New Delhi, Jan 9 (.) The Universal Federation of Travel Agents’ Associations (UFTAA), a global body of travel agents, has opposed the decision by the International Air Travel Association (IATA) to impose globally standardised Billing and Settlement Plan (BSP) remittance periods.
UFTAA has alleged that the BSP amendments decided upon by IATA – the trade body of airline companies in the world – would eliminate the long-standing ability of local markets to determine credit terms through joint governance.
UFTAA has sent a communication to IATA expressing serious concern over the recently concluded Mail Vote by the Conference, adopting the proposal to amend Resolution 812, Section 6.5.3.7, on IATA’s Global Standardisation of BSP Remittance Periods.
In the communication, UFTAA stressed that the decision of IATA to amend Resolution 812 was not merely a technical adjustment but a fundamental market intervention. By centrally dictating credit and remittance terms worldwide, airlines acting collectively through IATA are exercising structural monopoly power over the global airline clearing system, the Federation alleged.
The BSP is a mandatory and indispensable settlement infrastructure, and unilateral changes to its credit conditions amount to abuse of collective dominance, UFTAA said.
“Credit terms are a core element of economic policy. Imposing uniform conditions across diverse markets effectively overrides local commercial practices, financial systems, and payment cultures, intervening in national economies without regulatory mandate or democratic legitimacy,” UFTAA alleged in a statement.
While taking the unilateral action, the IATA hasn’t offered any evidence-based economic justification to support a one-size-fits-all approach.
UFTAA further notes that there is no precedent in any other global industry where suppliers collectively dictate credit terms to intermediaries across all markets through a private association.
This exceptional conduct raises serious concerns about market fairness and competitive balance, the trade body of travel agents said.
In a statement issued on behalf of Sunil Kumar R, president of UFTAA and Yossi Fatael, vice president, the Association leadership called for the immediate reconsideration of the global remittance decision and urged a return back to the earlier resolution, which is locally governed, economically justified, and proportionate arrangements that protect competition, market integrity, and the long-term interests of passengers.
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