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Malindo Air will implement the following Agency Debit and Credit Memo (ADM / ACM) policy to Travel Agents within Bangladesh & Nepal. This purpose of this policy is to make clear the circumstances under which ADMs will be issued and the guidelines that Malindo Air will apply. 

In accordance of the IATA Resolution 850m (Passenger Agency Conference Resolution Manual) Malindo Air takes the opportunity to specify the Malindo Air Revenue Recovery policy concerning the Reservation- and Fare Audit process and the related procedures of sending and settling ADM’s (Agency Debit Memo). All resolutions agreed by the Passengers Agency Conference will be applied. 

ADM Principle The objective of the audit process is to ensure that all fare rules and procedures are respected and in case of the contrary, to settle the difference in an adequate and logical way, equal for all distribution channels. Fare audit checks are performed on all 816- document issuances, refunds, reissue and revalidation transactions, whether they are fare quoted automatically or manually. Violations of reservation procedures apply to all OD flight segments. 

ADM Calculation Minimum ADM ValueIn case deviations of the fare rules are found during the audit process, Malindo Air will systematically generate ADMs reflecting the value of difference between the real applicable fare and the applied fare plus the ADM fee. (Except for those cases where fixed amounts apply) The minimum ADM value is USD 10 or equivalent. In case of persistent practice of under collection (multiple occurrences of underpayments of less than USD 10 or equivalent) by the same agent, Malindo Air reserves the right to recover these underpayments. More than one ADM in relation to the same original ticket can be raised if different, unrelated charges apply.

ADM Administrative Fee To cover the audit process costs, a fixed ADM administrative fee of USD 10 or equivalent is added to each ADM. The administrative fee will not apply to ADMs under the minimum ADM value. In the event that disputed ADMs result in withdrawal from BSPLink (for other than commercial reasons) by Malindo Air, the administrative fee will be refunded to the travel agent if already collected.

ADM SettlementAgency Debit Memos will be settled via the BSPLink if sent within nine months after final travel date. Beyond that date payment settlement will be handled directly between the airline and the agency. ADMs are issued via mass-upload once a month. Non-BSP agents will receive ADM proposals by invoice once a month.

ADM Dispute HandlingAgents can dispute proposed ADMs directly via BSPLink with no financial consequences if supported by a valid dispute reason and/or supporting documents. Malindo Air will endeavor to handle a rejected or disputed ADM in a timely manner, within maximum 60 days. In case Malindo Air rejects an agent dispute, anexplanation for this rejection will be provided to support our position.  

ACM IssuanceIn case of unjustified ADMs been issued by the airline or when an ADM requires corrections in favor of the agent, an ACM can be issued to that agent covering the amount due.

ADM ReasonsMalindo Air will issue ADMs to collect amounts or make adjustment to Travel Agents related to:

  • Fare and Exchange Audit   

All fares, fare rules and booking rules are subject to audit. Included, but not limited to this audit control is the correct application of:

        - Fares & Fares conditions
        - Taxes & fuel surcharges 
        - Minimum/ Maximum Stay, Advance Purchase Rules, Seasonality & flight applications 
        - Booking Class & Waitlisted Segments 
        - Commissions & Discounts (if applicable) 
        - Stopovers & Transfers 
        - Rebooking fees, recalculation of Re-issue / Rerouting 
        - Change fee not collected as per fare rule stated 

  • Refund Audit

Correct application of all refund rules must be adhered. Included, but not limited to this audit control is the correct calculation of: 

        - The refunded amount, taxes & fuel charge
        - The refunded commission amount (if applicable)
        - The cancellation penalty (e.g. in case of no show)

For refund requests of expired documents an administration fee of USD 50 will be applied. 

  • Subclass Abuse Audit

All tickets sold are audited on the correct application of the matching booking classes. In case subclass abuse is noticed, the agent responsible for causing this abuse will receive the ADM. 

  • Plating Violations

In case of plating violation (as per IATA Reso 852: Designation and Selection of Ticketing Airline) Malindo Airways will charge a flat fee of USD 50 or equivalent per ticket. Specific market exceptions can be allowed under certain conditions only and if specifically authorized by Malindo Airways. 

