SIS Project Update

1. SIS Project Update SIS Awareness Regional Workshop – Nairobi, May 2011 Bernard PAUL SIS Program Manager, IATA

2. What is SIS ? SIS P3 – Nairobi Workshop – Project Update • SIS is an industry project that will: • Remove paper-based interline billing practices on a global basis, • Replace all billing, invoicing and settlement processes with a single electronic process • Drive settlement directly from electronic invoices as part of the transmission process • Generate a single set of electronic invoicing standards for all types of industry billing: Passenger, Cargo, UATP and Miscellaneous • Be funded by IATA for the industry, and run on a cost-recovery basis, not for profit

3. Problem descriptions • Claims entry, bill generation (IDEC) and invoice printing are often driven by different systems with different time lines • This is the source of many reconciliation problems • Weekly batching and billing of flight coupons means more work, since invoice distribution is monthly • Rejections require ETs to be printed • Reconciliation problems between invoices, IDEC and claims have got worse • There is no electronic exchange of data for Miscellaneous invoices – the whole process is paper-based SIS P3 – Nairobi Workshop – Project Update

4. Problem descriptions • Rejection processing even for Passenger and Cargo requires substantial clerical effort and paper production • Everything needs to be batched together according to reasonably complex rules, and shipped to your interline partners • A month’s worth of rejects from one airline to another was a 20kg box of paper • It takes substantial manpower to do this • Stuff gets ‘lost’, causing settlement delays and disputes, and requiring copies of everything to be generated, sometimes manually SIS P3 – Nairobi Workshop – Project Update

5. SIS Benefits • Elimination of paper, postage and courier fees • Elimination of internal paper handling and supply chain efforts • Structured data for automated allocation by financial systems • Structured data for automated reconciliation where possible • Data quality improvements on IS-IDEC vs. the old IDEC • New data format for non-transportation invoices – IS-XML, and more than 80 standard business service definitions incorporated • Passenger Rejection Memos, Billing Memos, Credit Memos and Correspondence all electronic • No more loss of supporting documents and re-creation of invoices • Supporting documents in electronic presentation or better SIS P3 – Nairobi Workshop – Project Update

6. SIS Benefits (contd.) • Automation of billing directly from uplifts (“Auto-Billing”) • Cargo Original Billing, Billing Memos, Credit Memos and Correspondence all electronic • Less manual intervention throughout • No more reconciliation problems – settlement values always equal invoice totals • No longer pay before you see the invoice – e-invoice is there for every settlement • Same data standards apply to everyone – one project enables connection to all • Industry service, run at cost by IATA, like a BSP SIS P3 – Nairobi Workshop – Project Update

7. SIS Phases - Overview Phase 1 Feasibility Phase 2 Requirements Phase 3a RFP Phase 3b Analysis Phase 3c Dev/Test/Pilot Phase 1 – July 2007 to September 2007: • This concept was found to be feasible after changes to ICH and AIA processes, with further evaluation and prioritization required Phase 2 – January 2008 to September 2008: • Requirements gathering & RFI Phase 3a – November 2008 to Feb 2009: • RFP & Vendor Selection • Internal Business Case: Project & recurring costs, costs to the industry Phase 3b – March 2009 to December 2009: • Airline Business Case, Vendor contracting, Analysis, Requirement Finalizations • IATA Stage Gate Review Phase 3c – January 2010 to September 2011: • Development, Test and Acceptance, Pilot Test Move to Operation for Pax and Misc – September 2011 Move to Operation for Cargo and UATP – April 2012 SIS P3 – Nairobi Workshop – Project Update

8. Project Update Project Status Screen Prototype review with airlines and others completed Aug 2010 – IS Web review (screens without functionality) April 2011 – IS Web review (screens with functionality) SIS Forums set up for airlines and others to post their questions www.iata.org/SISForum Double release approach SIS P3 – Nairobi Workshop – Project Update

9. Now two releases • Initial project was based on the 2008 requirements • Did not include UATP in the original scope • EMD was only added in 2010 • Additional functional/interface optimisations included during the development cycle • User reviews of the interface in August 2010 led to various changes • Process for digital signatures had to be upgraded • Decision taken by SIS SG to split the delivery in two releases • Sep 2011 – Passenger/Miscellaneous • Apr 2012 – UATP/Cargo • Pilot testing split into two blocks of 9 weeks and 6 weeks and optimised SIS P3 – Nairobi Workshop – Project Update

10. Timeline Phase 3 – Release 1.0 High-level Project Plan Nov 08 – Dec 09 Jan 10 -May 11 Jun 11 – Jul 11 Jul11– Sep 11 Sep 2011 Oct 11 – Apr 12 Apr 2012 May 12 - Sep 2012 Apr 2013 SIS P3c - Development & Pilot Development & System test UAT – Acceptance Tests Pilot run – Pax & Misc Operations & Roll-out Member Profile set-up by carriers Sandbox testing Move to Operation (Pax & Misc) SIS Go-live (Pax & Misc) Pilot live All carriers migrating Potential mandated Pax/CGO prime Old IDEC cut-off date Pax/CGO Potential legacy process shutdown ICH Web/ACH recap sheet cut-off date Vendor IATA Airlines Steering Group SIS P3 – Nairobi Workshop – Project Update

