The Agency Programme Joint Council (APJC) met on several occasions (12 October 2020, 28 July 2020 and 21 July 2020) during the past year to discuss the proposed changes to the Local Financial Criteria (LFC) of Southern Africa.
APJC recommended the following for the temporary measures to cope with COVID-19 impact:
- Temporary Local Financial Criteria will be effective from 01 January 2021 until 31 December 2022.
- Temporary Local Financial Criteria to be reviewed every 6 months.
- Amendment to section 2 “CRITERIA FOR EVALUATION OF AGENTS’ ACCOUNTS”. Net Equity, Profitability & Current Ration to be calculated based on two categories: agents selling less than one million Rand in cash per month (average of 12 past months) and agents selling more than one million Rand in cash sales per month (average of 12 past months). This will capture the financial impact during this period due to COVID-19. Changes impacted points: 2.1, 2.2 and 2.3.
- Remove reference to Monthly Remittances in point 22.214.171.124
- Revise the minimum financial security in point 126.96.36.199 for Fortnightly Remittances from ZAR 250,000 to ZAR 330,000
A quorum was present in 12 October meeting (6 Airlines and 6 Agents).
The composition of this council consists of 6 Airlines and 6 Agents.
The APJC voted unanimously to recommend the changes to Conference.
To read the full notice issued issued by IATA, click here.