OPERATING A BSP Antalya, 26/27 May 2009 Jordan Karamalakov Country Manager BG - KZ

2 Basic principles and governance  BSP is ONLY ONE of IATA activities  Passenger Agency Conference decisions  Resolutions, local regulations and various information  Resolution 850 regulates BSP operations  Resolution 832 gives detailed procedures in case of late remittance or non-payment followed by default action.  BSP Manual for Agents, where local KZ specifics can be found in “Chapter 14”

3 Basic principles and governance Any airline, who signed Counterindemnity Agreement and Form of Concurrence may apply to join BSP Any IATA Accredited Agent MUST operate in BSP in the area Any exception is detailed specified in IATA resolutions 800/818g

4 Ticketing authority (TA) maintenance  Not the responsibility of IATA  To be handled exclusively by individual airlines  However, in case of default or suspension, IATA removes the TA for all airlines  Whenever an agent is newly accredited or whenever default or suspension is lifted by IATA, the airline needs to review the TA for the agent concerned  TA is assigned or deleted via BSPlink only

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7 Agency default  Detailed mechanism is listed in Resolution 818g – Attachment A – Sections 1 & 2  Always done by IATA and based upon facts, not upon hearsay or rumors  Ticketing Authority is removed by IATA  Airlines are notified by means of the weekly bulletin  In case IATA has paid uncollected funds to the airlines, claw back will happen during the next period

8 Risk management  Handled by IATA and considered as the main priority  Financial requirements are listed in the “Locally Established Criteria for Approval and Retention of Agents” and can be found the TAH  Changes can only be made by the PAConf  Financial assessment is made on a yearly basis  Outcome is not communicated to the airlines  Based upon the financial assessment, agents are required to improve the financial standing

9 Bank guarantees  Bank guarantee covering 100% of Amount at Risk is required from any agent in BSP-KZ&KG  Amount of Risk is calculated as 1/16 from the total sales in previous 12 months  Minimum level of guarantee is USD 100,000 for KZ and USD 50,000 for KG  Periodic revision of the bank guarantee levels is done by IATA KZ

10 Reso 850m and handling of ADM  Reso 850m requires that all airlines make available their ADM policies to agents  Agent may dispute any ADM by following the airline’s stated and communicated procedure or by using the dispute mechanism in BSPlink  All airlines should switch on the “dispute function” in BSPlink  If an agent deducts ADMs from the remittance, IATA will not default the agent concerned  The basis for this is recorded in Resolution 818g – Attachment A –  All disputed ADMs further need to be handled outside of the BSP

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