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IBCS - IATA BSP Consolidator System

What is IBCS? The IATA BSP Consolidator System (IBCS) is a partnership between IATA and General Sales Agents (GSA) organizations that have a global reach, i.e. that are represented in a minimum of 20 BSP markets. APG Global Associates is the leading and most experienced trusted IBCS Consolidator with over 1,000 experts dedicated to airline services. APG’s global presence covers 161 countries to date and it has signed over 1,800 airline contracts and introduced more than 200 airlines to the IBCS program.

APG Czech Republic & Slovakia is a sister company of Art Of Travel handling all of it’s Airline Representation business which includes GSA activities and the IBCS consolidation.

The aim of IBCS is to harness the resources airline service providers like APG Global Associates have in order to facilitate wider participation of all scheduled airlines in the global BSP network, by allowing BSP membership on a variable cost basis.

Historically, on a cost/benefit basis, not all BSPs have been economically attractive to every carrier. BSP costs have typically been lowest when ticket volume is high and considerably more expensive when volumes are small – owing to the fixed costs of joining/running fees that are prorated among BSP member carriers.

On October 1, 1999 IATA's Distribution and Finance Services (IDFS) division, the IATA agency responsible for operating and managing the 68 IATA Billing and Settlement Plans (BSPs) around the world, signed an exclusive contract with Air Promotion Group (APG), to launch IBCS, a "pay as you earn" system for airlines to join BSPs. Seven years later, APG and its associate companies (APG Global Associates) have grown to 52 active members with a coverage of 108 countries. ;

Please visit our website www.apg-ga.com
and for IBCS Background www.apg-ibcs.com

The rationale behind IBCS

More than 400 airlines participate in BSPs around the world. However, due to insufficient local sales volume and relatively high "up front" costs (joining levies of up to USD25.000, monthly administrative fees of up to USD 2,500 and "per ticket" transaction costs of up to USD 1,00 associated with the traditional BSP joining formulae), many airlines do not participate in the BSP in every country where they sell transportation.

The IBCS program changes the equation, giving access to the BSPs and the IATA Agency Program without incurring capital expenditures. IBCS is attractive to large scheduled service airlines seeking to strengthen sales in marginal markets, as well as to small and start up carriers entering a distant market, desiring to access the BSP distribution channel while conserving their cash reserves.

The recognized advantages of the BSP

  • BSP links to the GDSs for automated tickets; it eliminates exposure of carrier ticket stocks
  • BSP is used by all IATA travel agents who still account for over 80% of airline sales volume
  • BSP operates in more than 130 countries
  • BSP facilitates the rapid, timely and reliable payment for transportation sold
  • BSP monitors/eliminates defaulting agents promptly, reducing carrier
  • financial exposure

IBCS gives airlines full BSP access on advantageous terms for small volume operators

  • a one time IBCS entrance fee of only USD1,000 per BSP
  • a flat annual fee of USD 500 per airline as from the second year of
  • participation, regardless of the number of BSPs joined
  • a ticket transaction fee (UTP) of USD2.50 per transaction in the BSP concerned
  • an APG administration charge of 3% of the net monthly sales volume of tickets
  • reported through the BSP

APG Global Associates role

What does APG and their Associates do for the 3% of net sales it receives?

  • APG Associates handle the BSP application formalities with the local BSP
  • APG Associates execute the agreements between the airline and the BSP
  • APG Associates distribute and control the Carrier Identification Plates (CIPs) if applicable
  • APG Associates processes Agency Credit (ACMs) and Debit Memos (ADMs)
  • APG Associates actively interface with the local BSP and IATA on behalf of the Airline

For Airlines looking for more information on the IATA IBCS Progam, feel free to email us for any further information at czech-slovakia@apg-ga.com or airlines@artoftravel.eu. We would be happy to answer any query or provide any Airline with a thorough explanation on how the IBCS program works.

APG Czech Republic & Slovakia services the following airlines for its local IBCS program:

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