APG BSP COORDINATION SERVICES

**************************

Tony Tyler, President of IATA

“APG provides a great way for our airline members to distribute their product much more widely than they could do otherwise, because often participating in the BSP is an expensive prospect if you don’t have high volumes; but APG provides a way that airlines can do that, so it’s a real value add for the industry.”

**************************

Functional Description

ABCS, developed by the APG Network in cooperation with IATA as a way to increase BSP membership to secondary and tertiary markets, permits scheduled airlines (whether IATA members or not) to join any BSP worldwide on a variable cost, “Pay as you Earn” basis, with nominal joining fees. The BSP system, operating in 110 locations covering over 140 countries, has accredited 64,000 travel agents. APG Network has introduced more than 250 airlines to BSP membership in both “Online” and “Offline” markets and has over 1,200 activated BSP membership contracts in force in the BSPs around the world.

Target Audience

ABCS is widely used by carriers of all sizes:

• Big airlines use ABCS in thin or seasonal “online” markets and in “offline” markets
• Small, start up or regional airlines use ABCS in both online and offline markets to establish their brand rapidly.

Solution

ABCS helps airlines to generate marginal sales revenues: APG Network Members function as the Local Carrier Representative to BSPs

• Handles application formalities for the airline with the BSP offices
• Executes agreements between the airline & the BSP
• Processes Travel Agent Debit/Credit Memos (ADMs/ACMs)
• Sets up local banking relationships, or alternatively, open carrier escrow accounts
• Assists in local credit card acceptance/clearance process, or alternatively offers outsourced acceptance/clearance facilities at low cost
• Covers any agency defaults incurred by the airline
• Offers free fare filing for up to 5 routes to promote the launch of a new BSP

Prerequisites

• Scheduled airline
• IATA or Non IATA affiliation
• E-Ticketing capable in Global Distribution Systems (GDS)

Benefits

• Full BSP membership in a program backed by IATAFeatures BSP membership on a “Pay as you Earn” variable cost basis without major capital expenditure
• Affords automated neutral E-ticket issuance via GDS
• Remittance on BSP payment cycle directly to the airline
• ABCS carriers can participate in the IATA Currency Clearance System (ICCS) – allows payment in choice of currency and country
• ABCS airlines are eligible to join the IATA Card Clear, Card AXS systems giving worldwide access to Visa and MasterCard clearance
• No long term contracts – Only 90 day notice

Joining fee                  

- $ 5,000 per BSP

- 50% surcharge for non-IATA airline members

SCU fee                         

- $ 0.045 - $ 0.90 per SCU

- Fee per transaction with no productivity minimums – 50% surcharge for non-IATA airline members

Administration fee    

- 3% variable

- Based on productivity, assessed monthly on net value of tickets sold through BSP