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ADM Management & Reduction

Agent Debit Memo (ADM) is the legitimate accounting tool used by airlines to collect adjustments for Standard Traffic Documents (STDs) issued by Agents (Reso 850m) (pdf). In 2015, airlines have issued 2.3 million ADMs transactions for a value of US $ 579 million, incurring an estimated industry cost of US $ 150 million to manage the ADM process.

The cost incurred by the industry for the management of ADMs is extremely high. To respond to this issue, IATA has partnered with ARC to define a global standard: this initiative is referred to as ADM Management & Reduction Project through a dedicated ADM Working Group.

About Solutions Governance Resources

The ADM Management & Reduction Project has initially been endorsed by the Passenger Steering Group (PSG). The objectives of this project are to:

  • Reduce the need for ADMs in various areas, thereby reducing the workload, resources and time spent on post-billing revenue auditing
  • Streamline various work processes and enhancing the ADM process, creating a lean post-billing settlement process
  • Enhance the communication process within the existing workflow and improve business relationships

After identifying inefficiencies in the current distribution chain, solutions found will result in a reduced need for post-billing revenue recovery via ADMs, and their implementation will start taking place in 2017.

More information on the need to reduce ADMs.

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