Editorial Page
Bangladesh a BSP country after long wait
By Raquib Siddiqi
Sat, 25 Feb 2006, 10:32:00

After long wait and huge financial loss due to non-payment of dues to airlines by ticketing agents, Billing and Settlement Plan (BSP) of the International Air Transport Association (IATA) has formally been introduced in Bangladesh. The BSP would help erase mal-practices in travel trade and ensure its healthy growth.

The IATA Billing and Settlement Plan (BSP) is a system for computerised processing of accounts between Agents and airlines on a country-by-country basis. Agents deal with all airlines through one central point - the BSP - rather than having to deal with each individual airline.

BSP is a standardised system for airlines and agents, providing them with a simplified approach to the selling, reporting and administration of passenger air transportation. It is established under the general jurisdiction of the Passenger Agency Conference (PAConf), delegated to the BSP Committee (BSPC) and co-ordinated by the Agency Administrator/Plan Management.

Mirza Fakhrul Islam Alamgir, State Minister for Civil Aviation and Tourism formally launched BSP at Saimon Centre in Gulshan, Dhaka on January 24. In this age of globalisation, it will help the country compete in a more effective manner, the minister hoped.

It may be recalled that the first BSP was established in Japan in 1971. Today nearly 52,000 accredited IATA Travel Agency locations worldwide participate in the IATA Billing and Settlement Plan worldwide, resulting in over 80 per cent of all airline passenger sales being processed quickly and easily through the more than 60 BSPs worldwide.

The BSP takes advantage of automated ticketing and data processing techniques. The system provides for the issuance of neutral Standard Traffic Documents (passenger tickets - including electronic tickets - and administrative forms) on behalf of all BSP participating airlines.

As a computerised system, BSP encourages automated ticketing and uses data processing techniques through the services of data processing centres and the data reported by the Agents' Ticketing Systems to compute:

Billings and monetary amounts which Agents remit to the appointed Clearing Bank.

The division of these amounts by the clearing Bank for settlement amongst the Airlines.

Through BSPs, both Airlines and agents improve service standards whilst saving time, effort and therefore money.

Advantages of BSP include; 01. BSP reduces airline distribution costs and at the same time provides airline with an effective and comprehensive distribution system. The scheme provides agents with a cost effective system for selling the products and services of those airlines that elect to participate in BSP.

02. The existence of BSP enables airlines and agents alike to save on administrative overheads and traffic document inventory costs, whilst streamlining their services to the customers.

03. BSP provides more time for BSP participants selling activities since the administrative burden on management is greatly reduced by the simplification of the issuance, controlling and reporting of sales and settling of money due.

04. BSP secures the airlines from their sales proceeds and settlement in due time and is designed to do away with the default culture by the agents that the -airlines are exposed to with the existing system. The airlines no longer issue their traffic documents to agents; instead BSP will take over the functions of revenue documents distribution and financial settlement in time for the airlines.

05, BSP secures the airlines from fraudulent activities like tampering with flight coupons, forged tickets or stolen tickets etc.

06. BSP helps improve airlines, revenue yield since tickets will be automated. All tickets shall have to be issued as per the reservation. This also helps airlines monitor agents' activities.

07. BSP helps airlines receive their remittance/sales proceeds from a single point i.e. BSP office, in time. BSP provides airlines with convenient and fast sales reports and auditors coupons.

Advantages for the agents include; 01. BSP simplifies and reduces their work through the use of Standard traffic Documents (STD).

02. BSP provides one supply source of these traffic documents.

03. It simplifies paper works and reduces overhead costs by replacing multiple sales reports with a single Agency Sales Transmittal (AST), submitted to a central BSP Data Processing Facility (DPC) at BSP office.

04. BSP provides a simple set of administrative forms to be used on behalf of all BSP airlines.

05. It enhances security - a single location of ticket stock facilities for agents. Less space is needed for storage and inventory control becomes simpler and more secure.

06. BSP establishes one central point to which reports are sent.

07. BSP simplifies remittance procedures by establishing one point for agents payments.

08. BSP encourages the use of the most modern automated ticketing system, thereby, economising on time and money.

09. BSP simplifies staff training. Courses specific to BSP procedures are organizcd locally by BSP management.

There is no negative point, as such, on BSP. Excepting that only IATA accredited agents can participate in BSP. There are nearly 120 IATA agents in Bangladesh. More agents are applying for IATA accreditation following decision to introduce BSP in Bangladesh..

Considering the advantages and a world-wide system to which airlines participate world wide, Board of Airlines Representatives (BAR) in Bangladesh unanimously decided to adopt BSP in Bangladesh following about two years of study. Bangladesh has become the 149th country to adopt the system.

M. Mahmoodur Rahman, Managing Director, Biman Bangladesh Airlines and Chairman, Board of Airlines Representatives (BAR), Rana Chowdhury, Manager, IATA, M. A. Muhaimin Saleh, President and Ghulam Mustafa, Secretary General, Association of Travel Agents of Bangladesh (ATAB) spoke at the BSP launching ceremony.

Mirza Fakhrul Islam praised the airlines and the travel agents for helping the country earn significant amount of foreign exchange and said tourism not only brings the countries closer but also help alleviate poverty.

The minister expressed the hope that the implementation of BSP would help eliminate corruption and malpractice in the trade. Thanking ATAB for motivating travel agents to adopt BSP for the growth of travel trade, M. Mahmoodur Rahman said BAR initiated the step about four and a half years ago and was happy to see its fruition by being present at its formal launching.

About implementation of IATA's e-ticketing, Rahman said though deadline is December 31, 2007, Biman would implement it by June 31 next year, six months ahead. The e-ticketing would help Biman save US$ 8 on each ticket, he disclosed. Normal tickets can be misused, but e-tickets cannot, he added.

Rana Chowdhury said his organisation hoped to set up an office in Dhaka and bring IATA approved travel agencies in the country within the BSP by March this year. That will follow introduction of more of its products in Bangladesh.

M. A. Muhaimin Saleh said travel trade grew by 30 per cent over the last five years. But BSP, an essential element in travel trade was missing. Its introduction will help professional growth of travel trade and aviation in Bangladesh. He admitted that it took some two years to convince members of ATAB about the benefits of BSP. International Air Transport Association (IATA) rolled out the first phase of implementation of BSP in the country on early December 2005.

Fifteen agents and 10 airlines were included for the first phase of its implementation, on first-come-first-serve basis.

The Pilot Agents are: Saimon Overseas Ltd, Cox's Bazar Overseas, Mams Travels and Tours Ltd, Orion Travels Ltd, Grand Media Tours and Travels, MD Travels Ltd, Sureswar Travels, Discovery Tours and Logistic, Overseas Links Ltd, Karnaphuli Travel Agency Ltd, Newport Express (BD) Ltd, Airspan Limited, Travel Busi-ness Limited, Express Travels Ltd and Mitali Air Travels.

The Pilot Airlines are: Biman Bangladesh Airlines, Hong Kong Dragon Airlines Ltd, British Airways PLC, Kuwait Airways Corporation, Emi-rates, Singapore Airlines Ltd, Saudi Arabian Airlines Corporation, Qatar Airways Company, Thai Airways International Public Company Limited and Malaysia Airline System Berhad.



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