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IATA endorces ACTA`s proposal on new financial requirements

The Canada/Bermuda Agency Programme Joint Council (APJC) unanimously endorsed ACTA’s proposal regarding new standards for financial evaluation of travel agencies as the association stated. ACTA’s resolution proposes…

The Canada/Bermuda Agency Programme Joint Council (APJC) unanimously endorsed ACTA’s proposal regarding new standards for financial evaluation of travel agencies as the association stated. ACTA’s resolution proposes that agencies would have the option of filing Audited Financial Statements or to provide IATA with a Review Engagement Report showing working capital equivalent to at least three weeks of average cash BSP sales accompanied by a $10,000 surety bond.



ACTA had previously opposed IATA’s Resolution 800f and IATA had agreed to delay implementation until June 30, 2007. The resolution voted on last week by APJC Canada/Bermuda still has to be approved by the IATA Passenger Conference on June 13-15 in Geneva.



ACTA is negotiating with a bonding provider most likely to underwrite the program. The program parameters ACTA is aiming for is a $10,000 Commercial Bond in favor of IATA at a flat cost of $250 per bond for ACTA members for a two-year term, making the annual cost $125.



“We are extremely pleased that the APJC endorsed our proposal last week, and we have great confidence that the resolution will be approved in June,” said Christiane Theberge, President and CEO of ACTA.



She further commented: “These requirements are in line with those required by the three regulatory authorities in Ontario, Quebec and British Columbia. Agencies are used to such requirements and surety bonds are relatively inexpensive and, most important, do not affect working capital, which is vital for SMEs.”

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