ownership applications for approval of changes of name, ownershipdisapproved under these Rules; or Location,

14.6.2 the Coordinator shall immediately remove all Stan- 15.1.1(b) entry fees on application for entry in the Agencydard Traffic Documents and Carrier Identification Plates List of the Agent's Head Office Location and for entry offrom the Agent or the Location concerned and shall, when each Branch Office Location and all other locationsso prescribed, require an immediate accounting and included within the Agency Programme;settlement of all monies due.

15.1.1(c) annual agency fees with respect to Head OfficeLocations, each Branch Office Location and all other

14.7 CHANGES TO AGENT'S OFFICIAL locations included within the Agency Programme;LICENCE

15.1.2 no application for inclusion as an Agent on theAgency List shall be considered unless the applicationif the government authorities of the place where anfee, the entry fee and the first annual agency fee haveAgent's Location is situated terminate, suspend or other-been received. If the application is rejected, the entry andwise condition the official licence granted to suchannual agency fees shall be returned to the applicant.Location, the Agency Administrator shall promptly notify

all Members and the Agent of the effects of such action.

15.2 INVOICING14.8 USE OF IATA LOGO

except in respect of the first assessment upon application,annual agency fees for each calendar year shall be paid14.8.1 An IATA Accredited Agent may use the logo on itsno later than 1 December of the preceding year inletterhead and publicity materials exactly as illiustrated inaccordance with the instructions of the Agency Adminis-the Travel Agent's Handbooks. No other forms of IATAtrator not later than 1 November of each year.logo are authorized for Agent use.

14.8.2 The use of the logo is permitted only in connectionwith activities of an IATA Accredited Agent's Approved 15.3 NON-PAYMENT OF APPLICATIONLocations. OR ADMINISTRATIVE FEES14.8.3 The IATA logo may not be used in any way to 15.3.1 if any Agent fails to pay the annual fee bymisrepresent an existing industry service such as the 1 December, the Agency Administrator may apply anIATA Travel Agent Identity (ID) Card. additional late payment fee to that Agent and shall

promptly notify the Agent in writing that its Sales AgencyAgreement shall be terminated if such fee and such14.9 FORCE MAJEURE additional fee are not received by 31 December. In theevent payment is not made by such date, the DirectorThe Agent shall not be liable for delay or failure to comply General shall terminate the Agent's Sales Agency Agree-with the terms of the Passenger Sales Agency Agreement ment and the Agency Administrator shall remove theto the extent that such delay or failure (i) is caused by any Agent's name from the Agency List;act of God, war, natural disaster, strike, lockout, labor

dispute, work stoppage, fire, third-party criminal act, 15.3.2 if an Agent whose Agreement has been terminat-quarantine restriction, act of government, or any other ed under Subparagraph 15.3.1 of this Paragraph subse-cause, whether similar or dissimilar, beyond the rea- quently remits the annual agency fee by 31 Marchsonable control of the Agent, and (ii) is not the result of following such termination, the Agency Administrator may,the Agent's lack of reasonable diligence (an “Excusable if he is satisfied that the late payment was caused byDelay”). In the event an Excusable Delay continues for events beyond the Agent's control, reinstate the accredi-seven days or longer, the Agency Administrator shall tation of an Agent. Such Agent's name shall then behave the right, at its option, to terminate this Agreement re-entered on the Agency List and a new Sales Agencyby giving the Agent whose performance has failed or Agreement shall be executed;been delayed by the Excusable Delay at least thirty days'prior written notice of such election to terminate.



15.3.3 in the event an Agent refuses to remit the correct Section 16 — Indemnities and Waiverlevel of application fee, or administration fee, then theAgency Administrator shall promptly notify the Agent in 16.1 the Agent agrees to indemnify and hold harmlesswriting that its Sales Agency Agreement shall be terminat- the Member, its officers and employees from all damage,ed within 30 days for failure to pay fees due; expense or loss on account of the loss, robbery, theft,

burglary, fraudulent issue or misuse of Traffic Documents15.3.4 if an Agent whose Agreement has been terminat- supplied to the Agent pursuant to these Rules, whiched under Subparagraph 15.3.3 of this Paragraph subse- Traffic Documents have not been duly issued by thequently remits the correct fees within 30 days, following Agent; provided that the Agent shall be relieved of liabilitysuch termination, the Agency Administrator may reinstate in respect of any damage, expense or loss incurred orthe accreditation of an Agent. Such Agent's name shall suffered by the Member resulting from such event if thethen be re-entered on the Agency List and a Sales Agent can demonstrate that at the material time it met theAgency Agreement shall be executed or re-instated. minimum security standards prescribed in Attachment ‘B’

to these Rules, and that such unlawful removal was15.3.5 A cost justified fee, the level to be agreed locally, immediately reported in accordance with the requirementswill apply for each Agent that fails to comply with of these Rules, or fraudulent issue or misuse of suchestablished criteria. Traffic Documents resulted solely from the action ofpersons other than the Agent, it officers or employees.

15.4 USE OF AGENCY FEES 16.2 the Agent recognises that Members (whether actingindividually or collectively) the Director General, theagency fees collected by the Agency Administrator on Agency Administrator and ISS Management are requiredbehalf of IATA will be expended by the Director General to issue notices, give directions, and take other actionin accordance with directives given by the Board of pursuant to these Rules and other applicable Resolutions,Governors of IATA and taking account of recommenda- including in the circumstances therein provided givingtions of the Orient Assembly, to administer the IATA notices of irregularity and default, notices of allegedAgency Programme. violations 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 Rules andother applicable Resolutions and indemnifies themagainst such claims by the Agent's officers, employees orany other person acting on the Agent's behalf.


Resolution 810 — Attachment ‘A’

RESOLUTION 810

Attachment ‘A’



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


Resolution 820d — Attachment ‘A’

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.



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;


Resolution 820e

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



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


Resolution 820e

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.



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;


Resolution 822

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.



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,


Resolution 824

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



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.


Resolution 824

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,



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 824d

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 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 830a

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,



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.


Resolution 832

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



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’

FREQUENCY OF AGENT REMITTANCES



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


Resolution 842

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



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.


Resolution 842 — Attachment ‘A’ — Section 1

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.



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


Resolution 842 — Attachment ‘A’ — Section 3

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.



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 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


Resolution 850m — Attachment ‘A’

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.



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;


Resolution 860a


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



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 866

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.



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.


Resolution 866

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.



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


Resolution 866

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



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’



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


Resolution 880

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.



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


Resolution 880

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’

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.



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;


Resolution 880a — Attachment ‘A’

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.



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.


Resolution 880a — Attachment ‘B’

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




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’

RESOLUTION 880a

Attachment ‘C’

APPLICATION FORM



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.


Resolution 886

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



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 890

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.



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.


Resolution 890

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.




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.


Resolution 898a

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 CRITERIAResolution 810, Section 3, provides for standards for the accreditation and retention of Agents laid down by the localExecutive Councils and endorsed by the Orient Assembly. The Local Criteria by country are detailed in the followingpages.

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.


