ACCREDITATION PROCESS in Central Asia and Caucasus Region Antalya, 26/27 May 2009 Jordan Karamalakov Country Manager BG - KZ

2 Basic principles and governance The Travel Agent’s Handbook (TAH) contains  Passenger Agency Conference decisions  Resolutions, local regulations and various information - Accreditation in KZ and KG will be governed by Resolution 818g as of 01 August Accreditation in other CIS countries from Caucasus and Central Asia region is governed by Resolution 800

3 Basic principles and governance  The Agency Program Joint Council for KZ and KG (APJC)  Will be in KZ by 6 airlines and 6 agents  Meets on a regular basis  Makes recommendations in the form of agenda proposals to the Passenger Agency Conference (PAConf)  Final decision of all recommendations is made by the PAConf  Next PAConf meeting scheduled for October 2009  If necessary PAConf may take some decisions by mail vote  The local office has no authority to deviate from applying Resolution 818g in full

4 Agency accreditation  Done by the IATA DG for and on behalf of the airlines  By means of the Passenger Sales Agency Agreement (PSAA)  Governed by Resolution 824  Detailed requirements are listed in Resolution 818g – Section 2  Important  IATA accredits an agent when the agent meets all the requirements set up in the Resolution and Local Criteria  But, only the airline can allow agents to sell its tickets via the Ticketing Authority Maintenance tool in BSPLink

5 Risk management  Handled by IATA and considered as the main priority  Financial requirements are listed in the “Locally Established Criteria for Approval and Retention of Agents” and can be found the TAH  Requirements for KZ are not specified yet, but for example they might be  Solvency > 20 %  Liquidity > 1  Profitability > positive  Cash flow must be positive  Changes can only be made by the PAConf

6 Bank guarantees  Financial assessment is made on a yearly basis  Outcome is not communicated to the airlines  Agents are required to submit a bank guarantee of 1/16 th of last 12 month’s sales if remittance is weekly  Periodic revision of the bank guarantee levels is done by IATA KZ

7 Agency default  Detailed mechanism is listed in Resolution 818g – Attachment A – Sections 1 & 2  Always done by IATA and based upon facts, not upon hearsay or rumors  Ticketing Authority is removed by IATA  Airlines are notified by means of the weekly bulletin  In case IATA has paid uncollected funds to the airlines, claw back will happen during the next period

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