IATA suspends Arik from airline’s billing system

A Boeing 737-7BD Arik Air aeroplane is seen parked on the tarmac at the local airport in Lagos, file. REUTERS/Akintunde Akinleye

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”.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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