Appeal No. 2005-0823
Application No. 10/300,895 Page 20
Reporting (IAR) function as its back-office BSP
supplier says Bruce Bishins, president of U.S. Travel
Agent Registry;"
"Bishins said the airlines ‘alleged that ARC would
soon ‘enhance’ IAR to move the world to daily reporting
with daily cash sweeps against agent bank accounts; so-
called ‘interactive reporting’ functions would became
involuntary and mandatory with all ticketing activity
reported as it occurs; and that IAR would facilitate
airlines amending the vast majority of ticketing time
limits to instant or 24-hour ticketing’" and
"the KPMG study recommended retaining BSP presence
in 60 worldwide markets to ensure customer service, but
to consolidate back-office functions with six suppliers
in six regional groupings. IATA currently uses 45 data
processing suppliers and 65 separate banks for its BSP
functions.
‘KPMG said if you shrink it down to six, you can
produce substantial economies of scale and reduce
operating costs to airlines,’."
From the disclosure of IATA we find that IATA's plans to
consolidate its BSP functions could lead to a mandate that travel
agents settle their accounts daily, if IATA chooses ARC and its
IAR as its back-office BSP supplier. In addition, we find that
even though ARC says it has no plans to make all reporting daily,
that the airlines alleged that ARC would soon enhance IAR to move
the world to daily reporting, and that agents would want daily
reporting. We additionally find that IATA currently has 45 data
processing suppliers and 65 separate banks for its BSP functions,
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