Agency Debit Memo Policy

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Agency Debit Memo Policy 

1.0 General

Gulf Air (GF) uses multiple distribution channels for its fares, cargo, and ancillary products to cover the widest reach and provide convenience to potential passengers. This process entails allowing travel agents around the world access to GF’s inventory through multiple Global Distribution Systems (GDS). The nature of this open exposure to GF’s inventory imposes risks of abuse and causes large revenue losses. Accordingly, these Procedures and Guidelines list and define the revenue violations that Gulf Air will inspect for, and issue ADM against. 

 

2.0 Issuance Principles

In line with IATA resolution number 850m addressing the issuing and processing principles of the Agency Debit Memos (ADMs) and, IATA resolution number 830a addressing the consequences of violation of ticketing and reservation procedures, and IATA resolution number IATA 824 listing the passenger sales agency agreement terms and conditions, GF hereby issues this ADM Procedures and Guidelines to list and define the revenue violations that will be inspected and charged by ADMs. 
a) For BSP Agents, an ADM is issued through the Bank Settlement Plan (BSP) link:
• within nine months from the last travel date for Fare & Tax Violations, and 
• Within nine months from the date of refund for Refund Violations.
GF reserves the right to claim any dues beyond this period (i.e. nine months) outside the BSP, and agree with the Agent on the best settlement method. 
 
b) For non-BSP Agents, GF is not restricted to a time frame within which a violation may be disputed or an ADM (or Manual Invoice) issued.
c) Manual Invoices will be sent to the respective non-BSP Agent through their respective GF Local Office.
d) GF may issue more than one ADM per ticket in cases where different violations are reported for the same ticket. In such cases each ADM will specify the nature of violation and the relevant adjustment.

 

3.0 List of Violations

Different violations (Fare, Tax & Refund Violations) are inspected by GF and consequently ADMs are issued. These violations include, but are not limited to;
• unreported tickets
• pricing variances
• GDS / Booking abuses and
• noncompliance practices with fare rules and general conditions regardless of whether the ticket is priced manually or through the applicable system.
regardless of whether the ticket is priced manually or through the applicable system.
 
List of GDS/Booking Violations:
 
 

 

Violation

Definition/Description

ADM Value

1

Duplicate PNR cancellation 

GF will automatically cancel duplicate booking (PNRs) issued for the same passenger, and/or the same sector at or around the same date, and will raise an ADM.

USD 15 per passenger per segment

2

Duplicate segment cancellation

GF will inspect for booking with multiple segments for the same passenger with the same origin or destination in the same PNR, or same booking class. GF will cancel one of the duplicate segments, and will raise an ADM. 

USD 15 per passenger per segment

3

Passive segment

When an agent creates a PNR containing a passive segment, GF will cancel the passive segment, and will raise an ADM. 

USD 15 per segment per passenger

4

Fictitious names/booking

GF will inspect for booking containing fictitious names in the PNRs, and will cancel the booking and raise an ADM.

USD 15 per segment per passenger

5

Fictitious tickets 

GF will inspect for booking containing fictitious PNRs, and will cancel the booking and raise an ADM

USD 15 per segment per passenger

6

Groups firming - name & deposit 

GF will inspect for the required deposits for group reservations. In cases where group PNRs do not have deposit paid according to rules and/or do not have names for all seats reserved, GF will send a warning message to the booking source with information about the mandatory deposit payments and/or about when names need to be inserted into the PNR. Failure to submit the specified deposit, or enter the names for all reserved seats will result in GF cancelling the booking in full. 

GF will cancel the booking in full. . 

7

Hidden group 

Where a group reservation is booked with separate individual PNRs to avoid group reservation deposit requirement, GF will raise an ADM

$100 for each passenger

8

MCT violation (minimum connection time violation)   

GF will inspect all PNRs for minimum connection time allowed, and will cancel all PNRs containing connection with minimum timing, and will raise an ADM for all cancelled segments. 

USD 200 per passenger, plus USD 15 per segment, in addition to the resulting stay- over cost

9

Fictitious block seats 

If GF suspects fictitious block seats for which tickets were not issued, or voided tickets were issued, GF will cancel the booking and raise an ADM.

