1. SIS – Simplified Interline Settlement Technical Migration San Diego, ACH Annual Meeting 2011 Gianna Monsch, aerwise

2. February 2011SIS P3 – ACH Annual Meeting - Technical Migration2 Agenda  All Carriers - Old IDEC  Old IDEC Migration  Old IDEC Files and Submission Deadlines  Non-migrated Billed Carriers - Old IDEC  Recognition of SIS Down Converted Transactions  Down Converted Transactions – Source Codes  Invoice Header Values and Invoice Numbers  Batch Size  Sampling – Number of Invoices per Period  All Carriers - Migration Impact  Non-migrated Billed Carriers – SIS Impact

3. February 2011SIS P3 – ACH Annual Meeting - Technical Migration3 Old IDEC Migration

4. February 2011SIS P3 – ACH Annual Meeting - Technical Migration4 SIS – Migration Overview Billed Entity Integrated Settlement Billing Entity Overall Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Overall Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC Old IDEC non migrated Old IDEC non migrated Hard Cut-Over ! ICH F12 Upload / IS-WEB non migrated claims ACH Recap Sheet ICH F3remains ACH Settlement Sheetunchanged* * ICH reports include SIS & F12 claim differentiation ACH: separate reports for SIS and Recap Sheet claims

5. February 2011SIS P3 – ACH Annual Meeting - Technical Migration5 Hard Cut-over – current IDEC file 5 PassengerCargoMiscellaneous Forward IDEC (old format) submissions to SIS instead of ATPCO No impact Airlines will continue to provide WEB-F12 submissions to ICH-WEB for ICH Claims and Recap Sheets to the Clearing Bank for ACH Claims User Profile will be set-up for all migrated as well as non-migrated entities.

6. February 2011SIS P3 – ACH Annual Meeting - Technical Migration6 Old IDEC – Connectivity Testing 2011 JanFebMarAprMayJunJulAugSepOctNovDec Carrier  SIS Connectivity testing to SIS Platform 13 Jun – 4 Jul SIS  Carrier Connectivity testing from SIS Platform 25 Aug 15 Jul Carrier  SIS Send old IDEC file (Additionally) 15 Aug Timelines subject to changes

7. February 2011SIS P3 – ACH Annual Meeting - Technical Migration7 Old IDEC Files & Submission Deadlines

8. February 2011SIS P3 – ACH Annual Meeting - Technical Migration8 Non-migrated Carrier: old IDEC Integrated Settlement Billed Entity Non-migrated Old IDEC From migrated and non-migrated billing entities Non-Migrated Billed Entity  One monthly old IDEC file, with  Old IDEC transactions from non-migrated billing carriers  Down converted IS-transactions (prime source codes) from migrated billing carriers monthly

9. February 2011SIS P3 – ACH Annual Meeting - Technical Migration9 Migrated Carrier: old IDEC & IS-File Integrated Settlement Billed Entity Migrated Migrated Billed Entity  One old IDEC file, with old IDEC transactions from non-migrated billing carriers (monthly) and  IS-Format file (IS-WEB, IS-IDEC, IS-XML) from migrated billing carriers (weekly) Old IDEC From non-migrated billing entities monthly IS-IDEC / IS-XML From migrated billing entities weekly

10. February 2011SIS P3 – ACH Annual Meeting - Technical Migration10 Old IDEC: Submission Deadlines Integrated Settlement Billed Entity Non-Migrated Billing Carriers  Only ONE submission, around 15th of the month All Billed Carriers  One monthly old IDEC, around 25th of the month * subject to change Old IDEC 25 th * of month Billing Entity Old IDEC 15 th * of month

11. February 2011SIS P3 – ACH Annual Meeting - Technical Migration11 Agenda  All Carriers - Old IDEC  Old IDEC Migration  Old IDEC Files and Submission Deadlines  Non-migrated Billed Carriers - Old IDEC  Recognition of SIS Down Converted Transactions  Down Converted Transactions – Source Codes  Invoice Header Values and Invoice Numbers  Batch Size  Sampling – Number of Invoices per Period  All Carriers - Migration Impact  Non-migrated Billed Carriers – SIS Impact

