The International Air Transport Association (IATA) has suspended East African low-cost carrier Fly540 from using its automated bookings and payment system.
In a letter announcing the move, IATA said the airline could have breached its rules under Resolution 850, and ordered all Billing and Settlement Plan (BSP) travel agents to cease issuing tickets and receiving payments on behalf of Fly540.
Under Resolution 850, IATA can order the suspension of an airline’s ticket sales when it owes payments via the BSP, when it ceases all scheduled passenger operations, or when it enters a bankruptcy process.
“IATA has suspended Fly540 with immediate effect, in accordance with the provisions in Resolution 850 ‘Attachment F’. BSP travel agents must immediately suspend all ticketing activities on behalf of Fly540, including the use of automated systems for processing of refunds or other transactions on behalf of Fly540. BSP travel agents must immediately stop using Fly540’s name and numeric code as a ticketing airline,” the notice by IATA read.
A spokesperson for Fly540 could not immediately comment on details of the suspension when contacted by the Nation.