USD 15 per segment per passenger

10

Churning

GF will inspect for instatement of cancelled bookings both for the same PNR and across different PNRs. GF will freeze the ticket time-limit, and an ADM will be raised to the agent.

USD 15 per segment per passenger

11

E-ticket revalidation

If the Agent revalidated a ticket without applying the search charge imposed by GF, GF will issue an ADM to the Agent.

USD 60 per change

12

Inactive segment cancellation 

When GF cancels a segment due to lack of ticketing, but the agent does not remove it from the face of the PNR in the GDS, an ADM will be raised. Example segment status: (HX, UC, NO, UN, etc…). 

USD 15 per passenger per segment

13

COD tickets – collect on delivery 

For itineraries where a return ticket is mandated by law, one PNR should be used for a return ticket. If the return sector is cancelled, without cancelling the booking, GF will cancel the booking and issue an ADM against the ticketing source

full fare amount of the cancelled sector/segment

14

High cancellation rate- unticketed PNRs   

A cancellation of more than 80% for flights departing within a month regardless of the time of generating the bookings will result in raising an ADM.

USD 1 per passenger per segment

15

Speculative bookings 

GF will inspect for blocked bookings made on higher RBDs and cancelled close to the departure date using fictitious names in order to open lower RBD classes and benefit from lower prices.

USD 250 per passenger per segment

16

No show due to void ticket or refund ticket

If the agent fails to cancel the booking for a void or refunded ticket, resulting in a no show case, an ADM will be raised.

Full fare ticket value 

17

Scheduled change 

For every scheduled change such as TL, TK, WK, the agent should remove the old/inactive segment from the face of PNR. Failure to comply will result in issuing an ADM. 

USD 15 per passenger per segment

18

Inventory abuse 

GF will inspect for cases where an agent blocks a seat without completing/ending the transaction.

USD 350 per passenger per segment

19

Fare sales violations

GF will inspect for cases where an agent issues a ticket outside the blackout period and then changes the dates to move it into the blackout period.

The difference between the blackout period rates and the reserved period dates for values of the fare, tax and commission 

20

High cancelation ratio- ticketed segments

Cancelation ratio is allowed up to 20% from total ticketed segments monthly. Any cancellation beyond this rate will be subject to an ADM. 

30 USD per passenger per segment

21

Out of sequence/cross boarded coupon usage

GF will inspect for compliance between the ticketed coupons, and the flown coupons. In cases where GF suspects that a PNR is issued for travel itinerary mismatching the actual trip in order to get lower fare or ancillary costs, GF will deny-board the passenger for the remainder of the coupons, and an ADM will be raised. 

 

 

Flat ADM fee of USD 350 plus the difference between the flown ticket and the booked ticket. Passengers with a DMS segment in their ticket who arrive at BAH airport without taking the bus service and who do not have Saudi residency will be either asked to pay the difference in fare or will be denied boarding.

22

Incomplete itinerary coupon trashing 

If the travel itinerary mismatched the actual trip due to trashing any of the ticket coupons, GF will suspend the remaining coupons, and an ADM will be raised.

Flat ADM fee of USD 350 plus the difference between the flown ticket and the booked ticket values 

23

Excess baggage 

In cases of manipulation of weight records to allow greater weight for a passenger using weight allowance of another non-related passenger, an ADM will be issued with the applicable additional weight charges

Applicable additional weight charges

24

Fraud monitoring 

Any ticket that was blocked “status NOGO” due to suspicion of fraud (credit card fraud, FFP fraud or charge back), should not be actioned. Failure to comply will result in issuing an ADM with the ticket price for the highest RBD on the flight travelled.

Ticket price for the highest RBD on the flight travelled  

25

Ticket time limit on ancillaries 

GF specifies a time limit for each of the ancillary reservations. In cases where a seat is reserved without issuing EMD (Electronic Miscellaneous Document) to settle the cost of the seat, GF will cancel the reservation, or charge the passenger the cost of the ancillary upon departure. GF will also raise an ADM

The maximum value for the same category of ancillary

26

Accepting a passenger without ticket at the airport 

In cases where a passenger should be accepted without a ticket due to a medical, emergency, or deportation case, the option to board the passenger as a “norec” in the system must be approved by the airport manager or the duty manager of the respective station. Failure to obtain such approval will result in issuing an ADM with the Ticket price for the highest RBD on the flight travelled.

