Important Information for all Airlines participating in BSP Germany

Implementation of the
NET REPORTING and REMITTANCE Scheme (Info # 2)

With reference made to our first Information of May 2005, this memo serves to inform you about the
operational activation in the BSP-DE system of the Net Reporting and Remittance Scheme, in the
following also called „NR“.

1. General
By request of the airlines participating in BSP Germany, the System of BSP Germany, with effect
of Monday, July 04, 2005, will be prepared to process Net fares through a so called Net Reporting
and Remittance Scheme (NR).

2. Purpose and Method

Airlines and IATA Travel Agents in Germany will agree/will have agreed in Special Net Fares,
which are fares that deviate from those appearing on the face of the ticket in the fare box. The NR
scheme serves to transparently process and show such Net Fares in the BSP Billing reports, while
the Published Fares appear on the ticket.
E.g.: Published Fare on the Ticket EUR 2000, Net agreed EUR 1500, and Difference EUR 500.

NR in Germany is based on a standard method, globally specified by IATA, called the „Amount
Entered by Agent“. This means that a certain amount, in fact the agreed Net Fare, reported by the
IATA Travel Agent along with the so called Net Remit Indicator, will trigger the NR Processing and
Billing.

3. Practical Application in the GDS

NR Functions will be available in certain GDS (Global Distribution Systems) operating in BSP
Germany. Airlines and IATA Travel Agents will be informed by the individual GDS about the time
as of when the Function will be available. All other details about the GDS features, such as
screens, Entries, Amounts, the NR indicator, can be obtained from the GDS.

Reporting of the data according to IATA Standard has been, respectively will have to be
reconciled between the GDS’ and the BSP Germany.

4. General Requirements as defined by the Airlines

a) Transaction Types: OPATB, OPTAT, and Electronic Tickets (ET)

b) International Tickets only, i.e. no DE Domestic Transactions
c) Commission Rate: must be ‚0’ by default (Net = Net)
d) The “Amount Entered by Agent” must be greater than ‘0’ but must not exceed the total
Transaction value.
e) Form of Payment: Cash and Credit Card allowed, however no mixed payments.
f) Refunds: Only FULL refunds permitted, as usual to be reported via the GDS functions. In case
of partial refund, the documents must be submitted to the Ticketing Carrier.

5. Validations by the BSP System

a) The above requirements, along with others serving to secure the plausibility of a transaction in
itself, will be validated by the BSP System. In case of errors, the NR-indicator will regularly be
reset and the transactions get processed according to normal rules, i.e. not as NR. Severe
errors can lead to a total reject of the transactions, as usual.
b) The BSP cannot further validate the applicability and level of NR fares.
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International Air Transport Association

Poststrasse 2-4
60329 Frankfurt am Main
Germany
Tel: +49 69 24 25 36 16
USt-Id-Nr.: DE114112610 www.iata.org Fax: +49 69 25 19 50
 NR Page 2

6. BSP Billing Reports, Display, Accounting of Mark-ups (for CC FOP only)

a) As already communicated in May2005, the layout of the BSP Reports (Analysis and
Statement) has been adapted to accommodate NR requirements. Additional verbiage will be
shown whenever a Billing contains NR Transactions, in order to explain how to read the
Report.
b) Responsibility for participation in the NR scheme lies in full with the Business Partners,
see item 7. The sole responsibility of the BSP System, as such, is to facilitate the orderly
Billing of NR transactions, based on the input of the participants, in the usual manner.
c) IATA Travel Agents may want to collect a mark-up from their customer, apart from the ticket
price. In such case, and provided the FOP is against Credit Card, (not for CASH), such mark-
up when reported by the IATA Travel Agent to the BSP will automatically be added to the
invoice raised by the BSP System towards the Credit Card. This in turn will trigger that the
IATA Travel Agent automatically will get credited by the mark-up amount, in the form of a
negative Payable Balance, at transaction level.
In such case, the credit card fee will be born by the ticketing carrier-

7. Participation in the Scheme, Responsibilities, preliminary and subsequent systems (e.g.

Back-Office)

a) General
Both Business Partners, IATA Travel Agency and Airlines, based on each of their bilateral
Business Relation, will be responsible as to whether and to which conditions, prices or other
agreements they will enter into the scheme. These conditions will be communicated and
lodged outside the BSP Germany System. This may, but not necessarily needs to encompass
that NR prices etc can be lodged in the GDS.
Note:
Participation in the NR Scheme of BSP Germany will be on a fully voluntary basis, for both of
the business partners. Any other existing methods, such as the usage of so called IT
Ticketing, will remain available for processing through the System of BSP Germany.

b) Participation of Airlines
ƒ Each Airline will approach the BSP and advise their participation in the NR Scheme, at a
general level. All transactions reported by the IATA Travel Agents to the BSP, will be
validated with regard to this general admissibility by airline. In case of non compliance, the
transactions will be processed normally.
ƒ The airline, once general participation signalled to the BSP, will select those IATA Travel
Agents they wish to do NR business with, and inform these accordingly. The Carrier also
will agree and communicate fares, conditions etc with these Travel Agents.

c) Participation of IATA Travel Agents

The BSP System will not perform any validation whether the IATA Travel Agent, in particular,
is authorised to issue NR transactions for an airline. Further, the responsibility for correct
application of tariffs and conditions, as well as the proper use of the special GDS NR function,
is with the IATA Travel Agent.
Individual GDS’, in their own responsibility may provide the feature to check ticketing
applicability by agent and airline, already at time of ticketing. Such checks will be outside the
scope of BSP Validations.

d) Preliminary and subsequent systems

All IATA Travel Agents and Airlines, before joining the NR scheme, are urged to make sure
that all other systems in their service, which may be dependent from data or reports from the
BSP, are compliant and prepared to process the NR specific formats.

BSP Germany is prepared to provide specific NR related HOT information to airlines, upon
pertaining signal.

June 2005