11. Timeline Phase 3 – Release 1.1 High-level Project Plan Sept 11- Oct 11 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 12 - Sep 2012 Apr 2013 SIS P3c - Development & Pilot Development & System test UAT – Acceptance Tests Pilot run – Cargo & UATP Operations & Roll-out Member Profile set-up by carriers Sandbox testing Move to Operation (Cargo & UATP) SIS Go-live (Cargo & UATP) Pilot live All carriers migrating Potential mandated Pax/CGO prime Old IDEC cut-off date Pax/CGO Potential legacy process shutdown ICH Web/ACH recap sheet cut-off date Vendor IATA Airlines Steering Group SIS P3 – Nairobi Workshop – Project Update

12. Upcoming Activities • Test Strategy finalization • Acceptance testing • Pilot testing (Passenger and Miscellaneous) • Cut-over preparation • Go-live SIS P3 – Nairobi Workshop – Project Update

13. Objectives of the Pilot test Improve industry confidence in the solution Testing of the application in the final production infrastructure Understand challenges of the migration with limited deployment Benefit from end users feedback on key migration tools (CBT, User Guide, Sandbox file testing, Training) But it is not : A formal sign-off on the application acceptance from industry – IATA does it Full coverage test – Acceptance Test done by IATA prior Pilot testing SIS P3 – Nairobi Workshop – Project Update

14. Pilot Participants SIS P3 – Nairobi Workshop – Project Update

15. Steering & Working Groups Airline participation has been essential to the progress that SIS has made: Steering Group Passenger WG Cargo WG Miscellaneous WG IT WG Over 60 participants from over 30 carriers during the project, from ICH and ACH ICH Operations WG SIS P3 – Nairobi Workshop – Project Update

16. Working Groups PAX and Cargo Pax WG UA – Bob Portschy (Chair) AA – Leigh Boggs AF – Gilles Clochette BA – Matthew Holden BA – Györgyi Szantner DL – Harold Schwart DL – Lori Lien IB – Alfonso Arias Calderón IB – Virginia Polo LH – Michael Stulpe NZ – Antoinette Nelson SQ – Pei Shan Lim XD – Lori Tully Cargo WG • BA – Mary Pilides (chair) • AC – Myrna Adams • CO – Kasi Cotton • LA – Alejandra Jarufe Cortés • LA – Marcela Figueroa • LH – Martina Kusch • UA – Walter Wollemberg • XD – Lori Tully SIS P3 – Nairobi Workshop – Project Update

17. Working Groups Miscellaneous, IT & Partners IT WG • AA – Maureen Blair (chair) • BA – Kevin Rough • JP – Robert Music • KL – Michel van Rijn • TAP – João Feliciano • IB – Marian Sánchez Tejera • CI – Tai Lin • ACCA – Duan Binbin • Accelya – Terry Palmer • LRS – Uwe Kruener-Marquis • Mercator – Anil Nayak • Navitaire – Debby Willmus • NIIT – Oliver Lipp • ISO – Thomas Dorn Miscellaneous WG • LH – Michael Uebber (chair) • AA – Christina Phillips   • AA – Chris Reynolds • AF – Christine Pucheus • AF – Muriel Meriot • BA – Renuka Pankhania • AC – Cheryl Stephen • AC – Dawn Madden • CO – Stacie Langham • DL – Carol Davis • LH – Sonja Kiefer • KL – Rene Van Zandvoort • RO – Oana Leustean • UA – Bob Portschy • UA – Riphanie Panganiban Partners • SITA • UATP • IATA Finance (billing carriers) • IATA (ATC billing) • Airport User Group • SAP • Oracle • Sabre • Travelport • Amadeus • Abacus SIS P3 – Nairobi Workshop – Project Update

18. Note on Miscellaneous Billings Miscellaneous billing is subject to the biggest changes of all No data standards currently in use – no IDEC equivalent Huge variations in invoices compared to passenger and cargo A ticket is a ticket, and an AWB an AWB, but a catering invoice has almost nothing in common with an engineering invoice or a GDS billing IS-XML serves the same purpose as IS-IDEC, but designed to work in conjunction with financial systems Over 80 business types have been identified and encoded in the design SIS P3 – Nairobi Workshop – Project Update

19. Governance Two new permanent bodies created by the Financial Committee, with new Terms of Reference SIS SG to be responsible for the oversight of the service, the funding, and the prioritization of changes and enhancements Made up as now of directly appointed representatives of the key industry bodies (RAWG, ICHP, E-invoicing, ACH RAC, ACH, ICH), together with 5 other participating members from IATA airlines E-invoicing Standards WG to be responsible for management and development of the IS-IDEC and IS-XML standards, consistency between the two, and integration of other standards if needed Made up of 10 airline and 2 non-airline users of the IS service SIS P3 – Nairobi Workshop – Project Update

20. IS Participation Agreement An industry standard agreement, with the same terms applicable to all Will be published in the IATA RAM, like IDEC, Sampling, and First & Final Will be published once review completed by the SIS SG Needs to be signed in order to access the IS platform Update your airline profile information - key contacts Notify us of any corrections to controlled data Set up your users No charges apply until IS go-live in September 2011 SIS P3 – Nairobi Workshop – Project Update

21. Questions? We’d be glad to address all your questions through the SIS Forums, register for an account at: www.iata.org/SISForum Thank you. SIS P3 – Nairobi Workshop – Project Update 22 22