International Air Transport Association (IATA)’s Post

The author is spot on, just a few decades ago, there was reasonable contol in the forms of: - Government Directed (DG) Fares - Traffic Rights (Control on frequencies, timing slots and number of seats that could be pumped, by each airline, in the market) - Where applicable, airline remittances were under the watchful eyes of the Central Bank - Airline Executives, before ruthless implementation of anti trust and anti cartel laws, would meet regularly to avoid encroaching each other's markets. - Today in the name of perfect competition there is a blood bath. The one with deeper pockets, usually of borrowed money or discreet government subsidies, survives slightly longer. - The ULCC and LCC models, in some countries, are cheaper than Buses and Trains. Can anyone claim that the cost of Assets, Fuel and Human Resource, for a LCC or Legacy, is lower than those modes? I would also question if the Differential Pricing, implemented back in the 1980s, and subsequent complexities attached to the airline product, last but not least, the "unbundling" has not compromised prestige, standards, safety, profitability and consumer confidence of once luxurious, safe and prestigious industry. How many failures, collapses, crashes, bankruptcies and lost investments will it take for common sense, not even wisdom, to prevail?

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The national flag carrier is poised to follow in the footsteps of Lufthansa and Alitalia as the Privatisation Commission has initiated the process of inviting bids from interested parties for the sale of 51% of Pakistan International Airlines (PIA)'s shares. This move, which past governments have hesitated to undertake due to potential unpopularity, is seen as a crucial step for cash-strapped Pakistan to pursue further funding discussions with the International Monetary Fund (IMF). Interested investors are required to submit their bids by May 3, with the winning bidder gaining administrative control while the government retains the remaining 49% shares. The participation of local and foreign investors and their geographical origins will be closely observed. Last week, the government reached a preliminary agreement with commercial banks to restructure PIA's massive loan, extending the repayment period to 10 years with an interest rate of 12%. This debt reprofiling is aimed at alleviating the financial burden on PIA, identified as one of the loss-making state-owned enterprises (SOEs) that need to be divested to mitigate the government's fiscal strain. Proceeds from the privatisation are intended to revitalize PIA, with the buyer of the majority shares expected to invest an equivalent amount for this purpose. Once PIA becomes profitable, dividends will be utilized for loan repayment, supplemented by the issuance of sukuk and bonds to the commercial banks involved. PIA currently holds a significant 23% share of Pakistan's aviation market, which could potentially expand beyond historic levels of 30%. However, the airline faces stiff competition from Middle Eastern carriers due to the absence of direct flights to certain destinations. The restructuring of PIA will involve separating aviation-related components from non-core aspects, thereby reducing legacy debt and positioning the airline for sustained profitability. #Bids #PIA #Privatisation #PakistanInternationalAirlines

IATA's Financial Settlement Systems (IFSS) are continually enhanced to meet industry demands. IATA's SVP for Financial Settlement and Distribution Services, Muhammad Ali Albakri, emphasizes the importance of aligning IFSS with airline needs, especially in embracing new digital payment forms like digital currencies. As payment becomes integral to Modern Airline Retailing, IATA's efforts in standardization and solution provision aim to empower airlines in shaping a seamless and customer-centric payment landscape. Let's drive value creation and maximize sales conversions together! Read more here: https://lnkd.in/eJcD8U7C #IATA #IFSS #ModernAirlineRetailing #DigitalPayment

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Airlines across Latin America have worked in various ways to position themselves favorably as air traffic returns to 2019 levels, which has resulted in some consolidation in the region. https://lnkd.in/eedxJjA8

ACV Calculating Measures to Recover Debts, What Does the Airline Say? In response to VTC News, a representative from an airline stated that in production and business, delayed payment, debt, and mutual debt can occur. “All payments, settlements, and debts between the two parties are within the framework of the contract, with consensus. There will be no lawsuits for contract violations,” this person said. Meanwhile, according to lawyer Le Van Thiep, Head of the Global Law Office, in principle, ACV is an independent legal entity. In civil contracts, such as commercial contracts and economic contracts in this case, ACV is fully eligible to file lawsuits according to the provisions of the Civil Procedure Code and settle disputes according to the regulations. “If the parties do not fulfill their obligations, violate the contract, the other party can file a lawsuit for non-performance of the contract. In addition, there are fines, contract violation fees, and actual damage arising. When there is a court ruling, the enforcement agency will carry out the execution if the parties cannot resolve it during the reconciliation process,” lawyer Thiep analyzed. ACV plans to initiate legal proceedings against airlines for outstanding debts worth billions of dong. (Illustrative photo) Prior to this, ACV reported to the Ministry of Transport on certain tasks that need to be implemented to recover debts from domestic airlines that are violating payment obligations to the unit. As of the end of 2023, ACV had to provision short-term receivables of nearly 3,600 billion dong from domestic airlines, accounting for 40% of customer receivables. Of which, the majority of debts were incurred by airlines during the COVID-19 period. In 2023, despite the efforts to recover debts, the airlines still failed to meet the requirements, demanding that the service provider apply more stringent measures to enforce contractual violations. Specifically, ACV establishes criteria for legal proceedings, suspends services provided to airlines that violate them, and seeks opinions from relevant authorities. Currently, ACV manages, invests in and operates a system of 22 airports nationwide, including 9 international airports: Tan Son Nhat, Noi Bai, Da Nang, Vinh, Cat Bi, Phu Bai, Cam Ranh, Phu Quoc, Can Tho, and 13 domestic airports: Buon Ma Thuot, Lien Khuong, Rach Gia, Ca Mau, Con Dao, Phu Cat, Pleiku, Tuy Hoa, Chu Lai, Dong Hoi, Na San, Dien Bien, and Tho Xuan. The post ACV Calculating Measures to Recover Debts, What Does the Airline Say? appeared first on xe.today.

Airline administrative costs can add up quickly from customer payment declines -- driven by insufficient funds, authentication errors, and excessive authorisations. See how our best practices for payments optimisation can improve the customer experience while significantly reducing processing costs for airlines. https://lnkd.in/gssV6kF4

Thank you SME Futures for the interview with Alvin Ho on how Air8 Finance provides accessible supply chain finance to the SMEs to navigate international trade.     "Financial institutions typically rely on traditional credit underwriting methods, heavily emphasizing financial data. These institutions often lack industry insights necessary to comprehend the unique risks associated with SMEs’ operating sectors."   Read the full interview 🔎 :  https://lnkd.in/g37xgkT3 #Air8 #SupplyChainFinance #SMEFutures #SME #Growth #Insights

International Air Transport Association (IATA) is causing “severe financial strain” for start-up and SME forwarders that could propel them out of business. “We are a small company. For us, these are big sums of money. We could have put this money in development, in opening new stations, or put it in the bank to make interest. Now it’s simply sitting there, doing nothing. It’s a very frustrating situation.” Neutral Air Partner's Christos Spyrou said: “This is a major concern for SME cargo agents, and we’re receiving complaints from numerous members. In essence, new IATA CASS associates and cargo agents are experiencing severe financial strain, posing an existential threat to their operations.” Alex Lennane reports. #aircargo #iata #airfreight #airtransport #freightforwarder #cargo #cargopayment #supplychain #logistics #freightforwarding https://lnkd.in/ezyypreC