OPERATING A BSP
Jordan Karamalakov
Country Manager BG - KZ
Antalya, 26/27 May 2009
Basic principles and governance
 BSP is ONLY ONE of IATA activities
 Passenger Agency Conference decisions
 Resolutions, local regulations and various information
 Resolution 850 regulates BSP operations
 Resolution 832 gives detailed procedures in case of late
remittance or non-payment followed by default action.
 BSP Manual for Agents, where local KZ specifics can be found in
“Chapter 14”
http://www.iata.org/worldwide/cis/kazakhstan/
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Basic principles and governance
Any airline, who signed Counterindemnity Agreement and
Form of Concurrence may apply to join BSP
Any IATA Accredited Agent MUST operate in BSP in the
area
Any exception is detailed specified in IATA resolutions
800/818g
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Ticketing authority (TA) maintenance
 Not the responsibility of IATA
 To be handled exclusively by individual airlines
 However, in case of default or suspension, IATA removes
the TA for all airlines
 Whenever an agent is newly accredited or whenever
default or suspension is lifted by IATA, the airline needs
to review the TA for the agent concerned
 TA is assigned or deleted via BSPlink only
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Agency default
 Detailed mechanism is listed in Resolution 818g –
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Attachment A – Sections 1 & 2
Always done by IATA and based upon facts, not upon
hearsay or rumors
Ticketing Authority is removed by IATA
Airlines are notified by means of the weekly bulletin
In case IATA has paid uncollected funds to the airlines,
claw back will happen during the next period
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Risk management
 Handled by IATA and considered as the main priority
 Financial requirements are listed in the “Locally
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Established Criteria for Approval and Retention of
Agents” and can be found the TAH
Changes can only be made by the PAConf
Financial assessment is made on a yearly basis
Outcome is not communicated to the airlines
Based upon the financial assessment, agents are
required to improve the financial standing
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Bank guarantees
 Bank guarantee covering 100% of Amount at Risk is required from
any agent in BSP-KZ&KG
 Amount of Risk is calculated as 1/16 from the total sales in previous
12 months
 Minimum level of guarantee is USD 100,000 for KZ and USD 50,000
for KG
 Periodic revision of the bank guarantee levels is done by IATA KZ
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Reso 850m and handling of ADM
 Reso 850m requires that all airlines make available their ADM
policies to agents
 Agent may dispute any ADM by following the airline’s stated and
communicated procedure or by using the dispute mechanism in
BSPlink
 All airlines should switch on the “dispute function” in BSPlink
 If an agent deducts ADMs from the remittance, IATA will not default
the agent concerned
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The basis for this is recorded in Resolution 818g – Attachment A –
1.7.12
All disputed ADMs further need to be handled outside of the BSP
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