Dear ACTA Members,
ACTA has received the following update from IATA:
As previously notified, following the suspension of Jet Airways from the various IATA Settlement Systems (which includes 73 BSP, 19 CASS, and the ICH) on 18 April 2019, IATA has been actively managing the post-suspension process in order to limit negative consequences to affected participants of its settlement services. Leveraging on its proactive risk mitigation actions taken over the past few months prior to the suspension date, IATA has been able to honour 100% of approved BSP cash refunds included in billing reports up to the suspension date of 18 April 2019. Concurrently, all transactions by/against Jet Airways presented through the IATA Clearing House (ICH) up to and including their last active period of participation (i.e. first period of April) have also been settled in full.
Jet Airways – as has been widely reported by the press – has been placed into bankruptcy protection as of 20 June 2019; and an Interim Resolution Professional (IRP) has been appointed by India’s National Company Law Tribunal (NCLT).
IATA is in contact with the resolution professional for the airline to discuss the impact of this process on IATA’s remaining claims – including passenger/agency refunds and airline partners’ dues. In the interim, IATA has filed a claim with the bankruptcy estate in order to assert and preserve these claims.
While IATA does have some residual funds on hand for distribution (expected to be only a partial distribution) on approved BSP cash refunds and ICH pre-suspension claims recorded under Procedure 18, any distribution remains dependent on the review and approval by Jet Airways of the submitted refunds and the impact of any moratorium of claims or proceedings specified by the IRP. IATA continues to work with the airline to manage this process but expects a delay of at least one month given the bankruptcy filing.
Further updates will be provided when additional details become available.
Juan Antonio Rodriguez
IATA Global Delivery Center