CP IATA agents to be hit by a significant IATA fee increase

09 novembre 2011

Following an IATA decision taken without giving agents a chance to review the proposal, 2012 IATA fees are expected to increase significantely.

The decision was taken by the governing IATA airline conference on 11-12 October 2011, with effectiveness on 1 January 2012. Agent representatives in the IATA global consultation body were not given a chance to review the final proposal before it was adopted.

IATA has decided to adjust its fees globally to the Swiss Franc, which exchange rate has been exceptionally high in the last months. The adjustment will be reflected in the annual fee invoice that accredited agents will receive shortly.  Said the President of GEBTA, Mr. Michel Durrieu: “We are expecting a fee increase around 25% in average in Europe. This is very unwelcome in regard of the economic environment and considering a blatant lack of justification.”

The fee adjustment is not linked to any change in the service level offered by IATA. Besides, the IATA Passenger Agency Programme has carried out significant economies of scale in recent years, with the centralisation of IATA services in Madrid and the switch to a 100% electronic ticket environment. Airlines have benefited from these savings, with BSP unit rates charged to airlines having fallen 78% between 2000 and 2010[1]. With an increase of agents’ fees, while airlines’ costs have been reduced, agents will bear the burden of financing the IATA Agency Programme.

GEBTA considers that an increase of IATA fees is unacceptable in these conditions. It calls IATA to rescind its decision and review the proportionality of its fees.