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 Standardisation 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.
UFTAA calls for the immediate reconsideration of the global remittance decision and urges a return back to the earlier resolution which is locally governed, economically justified, and proportionate arrangements that protect competition, market integrity, and the long-term interests of passengers.
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