IATA cancels Cox & Kings licence for sale of tickets
Cox & Kings on Monday said the International Air Transport Association has cancelled its licence for selling tickets.
lATA is entity which oversees the credit lines and settlements for the airline tickets being sold to company/travel agencies and the payment to these airlines are made via a system called Billing & Settlement Plan (BSP). The company/travel agencies need to settle value of airlines tickets issued on weekly basis.
IATA’s action comes after Cox & Kings defaulted on payment on commercial papers. While IATA is concerned about the company’s abilities to settle payments, Cox & Kings said it recently renewed the bank guarantees and the insurance policy that secures IATA for three billing cycles based on the current pace of business.
