Strengthening Industry Settlement Systems and IATA's Office Network
IATA is in the midst of a program to further strengthen the management of funds which we handle on behalf of the airlines through the global network of BSPs and CASSs. Changes include the introduction of standardized “best-practice” processes, clear segregation of duties and new technology tools. We are also centralizing most of the back-office functions associated with these activities into five regional hubs.
This program will reinforce internal controls and improve customer service levels. We are also seeking further cost savings for our member airlines, for example by reducing settlement systems data processing costs.
Strengthening ISS will also have an impact on the role of IATA’s field offices. Following the migration of the back-office work into five regional hubs, the offices will assume a broader role for managing IATA’s relationships with airlines and industry partners. They will also undertake political advocacy work with governments.
The offices will continue to carry out those functions related to the management of the industry settlement systems that are best conducted locally. IATA will keep its finger on the pulse of the markets to ensure we are aware of any financial weaknesses before they have the potential to become problems for other participants in the systems.
These changes, which will be introduced carefully and deliberately over the next two years, also allow us to take a fresh look at IATA’s presence in marketplaces around the world. With the migration of ISS work to the regional hubs, we expect to reduce from 61 to 46 field offices in due course.