IATA suspends Arik from airline’s financial system

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Nigerian largest carrier, Arik Air, which was recently taken over by the Assets Management Corporation of Nigeria (AMCON) following huge indebtedness, has been suspended from the International Air Transport Association (IATA) Billing and Settlement System (BSP).

However, IATA clarified that the airline is still a member of the global body which is the clearing house for over 250 airlines.

IATA Area Manager, South West Africa, Dr, Samson Fatokun said yesterday that the organization is working with the new management of Arik to resolve the development.

BSP was designed to facilitate the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.

There are BSP operations in some 181 countries and territories. The system currently serves approximately 400 participating airlines with an on-time settlement rate of 99.99 per cent. In 2015, IATA’s BSP processed $230.3 billion.

Fatoki said, “IATA is currently working with the new management of Arik Air to resolve the airline’s suspension from the IATA Billing and Settlement Plan (BSP) and Cargo Account Settlement System (CASS).

“The airline’s suspension from the IATA financial systems does not affect its IATA membership or IOSA registered status. Arik Air remains a member of IATA and a fully IATA Operational Safety Audit (IOSA) registered airline”.