SIS – Simplified Interline Settlement

1. SIS – Simplified Interline Settlement Passenger Non-Prime Billing Webcasts

2. Welcome to the SIS webcast! • Audio available over this webcast or via a dial-in number • Phone Number: +1 514 392 3303 • Conference ID: 7026529 • 1 hour long • 30 minute presentation • 30 minute Question & Answer (Q&A) session • Please hold all questions until the second half • You will be unable to speak • All questions must be typed into a Q&A windowwhich will appear later • Feedback can be entered using the statusbox on your screen ------------------------------> SIS – Materials – Pax Non-Prime Billing Webcast

3. Welcome to the SIS webcast! • Audio available over this webcast or via a dial-in number • You should now be able to hear something if youraudio is working! If not, you need to dial in: • Phone Number: +1 514 392 3303 • Conference ID: 7026529 • 1 hour long • 30 minute presentation • 30 minute Question & Answer (Q&A) session • Please hold all questions until the second half • You will be unable to speak • All questions must be typed into a Q&A windowwhich will appear later • Feedback can be entered using the statusbox on your screen ------------------------------> SIS – Materials – Pax Non-Prime Billing Webcast

4. Overview of this webcast • Simplified Interline Settlement Webcasts • Rejection Memos • Billing & Credit Memos • Correspondence • Central Repository (for supporting documents) • Audit Trail • File Formats • Next Steps • Questions & Answers SIS – Materials – Pax Non-Prime Billing Webcast

5. Presenters • Gianna Monsch, External ConsultantProject Management • James Shannon, IATAProject Coordination SIS – Materials – Pax Non-Prime Billing Webcast

6. SIS Webcasts • August 6 • Passenger Billings (including prime, sampling, auto-billing, non-prime, audit trail, and supporting documents) • August 7 • Integrated Settlement Data Interfaces (including IS-WEB and validation) • Cargo & Miscellaneous (including Cargo original billings and rejections) • September 3 • General SIS Webcast (repeat of webcast done in July) • See http://www.iata.org/whatwedo/finance/clearing/sis/webcast.htmfor schedules and materials SIS – Materials – Pax Non-Prime Billing Webcast

7. Introduction to SIS (General Webcast) • “Integrated Settlement” is based on the principles of completely paperless billing, invoicing, and settlement • Benefits include: • Data quality improvements to the billed carrier • Billing carrier’s upload format doesn’t impact billed carrier’s download format • Reduction in paper and courier fees and internal supply chain (paper handling) costs • Automation & Optional Services • Quicker cash flow due to reduced rejection timeframes • ‘Airline Profile’ to be a centralized database for all IS options and permissions • IS features discussed are subject to change SIS – Materials – Pax Non-Prime Billing Webcast

8. Non-core Functionality • Core functionality of SIS enables paperless billing and settlement. • The non-core functionality is considered by the SIS Working Groups to be “value-added services”; its final inclusion is dependent upon implementation costs and airline demand and will likely be billed to carriers separately, based on usage. • Non-core functionality includes (but is not limited to): • IS-XML File Format • Non-core functionality is coloured orange on the following pages SIS – Materials – Pax Non-Prime Billing Webcast

9. Interline Settlement - Now Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Settlement sheets – (weekly) Recap sheets - weekly Billed Airline ACH Billing Airline F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Cargo IDEC File (monthly) Cargo IDEC File (monthly) Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) GDSs BSPs Previously released sales record F&F: receives NFP value All: May receive sales records AIA F&F SIS – Materials – Pax Non-Prime Billing Webcast

10. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Rejection, Billing, & Credit Memos – With IS Integrated Settlement Validation: • Guarantees links between records (e.g. 2nd and 1st RMs) • Enforces timeframes and “order” (1st RM -> 2nd RM -> 3rd RM) • Ensures file is properly formed IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Send RMs, BMs, CMs Receive RMs, BMs, CMs Validation Send Supporting Docs Receive Supporting Docs (either order) SIS – Materials – Pax Non-Prime Billing Webcast

11. Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Correspondence – With IS Integrated Settlement Validation: • Guarantees links between records (e.g. 2nd and 1st RM) • Enforces timeframes and “order” • Ensures file is properly formed IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Send Correspondence (including attachments) Receive Correspondence (including attachments) Validation SIS – Materials – Pax Non-Prime Billing Webcast

12. Correspondence – With IS • Correspondence can include an “authority to bill” flag which identifies when the authority to bill has been issued • Not tied to settlement periods like transactions in Integrated Settlement – real-time and similar to e-mail but via IS-WEB interface • Validation ensures no “cross-over” – correspondence can only be in reply to another correspondence (or 3rd-stage RM) and cannot be out-of-order SIS – Materials – Pax Non-Prime Billing Webcast

13. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Supporting Documents – With IS Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML ? ? Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File * Could be used with all record types (including prime coupon billings, Cargo, etc) SIS – Materials – Pax Non-Prime Billing Webcast

14. Central Repository & Supporting Docs • What? • Any type of supporting document (image, PDF, IS-XML, etc) • How long? • As long as the data is operationally required • When? • Before or after the associated record is uploaded (with “pending attachments” flag, which allows for notifications if not uploaded) • How? • To be determined in the next phase with the help of the supplier SIS – Materials – Pax Non-Prime Billing Webcast

15. Audit Trail & Rejection History • With operational data being stored: • Future records (e.g. rejections) don’t need supporting documents re-attached • IS-WEB can be used to search and take action on previous billings: • Search & browse through all records for which your carrier billed or was billed • View audit trail of linked correspondences, rejections, and prime billings • Find outgoing correspondences that haven’t been responded to • Go directly to appropriate action SIS – Materials – Pax Non-Prime Billing Webcast

16. Audit Trail Analysis & Reporting • Search by accounting code, coupon number, source code, billing period, authority to bill, etc • Drill down through tickets, coupons, tax breakdowns, correspondences, etc • Viewing and downloading of analysis (reporting) available • Actions (where applicable): • View the rejection history • Create a rejection memo • Create correspondence • Create a billing memo SIS – Materials – Pax Non-Prime Billing Webcast

17. Rejection History (example view) Create Correspondence SIS – Materials – Pax Non-Prime Billing Webcast

18. Passenger File Formats • Subject to change based on costs and carrier demand • See ‘IS File Formats’ and ‘Pax Prime’ webcasts for more information SIS – Materials – Pax Non-Prime Billing Webcast

19. Next Steps – Sep to Dec 2008 • Webcasts through September • RA annual meeting (September 08) • Presentation and breakout sessions for information and discussion • FinCom (September 08) • Update on SIS (they strongly support the project) • Board of Governors (December 08) • They wish to see radical change and will decide the way forward • They will be looking for initiatives that reduce operating costs, improve data quality, and help to meet environmental objectives • SIS Project Team • Continues the momentum through to Phase 3 SIS – Materials – Pax Non-Prime Billing Webcast

20. Questions? Email: sis@iata.org SIS Website: www.iata.org/whatwedo/finance/clearing/sis/index.htm SIS – Materials – Pax Non-Prime Billing Webcast