Press Release

Issued by The Air Charter Association.

June 29, 2011

BACA (The Baltic Air Charter Association) has launched an escrow facility to provide a secure deposit for funds being paid in advance by customers for air charters.

"This will enable BACA brokers to offer their clients safeguarded advance payments for charter flights or programmes, and also for charter operators to have total reassurance that deposits made on their behalf are secure, even in the event of cancellation prior to flight date," explains Dick Gilbert, BACA Chairman.

The facility, set up under associate company BACA Escrow Services Limited, will act as a safe, independent depository for funds paid in advance of a flight, provided that both parties agree to its use in each case.

"Each transaction is individual, customised to the requirements of that particular operation," he says. "And the actual process of moving funds in and out of the relevant accounts is administered by an independent accountant, so there is no risk to confidentiality."

BACA has set up the service in response to requests from members seeking to protect both themselves and their clients from the potential financial difficulties that may arise when an aircraft operator is unable to provide the service for which it has already been paid, partly or wholly.

"In the UK, the CAA and ABTA provide protection for buyers of air tickets or package holidays, but nobody protects the buyer of an air charter. That is the gap we aim to fill.

"There are alternatives, such as a broker setting up an escrow account on a trip by trip basis, or taking out insolvency insurance, but these can be expensive and insurance can vary hugely from case to case or even be refused," Mr Gilbert says.

"Our service is run for members and not as a source of revenue. It has a predictable cost, which is lower than most comparable options, and which remains the same irrespective of the operator used or the level of risk."