Airline Bond

Bonding is a way to provide guarantees in various industries that the work provided meets expectations for all involved. While many people think of bonds in the construction or other similar service industries, they can be found in other areas of business. One area in which bonds are required for business accreditation is in the sale of airline tickets. These bonds are used to guarantee payment when working with clients to secure flights.

What are ARC bonds?

An ARC (Airlines Reporting Corporation) bond is a type of surety bond required for travel agents who sell airline tickets to clients. The bond ensures that any payment collected by the travel agent will be provided to the airline company as intended. ARC bonds must be secured by travel agents, travel agencies or other organizations that facilitate airline travel for clients. Obtaining an airline bond is part of the accreditation process for these individuals and organizations that sell airline seats/tickets as part of their business operations. The bond acts as a security measure for all parties.

How do you obtain an airline bond?

ARC bonds are obtained from third-party organizations. This entity, referred to as the surety, makes a commitment to the obligee (the Airlines Reporting Corporation that requires the bond from the principal) to make payment in the event that the principal does not provide the payment from the client to the appropriate airline for airline tickets. The surety organization will have its own application process for securing the ARC bond, which typically includes gathering information about the entity to be bonded, including a business credit check. The entity’s business credit has an influence on the cost of the bond as well as the repayment terms. The credit history may also limit the amount of the surety bond. Entities with bad credit may be unable to secure an ARC bond because this type of bond is considered high risk.

What are the benefits of having an ARC bond?

Though an ARC bond is high risk, the benefits that come from being a bonded travel agent or agency makes the risk worth it for many. These bonds provide a guarantee that the money delivered to the agent or agency will be directed to the appropriate airline. This reassures clients that the work done with this or agency or agent will be professional and result in satisfaction for all involved.

Contact us for all your bonding needs

Our team is one of the leading surety bonding agencies in the country. Due to our high volume, we offer some of the lowest rates in the industry, and always write bonds on the proper form for your state.

We can write ARC bonds quickly and easily in all states. Reach out to us today, and one of our experienced bonding agents will point you in the right direction and show you just how simple the process can be.