The International Air Transport Association (IATA) has announced that the Passenger Agency Conference (PAConf), composed of IATA´s member airlines, adopted Resolutions for the full implementation of the New Generation of IATA Settlement Systems (NewGen ISS) initiative, the company said.
NewGen ISS represents the most extensive and ambitious modernization of the IATA Billing and Settlement Plan (BSP) since it was created in 1971 to facilitate the global distribution and settlement of funds between travel agents and airlines. Last year, the BSP processed USD 219 billion in airline funds with 100% on-time settlement.
The Resolution text incorporates provisions related to Transparency in Payments (TIP), a new industry initiative. TIP reveals the different features and costs associated with each form of payment and agent remittance of airline funds. As it stands today, airlines only see the settlement costs after the fact, if at all. No form of remittance is barred by TIP, but travel agents can only use those forms to which an airline has previously given consent. Importantly, TIP allows travel agents to use their own credit cards – previously not supported in the BSP — if an airline consents.
NewGen ISS and Transparency in Payments will be rolled out progressively from March 2018. Certain pillars, including IATA EasyPay and Global Default Insurance (GDI) are already available in some markets. GDI has been implemented in more than 20 markets worldwide, while IATA EasyPay is being piloted in Norway, Sweden, Finland and Iceland.