BACA Launches New Standard for Air Charter Brokers

Nov 11, 2009 9:52 AM

The world’s largest air charter broker organization is launching a ‘BACA Standard’ to raise the trading standards and business ethics of the air charter brokers within the membership.

Dick Gilbert, Chairman of BACA (Baltic Air Charter Association), announced the scheme at the largest gathering of BACA members and guests ever assembled: the 60th Anniversary Luncheon and Annual BACA Awards ceremony at Guildhall, London.

He explained that all brokers would be assessed to ensure they conformed to a standard – the BACA Standard – and would then be awarded the status of BACA Accredited Brokers, a title to be renewed probably every two years. Although the level should be achievable by most brokers at the outset, the standard would be steadily raised with more and more requirements for training and professionalism being added over the coming years.

“The eventual aim is for the BACA Accredited Broker logo to be an established seal of quality, to be sought by airlines and the charter-buying public in the same way that one looks for a Blue Flag on a beach, ABTA protection from a travel agent or a little lion on an egg," Gilbert said. "And should there be any inclination in the future for UK or European governments to enforce standards for air charter brokers (as may well happen in the USA) then BACA will be in a strong position to defend its members from such interference by providing evidence of the Accreditation scheme already in place.”

Gilbert said details would be sent to members in 2010 and it was hoped they would give it enthusiastic support.

Gilbert said BACA was also working to establish a BACA escrow account, which would provide a safe third-party holding facility for deposits required by airlines for flights that would take place in the future.

"Brokers, or their clients, who might be concerned that the airline might go out of business in the interim – and their money could therefore be lost - would be able to retrieve the funds from this account," Gilbert said. "On the other hand, the airline would know that a deposit had been made and the booking was secure. When the flight actually took place, the funds would be transferred to the operator."

Gilbert said the BACA escrow account would be cheaper and simpler to use than escrow accounts controlled by the legal profession and it would be more predictable and comprehensive than insolvency insurance. Charter brokers had indicated they were eager to get the system up and running as soon as possible.

Gilbert also said, however, that evidence showed operators and airlines were not enthusiastic about the concept because they preferred to have the funds actually deposited into their bank accounts. Although the airlines claim this is necessary because they have to pay for fuel and other items in advance, Gilbert said this can sometimes be because they need the cash flow to pay for flights taking place in the immediate future, rather than for the actual flight in question, which may be some months ahead.

“Brokers and their clients might feel aggrieved that their money is actually being used to pay for somebody else's flight, and this might give even more cause for concern regarding the long-term stability of the airline in question, thus making the security of the BACA escrow account even more vital,” Gilbert said.

Gilbert asked that brokers close ranks and insist that airlines acknowledge and accept the account facility, which should be operating next year. Operators should not lightly ignore the views of the largest charter broker association in the world, he said.

Gilbert then asked the guests to support generously the raffle held in aid of Under Tree Schools, the current association charity that supports the education of girls in southern Sudan. Finally, he thanked the many sponsors, the organizers and council and TV sports personality Clare Balding for entertaining the guests and for helping to make the event a success.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.