SIS – Simplified Interline Settlement

1. SIS – Simplified Interline Settlement Cargo & Miscellaneous 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 – Cargo Misc 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 – Cargo Misc Webcast

4. Overview of this webcast • Simplified Interline Settlement Webcasts & Introduction • Interline Settlement Today & Scope of Webcast • Cargo Billing • Miscellaneous Billing • Central Repository & Supporting Documents • Audit Trail & Rejection History (Cargo Only) • E-Invoicing • File Formats • Next Steps • Questions & Answers SIS – Materials – Cargo Misc Webcast

5. Presenters • Gianna Monsch, External ConsultantProject Management • James Shannon, IATAProject Coordination SIS – Materials – Cargo Misc 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 – Cargo Misc 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 – Cargo Misc 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 is coloured orange on the following pages SIS – Materials – Cargo Misc 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 – Cargo Misc Webcast

10. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ SIS – Simplified Interline Settlement 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 Other SIS – Materials – Cargo Misc Webcast

11. Cargo Billing SIS – Materials – Cargo Misc Webcast

12. Cargo Billing – with IS • Original Billings • Rejection Memo & Charge Memo (same record but different fields used) • Correspondence • Can also be sent outside of Integrated Settlement (e.g. via email) SIS – Materials – Cargo Misc Webcast

13. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Cargo Billing – Original Billings 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 Other (TBD) Billing File / Data (similar to today) Billing File / Data (similar to today) *Core / non-core file formats have not yet been fully defined SIS – Materials – Cargo Misc Webcast

14. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Cargo Billing – RMs, CMs, Correspondence Email or Other (correspondence only) 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 Other Billing File / Data (similar to today) Billing File / Data (similar to today) *Email / other for correspondence is a unilateral choice made by the billing airline SIS – Materials – Cargo Misc Webcast

15. 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 – Cargo Misc Webcast

16. Miscellaneous Billing SIS – Materials – Cargo Misc Webcast

17. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Miscellaneous Billing 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 Other Billing File / Data Billing File / Data SIS – Materials – Cargo Misc Webcast

18. Supporting Documents SIS – Materials – Cargo Misc Webcast

19. 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 – Cargo Misc Webcast

20. 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 – Cargo Misc Webcast

21. Audit Trail(Cargo Only) SIS – Materials – Cargo Misc Webcast

22. Audit Trail & Rejection History (Cargo) • 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 original billings • Find outgoing correspondences that haven’t been responded to • Go directly to appropriate action SIS – Materials – Cargo Misc Webcast

23. Audit Trail Analysis & Reporting (Cargo) • Search by prefix 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 – Cargo Misc Webcast

24. Cargo & IATA e-freight • Currently all cargo attachments are “electronic presentation” (scanned images or other visual representations) • When IATA e-freight is fully implemented: • Most records will be “e-electronic” (a structured, machine-readable format) and the format will be required by IS • Both the billed and billing carriers will have digital copies of some records, which will no longer need to be attached in IS • Before e-freight is fully implemented, carriers may bilaterally choose to send the e-electronic records or to not send any records SIS – Materials – Cargo Misc Webcast

25. E-Invoicing SIS – Materials – Cargo Misc Webcast

26. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ • Create invoice file (where applicable) • Optionally create and verify digital signature • Optionally store e-invoice in a legal archive • Settle claims via ICH / ACH • Make invoice (incl. optional digital signature and verification) available for download E-Invoicing 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 Other Billing File / Data (similar to today) Billing File / Data (similar to today) SIS – Materials – Cargo Misc Webcast

27. E-Invoicing • Carriers can submit a: • Billing file containing all information necessary to be a legal invoice, therefore submitting a legal invoice • Billing file without necessary data (such as reference data or digital signature) • IS adds the necessary data or digital signature, thereby creating the legal invoice • IATA will be legally mandated by the carriers to supplement the billing file with this information • Invoice will be made available via IS-WEB SIS – Materials – Cargo Misc Webcast

28. E-Invoicing • Need for digital signature depends on both billing and billed carriers (option in airline profile and specified on upload file) • Legal e-invoice archive will be an option for carriers that need it • Billed carriers do not need to be concerned with the billing carriers’ requirements pertaining to e-invoices (or vice versa) – IS will handle this with the input of individual carriers SIS – Materials – Cargo Misc Webcast

29. E-Invoicing • Reference Data • An invoice contains legally-required fields (e.g. VAT number, company name, etc) • Those fields can be stored in the airline profile and added during the legal invoice creation • Or the billing carrier can upload them in the billing file (any discrepancies between the uploaded data and the profile will be sent in an alert) • Settlement Method • New field that designates how the billing will be settled: ICH, ACH, bilaterally, or not at all SIS – Materials – Cargo Misc Webcast

30. E-Invoicing - General • Claims and protests will be settled with the clearing houses like today SIS – Materials – Cargo Misc Webcast

31. Cargo & Miscellaneous File Formats • Subject to change based on costs and carrier demand • See ‘IS File Formats’ and ‘Pax Non-Prime’ webcasts for more information SIS – Materials – Cargo Misc Webcast

32. 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 – Cargo Misc Webcast

33. Questions? Email: sis@iata.org SIS Website: www.iata.org/whatwedo/finance/clearing/sis/index.htm SIS – Materials – Cargo Misc Webcast