Briefs & Press Releases

IATA cuts air tickets credit period to improve airlines' cashflow

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Kenya Association of Travel Agents CEO Nicanor Sabula during the launch of the travel commerce platform's first state of the art customer care helpdesk in Kenya on January 26, 2016. PHOTO | DIANA NGILA (NAIROBI)

The International Air Transport Association (IATA) has instructed travel agents to remit cash from ticket sales every 15 days as opposed to the current monthly payments, a move intended to improve airlines’ cashflow.

The airline agents’ lobby says the new rule which is set to come into effect on September 1, exposes the industry to “massive defaults” and advises its members to adopt a cash-centric approach with its clients.

"Agents failing to meet payment deadline will be declared as defaulters and denied facilities to issue tickets," the Kenya Association of Travel Agents chief executive Nicanor Sabula said in a press statement.

The move demands the government and corporates many of whom make travel arrangements on credit to adjust accordingly.

The travel agents’ lobby also cautioned consumers of air travel services-- especially corporate entities and government departments-- to take note of the changes and make adjustments in their payment plans to conform to the new requirements.

"Further, the travelling public is requested to immediately contact their travel agent to discuss payment plans available in the market to avoid disruptions of their travel plans," said Mr Sabula.

The Kenya Association of Travel Agents (KATA) is a national association representing interests of IATA-accredited travel agents in Kenya.