The International Air Transport Association (IATA) has launched its Billing and Settlement Plan (BSP) in Myanmar.
IATA’s BSP is designed to ease the reporting of ticket sales and payments for travel agents relating to the settlement of their sales to airlines.
Prior to the implementation of the BSP, agents had to interact directly with each of the respective airlines to report and remit their ticket sales, which IATA said was both “inefficient and time-consuming.”
BSP will bring efficiencies in the interactions between airlines and travel agents, and support the growth of Myanmar’s travel and tourism sector
“Aviation is a growing sector in Myanmar,” said Conrad Clifford, IATA’s Regional Vice President for Asia-Pacific. “As the country continues to develop and with more international airlines operating services in Myanmar, it is timely to introduce the BSP.
“Not only will it bring efficiencies in the interactions between airlines and travel agents, it will also modernize and support the growth of Myanmar’s travel and tourism sector.”
Founded in 1971, IATA BSPs exist in 180 markets around the world, serving around 400 participating airlines.
IATA says BSPs provide an on-time settlement rate of 99.997%. In 2018, IATA’s BSPs processed $248.8 billion.
During the initial implementation phase, five airlines and 12 travel agents have signed up, with more expected to join in the months ahead.
According to IATA analysis, air travel in Myanmar is expected to grow by an average of 8% annually in the next 20 years. The global average of expected growth in air travel is 3.9%.
By 2038, IATA expects Myanmar to be an air travel market of 37 million passengers, close to five times the current figures.
“Aviation is a catalyst for social and economic development. In addition to introducing the BSP, we have also opened our first IATA office in Myanmar in April,” Clifford added.
“Through this office, we hope to enhance our partnership with the various aviation stakeholders to support Myanmar’s aviation development through the implementation of global standards and industry best practices.”