Bangladesh

EFFECTIVE 1 JUNE 2010 Page 111

BANGLADESH 3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited Balance Sheet and Profit and Loss account not more than six months old at the time of submission, showing satisfactory financial standing and ability to remain solvent and pay bills. 3.4.1.2 applicant must have: 3.4.1.2(a) conducted travel agent business for at least six (06) months prior to the date of application. 3.4.1.2(b) meet the criteria as published under Resolution 800f, Section 4 3.4.1.3(c) submit minimum bank guarantee of BDT 3 million or equal to 35 days’ average turnover, whichever is higher. 3.4.1.3(d) failure on the part of an Agent to renew, by the expiry date, any such financial guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agent concerned shall be under obligation to furnish, by the date specified in the Agency Administrator’s letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. 3.4.1.4(a) Failure by the Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial criteria incorporated in the Travel Agent’s Handbook, the termination shall not take effect, 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the financial criteria incorporated in the Travel Agent’s Handbook, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply, the Agency Administrator shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4(b) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take place, and the Agency Administrator shall reinstate credit facilities and notify the Agent, all Members, Airlines and where applicable, ISS Management accordingly;

Bangladesh


3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator and the Agent is unable to meet the financial criteria of the Travel Agent’s Handbook, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet those criteria. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 at least two full-time travel staff members who are qualified and competent to sell international air transportation and issue traffic documents who: 3.4.2.1(a) have successfully completed an IATA/UFTAA certified airline-ticketing course or a ticketing course certificate issued by member airlines. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be clearly identified as a travel agent; 3.4.3.2 be open for business on a regular basis and freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it may share common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public; and 3.4.3.5 shall not be located at an airport, (the term ‘airport’ means the airport and supporting facilities, including all parking areas, under the direct jurisdiction of the Airport Authorities). 3.4.4 Security the location shall meet the “Minimum Standards for Safe Custody of Standard Traffic Documents, Carrier Identification Plates and Agents' Validator Plates” set forth in Attachment ‘B’ to this Resolution. 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or Trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or

Bangladesh


3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Sales Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default and still has outstanding debts to Members or has been removed from the Agency List on grounds of default, or in such an Agent whose debts to Members were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default, or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in Bangladesh for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be in possession of a valid licence from the Ministry of Civil Aviation and Tourism, valid for the current period. Applicant should also be in possession of a valid Trade license issued for the place of business by competent authority. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete.

Brunei


BRUNEI

3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss account not more than six months old showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2 applicants must: 3.4.1.2(a) have as a minimum paid up capital as specified by the Brunei Government, and 3.4.1.2(b) be established and in business as a travel agent not less than twelve months prior to the date of application, provided that if an applicant with less than twelve months trading record may be approved if the applicant furnishes a minimum Financial Guarantee of BND 50,000 valid until the receipt of audited annual accounts, provided further that during this period if the average monthly sales exceeds this amount it shall be adjusted accordingly; 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments; 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets; 3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities; 3.4.1.3(b) the applicant, when required, shall furnish a bank guarantee based on an average of four weeks' sales turnover or an insurance bond for the company based on an average of 45 days sales turnover. Failure on the part of an Agent to renew, by the expiry date, any such bank guarantee or insurance bonds shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrated to the Agency Administrator prior to the termination dated that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations. 3.4.1.4(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent a notice of termination of

Brunei


the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect: 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 one management employee with a minimum of three years managerial and/or supervisory experience in the travel and tourism industry within the previous four years; and 3.4.2.2 at least two full-time travel staff members qualified and competent to sell international air transportation and issue traffic documents who: 3.4.2.2(a) have successfully completed an IATA/UFTAA, certified airline ticketing course or a ticketing course recognized by the Executive Council — Brunei with certificates attesting such, and 3.4.2.2(b) have two years experience within the past four years in international fares and ticketing in a travel agency or airline; and 3.4.2.3 at least one staff member who has successfully completed the BSP Training Course. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be clearly identified as a travel agent; 3.4.3.2 be open for business on a regular basis and freely accessible to the general public for the sale of international air transportation during normal business hours;

Brunei


3.4.3.3 be clearly separated from any other business with which it may share common premises; none of those business may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organization, plant or commercial firm and dedicated substantially to the travel requirements of the organization, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public; and 3.4.3.5 shall not be located at an airport. (The term ‘airport’ means the airport and supporting facilities, including all parking areas, under the direct jurisdiction of the Airport Authorities). 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trade-mark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Sales Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default and still had outstanding debts to Members or has been removed from the Agency List on grounds of default, or in such an Agent whose debts to Members were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default, or if he is satisfied that the applicant can be

Brunei


relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in Brunei for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be in possession of a valid licence from the Brunei Government to operate as a travel agent. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.12 Tour Operator as Accredited Agent notwithstanding Paragraph 3.4.3.2 of this Section, an applicant which demonstrated that its business is solely concerned with the organizing of Inclusive Tours and which fulfills all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that it performs the issuance of Traffic Documents related to such Inclusive Tours only.

Cambodia


CAMBODIA

3.4.1 Finances 3.4.1.1 the applicant must provide certified or properly audited Balance Sheet and Profit and Loss account statement not older than six months at time of submission, showing satisfactory financial standing and ability to remain solvent and pay bills; 3.4.1.1(a) applicants must have as a minimum registered capital of USD40,000.00, 3.4.1.1(b) submit a satisfactory banker's report, and 3.4.1.1(c) submit a financial guarantee equivalent to an average of one month's turnover 3.4.1.2 when assessing whether the applicant meets the financial standing described in Subparagraph 3.1.1.1 of this Paragraph the following shall be taken into account: 3.4.1.2(a)(i) availability of adequate liquid funds to meet normal trading commitments; 3.4.1.2(a)(ii) capital required to be commensurate with fixed assets; 3.4.1.2(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities; 3.4.1.2(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank of insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.3 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. 3.4.1.3(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect; 3.4.1.3(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if the circumstances so

Cambodia


warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement; 3.4.1.3(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.3(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.3(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 at least four full-time travel staff members; 3.4.2.1(a) two of whom are qualified and competent to sell international air transportation and who have successfully completed an IATA/UFTAA course or a certified airline ticketing course with certificates attesting such, and 3.4.2.1(b) two of whom shall have had two years experience within the past four years in international fares and ticketing with an IATA Approved Agent or an airline; 3.4.2.1(c) provided that during the first twelve months following the implementation of this Resolution in Cambodia an applicant having only one such qualified staff may be approved; provided further that an Agent so approved must at the location concerned have a second full-time travel staff member who meets the requirements set out in Subparagraphs 3.4.2.1(a) and 3.4.2.1(b) of this Paragraph by the end of a twelve month period following the approval of its application; 3.4.2.2 at least one staff member who has successfully completed the BSP Training Course. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be identified as a travel agent; 3.4.3.2 be freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it shares common premises; none of those businesses may be that of an airline, an Accredited Agent

Cambodia


(or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public. 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo and Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA), or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default or has been removed from the Agency List on grounds of default; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default, or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in Cambodia for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational

Cambodia


expense of the Branch Office. 3.4.10 Licence the applicant must be legally registered for selling air tickets as its main business activity. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.12 Discretion to Accredit the Agency Administrator may at his discretion accredit an applicant in an area or community where there are no persons who could meet the requirements for an Accredited Agent, although such applicant would not otherwise be accredited because of the provisions of Subparagraph 3.4.1.3 of this Section. 3.4.13 Tour Operator as Accredited Agent notwithstanding sub-paragraph 3.4.3.2 of this Section, an applicant which demonstrates that its business is solely concerned with the organising of inclusive tours and which fulfils all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that it performs the issuance of Traffic Documents related to such inclusive tours only,

Indonesia


INDONESIA

3.4.1 Finances 3.4.1.1 the applicant must provide a certified or properly audited balance sheet and Profit and Loss account statement not older than six months at time of submission, showing satisfactory financial standing and ability to remain solvent and pay bills. (This statement has to be audited by a Registered Public Accountant who is a member of the Association of Indonesian Public Accountants.) 3.4.1.2 applicants must: 3.4.1.2(a) have as a minimum paid up capital of IDR 500,000,000 or as required by the Directorate General of Tourism regulations, whichever is higher; 3.4.1.2(b) submit a satisfactory banker's report; 3.4.1.2(c) submit a minimum financial guarantee of not less than the average of the respective BSP credit term period's turnover or USD15,000, whichever is higher, in the form of bank guarantee or insurance as established from time to time; 3.4.1.2(d) be in airline trading business as a travel agent not less than twelve months prior to the date of application 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) Working Capital

