The right time for CASS in Sri Lanka?

Implementation of CASS is a contentious topic discussed in airline circles: IATA has been having on going discussions in Sri Lanka with the national carrier Sri Lankan Airlines, as well as other on-line carriers on implementation of the Cargo Accounts Settlement System (CASS) in the country. IATA has also been in close dialogue with the […]


Cargo Accounts Settlement System Sir Lankan Airlines Sri Lanka


Implementation of CASS is a contentious topic discussed in airline circles: IATA has been having on going discussions in Sri Lanka with the national carrier Sri Lankan Airlines, as well as other on-line carriers on implementation of the Cargo Accounts Settlement System (CASS) in the country.

IATA has also been in close dialogue with the Sri Lanka Freight Forwarders Association (SLFFA) with regard to the proposed implementation. CASS is a system designed for billing and settling of accounts and for credit management between airlines and freight forwarders. Interestingly, the way the implementation is viewed by the main stake holders has made it a highly contentious subject.

Most carriers are questioning the viability of implementing CASS in the current trading environment in Sri Lanka and also questioning whether they would in fact have any benefit by the proposed implementation. Sri Lanka is a market in which airlines operate through GSA’s and the total financial risk is cushioned by the GSA’s.

In such an environment where the credit risk is zero for airlines a stringent credit management system like CASS would be more of a liability than an asset. Some airlines see the registration fee and the transaction cost involved as an unnecessary burden. They also see other indirect costs attached in channelling financial transactions through CASS.