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The International Air Transport Association (IATA) and the United Bank for Africa Plc (UBA) are set to launch a new financial settlement system for airlines and travel agencies in Nigeria. The system, called New Generation of IATA Settlement Systems (NewGen ISS), would take effect from December 1, 2018.

“The NewGen ISS is an improvement on the current billing and settlement plan (BSP),” said Samson Fatokun, Area Manager of South-West Africa at IATA. “It is a programme to deliver faster, safer and more cost-effective financial settlement services and solutions to airlines and travel agents that rely on the IATA Settlement Systems.”

In 2016, the IATA Passenger Agency Conference had adopted the NewGen ISS as an improvement of the 47-year-old BSP. On March 8, 2018, Norway became the first country to fully implement all the elements of NewGen ISS. Roll out across other IATA BSPs is expected to be completed in the first quarter of 2020.

Fakotun said the NewGen ISS would facilitate faster settlement, safer funds and a lower cost of distribution for airlines. It would also provide more personalised products and services, enhanced customer support and more cost-effective solutions for travel agents.

Speaking at a training programme on the new system for travel agents in Lagos, Bode Aregbesola, Head of UBA Aviation Desk, said, “There is need for the general public to be aware of the new processes because the landscape has changed.”

UBA has operated the IATA BSP for 10 years, the Punch newspaper reported.

“In the current process that will expire on November 30, agents make payments bi-monthly to airlines. Now, with the NewGen ISS, what it means is that the UBA can settle payment for airlines on a daily basis,” Aregbesola said.

He explained further that the new system would allow the travel agencies to sell more tickets than they currently do and the bank would also be able to settle more for the airlines.

According to IATA, NewGen ISS provides three levels of travel agent accreditation from which agents can choose the best-fit for their business model; a remittance holding company that will ensure a safer selling process; a global default insurance; and IATA EasyPay, a secure and cost-effective pay-as-you-go solution.

Founded in 1945 with 57 member-airlines across 31 countries, IATA is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services. With its headquarters in Canada, IATA currently has about 280 member-airlines across120 countries.