The Universal Federation of Travel Agents’ Associations (UFTAA) has expressed strong opposition to the decision by International Air Transport Association (IATA) member airlines to introduce globally standardized BSP remittance periods, removing the long-standing practice of allowing local markets to determine credit terms through joint governance mechanisms.
UFTAA has formally communicated its concerns to IATA following the recent Mail Vote by the Conference, which approved amendments to Resolution 812, Section 6.5.3.7, relating to the global standardization of BSP remittance periods. According to UFTAA, this move represents far more than a procedural or technical change and constitutes a fundamental intervention in market dynamics.
The federation argues that by centrally imposing uniform credit and remittance terms worldwide, airlines acting collectively through IATA are exercising structural monopoly power over the global airline clearing system. As the Billing and Settlement Plan (BSP) is a mandatory and essential settlement infrastructure for travel agents, unilateral changes to its credit conditions, UFTAA states, meet widely recognized definitions of abuse of collective dominance.
UFTAA further emphasizes that credit terms are a core component of economic policy. Enforcing a one-size-fits-all framework across diverse markets effectively overrides local commercial practices, financial systems, and payment cultures, thereby intervening in national economies without any regulatory mandate or democratic oversight. The federation notes that no evidence-based economic justification has been provided to support the adoption of uniform global credit conditions.
Additionally, UFTAA highlights that there is no comparable precedent in other global industries where suppliers collectively dictate credit terms to intermediaries across all markets through a private association. Such conduct, it warns, raises serious concerns regarding market fairness and competitive balance.
The impact of the decision is expected to extend beyond travel agents. UFTAA points out that shortened and rigid remittance periods compel intermediaries to pre-finance airline revenues, increasing liquidity pressures and operating costs. These additional costs are likely to be passed on to consumers, resulting in higher fares, reduced choice, and weaker service resilience for passengers.
The federation has also raised concerns over governance imbalance, noting that binding resolutions are adopted solely by airlines, while agents—who bear the financial burden—have no voting rights. Combined with monopoly control over settlement infrastructure, this situation, UFTAA argues, presents a significant competition-law risk.
UFTAA has called for an immediate reconsideration of the global remittance decision and urged a return to locally governed, economically justified, and proportionate arrangements that safeguard competition, market integrity, and the long-term interests of passengers.
