Simplified Interline Settlement SIS Project Update

1. Simplified Interline SettlementSIS Project Update Bernard Paul SIS Program Manager

2. SIS P3 � Lima Workshop � Project Update 2 What is SIS ? 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, Freight, UATP and Non-transportation Be funded by IATA for the industry, and run on a cost-recovery basis, not for profit

3. SIS P3 � Lima Workshop � Project Update 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

4. SIS P3 � Lima 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

5. SIS P3 � Lima 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

6. SIS P3 � Lima Workshop � Project Update 6 SIS Benefits (contd) Automation of billing directly from uplifts (�Auto-Billing�) Freight 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

7. SIS P3 � Lima Workshop � Project Update 7 SIS Phases - Overview