The International Air Transport Association (IATA) has suspended Kenya’s Fly540 with immediate effect.
In a statement to Billing and Settlement Plan (BSP) agents, IATA said the suspension was in line with with the provisions in Resolution 850 Attachment F, without going into specifics.
“BSP Travel Agents must immediately suspend all ticketing activities on behalf of Fly540, including the use of all automated systems for processing of refunds or other transactions on behalf of Fly540. BSP Travel Agents must immediately stop using Fly540’s name and numeric code as a ticketing airline,” ordered IATA.
BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.
This means that the agents will not be able to receive ticketing payments on behalf of Fly540.
According to the Resolution 850 Attachment F, an “Outstanding Billing” includes any amount due to or from an airline to an agent for which the Remittance Date has not yet occurred – whether or not the underlying ticket sale occurred post-suspension.
“All Outstanding Billings, including pending sales and pending refund claims or any future transactions, must be settled directly with Fly540. For remittance purposes, this means that the total amounts to be paid by BSP Travel Agents to the BSP for future Remittance Dates shall not contain any amounts due to or from Fly540, including any refund actually or potentially owing by Fly540. Again, no refunds may be deducted or carried out from Fly540’s Outstanding Billings, pending sales, or any other future transaction,” reads Resolution 850 Attachment F.
The airliner has been riddled with scandals, ranging from allegations of employee mistreatment and faulty aircraft that have been involved in a number of minor accidents.