Airline Bond
An ARC (Airlines Reporting Corporation) bond is a type of surety bond required for travel agents who sell airline tickets to clients.
Key Highlights
- ARC bonds must be secured by travel agents, travel agencies or other organizations that facilitate airline travel for clients.
- 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.
How do I purchase an airline bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue airline bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Airline Bond FAQs
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.
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.
Though an ARC bond is high risk, the benefits that come from being a bonded travel agent or agency make 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 agency or agent will be professional and result in satisfaction for all involved.
Why Get Bonded Through NFP?
Fast and Easy
All Types. All States.
Surety Bond Experts
Strong Relationships
Pricing Flexibility
Explore All Surety Bonds
Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.
Featured Bonds
Additional Commercial Surety Bonds
Featured Bonds
Additional Construction Surety Bonds
Featured Bonds
Additional License and Permit Surety Bonds
Explore All Surety Bonds
Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.
