UBA COMMENDED BY IATA, TO HANDLE THE $1BN BSP PROJECT

Apr 10 2008

United Bank for Africa, Africa's Global Bank has been appointed by the International Air Transport Association platform, (IATA) to handle the $1bn the Billings Settlement Plan (BSP) project scheduled to kick off in the country next month. This was disclosed on Wednesday by the DG/CEO of IATA, Glovanni Bisignani during the IATA Aviation day held in Lagos.  Explaining the rational for choosing UBA ahead of other bank, the DG said the international body chose to partner with UBA for the simplified e-ticketing system because UBA had the resources, skills and capability to deliver on the BSP.  He also commended UBA for their efforts in the industry describing UBA a worthy and trusted IATA ally.

The Group Managing Director/CEO, UBA Plc, Mr Tony Elumelu said UBA will continue to support the sector as its success was imperative for economic growth and development of countries in the African Continent. “Already UBA is supporting the development of the industry through funding of travel agencies associated with IATA. We have gone  a step further by supporting the airlines  and we are glad that 30 out of about 100 aircraft coming into the country very soon will financed by UBA”  said the UBA helmsman at the 2 day conference. Elumelu also praised IATA for putting in place the BSP.

BSP is a system designed to facilitate and simplify the selling, reporting and remitting of procedures of IATA Accredited passengers sales agents, as well as improve financial control and cash flow for BSP airlines. BSP operates in 160 countries and territories. Over 80% of worldwide airline revenues are ticketed via IATA travel agencies in the BSP system.

Meanwhile UBA says it is well positioned to deliver exceptional services as the clearing bank to the industry under the Nigeria BSP programme. This was amply demonstrated by Ayo Olaiya, Head of Cash Management at UBA in a presentation titled “Enabling BSP through Banking in Nigeria”. Delegates were taken through details of the travel agency remittance process, settlements to airlines and the value-added solutions UBA will be rendering to IATA, agencies and airlines within the context of the Clearing Bank services. He said “…automation is very critical to the delivery of the requirements and UBA has made significant investment in the requisite infrastructure.” Beyond BSP, he also highlighted other innovative UBA solutions to address needs of the airline and travel agency communities.

The Aviation Day conference sponsored and bankrolled partly by UBA was organized among other things to drum attention to the plight of the industry in Africa. Discussions also dwelled extensively on how to improve efficiency in the industry and the challenges in meeting aviation safety in West Africa. The well-attended event brought together the cream of personalities in the global aviation Industry.