SIS – Simplified Interline Settlement

1. SIS – Simplified Interline Settlement Integrated Settlement Interfaces 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 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 Prime Billing Webcast

4. Overview of this webcast • Simplified Interline Settlement Webcasts • Input Formats Overview • Files (IS-IDEC & IS-XML) • Web Interface (IS-WEB) • Validation • Next Steps • Questions & Answers SIS – Materials – Pax Prime Billing Webcast

5. Presenters • Gianna Monsch, External ConsultantProject Management • James Shannon, IATAProject Coordination SIS – Materials – Pax 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 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 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 is detailed in the relevant presentations (Pax prime, Pax non-prime, Cargo/Miscellaneous) SIS – Materials – Pax 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 Prime Billing 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 Usage File SIS – Materials – Pax Prime Billing Webcast

11. Input Formats • Files (upload & download) • IS-IDEC • IS-XML • IS-WEB • Others – Usage File for Pax • All contain same fields and record structure • Billing carrier can use any format at any time (“input combination”) • Billing carrier’s choice doesn’t affect billed carrier (“format conversion”) • Available formats depend on functionality (see other webcasts) • This presentation applies to Passenger, Cargo, and Miscellaneous SIS – Materials – Pax Prime Billing Webcast

12. File Formats – IS-IDEC • No longer data exchange file, but rather used to create an invoice and settlement file • Similar to IDEC, with enhancements: • Existing fields made mandatory (source codes, etc) • New records added (Rejection Memos, tax breakdowns, etc) • New fields added (for e-billing, additional info, etc) • Unnecessary records / fields removed (batch total records, etc) • 400 byte records (instead of 160 byte) SIS – Materials – Pax Prime Billing Webcast

13. File Formats – IS-XML • New XML format for Integrated Settlement • Based on IATA Aviation Invoice Standard, developed by the Airport Invoice Task Force (AITF) and currently used by IATA InvoiceWorks • Identical fields and validation requirements to IS-IDEC SIS – Materials – Pax Prime Billing Webcast

14. IS-WEB • Web-based user interface to create, read, and delete invoices and records • Identical fields and validation requirements to IS-IDEC and IS-XML • Validation in real-time minimizes possibility of later validation errors • View and print records in a standard format • Same system as for other web-based services (Audit Trail, airline profile updates, etc) • Extensive user access controls (administrator grants view/edit and upload of supporting documents per user per area) SIS – Materials – Pax Prime Billing Webcast

15. Breakdown Records • Breakdown Records have been added where necessary to provide for detailed, possibly repeating, data and to provide for large amounts of text • E.g., a coupon can have 0 or more tax breakdown records, each detailing a tax type and amount • Coupon (C3 on Pax IDEC) breakdown records: • Tax, VAT breakdown • Breakdown records for Rejection, Billing, Credit Memos: • Reason Breakdown, Coupon Breakdown (with Tax & VAT) • Breakdown records for ‘Other Charges’ (Cargo only) SIS – Materials – Pax Prime Billing Webcast

16. Coupon Breakdown (SFI = 32) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) Reason Breakdown (SFI = 31) VAT Breakdown (SFI = xx) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = 34) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Passenger Rejection Memo Breakdowns Rejection Memo (SFI = 21) SIS – Materials – Pax Prime Billing Webcast

17. Validation • Validation will be necessary in the Integrated Settlement environment as quality data is essential: • No paper invoice or “back up” to determine what the electronic data means • Uploaded data is no longer a data exchange file in support of a paper invoice, but rather the base for invoicing and settlement • Some existing fields will continue to be passed through the system without validation for use on a bilateral basis SIS – Materials – Pax Prime Billing Webcast

18. Examples of Validation • Format Rules • Ensures data types (e.g. numbers), length, etc • Correct Values • Settlement method is one of five values (e.g. ICH or ACH), but also depends on which clearing house the carrier is a member of • Mandatory Fields • Source Code, Ticket Issuing Airline, Coupon Number, etc • Rejection & Correspondence Timeframes and Order Enforced • 1st RM  2nd RM  3rd RM  Correspondence • Mandatory Breakdown Records Are Present • Tax breakdown records are present if coupon tax is populated and the breakdown record sums match the tax field SIS – Materials – Pax Prime Billing Webcast

19. Results of Validation • Timeline • Will occur within a maximum of 6 hours after submission • Will also occur after closure if the file was submitted on time (but failures can’t be fixed in that period) • Notification of validation results sent to submitting carrier • Success • Files go on to next step of IS (e.g. e-invoicing & settlement) • Failure (options and permissions to be set in profile) • Invoice or entire file is held until corrected • Web Correction (IS-WEB interface) • Delete (then, optionally, resubmit) SIS – Materials – Pax Prime Billing Webcast

20. Other File Format Features • 20 character “airline’s own use” field (only for Pax) • Value signs (+/-) where appropriate SIS – Materials – Pax Prime Billing Webcast

21. 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

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