RESOLUTION 850m
4. ISSUANCE PRINCIPLES
1. INTRODUCTION
2. AIRLINE POLICY
2.1 Airlines are required to publish and communicate in
writing their ADM policies to Agents in advance of
implementation.
2.2 Where possible the model shown in the Attachment
to this Resolution should be applied.
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RESOLUTION 850p
Attachment A
FINANCIAL SECURITIES
PAC1(48)850p(except USA)
PAC2(48)850p
PAC3(48)850p
1. DESCRIPTION
1.1 ADMs are a legitimate accounting tool for use by all
BSP Airlines and should only be used to collect amounts
or make adjustments to agent transactions in respect of
the issuance and use of Traffic Documents issued by or
at the request of the Agent.
1.2 Alternative uses of ADMs may exist provided that
consultation has taken place either individually with the
Agent or through the applicable local joint consultative
forum.
1.3 ADMs are to be specific in their detail as to why a
charge is being made.
1.4 Any ADM relates to a specific transaction only, and
may not be used to group unrelated transactions
together, however, more than one charge can be included
on one ADM if the reason for the charge is the same, and
a detailed supporting list is provided with the ADM.
Expiry: Indefinite
Type: B
1. DEFINITIONS
1.1 The definitions of terms and expressions used in this
Resolution are contained in Resolution 866.
2. EVALUATION OF PROVIDERS
AND THEIR PRODUCTS
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2.1 IATA shall establish criteria for the consistent evaluation and approval of Providers and Provider products,
and shall make such criteria available to all interested
parties. Criteria shall be subject to review and amendment by IATA annually, or more frequently as may be
necessary due to changes in the financial security and/or
insurance markets;
2.1.1 No Provider or Provider product shall be accepted
for the purposes of an Agent meeting the financial criteria
by the provision of additional financial security where
permitted by the applicable Sales Agency Rules unless
such Provider or Provider product has been approved by
IATA in accordance with this Resolution.
2.2 IATA shall conduct, at a minimum, an annual review
of all Providers and Provider products previously
approved by IATA. After such review(s), IATA shall
determine whether such Provider or Provider product
meets criteria in effect at that time;
2.3 The result of the initial and periodic evaluation shall
be reported to the LCAGP and APJC as appropriate.
Their views shall be relayed to IATA, who shall decide
whether to accept financial security instruments from the
Resolution 852
Provider after consultation and recommendations developed, with local Airlines;
2.4 The result of the evaluation shall be advised to the
Provider, LCAGP and APJC as applicable.
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