Current year>Previous year: 10 Current year=Previous year: 7.5 Current year<Previous year 5

3.4.1.3(a)(ii) Current Ratio

Greater than 2 15 1.5 to 2 11.25 1 to 1.5 7.5 Lesser than 1 3.75

3.4.1.3(a)(iii) Quick Ratio

Greater than or equals 1 35 Lesser than 1 17.5

3.4.1.3(a)(iv) Account Receivable Turnover

Greater than or equals 18 times 15

Indonesia


9 times to 17 times 11.25 Lesser than 9 times 7.5

3.4.1.3(a)(v) Average Age of Receivables

Lesser than or equals 14 days 15 15 days to 30 days 11.25 31 days to 90 days 7.5 Greater than 90 days 3.75

3.4.1.3(a)(vi) Debts to Total Assets Ratio

Lesser than 35% 10 35% to 50% 7.5 Greater than 50% 5

3.4.1.3(a)(vii) Based on the above 6 tests and the allocation of applicable points to each test, a total of 60 points or more is considered satisfactory providing that the Applicant maintain the minimum level of paid up capital. 3.4.1.3(a)(viii) A financial guarantee equivalent to the sales at risk amount is required for any existing accredited IATA agents who fail the criteria as set forth in 3.4.1.3(a)(i)-(vii). The number of “Days’ Sales at Risk” is to be counted from the beginning of the reporting period to the remittance date in respect of that reporting period or periods, plus a margin of five days. The result is to be divided by 360 days and then applied to the annual cash turnover estimation to calculate the estimated Amount at Risk and the amount of guarantee required. 3.4.1.3(a)(ix) It is recognized that different interpretations of financial accounts are possible and do occur. Accordingly, the Financial Assessor shall have discretion as to the most appropriate classification in accordance with standard accounting practices for all items included in the statements. It is in the applicant’s best interest to supply any additional information that has a bearing on the review. 3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations. 3.4.1.4(a) Failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the

Indonesia


Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect: 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement; 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the require-ments of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 at least two full-time travel staff members qualified and competent to sell inter-national air transportation and issue traffic documents who meet the following qualifications: 3.4.2.1(a) have successfully completed a certified airline ticketing course or have an IATA/UFTAA diploma, 3.4.2.1(b) one of whom shall have had two years experience within the past four years in international fares and ticketing or 3.4.2.1(c) successfully completed a certified advanced ticketing course and have had one year's experience within the past two years in fares and ticketing. (Copies of course certificates will be required as proof of having successfully completed such course.) 3.4.2.2 at least one staff member who has successfully completed the BSP Training Course. 3.4.2.3 the Agency Administrator may at his discretion accredit an applicant in an area or community where there are not persons who could meet the requirements for an Accredited Agent, although such applicant would not otherwise be accredited because of the provisions of Subparagraph 3.4.2.1 of this Section.

Indonesia


3.4.3 Premises the location for which application is made must: 3.4.3.1 be identified as a travel agent; 3.4.3.2 be freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it shares common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public. 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo and Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo and trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Sales Agency Agreement. 3.4.7 Prior Default no person who is a director of or who holds a financial interest or a position of management in the applicant shall have been a director of, or had a financial interest or held a position of management in, an Agent which has been removed from the

Indonesia


Agency List, or is under notice of default, and still has outstanding commercial debts, or in such an Agent whose commercial debts were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference; 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in Indonesia for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be in possession of a valid license from the Directorate General of Tourism and the respective local government authority. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.12 Tour Operator as Accredited Agent notwithstanding Subparagraph 3.4.3.2 of this Section, an applicant which demonstrates that its business is solely concerned with the organising of Inclusive Tours and which fulfils all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that it performs the issuance of Traffic Documents related to such Inclusive Tours only. 3.4.13 Access to Electronic Ticketing the applicants shall have, at the place of business under application, the facility to issue on behalf of Members and Airlines participating in the BSP, STDs through the use of an approved Electronic Ticketing System as defined in Resolution 854 .

Korea


KOREA

(Orient Assembly MV OA/E12-KR)

3.4.1 Finances 3.4.1.1 the applicant must provide accredited accounts showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2(a) applicants must: 3.4.1.2(a)(i) be established and in business as a travel agent not less than six months prior to the date of application, and 3.4.1.2(a)(ii) have as a minimum paid capital of KRW 100,000,000, and 3.4.1.2(a)(iii) provide IATA with a financial guarantee equivalent to an average of 16 days turnover but not less than a minimum of KRW 150,000,000 with effect from 01 January 2009 and KRW 200 million with effect from 01 January 2011 and one financial guarantor liable jointly or severally; 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments, 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets, 3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities, 3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect. 3.4.1.4(a) the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. 3.4.1.4(b) Failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to

Korea


give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect. 3.4.1.4(b)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if the circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(b)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4.(b)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(c) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 at least two full-time travel staff members who are qualified and competent to sell international air transportation and issue traffic documents who meet the following qualifications: 3.4.2.1(a) have successfully completed an IATA/UFTAA course or certified airline ticketing course with certificates attesting such, and 3.4.2.1(b) one of whom shall have had a minimum of two years experience within the last four years in international fares and ticketing in an IATA Approved travel Agency or airline; 3.4.2.2 at least one staff who has successfully completed the BSP Training Course within the last two years. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be identified as a travel agent; 3.4.3.2 be freely accessible to the general public for the sale of international air transportation during normal business hours;

Korea


3.4.3.3 be clearly separated from any other business with which it may share common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 If located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public. 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association(IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default or has been removed from the Agency List on grounds of default; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default, or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in Korea for any air carrier.

Korea


3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be in possession of a valid license from the Tourism Bureau of the Ministry of Transport to operate as a travel agent. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.12 Access to Electronic Ticketing the applicant shall have at the place of business under application, the facility to issue on behalf of Members and other Airlines participating in the BSP, STDs through the use of an approved electronic ticketing system as defined in Resolution 854.

Malaysia


MALAYSIA

(Effective 1 January 2010 – Orient Assembly MV OA/E11-MY)

3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss not more than twelve months old showing satisfactory financial standing and ability to remain solvent and pay bills; such accounts shall be evaluated and found satisfactory pursuant to the methodology and standards established from time to time by the Assembly and published in the Handbook: 3.4.1.2 applicants must: 3.4.1.2(a) have as a minimum paid up capital of MYR 300,000, provided that: 3.4.1.2(a)(i) the requirement is immediately applicable to all Agents accredited on or after 14 February 2001; 3.4.1.2(a)(ii) all existing IATA Accredited Agents will have up to 31 December 2003 to comply with the increase in the minimum paid up capital; and 3.4.1.2(b) submit a bank guarantee or an insurance scheme approved by EC MY, whichever opted by the applicant; provided that in case of bank guarantee, the level of such guarantee shall be: 3.4.1.2(b)(i) 100 percent of an average of 16 days sales turnover for all agency locations, provided further that such financial guarantee shall not be less than MYR 100,000 for applications in Ipoh, Johore Bharu, Kuala Lumpur or Penang and not less than MYR 60,000 for applicants in other areas; 3.4.1.2(b)(ii) provided further that such financial guarantee shall not be less than MYR 60,000 in all areas for Bumiputra applicants holding a letter of appointment from the Ministry of Finance. 3.4.1.2(b)(iii) provided further that in case of insurance scheme, the level of such guarantee shall be 100 per cent of the net sales turnover based on the remittance amount under the BSP. 3.4.1.2(c) for the purpose of this Paragraph Kuala Lumpur includes Petaling Jaya, Shah Alam and Klang; 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments; 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets;

