Press Release

Issued by The Air Charter Association.

October 29, 2009

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

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

He explained that each broker would be assessed to ensure they conformed to a standard – the BACA Standard – and would then be awarded the status of a BACA Accredited Broker, 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. 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.”

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

BACA is also working on establishing a BACA escrow account. “The account is intended to provide a safe third-party holding facility for deposits required by airlines for flights that will 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. 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.”

Mr Gilbert said the advantage of the BACA escrow account was that it 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 that they were eager to get the system up and running as soon as possible.

He did admit however, that there was also evidence that 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 that this is necessary because they have to pay for fuel and other items in advance, Mr Gilbert suggested that this can sometimes be because they need the cashflow 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.”  

Mr Gilbert called for the brokers to close ranks and insist that airlines acknowledged and accepted 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.

Mr Gilbert then asked the guests to support generously the raffle held in aid of Under Tree Schools, the current Association charity which supports the education of girls in southern Sudan. Finally he thanked the many sponsors (especially Air BP, the main event supporter for the third consecutive year), the organisers and Council, and particularly TV sports personality Clare Balding for entertaining the guests so brilliantly and for helping to make the event such a success.