Air cargo agents are upset with the International Air Transport Association (IATA) over a proposed centralised payment system which, they say, the Association has not discussed with them.
IATA says the new Cargo Accounts Settlement System (CASS) will simplify billing and settling of accounts between airlines and freight forwarders.
But, agents say lack of standard operating procedure on the billing cycle and resolving payment dispute could affect them. IATA will receive all fees payable to various airlines from an agent and subsequently distribute it to individual airlines.
By end of 2013, CASS collectively served over 500 airlines, General Sales and Service Agent and Ground Handling Companies, settling a combined $31 billion.
In India, the plan was to introduce CASS after preparing a manual of the programme in consultation with Air Cargo Agents Association of India (ACCAI). The manual will have adequate ‘checks and balances’ on issues like erroneous billing delayed payments.
“However, IATA unilaterally wanted to introduce the system without taking into consideration our views,” said an air cargo agent.
“While it is optional for IATA members (airlines) to participate in CASS, it was mandatory for agents,” he said.
Full paymentUnder CASS an agent has to pay fulleven for erroneous billing and seek corrections later. One decimal error can prove disastrous. The trading licence of a leading air cargo transport company was suspended in Europe for an erroneous debit of one Euro cent. This can happen even in India, he said.
A genuine commercial dispute with one airline can lead to total suspension of business. ACAAI filed a complaint with the Competition Commission of India (CCI), which ordered an investigation of the issue. But the Commission did not accede to its request for an injunction on introduction of CASS,he said.
The Cargo Agents Association which appealed to the CCI Appellate Tribunal withdrew it after the IATA counsel recorded in that last hearing that CASS was a voluntary pilot project with no compulsion on the agents or airlines to participate. However, Emirates SkyCargo has now said that it will migrate to CASS export billing with immediate effect and there will not be any non-CASS billing after May 30. “We now plan to go back to the CCI with the Emirates’ case for clarification. Introduction by one airline will set a precedent for others to implement it,” said a cargo agent.