Malaysia


3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities; 3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations; 3.4.1.4(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect: 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned:

Malaysia


3.4.2.1(a) Head Office 3.4.2.1(a)(i) one management employee with a minimum of five years managerial and/or supervisory experience in a managerial position of which a minimum of three years experience shall have been in the travel related services within the previous seven years; and 3.4.2.1(a)(ii) at least four full-time staff members two of whom must have an IATA/UFTAA Diploma and/or a minimum of 4 years ticketing experience with the last two with an IATA Airline or IATA Accredited Agent and attended and passed a certificate course in reservations and ticketing administered by an IATA Airline or attended and passed an EC-MY certification course with copies of certificates attesting such; provided that, with immediate effect, all Agents accredited on or after 15 March 2001 must have at least one staff member who has successfully completed an IATA/UFTAA course. 3.4.2.1(b) Branch Office 3.4.2.1(b)(i) one management employee with a minimum of three years experience in a managerial and/or supervisory position of which a minimum of two years shall have been in travel related services within the previous five years; and 3.4.2.1(b)(i)(aa) at least two full-time travel staff members must have an IATA/UFTAA Diploma and/or minimum of 4 years ticketing experience with the last two with an IATA Airline or IATA Accredited Agent and attended and passed a Certificate course in reservations and ticketing administered by an IATA Airline or attended and passed an EC-MY certification course with copies of certificates attesting such; provided that with immediate effect all Agents accredited on or after 15 March 2001 must have at least one staff member who has successfully completed an IATA/UFTAA course. 3.4.2.1(b)(i)(bb) at least one staff who has successfully completed the BSP Training Course. 3.4.2.2 the Agency Administrator may at his discretion accredit an applicant in an area or community where there are no persons who could meet the requirements for an Accredited Agent, although such applicant would not otherwise be accredited because of the provisions of Subparagraph 3.4.2.1(a) or (b) of this Section. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be clearly identified as a travel agent; 3.4.3.2 be open for business on a regular basis and freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it may share common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent;

Malaysia


3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public; and 3.4.3.5 shall not be located at an airport. (The term ‘airport’ means the airport and supporting facilities, including all parking areas, under the direct jurisdiction of the Airport Authorities). 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant, its managerial staff or its principal stockholders (or persons for whom they act as nominees), directors or officers or managers shall not have been found guilty of wilful violations of fiduciary obligations incurred in the course of business, nor be undischarged bankrupts. 3.4.7 Prior Default no person who is a director of or who holds a financial interest or a position of management in the applicant shall have been a director of, or had a financial interest or held a position of manage-ment in, an Agent which has been removed from the Agency List, or is under notice of default, and still has outstanding commercial debts, or in such an Agent whose commercial debts were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference; 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in the Malaysia for any air carrier. 3.4.9 Access to Electronic Ticketing

Malaysia


The applicants shall have, at the place of business under application, the facility to issue on behalf of Members and Airlines participating in the BSP, STDs through the use of an approved Electronic Ticketing System as defined in Resolution 854. 3.4.10 Branch Office 3.4.10.1 a location may be included on the Agency List as a Branch Office provided that 3.4.10.1(a) the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity; and 3.4.10.1(b) the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.11 Licence the applicant must be in possession of a valid licence as an outbound/Ticketing Agent issued by the Ministry of Culture, Arts and Tourism under the Tourism Industry Act, 1992. A copy of the KKKP (Kementerian Kebudayaan, Kesenian dan Pelancongan) Licence must be provided and certified correct by a Commissioner of Oath or a lawyer. 3.4.12 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.13 Tour Operator as Accredited Agent notwithstanding Subparagraph 3.4.3.2 of this Section, an applicant which demonstrates that its business is solely concerned with the organising of Inclusive Tours and which fulfils all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that it performs the issuance of Traffic Documents related to such Inclusive Tours only.

Mongolia


MONGOLIA

(New PAConf/32)

3.4.1 Finances 3.4.1.1 the applicant must provide accredited accounts showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2(a) applicant must: 3.4.1.2(a)(i) be established and in business as a travel agent not less than six months prior to the date of application, and 3.4.1.2(a)(ii) have as a minimum paid capital of USD 100,000 and 3.4.1.2(a)(ii) a bank guarantee equivalent to average 17 days sales turnover of the month of the total passenger sales on behalf of the BSP-Mongolia participating airlines but not less than minimum USD 200,000 whichever is higher, 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments, 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets, 3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities, 3.4.1.3 the Agency Services manager shall conduct periodic examinations of the financial standing of Agents. He may request and the Agent concerned shall be under obligation to furnish, by the date specified in the Agency Services manager’s letter of request, the documents deemed necessary by the Agency Services Manager to conduct such examination. Failure by the Agent to submit such documents as prescribed shall be grounds for the Agency Services Manager to request the Agency Administrator to place the Agent on a Cash Basis and give the Agent notice of termination of the Sales Agency Agreement, provided the if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial criteria incorporated in the Travel Agency’s Handbook the termination shall not take effect, 3.4.1.4 when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the financial criteria of Travel Agent’s Handbook, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet those criteria;

Mongolia


3.4.2 Personnel 3.4.2.1 the applicant must have at the location concerned at least two full-time travel staff members qualified and competent to sell international air transportation and issue Traffic documents, in accordance with the standards laid down by Assembly, all Locations entered on the Agency list must employ at least one staff member holding an IATA Passenger Fares and Ticketing Course Certificate; 3.4.2.2 the Agency Administrator may at his discretion accredit an applicant in an area or community where there are no persons who could meet requirements for an Accredited Agent, although such applicant would not otherwise be accredited because of the provisions of Subparagraph 3.4.2.1 of this Section; 3.4.2.3 at least one staff who has successfully completed the BSP training Course within last two years.

Pakistan


PAKISTAN

3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss account not more than six months old at the time of submission, showing satisfactory financial standing and ability to remain solvent and pay bills. The financial statements should be audited by any Registered Chartered Accountancy firms registered by the Institute of Chartered Accountants of Pakistan, in line with local and international accounting standards. 3.4.1.2 applicant must have: 3.4.1.2(a) conducted travel agent business for at least twelve (12) months having a Government Licence issued by the Department of Tourist Services, Ministry of Tourism, Government of Pakistan. 3.4.1.2(b) minimum paid up Capital/Investment of PKR 4.0 Million. The Min minimum paid up Capital/Investment criteria will be applicable to existing IATA approved agents from 01 April 2008 and for new IATA applicants from 01 April 2007. 3.4.1.2(c) minimum bank guarantee of PKR 10 million or equal to 35 days average turnover, whichever will be higher. The Bank Guarantee has to be issued by a bank, from the approved list, with an investment status ratingfrom the Pakistan Credit Rating Agency (PCRA) or JCR-VIS or any other local or international rating approved by the State Bank of Pakistan (SBP). The minimum bank guarantee will be applicable to existing IATA approved agents from 01 April 2009 and for new IATA applicants from 01 July 2008. 3.4.1.3 the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank of insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such financial guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4(a) the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request and the Agent concerned shall be under obligation to furnish, by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. Failure by the Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial criteria incorporated in the Travel Agent's Handbook, the termination shall not take effect, 3.4.1.4(b) when the Agency Administrator determines that an Agent may no longer satisfy the financial criteria incorporated in the Travel Agent's Handbook, he may, if

