What is a California Airline Reporting Bond?
A California airline reporting bond is required by any agency or company that has an agreement with the Airlines Reporting Corporation (ARC), which handles air travel intelligence and commerce, including travel agency accreditation services.
The airline reporting bond ensures the bonded agency will handle business reporting and settle ARC Traffic Documents according to the details of the agent reporting agreement.
This agreement includes ticket transaction settlements and provisions between airlines and travel agencies.
Who Needs an Airline Reporting Bond?
This bond is required by ARC for any travel agency or travel professionals to become an ARC Agent. This bond includes:
- ARC-Accredited Agents (also called Ticket Reporting Agents)
- Corporate Travel Departments
- Sovereign Entity Agents
- Sovereign Entity Corporate Travel Departments
To become an airline reporting company in California, an application must be submitted to the Airline Reporting Corporation, along with an application fee, annual fee, and documentation of surety bond in the correct amount. For more information on becoming an airline reporting company in California, visit ARC’s website.
Why Do I Need an Airline Reporting Bond?
An airline reporting bond guarantees that the principal will comply with the provisions of the Agent Reporting Agreement in the State of California. The bond process includes paying all amounts owed to the Airlines Reporting Corporation.
How Much Does an Airline Reporting Bond Cost?
In most cases, ARC requires a bond of $10,000, $20,000, or $70,000, but the actual amount depends on the specific agreement between the principal and ARC. Therefore, the premium that the applicant must pay will vary with the specifics of the ARC Agent Reporting Agreement. The applicant’s premium will depend on some factors, including the applicant’s credit score.
The airline reporting bond remains in effect for one year from the date of issuance, and the principal must renew the bond annually until a claim has been made against the bond or it has been canceled.
Get Started Today!
To be placed on the ARC Agency List, you must first obtain a California airline reporting bond. Don’t delay your application.