INDONESIA’s Sriwijaya Air and Bank Negara Indonesia (BNI) have introduced the Sriwijaya BNI Travelling card, a virtual credit card designed to replace the cash deposit that the airline’s travel trade partners usually have to make.
Under the terms of an MoU signed between Sriwijaya Air, the Association of Indonesian Airlines Ticketing Agencies (ASTINDO) and the Association of the Indonesia Tours and Travel Agencies (ASITA) Jakarta chapter, ASTINDO and ASITA members will be able to use the virtual credit card to issue the airline’s tickets.
The credit limit per travel firm is decided by both BNI and Sriwijaya Air based on the travel consultant’s sales volume, while the credit is protected by Raya Insurance—which will cover payment in case of default by the airline.
ASTINDO deputy chairman Rudiana said: “This is the breakthrough our members have been waiting for. Most airlines in Indonesia use cash top up system of ticket deposits payable to the airline’s individual bank. The problem with this is that when the airline defaults the deposit is gone, just like in the case of Adam Air and Mandala Air.
“With the credit card system, travel consultants need to pay 1.5 per cent of the ticket value for merchant fee and insurance, but we don’t need cash top up for deposits and get credit up to 45 days. In case the airline stops operations, the insurance will pay back all tickets not flown in full.”
ASITA Jakarta chairman Herna Danuningrat said: “Sriwijaya Air has led the way, we hope that other Indonesia National Air Carrier Association members will follow suit.”