Pakistan


circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply, the Agency Administrator shall give the Agent notice of termination. 3.4.1.4(c) if subsequent to the action taken under Subparagraph 3.4.1.4(b) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take place, and the Agency Administrator shall reinstate credit facilities and notify the Agent, all Members, Airlines and where applicable, ISS Management accordingly; 3.4.1.5 when the financial position of an Agent is subject to examination by the Agency Administrator and the Agent is unable to meet the financial criteria of the Travel Agent's Handbook, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet those criteria; 3.4.1.6 the applicant must wholly own and fully manage the business for which approval is sought as a Branch Office Location; 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 one management employee with a minimum of three years managerial and/or supervisory experience in the travel and tourism industry within the previous four years. 3.4.2.2 at least one staff member who has successfully completed the BSP training course. 3.4.2.3 in addition to the above, at least two full time qualified staff out of which one must hold an IATA/ UFTAA Diploma/Certificate The staff qualification will be determined through a point system (35 points each staff, not combined) based on the following:If the course was successfully completed between 5 and 10 years of the application date, half of the applicable points may be earned. Types of Courses Points IATA Member Basic Fares and Ticketing Course 10 Pre 2001 IATA/UFTAA Standard Diploma 15 IATA/UFTAA Travel & Tourism Foundation 15 & EBT Diploma IATA/UFTAA GDS Proficiency Certificate, or 15 IATA/UFTAA GDS Fares & Ticketing Certificate 20 IATA Member Advance Fares & Ticketing Course 20 Pre-2001 IATA/UFTAA Advanced Diploma 20 IATA/UFTAA Travel & Tourism Consultant Diploma 20 Practical experience: Experience in airline fares and ticketing, airline procedures and product knowledge gained in the permanent employment of an IATA accredited

Pakistan


Agent or Scheduled Airline will also gain points. Reference in connection with practical experience must be provided. A maximum of 25 points may be earned under this category.

Philippines


PHILIPPINES

(Orient Assembly MV OA/E13-PH)

3.4.1 Finances 3.4.1.1 the applicant must have conducted travel agent business for at least twelve (12) months and must provide accredited accounts showing satisfactory financial standing and ability to remain solvent and pay bills; 3.4.1.2 applicants must have, as a minimum: 3.4.1.2(a) paid up capital of PHP 3.0 million, 3.4.1.2(b) working capital of PHP 1.2 million, and 3.4.1.2(c) a minimum financial Guarantee of:: 3.4.1.2(c)(i) PHP 2.0 million, for new applicants 3.4.1.2(c)(ii) Enrolment in the DIP program for DIP eligible Agents, or 3.4.1.2(c)(iii) Highest consecutive 6 weeks net sales from the last 12 months. For the purpose of calculating this number, the 12 month calculation period is the 12 months prior to 45 days before the expiration of the current Financial Guarantee. In calculating the net sales, all USD net sales are converted to PHP using the average Airline Conversion Rate (ACR) for the 6 week period. If the Financial Guarantee is in USD, then PHP net sales will be converted to USD using the lowest ACR for the six week period. 3.4.1.2(d) when assessing whether the applicant and existing Agent meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account. CRITERIA FORMULA Liquidity Current Assets / Current Liabilities

Values Rating 1.00 and above 25 0.80 to 0.99 10 0.79 and below 0

Stability Total Liabilities / Total Equity

Values Rating 2.00 or less 20 2.01 to 3.00 12 3.01 to 4.00 5 4.01 and above 0

Philippines


Profitability Net Income (Before Tax) / total Revenue

Values Rating 0.050 and above 15 0.000 to 0.049 10 Below 0.000 0

Investment Returns Net Income (Before Tax) / Stockholders Equity

Values Rating Greater than 0.0 5 0.0 and below 0

Efficiency Ratio (Receivables / Sales) x 365

Values Rating 90 or less 10 91 to 180 5 181 and over 0

Length of Operations Per SEC/DTI registration

Values Rating 5 or more 10 3 to 5 5 Less than 3 0

Payment History No. of Irregularities in the last 3 years

Values Rating 0 or 1 15 2 10 3 and above 0

Risk Assessment Sum of all the Ratings above

Risk Category CA1: 90-100 CA2: 80-89 CA3: 70-79 CA4: 60-69 CA5: 50-59 CA6: 49 and below

Philippines


3.4.1.2(e) An agent must have a minimum financial rating of CA3 (average risk) or the equivalent financial rating of any appointed financial agency by the Agency Administrator; 3.4.1.2(f) The management of existing agents who should get a rating of CA4-CA6 for their financial evaluation is under Subparagraphs 3.4.1.3(a) to 3.4.1.3(c). 3.4.1.3 the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.3(a) Agents who are on Default Insurance Protection (DIP) program may opt not to increase their existing coverage; 3.4.1.3(b) Agents who are on holdout of other types of financial guarantees, except for Surety Bond holders, must either increase their financial guarantee amount by 50%, or enroll in a DIP program for the entire amount of their coverage; 3.4.1.3(c) Agents who are on holdout of Surety Bonds must change to another type of acceptable financial guarantee and increase their amount of coverage by 50% or enroll in the DIP program for the entire amount of their coverage; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations. 3.4.1.4(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect: 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4.1(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator

Philippines


that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.1.5 all IATA accredited agents who have been trading for a minimum of one year may be eligible to submit financial securities recommended by the EC Philippines and accepted by IATA. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1(a) one management employee with a minimum of two years managerial and/or supervisory experience in the travel and tourism industry within the previous four years; or at least one manager who has completed the EC-Philippines endorsed Basic Travel Agency Management course, or its equivalent; and 3.4.2.1(b) at least two full-time travel staff members or at least 20 percent of the travel staff members, whichever is higher who are qualified and competent to sell international air transportation and issue traffic documents who: 3.4.2.1(b)(i) have successfully completed an IATA/ UFTAA certified airline-ticketing course or a ticketing course recognized by the EC-Philippines with certificates attesting such, and 3.4.2.1(b)(ii) have one year experience in international fares and ticketing in a travel agency or airline. 3.4.2.2 the Agency Administrator may at his discretion accredit an applicant in an area or community where there are no persons who could meet the requirements for an Accredited Agent, although such applicant would not otherwise be accredited because of the provisions of Subparagraphs 3.4.2.1(a) and (b) of this Section. 3.4.2.3 Notwithstanding the above, Staff qualifications may also be determined on the basis of a points system, taking into consideration its educational training and practical experience. A minimum of 35 points must be achieved by at least one staff member, or by each of 2 staff members (35 points each, not combined) when the agent employs 4 or more staff. The staff members must be permanent full-time employees of the Agent and must attend the place of business during the working hours of the Agency. Points are awarded for both training and experience.

