The Universal Federation of Travel Agents’ Associations (UFTAA) has voiced strong opposition to the decision by IATA member airlines to impose globally standardized BSP remittance periods, eliminating the long-standing ability of local markets to determine credit terms through joint governance.
UFTAA has sent its 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 Standardization of BSP Remittance Periods
UFTAA stresses that this decision is not 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 BSP is a mandatory and indispensable settlement infrastructure, and unilateral changes to its credit conditions meet established definitions of abuse of collective dominance.
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.
No evidence-based economic justification has been presented 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 impact will extend beyond travel agents. Shortened and rigid remittance periods force intermediaries to pre-finance airline revenues, increasing liquidity costs. These costs inevitably translate into higher prices, reduced choice, and diminished service resilience for passengers.
Equally concerning is the governance imbalance underlying the decision. Binding resolutions are adopted exclusively by airlines, while agents who bear the financial consequences—have no voting rights. Combined with monopoly control over settlement infrastructure, this creates a systemic competition-law risk.
