Kathmandu, December 23:

The International Air Transport Association (IATA) is planning to open its branch in Nepal as soon as it receives a formal nod from the government.

The cabinet meeting is expected to pave way for the Montreal based IATA to open its branch in Nepal, said an official at the Ministry of Culture, Tourism and Civil Aviation.

The country’s airlines flying on the international sector and international airlines operating in Nepal will reap benefits once the IATA opens its branch office in Nepal, the Tourism Ministry official told this daily.

“IATA which has its headquarters in Montreal, Canada, is likely to start its office in Nepal by January if the cabinet endorses the proposal soon,” he said.

The final procedures concerning the issue of permitting IATA to begin its branch office in Nepal are almost complete at the Tourism Ministry level and the proposal will be tabled at the cabinet meeting shortly, he said.

IATA’s presence in Nepal will smoothen the air ticketing process of the airlines flying on the international sector as well as for international airlines operating in the country.

More importantly, the Billing and Settlement Plan can take effect in Nepal only when the International Air Transport Association operates its office here, said Gautam Dash Shrestha, managing director of Nepal Airlines Corporation.

BSP is a worldwide system, which facilitates and systematises the “selling and remitting” procedures of IATA accredited passenger sales agents and smoothens the billing settlement operations for airlines and agents.

BSP is operational in 150 countries while over eighty per cent of airline revenues across the world are ticketed via IATA travel agencies.

Once BSP is introduced in the country, IATA agents will sell air tickets for the concerned airlines while IATA will deposit the cash to airlines’ bank accounts. This will secure, simplify and systematise the ticketing process in Nepal, said Shrestha.

On a similar note, Joy Dewan, managing director of Zenith Travels and member of the Board of Airlines Representatives of Nepal, said IATA’s formal presence in Nepal would definitely help systematise the ticketing process.