Philippines


Educational Training Success in any training courses must result from formal controlled testing within 5 years of the application/review date, and certificates must be provided. If the course was successfully completed between 5 and 10 years of the application date, half of the applicable points may be earned. IATA Member basic Fares and Ticketing Course 10 Pre 2001 IATA/UFTAA Standard Diploma 15 IATA/UFTAA Travel & Tourism Foundation 15 Certificate Other local equivalent course, as approved by 15 Local APJC in consultation with IATA (ITDI) IATA/UFTAA GDS Proficiency Certificate, OR 15 IATA/UFTAA GDS Fares & Ticketing Certificate 20 IATA Member Advanced Fares & Ticketing Course 20 Pre-2001 IATA/UFTAA Advanced Diploma 20 IATA/UFTAA Travel & Tourism Consultant 20 Certificate Other local equivalent Advanced course, as 20 approved by local APJC in consultation with IATA (ITDI) Practical Experience Experience in airline fares and ticketing, airline procedures and product knowledge gained in the permanent employment of an IATA accredited agent or schedule airline. References in connection with practical experience must be provided. A maximum of 25 points may be earned under this category: For each month's experience completed within 5 years of application date 1 point 3.4.3 Premises 3.4.3.1 the place of business for which approval is sought shall be open for business on a regular basis, be clearly identified as a travel agency and freely accessible to the general public for the sale of international air transportation; provided that such place of business: 3.4.3.1(a) shall not be located at an airport. (The term ‘airport’ means the airport and supporting facilities, including all parking areas, under the direct jurisdiction of the Airport Authorities), 3.4.3.1(b) shall not be located on the premises of an organization, plant or commercial firm and dedicated substantially to the travel requirements of that organization, plant or commercial firm, unless it meets the following requirements: 3.4.3.1(b)(i) it is a branch of an existing Accredited Agent, and 3.4.3.1(b)(ii) it is clearly identified as a travel office conducting its activities separately from other activities in such premises, and 3.4.3.1(b)(iii) it is staffed exclusively by the Accredited Agent, and

Philippines


3.4.3.1(b)(iv) where possible it shall have a separate telephone number, 3.4.3.1(b)(v) it shall not be located in office space jointly occupied with another travel agency, an Accredited Agent or an air carrier, and 3.4.3.1(b)(vi) it meets all other criteria of these Rules, including having its own separate security facilities for safekeeping of Traffic Documents, except that it need not be freely accessible to the general public. 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or Trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airlines; or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline; 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the agent can be relied upon to adhere to the terms of the Sales Agency Agreement. 3.4.7 Prior Default no person who is a director of or who holds a financial interest or a position of management in the applicant shall have been a director of, or had a financial interest or held a position of management in an Agent which has been removed from the Agency List, or is under notice of default and still has outstanding commercial debts, or in such an Agent whose commercial debts were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in the Philippines for any air carrier.

Philippines


3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office.

Philippines


3.4.10 Licence the applicant must be in possession of the valid applicable official license(s) to operate as a travel agent. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete. 3.4.12 Access to Electronic Ticketing the applicant shall have at the place of business under application, the facility to issue on behalf of Members/ Airlines participating in the BSP, STDs through the use of an approved Electronic system as defined in Resolution 854. 3.4.13 Tour Operator as Accredited Agent notwithstanding Subparagraph 3.4.3.1 of this Section, an applicant which demonstrates that its business is solely concerned with the organising of Inclusive Tours and which fulfils all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that performs the issuance of Traffic Documents related to such Inclusive Tours only.

Singapore


SINGAPORE (Approved – OA/28 – for immediate effectiveness)

3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss account not more than six months old showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2 applicants must: 3.4.1.2(a) have as a minimum paid up capital of SGD100,000, and 3.4.1.2(b) be established and in business as a travel agent not less than twelve months prior to the date of application, provided that if an applicant with less than twelve months trading record may be approved if the applicant furnishes a minimum financial security of SGD 50,000 valid until the receipt of audited annual accounts, provided further that during this period if the average monthly sales exceeds this amount it shall be adjusted accordingly. This financial security should be provided in addition to the minimum security required based on the assessment result. 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) Financial Assessment Indicators

Paid-up Capital Score Business Scale Score 100,000 1 1 - 1,000,000 1

100,001 - 150,000 2 1,000,001 - 2,700,000 2 150,001 - 180,000 3 2,700,001 - 5,000,000 3 180,001 - 210,000 4 5,000,001 - 6,500,000 4 210,001 - 300,000 5 6,500,001 - 8,000,000 5 300,001 - 500,000 6 8,000,001 - 10,500,000 6 500,001 - 700,000 7 10,500,001 - 13,500,000 7

700,001 - 1,200,000 8 13,500,001 - 20,800,000 8 1,200,001 - 10,000,000 9 20,800,001 - 35,000,000 9

> 10,000,000 10 > 35,000,000 10

Profitability* Score Liquidity Score < (250,000) 1 0.01 - 0.60 1

(249,999) - (90,000) 2 0.60 - 0.75 2 (89,999) - (22,000) 3 0.75 - 0.95 3

(21,999) - 0 4 0.96 - 1.05 4 1 - 5,000 5 1.06 - 1.17 5

5,001 - 16,500 6 1.18 - 1.26 6 16,501 - 39,500 7 1.26 - 1.45 7 39,501 - 90,000 8 1.46 - 1.68 8 90,001 - 213,000 9 1.68 - 2.50 9

> 213,000 10 > 2.51 10

Singapore


Leverage Score Reserve Score

negative or >25.00 1 < (1,750,000) 1 12.51 - 25.00 2 (1,749,999) - 90,000 2 6.01 - 12.50 3 90,001 - 130,000 3 4.31 - 6.00 4 130,001 - 200,000 4 3.11 - 4.30 5 200,001 - 400,000 5 2.12 - 3.10 6 400,001 - 680,000 6 1.61 - 2.11 7 680,001 - 1,200,000 7 1.01 - 1.60 8 1,200,001 - 2,300,000 8 0.66 - 1.00 9 2,300,001 - 7,500,000 9 0.01 - 0.65 10 > 7,500,000 10

Margins Trend ** Score Score / Rating Scale

5 >=60 A 3 46-59 B -3 35-45 C -5 12-34 D <12 Fail

* 3 or 2 years AVERAGE of profit and / or losses ** Based on Rate of Net Profit after Sales If an agent fails the annual financial review, agent may be accepted if the paid up capital of the company is increased to show a positive net worth. The agent must forward ACRA document as evidence. 3.4.1.3 (a)(ii) Minimum Financial Security for an existing agent is SGD 40,000 or equivalent to 2 weeks average sales based on the last 12 months activity whichever is higher. 3.4.1.3 (a)(iii) The final security required may vary subject to the score/rating scale of the agent’s financial assessment result, subject to minimums in paragraph 3.4.1.3(a)(ii).

Financial Security Required Score

25% of minimum Security required A 50% of minimum Security required B 75% of minimum Security required C

100% of minimum Security required D 3.4.1.3(a)(iv) It is recognized that different interpretations of financial accounts are possible and do occur. Accordingly, the Financial Assessor shall have discretion as to the most appropriate classification in accordance with standard accounting practices for all items included in the statements.

It is in the applicant’s best interest to supply any additional information that has a bearing on the review.

Singapore


3.4.1.3(b) Enrolment in an IATA approved Default Insurance Programme (DIP) is accepted in lieu of provision of financial security. 3.4.1.3(c) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations. 3.4.1.4(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect: 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement, 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.4(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 one management employee with a minimum of three years managerial and/or supervisory experience in the travel and tourism industry within the previous four years; and

Singapore


3.4.2.2 at least three full-time travel staff members or at least 40 per cent of the travel staff members, whichever is higher who are qualified and competent to sell international air transportation and issue traffic documents who: 3.4.2.2(a) have successfully completed an IATA/UFTAA, certified airline ticketing course or a ticketing course recognised by the Executive Council — Singapore with certificates attesting such, and 3.4.2.2(b) have two years experience within the past four years in international fares and ticketing in a travel agency or airline; and 3.4.2.3 at least one staff member who has successfully completed the BSP Training Course. 3.4.3 Premises the location for which application is made must: 3.4.3.1 be clearly identified as a travel agent; 3.4.3.2 be open for business on a regular basis and freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it may share common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public; and 3.4.3.5 shall not be located at an airport. (The term ‘airport’ means the airport and supporting facilities, including all parking areas, under the direct jurisdiction of the Airport Authorities). 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or Trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as an acronym formed from the two or three letter code of a member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline;

Singapore


provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline. 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction to have wilfully violated any fiduciary obligations to the general public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Sales Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default and still has outstanding debts to Members or has been removed from the Agency List on grounds of default, or in such an Agent whose debts to Members were met solely or in part by recourse to a financial bond or guarantee; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate in the acts or omissions that caused such removal or default, or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement, these Rules and other Resolutions of the Conference. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in the Republic of Singapore for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as a Branch Office provided that the corporate structure or ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be in possession of a valid licence from the Singapore Tourist Promotion Board (STPB) to operate as a travel agent. 3.4.11 Accuracy of Statements all material statements made in the application shall be accurate and complete.

