The Universal Federation of Travel Agents’ Associations (UFTAA) has expressed strong opposition to the decision by IATA member airlines to impose globally standardised Billing and Settlement Plan (BSP) remittance periods, effectively eliminating the long-standing ability of local markets to determine credit terms through joint governance mechanisms.
In a formal communication sent to the International Air Transport Association (IATA), UFTAA has raised serious concerns over the recently concluded mail vote by the Passenger Agency Conference, which adopted a proposal to amend Resolution 812, Section 6.5.3.7, introducing global standardisation of BSP remittance periods.
UFTAA emphasises that this move represents far more than a technical or administrative adjustment. By centrally dictating credit and remittance terms across all markets, 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 for travel intermediaries, and unilateral changes to its credit conditions meet established definitions of abuse of collective dominance.
“Credit terms are a core element of economic policy,” UFTAA stated. “Imposing uniform conditions across diverse markets disregards local commercial practices, financial systems and payment cultures, effectively intervening in national economies without regulatory mandate or democratic legitimacy.”
The federation further notes that no evidence-based economic justification has been presented to support a one-size-fits-all approach. UFTAA points out 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, UFTAA warns, raises serious concerns about market fairness and competitive balance. The consequences will extend well beyond travel agents. Shortened and rigid remittance periods will force intermediaries to pre-finance airline revenues, significantly increasing liquidity and financing costs. These additional costs will inevitably be passed on to consumers, leading to higher fares, reduced choice and weakened service resilience for passengers.
Equally troubling is the governance imbalance underpinning the decision. Binding BSP resolutions are adopted exclusively by airlines, while travel agents—who bear the direct financial and operational consequences—have no voting rights. When combined with monopoly control over the settlement infrastructure, this creates a systemic competition-law risk.
UFTAA has therefore called for the immediate reconsideration of the global BSP remittance decision and has urged IATA to revert to the earlier framework of locally governed, economically justified and proportionate arrangements. Such an approach, the federation asserts, is essential to protecting competition, market integrity and the long-term interests of passengers worldwide.