Worrying developments from Spain with news that online travel agency TerminalA has lost its IATA licence in a row over payments through the Billing and Settlement Plan (BSP).
The company is currently only selling air tickets to low cost airlines such as EasyJet after also being removed from the GDS.
The BSP acts as a clearing house for payments between intermediaries and suppliers.
Reports in the Spanish media suggest TerminalA owes the BSP – and, by extension, IATA – around Euro 30 million. HostelTur says TerminalA owes Euro 2.5 million is owed to Iberia, Euro 1.5 million to Spanair and Euro 900,000 to Air Europa.
TerminalA is one of the biggest OTAs in Spain – behind Rumbo and eDreams – and commands between 5% and 10% market share.
It has regional versions of the site for users in France, Portugal, Belgium, Italy, Austria, Switzerland, Holland, Denmark, Sweden, Finlanbd, Norway, Russia, Poland, Czech Republic, Hungary, Ireland, UK and the US.
Falling foul of IATA in such a dramatic way has led some to question how Terminala will renegotiate its way back into the system.
Airlines have apparently demanded additional financial guarantees from Terminala, although there is growing confusion as this normally happens by individual carriers rather than through an across-the-board direective by IATA.
Nevertheless, TerminalA has grown quickly in Spain and in other markets around Europe.
It has also entered a number of aggressive price wars with other OTAs – a strategy fraught with risk as most agencies buy seats at the same price.
Although well regarded for technology combining GDS fares and feeds from LCCs, TerminalA has not tapped into the ancillary market which some feel is needed to make the middle ground OTAs push ahead financially.
A TerminalA spokeswoman says:
“TerminalA is a travel agency with a valid license to maintain its activities, in spite of temporarily having its IATA license revoked.
In the current difficult global economic situation, both IATA and a number of  airlines have, in view of the growing size and activity of TerminalA, requested additional important bank guarantees [which] were not acceptable for the company.
TerminalA is currently negotiating a solution and has in the meantime reached agreements with different fulfillers to allow TerminalA to maintain its normal business activity such as is the usual practice in the industry.
TerminalA customers around Europe in all 19 markets in which TerminalA is currently active continue to buy their flight tickets through the websites and all TerminalA’s main technical and marketing partners are giving full support to the company.”
UPDATE: Comment moderation is turned on for this article. We have received a number of defamatory statements which cannot be substantiated, so please keep comments within acceptable limits for libel.
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Have been trying to rebook for over 2 weeks with Terminala telling me that the airline can rebook and the airlines saying only Terminala can do this …..a perfect stalemate!! What rights have the clients at this stage?
Have been trying to rebook for over two weeks with terminala telling me that the airlines can rebook and the airlines saying terminala can do this. A perfvect stalemate!! What rights have the clients at this stage?
Much to our regret we must inform you that Terminal A, since middle of last month has opened a period of negotiation with creditors and airlines to pay their debts so postponed, having put this matter to the attention of the authorities. However, the response of the airlines is not to collaborate, but press. That is, some tickets improperly canceled without reason, and others do not attend changes and cancellations that their customers request. They only assign responsibility to Terminal A. But Terminal A as a single agent can respond to changes and cancellations if the company provides access to flight availability and rates, and are those companies had cut that access.
We remind here that you are a client of Terminal A as you are of the airline from which you purchased a ticket, and in the current situation the only one that can give adequate attention is the airline. So please insist on your request to the airline, and if not adequately attended you are in right to report the situation to any Office of Consumer Affairs. The complaint is a letter that must contain your identification data, your ticket data, the price of your ticket, and a brief explanation that your request is not attended by the airline or by the Agency or bought.
We are sorry that the airlines use you to exert pressure on Terminal A, and we hope to announce as soon as possible a return to complete normality.
Kind Regards,
Angela Cabarat
Terminal A РService Client̬le
I booked 5 flights with Terminal A in October the first of which was supposedto be this Sunday. My ticket with the airline is suspended because Terminal A have never forwarded my money in full payment. I have had to buy new tickets for these flights! Anyone booking with credit cards should contact their credit card provider to claim non receipt of service under Section 75. Good luck
Booked flights in America in November, arrived at check in desk in February to be told tickets were not valid and had to purchase very expensive replacements. Got no help from TerminalA, in fact they denied they were at fault blaming the Airline, however after investigating the situation found out that they had not paid the ticket handling agency (HAGN AIR)for tickets, so no money paid to Airline!! Who do I complain to? Tried the European Consumer Centre Spanish office, but they say they ‘spoke’ to TerminalA who denied any wrongdoing, end of inquiry!! Bottom line lost: lots of money an organisation masquarading as a travel agent!!
I am waiting for my money refund of cancell flight
since october 2009.
TerminalA is telling me that is problem because
is bancrupt
I have launched a European Small Claim Action against Terminal A, it will take a few months to process through the system. Will give update regarding progress and success??
I have instructed solicitors to take legal action against TerminalA as they claim insolvency but are still trading. They refuse to refund my flight payments after cancellation due to the volcanic ash. They took my money quickly enough. Dreadful service and would warn anyone against using them
Hi I booked with terminala for flights to canada christmas 2009 flight cancelled due to weather. told I would get a refund but no look yet. have been trying since jan 2010. looking to take legal action…any thoughts would be great
Tony, Claim flight tickets cost back from your Credit card provider or if you paid by Debit card (Visa) make a claim through your bank (Visa operates a compensation system similar to the credit card system). For any additional costs up to 2000 euros, you can make a claim using the European Small Claim procedure, you will find details on the web.
I tried to claim back from Visa and they refused, which is why I am using my legal expenses cover on my household insurance to take legal action either against TerminalA, the airline or visa
we booked 7 tickets back in october 2010 we wanted to cancel due to illness in family but refused refund told us to send email to cancel to which we found out that they insolvent why are they still trading nearly £2000 we have lost
sorry october 2009 for holiday in august 2010