Singapore


3.4.12 Access to Electronic Ticketing the applicant shall have at the place of business under application, the facility to issue on behalf of Members/Airlines participating in the BSP, STDs through the use of an approved Electronic ticketing system as defined in Resolution 854. 3.4.13 Tour Operator as Accredited Agent Notwithstanding Paragraph 3.4.3.2 of this Section, an applicant which demonstrates that its business is solely concerned with the organising of Inclusive Tours and which fulfils all other criteria but does not maintain a place of business which is freely accessible to the general public, may nevertheless be accredited provided that it performs the issuance of Traffic Documents related to such Inclusive Tours only.

Sri Lanka


SRI LANKA

(Orient Assembly MV OA/E10-LK) 3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss account not more than one year old showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2 applicant must: 3.4.1.2(a) be licensed by the Department of Civil Aviation for not less than 1 year with a minimum paid up capital of LKR500,000 for all new applicants who will also fulfil the criteria specified in 3.4.1.1; 3.4.1.2(b) be established and be in airline trading business of not less than one year prior to the application. The applicant is also required to submit a minimum Bank Guarantee of LKR 3.45 million or 22 days trading whichever is higher (for thrice monthly settlement until 31 December 2011) and LKR 2.5 milllion or 17 days trading whichever is higher (for weekly settlement effective 1 January 2012). The Bank Guarantee has to be issued by a bank with an investment status rating from Fitch Lanka or an international rating from Standard & Poors, Moody's or Fitch Ratings. Trading in BSP would be up to the value of the Industry Bank Guarantee. The industry Bank Guarantee will be reviewed bi-annually based on the average sales of the previous 6 months every July and December. 3.4.1.3 when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1, the applicant must be able to fulfil one of the following criteria: 3.4.1.3(a) Net equity less long-term debt should be positive Net Equity: the sum between paid-up capital and accumulated profit/losses should be positive. In case there is goodwill, it is subtracted from the sum previously computed. With regards to partnerships and sole proprietorship (which do not have accumulated profit/losses accounts), Net Equity is computed as beginning capital + additions – drawings. Goodwill is also to be deducted. 3.4.1.3(b) Net current assets should be greater than amount at risk The amount by which the net current assets fall short of the amount at risk must be covered by a bank guarantee form the Agent, up to the ceiling stipulated in 3.4.1.2(b). Net Current Assets: current assets less current liabilities. This must be a positive value. Amount at Risk: Sales*22/365 (for thrice monthly settlement until 31 December 2011) or Sales*17/365 (for weekly settlement effective 1 January 2012).

Sri Lanka


3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank of insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such financial guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4(a) the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request and the Agent concerned shall be under obligation to furnish, by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. Failure by the Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial criteria incorporated in the Travel Agent's Handbook, the termination shall not take effect, 3.4.1.4(b) when the Agency Administrator determines that an Agent may no longer satisfy the financial criteria incorporated in the Travel Agent's Handbook, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply, the Agency Administrator shall give the Agent notice of termination. 3.4.1.4(c) if subsequent to the action taken under Subparagraph 3.4.1.4(b) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take place, and the Agency Administrator shall reinstate credit facilities and notify the Agent, all Members, Airlines and where applicable, ISS Management accordingly; 3.4.1.5 when the financial position of an Agent is subject to examination by the Agency Administrator and the Agent is unable to meet the financial criteria of the Travel Agent's Handbook, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet those criteria; 3.4.1.6 the applicant must wholly own and fully manage the business for which approval is sought as a Branch Office Location. 3.4.4 Intentionally left blank

Thailand


THAILAND

3.4.1 Finances 3.4.1.1 the applicant must have been legally registered as a travel agent and must have conducted travel agent business for the past 12 months and must provide certified or properly audited Balance Sheet and Profit and Loss account statement not older than six months at time of submission, showing satisfactory financial standing and ability to remain solvent and pay bills; 3.4.1.2 an applicant 3.4.1.2(a)(i) whose place of business for which approval is sought is situated in Bangkok, Chiang Mai, Hat Yai (Song-khla) or Phuket, must have a minimum registered capital of THB 2,000,000.00 of which a minimum of THB 1,000,000.00 must be paid up capital, 3.4.1.2(a)(ii) whose place of business for which approval is sought is not situated in any of the locations shown in Subparagraph 3.4.1(a)(i) of this Paragraph must have a minimum registered capital of THB 1,000,000.00 of which a minimum of THB 500,000.00 must be paid up capital, 3.4.1.2(b) must submit a satisfactory banker's report, and provide, additionally, either: 3.4.1.2(b)(i) a financial guarantee equivalent to the average of one month's sales turnover or THB 2,000,000.00, whichever is higher, for an applicant whose place of business for which approval is sought is situated in Bangkok, Chiang Mai, Hat Yai (Songkhla) or Phuket; or 3.4.1.2(b)(ii) a financial guarantee equivalent to the average of one month's sales turnover or THB 1,000,000.00, whichever is the higher, for applicant whose place of business for which approval is sought is not situated in any of the locations shown in Subparagraph 3.4.1.2(b)(i) of this Paragraph; 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1 of this Paragraph the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments; 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets; 3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities; 3.4.1.3(a)(iv) for applicant with previous history of default and had used Default Insurance Program (DIP) as a means of financial guarantee, a certifying letter from the DIP provider shall be required, stating in essence that all outstanding amounts have been settled satisfactorily.

Thailand


3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. 3.4.1.4(a) failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior tothe termination date, the termination shall not take effect; 3.4.1.4(a)(i) when the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if the circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement; 3.4.1.4(a)(ii) if subsequent to the action taken under Subparagraph 3.4.1.3(a)(i) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(b) when the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements. 3.4.2 Personnel the applicant must have at the location concerned: 3.4.2.1 at least five full-time travel staff members; 3.4.2.1(a) two of whom are full-time travel staff members qualified and competent to sell international air transportation and issue traffic documents and who have successfully completed an IATA/UFTAA course or a certified airline ticketing course with certificates attesting such, and

