IATA says no plans to clamp down on ADM system

The International Air Transport Association (IATA) said it has no plans to clamp down on the way in which Agency Debit Memos (ADMs) are being issued to travel agencies through its Billing and Settlement Plan, despite complaints from travel agents that the system is in need of an overhaul. 

ADMs are meant as a legitimate accounting tool for airlines to fine agents whenever tickets are not issued in compliance with the fare conditions.

But many travel agents have called for IATA to step in and impose much stricter controls on the way airlines use the ADM system after British Airways was accused by the trade of issuing “unjustified” fines to travel agents and of viewing ADMs as an “additional revenue stream" for itself. 

Mansoor Pasha, business development manager Jumbo Travel said: “There is a requirement for IATA to step in and regulate the way airlines conduct their business sensibly.”

But when contacted by ATN on this issue, a spokesperson for IATA said the “rules” governing ADMs were already in place.

“The rules already exist and are governed by Resolutions as part of the Passenger Agency Program.”

“If an agency or agencies wishes to discuss and share their thoughts and ideas to enhance the existing rules, they discuss this with the concerned airline, or take it to their agency representatives in the local joint consultative council members.”

The spokesperson added: “The IATA country offices and regional hubs are there to handle travel agent enquiries. I am sure each office deals with any complaints to the very best of its ability.”

Despite complaints from the trade that the level of ADM fines have reached “colossal amounts” from some airlines; IATA also said they were “not aware of any research indicating that ADMs in the Middle East region are higher than in other regions.”