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Aviation Future Corporation

The IATA Billing and Settlement Plan (BSP): A Comprehensive Overview

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The IATA Billing and Settlement Plan (BSP): A Comprehensive Overview Introduction The IATA Billing and Settlement Plan (BSP) is a global financial framework designed to streamline and standardize transactions between airlines and travel agents. Operating across more than 180 countries and territories, BSP eliminates the need for multiple bilateral agreements by providing a unified, efficient settlement mechanism. It serves as a critical financial infrastructure for the global air transport ecosystem. Core Components and Structure BSP Architecture Geographical Coverage: Implemented through local BSP operations in 180+ countries. Participants: IATA-accredited Passenger Sales Agents and participating BSP Airlines. Currency Handling: Supports settlement in a wide range of local currencies, including USD, EUR, GBP, JPY, CAD, AUD, CNY, CHF, SGD, BRL, INR, AED, and others. BSPlink – The Digital Platform BSPlink is the centralized web-based system that enables standardized global processing...
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Reservation Booking Designator (RBD)

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Reservation Booking Designator (RBD) Airfares are composed of fare and rule components that define the product, services, and pricing. These components include the origin/destination pair, fare class, one-way/round-trip indicator, fare amount, validity dates, mileage, and other specific rules. To manage and sell airfares, airlines use inventory allocations within finite, alphabetically-defined sub-groups known as "inventory buckets," each associated with specific fare codes. This method of defining and managing airfares through fare codes has been in use since the early days of commercial air travel, even before computerised reservation systems were introduced. With the advent of computerised systems in the 1960s, this approach was further refined and became widely adopted across the industry. The booking class of a flight, such as F, D, J, I, Y, or M, is determined by its Reservation Booking Designator (RBD). The RBD code is used during the reservation process to identify th...
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Airline Code Sharing & Special Prorate Agreements (SPAs)

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Special Prorate Agreements (SPAs) Special Prorate Agreements (SPAs) are agreements between two or more airlines that govern the sharing of revenue and expenses on specific routes. SPAs are often used when airlines codeshare on a route, but they can also be used in other situations, such as when airlines have a joint venture on a route or when one airline leases aircraft to another airline. SPAs can be complex, but they typically cover the following areas: Revenue Sharing : SPAs typically specify how revenue from shared flights will be divided between the airlines. This can be done on a number of different bases, such as the number of seats each airline sells, the distance each airline flies or the type of aircraft each airline uses. Cost Sharing : SPAs typically also specify how the costs of shared flights will be divided between the airlines. This can include costs such as fuel, landing fees and crew costs. Marketing and Sales : SPAs ...
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RUNWAY

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RUNWAY is a place where Aircraft Lands and Takeoffs. A Runway is a defined area at an airport, most commonly made from asphalt and concrete, for takeoff and landing of aircraft. Depending on the airport, this area could be nothing more than a strip of grass, dirt, or sand. However, most airport Runways are made from asphalt and concrete. Either way, the tarmac is the paved Runway at the airport. The term tarmac refers to the area of an airport where airplanes taxi, or pull up to a gate, or head out to the Runway. The Runway itself is also called the tarmac. The name comes from a specific tar-based paving material that's also commonly used on roads. A Runway is a defined rectangular area on a land aerodrome prepared for the landing and takeoff of aircraft. Runways may be a human-made surface or a natural surface. They are often made of asphalt, concrete, or a mixture of both, but they can also be made of grass, dirt, gravel, ice, sand, or salt. Runways are sometimes referred to as ...
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