IATA TRAVEL AGENT

CHECKLIST - IATA TRAVEL AGENT
√ CHECK LIST
Change of Ownership/Shareholding
Instructions and special requirements in order to notify IATA of a Change
of Ownership or Shareholding defined in the IATA Resolution 818g,
Section 10, paragraphs 10.2, 10.3, 10.9 and 10.10 (existing IATA travel
agents check your current TAH- Travel Agents Handbook).
Please take note of the effect of Changes of ownership/ shareholding on Bonding
Requirements, as follows:
A Financial Security will be required, if an Agent undergoes a complete or significant change
of ownership after approval. This is defined as a total acquisition, or a transfer exceeding 49%
of the paid-up share capital, representing a change in control (from one shareholder to
another, or to a new shareholder), whether in a single transaction or as a result of a series of
transactions, over a period of not more than 3 years.
The Financial Security will continue (and may be adjusted in line with turnover) until at least
three years' accounts under the new ownership have been submitted to and reviewed by
IATA.
Notwithstanding the above and for the purposes of this Section only, the credit rating of an
Agent obtained from a Credit Information company appointed by IATA, may be taken into
account to form a complete evaluation of the financial status and creditworthiness of an
Agent. Provided that the credit rating of an Agent is at a level of ‘good credit worthiness’ (or
the equivalent), an Agent will not be required to provide a Financial Security.
The credit rating of an Agent will be monitored for the full period of three years after the
change has occurred and three sets of annual accounts have been reviewed by IATA. If at
any time during this period the credit rating falls below “good credit worthiness” (or the
equivalent) the Agent will be required to provide a Financial security, calculated as above,
which will be held in place until the 3 year period has been completed and the third set of
annual accounts has been reviewed and meet the criteria applicable at the time.
When a change of ownership occurs where an existing IATA Travel Agent takes over
another existing IATA agent the bonding requirements follow the status of the new owner: if
bonded, the bond level will be reviewed to include net BSP sales of the agency being taken
over. The bond will be held until the next successful annual financial review after this change
has occurred. If new owner is not bonded, then no bond required for this change.
2013 Change Fees International Air Transport Association 2