IATA NewGen ISS: Concerns about credit capping
ACTA, through the WTAAA, is highlighting concerns that were raised at the recent PAPGJC meeting regarding IATA’s proposal of a Remittance Holding Capacity (RHC) for travel agents to be introduced as part of the IATA’s NewGen ISS project.
Prior to the meeting, which was held in Montreal June 22-23, WTAAA sent a summary paper to IATA sharing the position of the agents’ delegation. It was the opinion of the agent’s delegation that the proposed Remittance Holding Capacity would act as a sales capping for agents and airlines, as sales would only be possible if they are paid upfront by the agent through EasyPay or if the agent obtains additional bonding.
It was agreed at the meeting to establish two Working Groups on the Remittance Holding Capacity (RHC) and Easy Pay. The adoption of any form of credit capping by the PaConf will be postponed to 2018.
The other proposals of NewGen ISS – accreditation models, global insolvency insurance and alternative methods of payment, including EasyPay – will be put to a vote at the next PaConf in September 2016. They will be implemented from January 2018, with the exception of EasyPay coming into effect in January 2017.
ACTA will not be participating on this committee but will remain involved through WTAAA. Our sister association in South Africa (ASATA) will participate in the IATA working groups on RHC and Payment methods scheduled on 28 July in Madrid.