The United Federation of Travel Agents' Associations (UFTAA) has raised a strong objection against a major policy shift initiated by airlines under the International Air Transport Association (IATA). The move aims to impose globally standardized remittance periods, fundamentally altering how quickly travel agents must pass on ticket sale proceeds to airlines.
A Move Against Local Market Flexibility
In a press release issued on Thursday, UFTAA stated that this standardization eliminates a long-standing practice where local markets, through joint governance, determined credit terms suitable for their unique conditions. The new system, driven by IATA member airlines, seeks to enforce uniform payment timelines across all countries, overriding existing local arrangements.
UFTAA argues this one-size-fits-all approach ignores critical regional differences. The federation emphasized that it removes necessary flexibility for markets operating under diverse banking systems, local payment habits, and established business practices.
Accusations of Monopoly Power and Passenger Impact
The travel agents' body has framed this decision as a significant overreach. "By centrally dictating credit and remittance terms worldwide, airlines acting collectively through IATA are exercising structural monopoly power over the global airline clearing system," UFTAA stated.
It highlighted that the Billing and Settlement Plan (BSP) is a mandatory infrastructure for the industry. UFTAA contends that making unilateral changes to its credit conditions meets established definitions of abuse of collective dominance. "This decision is not a technical adjustment but a fundamental market intervention," the release added.
The consequences, according to UFTAA, will ultimately hit the consumer. The federation warned that shortened and rigid remittance periods will force travel intermediaries to pre-finance airline revenues, increasing their liquidity costs. These increased costs will inevitably translate into higher ticket prices, reduced choice, and diminished service resilience for passengers.
Formal Objection and Call for Reconsideration
UFTAA confirmed it has formally communicated its serious concerns to IATA regarding the recently concluded mail vote. This vote adopted a proposal to amend Resolution 812, specifically Section 6.5.3.7, concerning the global standardization of BSP remittance periods.
The federation criticized the governance model, noting that binding resolutions are adopted exclusively by airlines, while agents who bear the financial brunt have no voting rights. Combined with IATA's control over settlement infrastructure, UFTAA says this creates a systemic competition-law risk.
UFTAA has called for the immediate reconsideration of this decision. It advocates for a return to locally governed payment arrangements that reflect true market realities and, in its view, protect the long-term interests of passengers worldwide.
