1. ACCREDITATION PROCESS in Central Asia and Caucasus Region Antalya, 26/27 May 2009 Jordan Karamalakov Country Manager BG - KZ

2. 2 Basic principles and governance The Travel Agent’s Handbook (TAH) contains  Passenger Agency Conference decisions  Resolutions, local regulations and various information http://www.iata.org/whatwedo/travel-tourism/tah.htm - Accreditation in KZ and KG will be governed by Resolution 818g as of 01 August 2009 - Accreditation in other CIS countries from Caucasus and Central Asia region is governed by Resolution 800

3. 3 Basic principles and governance  The Agency Program Joint Council for KZ and KG (APJC)  Will be in KZ by 6 airlines and 6 agents  Meets on a regular basis  Makes recommendations in the form of agenda proposals to the Passenger Agency Conference (PAConf)  Final decision of all recommendations is made by the PAConf  Next PAConf meeting scheduled for October 2009  If necessary PAConf may take some decisions by mail vote  The local office has no authority to deviate from applying Resolution 818g in full

4. 4 Agency accreditation  Done by the IATA DG for and on behalf of the airlines  By means of the Passenger Sales Agency Agreement (PSAA)  Governed by Resolution 824  Detailed requirements are listed in Resolution 818g – Section 2  Important  IATA accredits an agent when the agent meets all the requirements set up in the Resolution and Local Criteria  But, only the airline can allow agents to sell its tickets via the Ticketing Authority Maintenance tool in BSPLink

5. 5 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  Requirements for KZ are not specified yet, but for example they might be  Solvency > 20 %  Liquidity > 1  Profitability > positive  Cash flow must be positive  Changes can only be made by the PAConf

6. 6 Bank guarantees  Financial assessment is made on a yearly basis  Outcome is not communicated to the airlines  Agents are required to submit a bank guarantee of 1/16 th of last 12 month’s sales if remittance is weekly  Periodic revision of the bank guarantee levels is done by IATA KZ

7. 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

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