Mogadishu, Somalia – The International Air Transport Association has launched a pilot billing and settlement system in Somalia, marking another step in the country’s drive to rebuild its aviation sector and expand air links after decades of disruption.
IATA said its Billing and Settlement Plan (BSP) had started operating on a pilot basis in Somalia, ahead of a full launch expected at the end of May 2026.
The pilot will involve four travel agents and several airlines serving Somalia, including Ethiopian Airlines. IATA plans to open the system later this month to all airlines and more than 300 travel agents operating in the country.
The launch comes as Somalia works to modernise its civil aviation system, strengthen regional and international connectivity and turn Mogadishu into a transport hub in the Horn of Africa.
“Somalia stands at a pivotal moment of transformation in its aviation sector,” Transport and Civil Aviation Minister Mohamed Farah Nuh said.
“Growing connectivity regionally and globally underpins our ambition to revitalise the economy of Somalia and position Mogadishu as a transport hub on the Horn of Africa,” he added.
Financial controls
The BSP helps airlines and IATA-accredited travel agents manage ticket sales, reporting and payments through a single global system.
It allows airlines to track air ticket sales and related financial transactions more efficiently, while improving cash flow, cutting costs and strengthening financial controls.
IATA said the platform links more than 400 airlines with tens of thousands of agents worldwide.
In 2025, the BSP processed more than 700 million transactions across more than 180 countries, totalling $242 billion in value.
For Somalia, the system provides airlines and travel agents with a more organised, internationally recognised framework for ticket sales and settlements.
IATA said access to the BSP gives airlines a “significant advantage” by improving sales management and helping them meet established financial rules and local requirements.
The Somali government has made aviation reform part of its wider recovery agenda, as trade links, regional travel and a large diaspora continue to drive demand for flights to and from the country.
Airspace recovery
Somalia’s aviation sector has made steady gains in recent years after decades of conflict damaged state institutions and weakened air transport oversight.
The federal government regained control of the country’s airspace in 2017, more than two decades after air traffic management had moved outside Somalia following the collapse of the central government.
In 2023, international aviation authorities restored Class A air traffic control services over the Mogadishu Flight Information Region, a major upgrade for one of the region’s important air corridors.
The corridor serves routes linking Africa, the Middle East, Europe, South Asia and the Indian Ocean region.
Nuh said the government had made “commendable strides in rebuilding and modernising every aspect of its civil aviation system” despite years of adversity.
“This extends to putting in place financial systems to support the growth of air transport, which the opening of the BSP will provide,” he said.
IATA backing
IATA Regional Vice President for Africa and the Middle East Kamil Alawadhi welcomed Somalia’s aviation reforms and said the BSP rollout formed part of the association’s wider Focus Africa initiative.
“We commend the steps taken by the Somali government to modernise and rebuild its aviation infrastructure,” Alawadhi said.
“The government recognises the significant economic benefits that air travel can deliver, and we are pleased to support them on that journey,” he added.
He said secure, effective and cost-efficient financial services were “a key pillar” of IATA’s Focus Africa programme.
IATA represents more than 360 airlines, which account for around 85 per cent of global air traffic.