Somali Prime Minister Hamza Abdi Barre formally relaunched the International Air Transport Association’s Billing and Settlement Plan (IATA-BSP) in Mogadishu, restoring the global airline ticket settlement system after a 35-year hiatus.
The ceremony, organized by the Somali Civil Aviation Authority (SCAA), brought together senior government officials, international aviation representatives, and travel industry stakeholders to mark what officials described as a crucial step toward fully reintegrating Somalia into the global economy.
The IATA-BSP is a standardized system designed to streamline, consolidate, and secure financial transactions between travel agencies and international passenger airlines. Rather than local travel agencies dealing independently with each air carrier—a cumbersome process that often required manual settlements, high transactional friction, and third-party intermediaries—the BSP establishes a single, secure channel. Under this system, travel agencies aggregate passenger sales data through a central mechanism, remitting payments in a single transaction that IATA subsequently distributes to participating airlines.
For decades, the absence of a localized settlement plan forced travel businesses in Somalia to rely on informal financial pipelines or foreign banking intermediaries to issue tickets. The restoration of the BSP allows registered local travel agents to interface directly with major international airlines operating globally.
Speaking at the official relaunch ceremony in Mogadishu, Prime Minister Hamza Abdi Barre emphasized that the return of the system is the result of years of institutional building, legal reforms, and targeted capacity development.
“We are committed to further developing and strengthening national institutions. I am confident that we will catch up with the developed world, which we have lagged behind for decades,” Prime Minister Barre stated, linking the accomplishment to broader federal efforts aimed at rebuilding state infrastructure and financial regulatory compliance following decades of instability.
Civil aviation leaders noted that the new settlement system comes at a vital time for Somalia’s aviation market, driven by a large global diaspora and expanding commercial ties across East Africa, Europe, and the Middle East.
Ahmed Moallim Hassan, Director-General of the Somali Civil Aviation Authority, highlighted that the BSP will dramatically lower operational costs for local travel agencies while giving international carriers greater financial confidence to expand their routes into Somali airports.
“This system will serve as a catalyst for local commerce, trade, and tourism,” Hassan explained, noting that transparent ticketing processes will lower entry barriers for local businesses and enhance international cooperation.
Kamil Al-Awadhi, IATA’s Regional Vice President for Africa and the Middle East, attended the launch event in Mogadishu to signal the global aviation body’s support. The milestone follows months of technical coordination, including a successful pilot phase initiated by IATA earlier in the year to ensure local infrastructure met international operational standards.
The revival of the BSP is the latest in a series of achievements by the Somali Civil Aviation Authority to rebuild national airspace controls.
In January 2023, Somalia successfully reclaimed control over its high-altitude Class A airspace within the Mogadishu Flight Information Region (FIR)—resuming full air traffic control services after a 30-year disruption following the collapse of the central government in 1991. Extensive upgrades to radar communications, navigation systems, and staff training allowed Mogadishu to once again direct international flights crossing its air corridors under strict International Civil Aviation Organization (ICAO) standards.
The SCAA confirmed that following the BSP deployment, it is undergoing further audits and technical assessments by ICAO to expand operational capabilities across all national airports.
By establishing direct, secure financial links between local travel providers and global airlines, the return of the IATA-BSP represents more than a technical upgrade—it marks a key step in normalizing Somalia’s civil aviation landscape and positioning the nation as an active participant in regional commerce.