In case of plating violation where OAL fare rules require plating on OAL documents, as stated in CAT 15, the full YY-IATA fare will be charged. 

  • Baggage Allowances

In case of incorrect or missing baggage allowance is shown on the ticket, following principle will be applied for ADM settlement: 

  • Missing information (incorrect ticketing fee)

In case of key ticketing identifiers (either typological or contractual information) are missing on the ticket an “Incorrect Ticketing Fee” of USD 5 or equivalent will apply. Key identifiers are: tour code, ticket designator, date of birth, ticket number on EMD. 

May we also remind you that the Ticket Endorsement Box must not be used to dispatch any messages besides the mandatory info as per fare rules or as per country specific regulations. 

  • Segment Removal Verification (SRV) of inactive segments

GDS Agents who refrain from removing all inactive segments from their PNRs are subject to receive an ADM to cover the airlines GDS cost. Whenever an OD segment with action code HX, UC, UN, NO is still present at End of Transaction, following message will be sent out to the agents GDS queue: 

   - Control time limit is set for midnight local time on day of departure of the segment 

If those action codes are still present after that control time limit, the inactive segments are subject to a fix fee of 5USD per segment and an administration fee of USD 10 per travel agency related. 

  • No Show Verifications

It is within the travel agencies responsibility to clean their booked PNRs and to cancel all segments not ticketed or if the passenger is not going to travel. Reference: IATA Reso830a and the IATA Travel Agent’s Handbook. 

  - Un-ticketed segments that result in No Show: 

If unwanted booking is not cleared within 12 hours of flight departure, no-show penalty of USD 50 will be charged to involve Agent. In case of this things occurred, Agent must settle no-show penalty charge. Failure to provide the same, ADM will be raised. For segments with late cancelation, an SSR OTHS warning text will be added at the moment of segment creation: SSROTHSYY/// NOSHOW WILL RESULT IN ADM IF UNTKTD/Malindo 

In case Malindo Air detects an un-ticketed No Show in his inventory, an ADM will be raised for the amount of USD 50 per passenger / PNR (or equivalent). Those ADMs will be sent out to the segment creator which can differ from the PNR owner. 

  - Ticketed segments that result in No Show: 

In case of No Show, additional penalties can be applicable for refund or ticket exchange/reissue according to the fare rules. The ADM amount in those cases shall be equal to the under collection and/or the no show penalty as indicated in the fare rules plus the applicable ADM fee of USD 10 or equivalent. 

  • Credit Card chargeback

In case Malindo Air is debited by the credit card acquirer for a fraud case, a purchase rejection by the passenger or credit card misuse on a ticket issued by the agent, Malindo Air will charge the agent for the cost. The agent is responsible for checking the validity of the credit card and to ensure that the cardholder’s signature is provided as well as ensuring that the card is accepted for payment by Malindo Air. 

Malindo Air reserves the right to issue an ADM when abusive usage of a credit card in name of the agent and in connection with air transportation sale for any customer of the agent is detected, according to IATAReso 890. 

ACM Fee  Malindo Airways will apply an ACM fee of USD30 (or equivalent in local currency) per ticket for request of ACM due to ticketing or refund error made by Travel Agents. ACM administrative fee is also applicable for ACM issued due to waiver given by Malindo Airways on the valid ADMs.

Travel Agents Responsibility

  • Practice the correct ticketing procedures that are compliance with Malindo Air Reservation and ticketing policy in order to avoid ADMs.
  • Understand the ADM procedures, the purpose of the ADMs and the dispute period that exists.
  • When an ADM is disputed, Travel Agents should ensure the response is specific in detail and relevant supporting documents are attached to the dispute in BSPlink.
  • Travel Agents should not dispute an ADM that is valid and evidence to the contrary is not available.

Contact and Information requestForfurther inquiriesrelated to fare audit ADMs/ACMs, plaste contact your local Malindo Air sales office or mail to mgunasekar@malindoair.com.
Malindo Airways reserves the right to amend, adapt and/or partially delete the ADM policy at any time with prior notice.
All agents are requested to report any irregularities in their booking process or ticket to the local Malindo Airways sales team in order to avoid ADMs.