Kenyan-based low-cost airline Fly540 has unfortunaltely had its online ticketing system suspended by the International Air Transport Association (IATA).
IATA announced the suspension in an official statement, indicating that Fky540 had violated its Billing and Settlement Plan (BSP) rules under Resolution 850. This was followed by an order to all travel agents to stop issuing tickets and receiving payments on behalf of Fly540.
Under Resolution 850, IATA is able to order the suspension of an airline’s ticket sales when it owes payments via the BSP, when it ceases all scheduled passenger operations, or when it enters a bankruptcy process.
On the other hand, the BSP is an electronic system operated by IATA that allows authorised travel agents to book tickets and manage the payments for airlines registered with the system. IATA currently has over 88 BSPs across the world covering various markets.
This suspension on ticketing for Fly540 now means that passengers will not be able to book flights as usual. Additionally, travellers who had already booked flights will have to wait until the travel agents collecting payments agree with Fly540 on how refunds can be settled.
“IATA has suspended Fly540 with immediate effect, in accordance with the provisions in Resolution 850 ‘Attachment F’. BSP travel agents must immediately suspend all ticketing activities on behalf of Fly540, including the use of automated systems for processing of refunds or other transactions on behalf of Fly540. BSP travel agents must immediately stop using Fly540’s name and numeric code as a ticketing airline,” the notice by IATA read.
This development comes months after Fly540’s rival, Jambojet launched its own web app to help customers with online ticket booking.