SIS – Simplified Interline Settlement

SIS – Simplified Interline Settlement Passenger Prime Coupon Billing Webcasts

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 Prime Billing Webcast

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 Prime Billing Webcast

Overview of this webcast • Simplified Interline Settlement Webcasts & Introduction • Interline Settlement Today & Scope of Webcast • Time of Sales (including Own Prorate Storage & Switching, NFPs) • After Uplift / Usage (including Value Determination & Auto-Billing) • Sampling • File Formats • Next Steps • Questions & Answers SIS – Materials – Pax Prime Billing Webcast

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

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 Prime Billing Webcast

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 Prime Billing Webcast

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): • Time of Sales Processes • Some file formats for some processes • Sampling-specific functionality for processes other than Provisional Billing and Rejections (Sampling over general IS processes is “core”) • Non-core functionality is coloured orange on the following pages SIS – Materials – Pax Prime Billing Webcast

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 Prime Billing Webcast

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 Usage File SIS – Materials – Pax Prime Billing Webcast

Time of Sales – Now (Optional) Billed Airline Settlement sheets – (weekly) Recap sheets - weekly Billing Airline ACH F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) Previously released sales record Sales Records, NFPs GDSs BSPs F&F: receives NFP value All: May receive sales records AIA F&F Sales Records Optional Proration, Storage, Switching SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Central Repository Time of Sales – 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 Processes at time of Sales ARC COMPASS™ NFP engine Sales Records & Own Prorates Sales Records, NFPs, & Sales Carrier’s Own Prorates Optional Proration (final & non-final), Storage, Switching (based on airline profile) SIS – Materials – Pax Prime Billing Webcast

Neutral Fare Prorates – With IS • NFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes • NFP non-final could minimize rejections without any obligation by the carriers • Neutral Prorate Correction Service (NPCS) • Corrects errors with sales records • Prorate still considered to be “neutral” • Increasingly complex levels of correction as allowed by the carrier’s profile (Update the master tables, etc) • Correction level added to record • All Time of Sales processes, including NFP and NPCS are non-core SIS – Materials – Pax Prime Billing Webcast

Time of Billing – Now Billed Airline Billing Airline Pre-IDEC Validation for F&F NFP values (updates the PMI) ATPCO 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 Prime Billing Webcast

Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Submitting Billing Information – With IS Integrated Settlement Billing File / Data (similar to today) Billing File / Data (similar to today) 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 Billing Value Confirmation (Leaves “Original PMI”, updates “Value Confirmation PMI”) *Core/non-core illustration applies to prime coupon billings only SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Time of Billing – IS Value Determination Integrated Settlement Billing File / Data (similar to today) Billing File / Data (similar to today) 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 Usage File Prorate Values SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Time of Billing – IS Auto-Billing Integrated Settlement Billing File / Data (similar to today) No Billing File From Carrier 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 Usage File Billing and Invoice Files Created Within IS Daily Revenue Recognition File Weekly Pro-forma Invoice Report SIS – Materials – Pax Prime Billing Webcast

Sampling • Provisional Invoice (as today with prime coupon billing via IS-IDEC, IS-XML, and IS-WEB, but with elements from Forms A and B) • Universe Adjustment (Form C) • Digit Announcement • Digit Selection • Digit Evaluation (Forms D and E) • Rejection Memos & Correspondence (as today with non-sample but with elements from Forms F and XF) • More than other areas, final Sampling functionality will be based on cost and demand SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Sampling – Provisional Invoice 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 Provisional Invoice Weekly or Monthly (P4) Provisional Invoice Weekly or Monthly (P4) Store Invoices (Monthly Consolidation & Digit Selection) Consolidated Provisional Invoice (P4) SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Sampling – Universe Adjustment 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 Universe Adjustment (No breakdowns) Universe Adjustment (No breakdowns) Store Adjustment (Digit Selection) SIS – Materials – Pax Prime Billing Webcast

Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Sampling – Sample Finalization 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 Digit Selection (optional) Digit Evaluation (like Forms D & E) Digit Evaluation (like Forms D & E) Digit Announcement SIS – Materials – Pax Prime Billing Webcast

Passenger 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 – Pax Prime Billing Webcast

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 Prime Billing Webcast

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

SIS – Simplified Interline Settlement