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Iata Clearing House  
User currently offlineTR1 From United States of America, joined Sep 2004, 261 posts, RR: 1
Posted (3 years 9 months 3 weeks 1 day 11 hours ago) and read 5250 times:

On various posts over the years I see mention of the IATA Clearing House. What purpose does this serve? What airlines are suspended from it? A recent thread mentions that AR is one of these.

I did a search and found nothing that could answer this question.

6 replies: All unread, jump to last
 
User currently offlineLAXintl From United States of America, joined May 2000, 24724 posts, RR: 46
Reply 1, posted (3 years 9 months 3 weeks 1 day 11 hours ago) and read 5239 times:

Google is your friend.

Per IATA's own website
http://www.iata.org/whatwedo/finance/clearing/Pages/ich.aspx



From the desert to the sea, to all of Southern California
User currently offlineflyingalex From Germany, joined Jul 2010, 1016 posts, RR: 0
Reply 2, posted (3 years 9 months 3 weeks 1 day 3 hours ago) and read 4978 times:

As you can see from the link given above, the IATA Clearing House are the people who make sense of this sort of financial mess:

CPH-LHR-HKG, first leg on SK, second leg on NZ, on BD ticket stock (236-XXXXXXXXXX)

or FRA-ZRH-JNB-CPT, first leg on LH, second leg on LX, third leg on SA, ticketed on UA stock (016-XXXXXXXXXX)

And that's without even going into IRROPS or the like.


It saves a lot of administration costs for the airlines, and the netting process keeps the shuffling back and forth of money between airlines to a minimum.

Oh, and as for the suspended members, if you look on the page linked to above, on the right side there's a link saying "ICH Member List (pdf)". That shows you all current members, plus their codes and their status.

[Edited 2010-09-24 04:25:08]


Public service announcement: "It's" = "it is". To indicate posession, write "its." Looks wrong, but it's correct grammar
User currently offlineUSXguy From United States of America, joined Jan 2006, 1009 posts, RR: 5
Reply 3, posted (3 years 9 months 3 weeks 18 hours ago) and read 4706 times:

Its a way to transfer tickets and funds between airlines... like a "bank" exchange. In the US, its called ACH - Airlines Clearinghouse, which has ties to ARC. Canada its called BSP.

Lets say I run USXAirways. I pay Lufthansa to handle my flights in Berlin and British Airways in Madrid. Each carrier will typically require we pay eachother thru the clearinghouse - a better "guarantee" of getting paid. As with any business, just sending an invoice doesn't always work, but as long as I'm in the clearinghouse, I have some type of deposit on record and they have direct access to my bank.. so a bill may come thru and *zap* funds are removed.

This also works for airline ticket lifts.



xx
User currently offlineTR1 From United States of America, joined Sep 2004, 261 posts, RR: 1
Reply 4, posted (3 years 9 months 3 weeks 17 hours ago) and read 4657 times:

Thanks for the responses guys. Would anyone know whether suspension from the clearing house would also affect airline staff non-rev ID90/ZED ticketing agreements? Around the time I first heard of AR's suspension from the clearing house was also the time when my company's non-rev agreement with AR was terminated.

User currently offlineUSXguy From United States of America, joined Jan 2006, 1009 posts, RR: 5
Reply 5, posted (3 years 9 months 3 weeks 16 hours ago) and read 4584 times:

Most airlines typically require an interline agreement to do self ticketing travel on other carriers. Unless the OAL pass bureau issues travel authorizations or tickets for you. I believe there may be some exceptions thru ZED.

with the movement to ID90T and Lufthansa System's NonRev programs, this will become less and less of a requirement. So if I want to fly Hawaiian from SEA to HNL, I go on to ID90T, select hawaiian air, then request my ticket, which should take a matter of miniutes to be issued. And if HA then goes out full and Alaska has room, I can then get back into ID90T, select Alaska, and do my listing & ticketing for my flight.

This is the new wave of NRSA travel   No more planning a month out to get passes on all the carriers needed!



xx
User currently offlinejcded From Switzerland, joined Jan 2004, 213 posts, RR: 1
Reply 6, posted (3 years 9 months 3 weeks 16 hours ago) and read 4529 times:

BSP and Clearing house are not the same thing, BSP is billing and settlement plan which deals with travel agents paying airlines through IATA, BSP systems exist in most counties/regions in the world but final handling is handled at IATA headquarters in YMQ. Whereas IATA Clearing House is strictly between airlines and select non-airline partners. ACH is in fact run by ATA (Air Transport Association, not affiliated with IATA) and Chase Bank, their systems were antiquated compared to IATA's.

Usually a suspension from the Clearing House means that the airline is in dire straits and has not been able to meet payment or liquidity requirements. Whether partner airlines choose to do business with them is their decision. Airlines may see a suspension from Clearing House as a bad sign and refuse Industry Discounts, but it isn't automatic.



You breathe to do good and have fun.
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