Thailand


3.4.2.1(b) two of whom shall have had two years experience within the past four years in international fares and ticketing with an IATA Approved Agent or an airline. Copies of course certificates will be required as proof of having successfully completed such course; 3.4.2.2 at least one staff member who has successfully completed the BSP Training Course. 3.4.3 Premises The location for which application is made must: 3.4.3.1 be identified as a travel agent; 3.4.3.2 be freely accessible to the general public for the sale of international air transportation during normal business hours; 3.4.3.3 be clearly separated from any other business with which it shares common premises; none of those businesses may be that of an airline, an Accredited Agent (or such Agent's Approved Location), another travel agency or a General Sales Agent; 3.4.3.4 if located on the premises of an organisation, plant or commercial firm and dedicated substantially to the travel requirements of that organisation, plant or commercial firm, be a Branch of an existing Accredited Agent and meet all the qualifications of this Section, except that it need not be freely accessible to the general public. 3.4.4 Intentionally left blank 3.4.5 Name, Acronym, Logo or Trademark 3.4.5.1(a) the applicant shall not have a name, acronym, logo or trademark which is: 3.4.5.1(a)(i) the same as that of the International Air Transport Association (IATA) or of a Member or other Airline, or 3.4.5.1(a)(ii) the same as acronym formed from the two or three letter code of a Member or other Airline; or 3.4.5.1(a)(iii) misleadingly similar to the name, acronym, logo or trademark of the International Air Transport Association (IATA) or of a Member or other Airline; provided that this shall not preclude accreditation of such applicant by the Agency Administrator if no protest is received from IATA or any Member or other Airline 3.4.5.2 the place of business shall not be identified as an office of an air carrier or group of air carriers. 3.4.6 Wilful Misconduct the applicant and/or those who direct its operations, has not been found by a court of competent jurisdiction have wilfully violated any fiduciary obligations to the general

Thailand


public or to the airlines unless it can be shown that the Agent can be relied upon to adhere to the terms of the Agency Agreement. 3.4.7 Prior Default the applicant or any Person holding a financial or ownership interest in the applicant, or the manager who exercises daily supervision over the operation of the applicant, shall not have been involved in the ownership or financial management of an Agent which is under notice of default or has been removed from the Agency List on grounds of default; provided that the applicant may nevertheless be approved if the Agency Administrator is satisfied that such person did not participate the acts or omissions that caused such removal default, or if he is satisfied that the applicant can be relied upon to comply with the terms of the Sales Agency Agreement. 3.4.8 General Sales Agents the applicant must not be a General Sales Agent in the Kingdom of Thailand for any air carrier. 3.4.9 Branch Office a location may be included on the Agency List as Branch Office provided that the corporate structure ownership of the Head Office and the Branch is absolute and all inclusive as a single entity, and the Head Office has full legal and financial responsibility for the administration, staff liability, maintenance and operational expense of the Branch Office. 3.4.10 Licence the applicant must be legally registered for selling tickets as its main business activity. 3.4.11 Accuracy of Statements all material statements made in the application shall accurate and complete. 3.4.12 (Intentionally omitted) 3.4.13 Sponsorship the applicant must include in the application sponsorship letters from three EC-Thailand participating airlines.

Timor Leste


TIMOR LESTE

3.4.1 Finances 3.4.1.1 the applicant must provide a certified and audited balance sheet and Profit and Loss account not more than six months old showing satisfactory financial standing and ability to remain solvent and pay bills: 3.4.1.2 applicant must: 3.4.1.2(a) have a minimum paid up capital as required by the local Government 3.4.1.2(b) be established and be in airline trading business of not less than 6 months prior to the application. The applicant is also required to submit a Minimum Bank Guarantee equivalent to an average of one month's turnover. 3.4.1.3(a) when assessing whether the applicant meets the financial standing described in Subparagraph 3.4.1.1, the following shall be taken into account: 3.4.1.3(a)(i) availability of adequate liquid funds to meet normal trading commitments; 3.4.1.3(a)(ii) capital required to be commensurate with fixed assets; 3.4.1.3(a)(iii) the existence of preferential claims on the assets and the existence of contingent liabilities; 3.4.1.3(b) the applicant may be required to provide further information or additional financial support in the form of recapitalisation, bank of insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such financial guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4(a) the Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request and the Agent concerned shall be under obligation to furnish, by the date specified in the Agency Administrator's letter of request, the documents deemed necessary by the Agency Administrator to conduct such examination. Failure by the Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial criteria incorporated in the Travel Agent's Handbook, the termination shall not take effect;

Timor Leste


3.4.1.4(b) when the Agency Administrator determines that an Agent may no longer satisfy the financial criteria incorporated in the Travel Agent's Handbook, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply, the Agency Administrator shall give the Agent notice of termination. 3.4.1.4(c) if subsequent to the action taken under Subparagraph 3.4.1.4(b) above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take place, and the Agency Administrator shall reinstate credit facilities and notify the Agent, all Members, Airlines and where applicable, ISS Management accordingly; 3.4.1.5 when the financial position of an Agent is subject to examination by the Agency Administrator and the Agent is unable to meet the financial criteria of the Travel Agent's Handbook, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet those criteria; 3.4.1.6 the applicant must wholly own and fully manage the business for which approval is sought as a Branch Office Location.

Vietnam


VIETNAM

(New PAConf/32 and OA MV OA/E9-VN) 3.4.1 Finances 3.4.1.1 The applicant must meet the financial criteria established in respect of the applicant’s place of business for which approval is sought and shall provide the financial documents set forth herein: 3.4.1.1(a) Annual financial statements submitted to the local tax authority, for the last two years; 3.4.1.1(b) With effect from 01 Jan 2012, all Agents will be required to submit audited financial statements for the year ended 31 Dec 2011. 3.4.1.1(c) If, however, the Government authority shall mandate, before 01 Jan 2012, that audited financial statements will be mandatory for all companies, the local regulatory requirement(s) shall prevail. 3.4.1.2 Sales report for Airlines in Vietnam for the last two years and for current year. 3.4.1.2 The applicant must submit a minimum financial guarantee of USD30,000 or 100% of average two reporting periods’ sales for the last fiscal year, whichever is higher. 3.4.1.3(a) The applicant may be required to provide further information or additional financial support in the form of recapitalization, bank or insurance bonds or guarantees. Failure on the part of an Agent to renew, by the expiry date, any such bank or insurance bonds or guarantees shall constitute grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent demonstrates to the Agency Administrator prior to the termination date that it meets the financial standards, the termination shall not take effect; 3.4.1.4 The Agency Administrator shall conduct periodic examinations of the financial standing of Agents. He may request, and the Agents concerned shall be under obligation to furnish by the date specified in the Agency Administrator’s letter of request, the documents deemed necessary by the Agency Administrator to conduct such examinations. 3.4.1.4(a) Criteria for evaluation of Agents’ Audited Financial Statements: 3.4.1.4(b) Net Equity must be positive; 3.4.1.4(c) Current Assets must exceed Current Liabilities (Current Ratio ≥ 1.0). 3.4.1.4(b) Failure by an Agent to submit such documents as prescribed shall be grounds for the Agency Administrator to apply two instances of irregularity and to give the Agent 30 days to comply. Failure by the Agent to comply within 30 days shall be grounds for the Agency Administrator to give the Agent notice of termination of the Sales Agency Agreement, provided that if the Agent submits the financial statements to the Agency Administrator prior to the termination date, the termination shall not take effect;

Vietnam


3.4.1.4(b)(i) When the Agency Administrator determines that an Agent may no longer satisfy the criteria as set out in this Paragraph, he may, if circumstances so warrant, prescribe in writing such conditions as he deems appropriate to be complied with by the Agent within 60 days of the date of such written prescription. The Agency Administrator shall determine if such conditions have been met. On finding that the Agent failed to comply he shall give the Agent notice of termination of the Sales Agency Agreement; 3.4.1.4(b)(ii) If subsequent to the action taken under Subparagraph 3.4.1.4.a.i above, but prior to the termination date, the Agent satisfies the Agency Administrator that the prescribed conditions have been met, the termination shall not take effect and the Agency Administrator shall reinstate credit facilities and notify the Agent, Members, Airlines and ISS Management accordingly; 3.4.1.4(c) When the financial position of an Agent is subject to examination by the Agency Administrator, and the Agent is unable to meet the requirements of this Paragraph, the Agency Administrator shall take normal business fluctuations into account and provide the Agent with a reasonable period of time to meet these requirements.