Agency Debit Memos – Ethiopian Airlines Policy

Effective 1 June 2014

1. Scope

1.1. Ethiopian Airlines will issue an ADM to collect amounts or make adjustments to agent transactions related to the issuance and use of Ethiopian Airlines traffic documents, issued by, or at the request of the Agent, regardless of which airlines are included in the itinerary of the Ethiopian Airlines traffic document. An ADM may also be used to collect amounts where a traffic document has not been issued, if agreed with the Agent, for example, for deposits for group sales.

1.2. It is Ethiopian Airlines policy to mandate the use of electronic tickets- “e-tickets”.

2. Ethiopian Airlines Practice

2.1. An ADM will only be submitted for processing through the BSP to adjust sales if issued within nine months of final travel, or when the final travel date cannot be established, the expiry date of the document. To adjust refunds, an ADM will only be issued within nine months of the BSP remittance month in which the document was settled. For any charge due beyond this period, Ethiopian Airlines will agree with the Agent bilaterally the best settlement method and only submit an ADM through the BSP process if agreed in writing by the Agent.

2.2. Ethiopian Airlines provides a minimum notice period in compliance with BSP guidelines for agents in order to review the ADM and dispute it.

2.3. An ADM will not be issued for a value less than USD 10 or equivalent, except in the case of taxes. However, if there is a persistent practice of under-payment (multiple occurrences of under payments less than USD 10 or equivalent) by the same Agent (IATA location), Ethiopian Airlines may raise an ADM to recover the under-payments. Ethiopian Airlines reserves the right to vary the minimum value of ADM at any time without notice.

2.4. Ethiopian Airlines will endeavor to provide as much information as possible on an ADM to ensure it is specific in its detail about the reason a charge is being made.

2.5. Ethiopian Airlines will only include more than one transaction on any ADM if the reason for the charge is the same and will provide details with the ADM.

2.6. Ethiopian Airlines will only issue more than one ADM in relation to the same original ticket, if different, unrelated charges apply. (This does not apply when an ADM is cancelled and raised again for the same reason but for a different value.)

2.7. It is Ethiopian Airlines policy to mandate the use of electronic tickets “e-tickets” on routes where e-tickets are available. Where a paper ticket is issued for an e-ticketable journey, Ethiopian Airlines may impose a charge that will be collected by ADM.

2.8. Ethiopian Airlines will not levy administration charges to cover the cost of ADM issuance by Ethiopian Airlines.

2.9. Ethiopian Airlines does not allow commission on rebooking and refund penalties to agents participating in BSP locations where Ethiopian Airlines allows commission.

2.10. If Ethiopian Airlines raises an ADM for non-compliance with fare rules, the general principle applied is to raise the fare to the next higher applicable fare level which satisfy all fare conditions of the utilized traffic document, including the relevant violated rule(s). Any divergence from this principle (e.g. a fixed amount penalty charge) is communicated to the Agent in advance, e.g. through notes in the fare rules, by letter or any other communication used in the market in question.

2.11. Ethiopian Airlines will endeavor to handle a rejected or disputed ADM in a timely manner. Where an Agent has disputed an ADM within the dispute period, provided the dispute was sent to the address notified on the ADM in question, Ethiopian Airlines will acknowledge receipt of the Agent’s dispute, either via a status change in BSPlink or through a separate communication and stop the submission of the ADM onto the Agent’s billing analysis. If Ethiopian Airlines reject the dispute an explanation for the rejection will be sent to the Agent.

2.12. Agents with BSPlink access may dispute an ADM via their BSPlink dispute facility within the ADM dispute period. If Ethiopian Airlines do not agree with the dispute, an explanation will be communicated to the agent prior to rejection of the dispute on BSPlink, provided that they put specific contact details when logging a dispute in BSPlink to enable Ethiopian Airlines to make contact concerning the dispute.

2.13. If an Agent disputes an ADM after it has been included in the BSP settlement Ethiopian Airlines will investigate and communicate their decision on the dispute within 30 days from the date of receipt of the dispute. In circumstances where the Agent has furnished insufficient information to support the dispute or the airline decision is subject to further commercial consideration, Ethiopian Airlines will communicate their decision no later than 2 months from the date of receipt of the dispute. Ethiopian Airlines may not accept disputes on ADMs billed after 60 days from the date of the ADM issue.

2.14. Except where otherwise agreed in a market, in consultation with Agents individually or collectively, Ethiopian Airlines will not use an ADM to collect third party costs not directly associated with the initial ticket issuance of a passenger journey.

3. Ethiopian Airlines expect travel agents:

3.1. To train their staff in ADM procedures; their purpose and the dispute period that exists.

3.2. To ensure that when an ADM is disputed, the response is specific in detail and the relevant supporting information is sent to Ethiopian Airlines to the address indicated on the ADM or as attachment to the dispute.

3.3. Not to dispute an ADM where the reason is valid and evidence to the contrary is not available.

3.4. To raise all disputes within the BSP dispute period (according to Resolution 850m).

3.5. To ensure that their contact details (phone numbers, fax numbers and email addresses) are up to date in BSPlink.

3.6. To provide specific contact details when logging a dispute in BSPlink to enable Ethiopian Airlines to make contact concerning the dispute.

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