Nigeria Content Online

The director-general, Nigerian Civil Aviation Authority (NCAA),
Harold Demuren said on Monday that the Billing and Settlement Payment (BSP)
system had created more job opportunities in the country’s aviation sector.
He said that the BSP which was introduced in 2008 had also restored
confidence in local travel firms.
BSP is a system designed to simplify selling, reporting and
remitting procedures of the International Air Transport Association (IATA)
accredited passenger sales agents, as well as improve financial control and
cash flow for BSP airlines.
Before its introduction in Nigeria, major airlines required each
travel management firm to produce bank guarantees and performance bonds for as
much as N30 million, thus forcing many to go out of business.
“BSP has restored confidence and mutual trust between members of
the powerful airline cartel and local travel management firms. There has been
tremendous progress since it was introduced,” Mr Demuren said. “Our travel agencies
were almost dead. The foreign airlines were killing them. We fought that battle
and we won. Today, we have the strongest downstream in the aviation sector, the
travel agency system.”
Mr Demuren, who worked with IATA and the International Civil Aviation
Organisation (ICAO) to introduce the system in Nigeria, said BSP was good for
the country.
“Globally, 400 airlines in 160 countries are in the BSP system,
with sales in 2010 exceeding about 200 billion dollars,” he said.
He said more than 26 airlines operating in Nigeria, including Air
Nigeria and Arik Air were also members of the BSP.
Mr Demuren disclosed that the BSP had also brought integrity into
travel management business by protecting airlines against loss of revenue.
“It has helped to reshape the future and fortune of one of the very
important segments, which is often described as the engine of the downstream
sector of the aviation industry. The BSP operations in Nigeria are a big boost
to the government’s desire to protect the downstream sector of the economy and
encourage the growth of travel agencies,” he said.