Somalia Advances Aviation Sector with Introduction of IATA BSP System for Streamlined Airline Transactions

(IN SHORT) IATA has launched a pilot of its Billing & Settlement Plan in Somalia, with a full rollout expected by the end of May 2026. The system will streamline financial transactions between airlines and travel agents, improving efficiency, cost management, and financial control. The pilot includes participation from several airlines, including Ethiopian Airlines, and selected travel agents, with plans to expand to over 300 agents nationwide. The initiative supports Somalia’s efforts to modernise its aviation sector, enhance connectivity, and strengthen its position as a regional transport hub. It also aligns with IATA’s Focus Africa initiative aimed at boosting aviation growth across the continent.

(PRESS RELEASE) ADDIS ABABA, 2026-Apr-30 — /Travel PR News/ — International Air Transport Association has initiated a pilot phase of its Billing & Settlement Plan (BSP) in Somalia, marking a key step toward the system’s full rollout expected by the end of May 2026. The initiative is designed to strengthen the country’s aviation financial infrastructure and support broader efforts to expand air connectivity.

The introduction of the BSP aligns with Somalia’s strategy to develop its aviation sector and enhance its role in regional and international travel networks. With increasing demand driven by a large diaspora and expanding trade links across Africa and the Middle East, the country is experiencing growing air travel activity.

The pilot programme involves four travel agencies along with several airlines operating in Somalia, including Ethiopian Airlines. Following the testing phase, the system is expected to be extended to all airlines and more than 300 travel agents across the country, providing a unified platform for ticketing and financial transactions.

The BSP is a global system used to streamline and manage financial interactions between airlines and accredited travel agents. It consolidates ticket sales data and facilitates efficient settlement processes, helping airlines reduce administrative costs, improve cash flow management, and maintain strong financial controls. Globally, the BSP supports transactions between hundreds of airlines and tens of thousands of agents. In 2025 alone, the system processed over 700 million transactions across more than 180 countries, with a total value of USD 242 billion.

Somalia’s Minister of Transport and Civil Aviation, Mohamed Farah Nuh, described the introduction of the BSP as a significant milestone in the country’s aviation transformation. He noted that improved connectivity is central to economic revitalisation and positioning Mogadishu as a key transport hub in the Horn of Africa. He also highlighted the progress made in rebuilding the country’s civil aviation system, including the development of modern financial frameworks.

Kamil Alawadhi, Regional Vice President for Africa and the Middle East at IATA, emphasised the importance of modern financial systems in supporting aviation growth. He pointed out that the implementation of secure and efficient settlement mechanisms is a core component of IATA’s Focus Africa initiative, which aims to unlock the economic potential of air transport across the continent.

Through this pilot, Somalia is taking a further step toward integrating with global aviation standards, improving operational efficiency, and supporting the continued growth of its air transport sector.

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