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Iata’s move to fortnightly payments ‘could hit late sales’

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Late sales could be hit by Iata’s decision last week to sanction fortnightly payments to airlines.

A vote in favour of the move was taken behind closed doors last Thursday by Iata’s Agency Programme Joint Council (APJC), prompting widespread criticism.

While the main impact of the change in 2016 will be felt by corporate agents, Iata-accredited leisure suppliers fear it will impact their businesses.

Guy Novik, chief executive of USAirtours, said if agency payment schemes, such as Abta’s Single Payment System, didn’t speed up, suppliers might have to decline last-minute bookings.

The alternative would be for Iata suppliers to agree costly overdrafts to cover the period between them having to pay the airline and receiving the customer money, he said.

“The implication is payment systems will have to consider speeding up the rate at which they remit to tour operators to enable us to carry on doing last-minute bookings,” he added.

Novik also called on airlines to reduce the timeframe operators have to issue tickets for fully inclusive tours, triggering the BSP payment. Currently it is four weeks before departure.

He said the advent of e-ticketing means there was no reason why this couldn’t come down to seven days.

And he called on Iata to change its rules to allow bookings to be paid on corporate cards.

The APJC decision must be ratified unanimously by Iata airlines at a conference next year.

Novik said the trade would be lobbying airlines, particularly British Airways and Virgin Atlantic.

“If they want to be trade-friendly, the way they can demonstrate that is to come over to our side,” said Novik.

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