New Gen ISS Status

1. New Gen ISS Status

2. NewGen ISS Project Vision – How is it going to impact the industry? Through NewGen ISS, IATA aims to deliver a more relevant, secure and customer-centric BSP for both Agents and Airlines. Today Future BSP One Size Fits All Accreditation Brick & Mortar, OTAs, Multinational TMCs etc. Agent choice of Accreditation Model Risk Management that mitigates risk exposure, new Financial Security options Inflexible approach, same Risk Management processes for all Agents Limited Payment Methods New Payment Solutions

3. NewGen ISS Integrated Program Elements • IATA aims to deliver a more relevant, secure and customer-centric Passenger Agency Program through the following NewGen ISS initiatives: IATA EasyPay Agency Accreditation Models Remittance Holding Capacity Global Default Insurance $

4. From one Accreditation Model to three Agency Accreditation Models

5. Risk History and Events New “Risk management model”

6. Risk History and Events No more Irregularities but “Risk Events” 1 • Authorization to use Cash Payment Method for less than 24 • Late or short payment • Payment in the wrong currency • Payment Default • Failure to provide financial statements • Major change of ownership or change of legal status • Unreported change of ownership, legal status or legal name • Change of Head Entity’s location to another country • Failure to provide a Financial Security • Default due to common ownership • Prejudiced collection of funds 2 3 4 5 6 7 8 9 10 11

7. RHC - Remittance Holding Capacity NewGen ISS Managing the Remittance Holding Capacity Continued selling using CC and IATA EasyPay • A monetary threshold to the agent’s outstanding cash sales (monies at risk) will be established for all Agents with a Cash Facility. $ Option to amend financial security amount and increase/ decrease the capacity Agent’s Remittance Holding Capacity Agent’s accumulated cash sales Open to IATA EasyPay at anytime Open to advanced remittances at any time.  Remittance Date . . . Day 6 Day 1 Day 2 Day 3 Day 4 Day 5 Current Period Sales Previous Period Sales

8. Assessment RHC NewGen ISS Remittance Holding Capacity Calculation Remittance Holding Capacity Risk History Risk Status Fin. Review A PASS PASS 100% PASS FAIL B FAIL PASS Equal to financial security amount provided C FAIL FAIL *The Financial Security calculation is a separate calculation defined in Local Financial Criteria

9. NewGen ISS IATA EasyPay - a new industry payment method IATA EasyPay

10. Iata EasyPay – a new industry method of payment NewGen ISS NewGen ISS IATA EasyPay - a new industry payment method • New, voluntary pay-as-you-go’ e-wallet for agents • IEP givesnon-accreditedagentsnewroute to accreditationthroughtheGoLite model, reducesagents’ financialsecurityamountswith IATA

11. NewGen ISS Global Default Insurance Global Default Insurance

12. GDI Benefits for Travel Agents NewGen ISS Global Default Insurance Benefits NewGen ISS Global Default Insurance NewGen ISS IATA EasyPay - a new industry payment method • New, cost- effectivefinancialsecurity alternative thatagentscanopt for • Agentscanseekcoverageunder GDI for thecorrespondingamountoffinancialsecurityrequiredby IATA • Lower cost than other acceptable Financial Security types • Allows Agents to obtain a higher cover in a short time frame, and to increase their Remittance Holding Capacity as applicable

13. WhatdoesNewGen ISS Implementationmean? NewGen ISS Global Default Insurance Benefits NewGen ISS Global Default Insurance NewGen ISS IATA EasyPay - a new industry payment method • All accreditedagentstransitioned to theGoStandard model • Agentswillbeable to convert to GoLite model • GoStandardagentswillbeassignedtheir RHC amounts & Risk Status • RHC Alerts/Customer Portal monitoring willbeavailable for agents • IATA EasyPayavailable as anoptionalpaymentmethod • GDI available as anoptionalfinancialsecurity

14. CURRENT STATUS OF THE PROJECT NewGen ISS Global Default Insurance Benefits NewGen ISS Global Default Insurance NewGen ISS IATA EasyPay - a new industry payment method • By the end of 2018, total of 40 markets representing over 25% of BSP Cash sales had been migrated to Resolution 812 • For 2019, the targetis to have NewGen ISS implemented in BSPs representing 90% of BSP Cash Sales • Remittance Holding Capacity • Since the first market go-live on March 2018 to December 2018only 2.9% of the total Agent populationreached 100% oftheir RHC • IATA EasyPayTransactions • IATA EasyPay adoption has been progressively increasing • Global Default Insurance (GDI) • At the end of 2018, GDI was launched in 137 markets worldwide

15. To take intoconsideration NewGen ISS Global Default Insurance Benefits NewGen ISS Global Default Insurance NewGen ISS IATA EasyPay - a new industry payment method • SunsetofMonthlyRemittance • PAConf41 endorsed changes to remove monthly remittance frequency in a number of BSP operations. TheseAPJCs are required to phase-out the monthly remittance by 31 December 2019. • Marketswith WeakLFC • PAConf/41 endorsed changes to Resolution 800f allowing IATA to identify markets where Financial Securities are deemed to be insufficient and to conduct a review of the Local Financial Criteria through a 3rd party financial expert(consideringFinancial Security Coverage, % of Unrecovered Amount VS Total Gross Sales, number of Terminated Agents with Unrecovered Debt, Number of Days at Risk)

16. To take intoconsideration NewGen ISS Global Default Insurance Benefits NewGen ISS Global Default Insurance NewGen ISS IATA EasyPay - a new industry payment method • Transparency inPayments (TIP) isan Industryinitiative focused on providing airlines with increased transparency and control in the collection of their sales through the travel agency channel • TIP reveals the different costs associated with each form of payment • No form of payment is barred by TIP but agents can only use those forms to which an airline has previously given consent • TIP allows agents to register their Agency Cards directly in BSPlink with individual consent of the airlines for use in BSPlink • TIPwas implemented across 43 markets in 2018, representing approximately 50% of BSP CardSales globally • For 2019, the target is tobe live in BSPs representing an accumulated 95% of e BSP Card Sales • TIP Go-Live in Croatia March 1, 2019 • TIP Airline Payment Policy Distribution

18. Questions

19. For More Information Email: newgeniss@iata.org Website: www.iata.org/newgeniss Thank you!