General Travel News

18 UAE Travel Agents May Go Out Of Business

Up to 18 travel agents or sales intermediaries may go out of business because they lack bank guarantees, a requirement imposed by the International Air Transport Association (IATA).  Travel agents that are accredited by IATA must provide a bank guarantee in order to sell airline tickets and complete these transactions through the Business and Settlement Plan (BSP).  

Dr. Majdi Saberi said this requirement is not new, and BSP covers Bahrain, Oman, and Qatar as well as the UAE.  Dr. Saberi is the regional vice-president for the Middle East and North Africa for IATA.  He explained the level of financial security required is determined by airlines and agencies that sit on the Agency Programme Joint Council. “IATA has no part in it.  IATA’s role is to apply the accreditation criteria in a neutral manner.”  Dr. Saberi said the purpose of the accreditation criteria is to ensure that an agent has appropriate facilities, an adequate number of qualified staff, and is licensed by the relevant government department.

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