Ticket price for the highest RBD on the flight travelled

27

Accepting a passenger as Norec/Go Show 

In cases where a passenger is reported at the airport holding a ticket with a different date or flight number, the passenger should be accepted on higher RBD “M” and above on the economy cabin, and “D” and above for the business cabin, provided all applicable penalties to be collected. Failure to comply will result in issuing an ADM with the ticket price for the highest RBD on the flight travelled.

Ticket price for the highest RBD on the flight travelled 

28

Unblocking a previously blocked ticket without approval from the airport manager 

A ticket that was blocked from flying /ticket status was made “NOGO” by GF for any reason, can only be unblocked with the airport manager’s approval. Failure to obtain such approval will result in issuing an ADM with the ticket price for the highest RBD on the flight travelled.

Ticket price for the highest RBD on the flight travelled

29

Issuing a zerovalue EMD document for a pre-reserved seat when fare brand does not permit zerovalue seating 

GF will inspect for cases where a zerovalue seat has been selected based on a stored ‘Smart’ or ‘Flex’ fare and the ticket later repriced in a lower fare brand in the same RBD that does not permit zero-value seating and the zerovalue EMD also issued.

USD65 per segment per seat reserved  

30

Name change violation  

GF will inspect for cases where the defined name change policy (see Appendix A for details) has been violated. In case of violation, an ADM will be raised 

USD200 per passenger

 

GF Reserves the right to reduce the minimum value for raising an ADM in case of frequent under-payments by an agent, or established conditions where abuse or neglect is obvious.

 

GF reserves the right to make changes to this policy. In such case, the changes will be published on GF’s public portal and the BSP link.

 

This ADM Procedures and Guidelines applies on IATA and non-IATA agents.

 

A non-refundable, non-reversible administrative fee of USD 15 will be imposed per ADM.

 

GF will allow the agents 15 calendar day grace period to review the documentation. Then ADM is automatically confirmed in case of no reply.

 

BSP and non-BSP Agents must justify and provide proper supporting documents when disputing an ADM.

 

Any unjustifiable or unclear dispute reason submitted will be rejected by GF. If any further clarifications or details related to the issued ADM are required, the Agents may contact their respective GF Local Office.

 

The above Procedures and Guidelines are effective from 1st April 2019 

 

 Please action accordingly and advise all under your control. 

 

Appendix A. Name Change Policy

Gulf Air permit amendments to titles (e.g. Mr to Mrs) and name corrections due to genuine spelling mistakes (up to 3 characters). Such changes are free of charge.

 

The count of 3 characters is a combined total and should not be understood as 3 characters each for the first, middle and last name.

 

All other name corrections listed below will incur a fee of US $100.

1. Change of maiden name to married name (or vice-versa) Example: SMITH/SARAH MS to JONES/SARAH MRS

2. Shortened/nick name to full name Example: ABDULLA/MOHD MR to ABDULLA/MOHAMED MR

3. Addition of middle name Example: SMITH/STEVEN MR to SMITH/STEVEN JAMES MR

4. Addition of surname Example: JAMES/STEVEN MR to SMITH/STEVEN JAMES MR

5. Complete/partial name change for the same passenger with proof from authorities Example: JAMES/DAVID MR to JACKSON/MARTIN MR 

Gulf Air FalconFlyer members with either Black or Gold status will be permitted to make the above changes without charge. 

Note:

  • Request should be received no later than 24hrs before departure
  • Only one change is permitted
  • A copy of the passenger’s passport and other applicable documents should be submitted
  • The request must be for the same passenger on the ticket. Name swapping is not permitted
  • Name corrections must be followed by the reissuance of E-tickets. The USD $100 fee should be reflected in the tax code as DV
  • Applicable on Gulf Air operated and marketed flights
  • If the booking involves any other airline, current booking has to be cancelled and a new booking has to be made with the correct name in the available booking class. Fare difference may apply

Version: November 2021

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