IATA launches Local Financial Criteria for ZA
IATA has announced proposed Local Financial Criteria (LFC) applicable to BSP South Africa; criteria that was proposed by the Agency Programme Joint Council (APJC) for BSP Southern Africa (Incorporating South Africa, Lesotho, Swaziland, Namibia and Botswana) and endorsed by the 38th sitting of the Passenger Agency Conference (PAConf/38).
Why did it need to change?
The changes to the LFC were a culmination to a lengthy consultative process between Airlines and Agents on the APJC to meet the constantly changing business environment. In addition to being one of the oldest BSP operations in the world, the current LFC had not being updated in over 15 years. APJCs must meet at minimum once a year and review the Local Financial Criteria.
What is the APJC?
The APJC comprises five airline and five agency representatives. Agents are selected from the agent community and this is coordinated by ASATA, which participates only as an observer at the APJC. IATA acts as the secretariat. The role of the APJC is to develop the Local Financial Criteria (LFC) and it may also consider all aspects of the Agency Program in the country or area and make recommendations in the form of agenda proposal to the Passenger Agency Conference.
What is the deadline?
According to IATA, the effective date of the new Local Financial Criteria will be 1 February 2016, and as a result all Accredited BSP Agents will be required to ensure compliance before the said date.
What is the next step?
In December 2015, IATA will undertake an extraordinary financial assessment applying the new local financial criteria against the current audited financial statements as held by IATA. The assessment will be based on the twelve (12) months sales period between 1st December 2014 and 30th November 2015.
The result of this assessment will be communicated directly with each accredited BSP agent with a compliance date of 01st February 2016 as a deadline to provide the requested Financial Security.
Where can I find more information?
The new Local Financial Criteria applicable for BSP ZA can be viewed here.
IATA has also produced a list of FAQs for agencies that includes information on the key LFC changes, how they will affect your business and key changes that are expected in future.
Please forward any questions you may have around the LFC to natalia@bigambitions.co.za.