12. February 2011SIS P3 – ACH Annual Meeting - Technical Migration12 Recognition of SIS Down Converted Transactions

13. February 2011SIS P3 – ACH Annual Meeting - Technical Migration13 Old IDEC: Recognize SIS transactions  SIS will flag the SIS down converted transactions  Invoice Header Record PAX Field 15 - Currency conversion indicator field (=9)  All transactions in the flagged invoice come from a migrated billing carrier non migrated carrier needs to recognize SIS down converted transactions Integrated Settlement Billed Entity Non-migrated Old IDEC From migrated and non-migrated billing entities monthly

14. February 2011SIS P3 – ACH Annual Meeting - Technical Migration14 Down Converted Transactions - Source Codes

15. SIS Prime Source Codes  Old IDEC S/CCurrent RAM - DefinitionNew SIS - Definition 1Lifted coupons - Pax or Excess BaggageLifted Coupons - Pax 2Exchange coupons - Pax or Excess BaggageExchange Coupons - Pax 3Refund coupons - Pax or Excess BaggageRefund Coupons - Pax 8Lost Ticket BillingLost Ticket Billings 14FIM 21Mutilated/illegible docs 23-EMD 25-Excess Baggage 26PTAsMPD 90-FF Redemption February 2011SIS P3 – ACH Annual Meeting - Technical Migration15 The below Source Codes will be included from IS-Format into Old IDEC:

16. February 2011SIS P3 – ACH Annual Meeting - Technical Migration16 SIS Prime Source Codes  Old IDEC  Non-migrated billing carriers will still use the current Source Codes (correct or wrong)  Migrated billing carriers will use the new Source Codes Result: Non-migrated billed carriers must recognize both sets of Source Codes

17. February 2011SIS P3 – ACH Annual Meeting - Technical Migration17 Invoice Header Values & Invoice Numbers

18. February 2011SIS P3 – ACH Annual Meeting - Technical Migration18 Old IDEC: Invoice Values (from migrated carriers) IS-Format Input: Prime RM BM Integrated Settlement Old IDEC Output: Prime Applies to non-migrated billed carriers only!  Remember: down conversion of prime Source Codes only  Result: missing records in the invoices from migrated billing entities; invoice values not summing up  Note: In case of invoices flagged as SIS transactions: then a difference between invoice values and the sum records always relates to “excluded” non prime transactions

19. February 2011SIS P3 – ACH Annual Meeting - Technical Migration19 Old IDEC: Invoice Numbers (ex SIS)  During migration we will have  Old IDEC input and output: 6N mandatory & 8 A/N optional  IS-IDEC input and output: 10 A/N  Old IDEC SIS transaction invoice number could contain alpha codes

20. February 2011SIS P3 – ACH Annual Meeting - Technical Migration20 Batch Size

21. February 2011SIS P3 – ACH Annual Meeting - Technical Migration21 Old IDEC: Batch Size (ex SIS)  SIS – Batch size is unlimited (i.e. 99‘999)  Old IDEC – Batch size is 200  RAM rule to prevent migrated billing carriers to exceed the batch size of 200  However, no IS Validation Results in: non migrated carriers could receive batch sizes higher than 200

22. February 2011SIS P3 – ACH Annual Meeting - Technical Migration22 Sampling – Number of Invoices per Period

23. February 2011SIS P3 – ACH Annual Meeting - Technical Migration23 Old IDEC – Form A/B: Invoice Numbers  Today old IDEC:  One Invoice Number per billing carrier Form A/B per period  After SIS go-live:  More than one invoice number possible per billing carrier Form A/B per period SIS will not prevent this  Recommendation to migrated Sampling carriers: Submit only one Form A/B per period, unless agreed differently on a bilateral basis Results in: non migrated carrier must be able to handle this Sampling Members to agree change to RAM B1, Attachment A, Para 4 to allow multiple invoices per period.

24. February 2011SIS P3 – ACH Annual Meeting - Technical Migration24 Agenda  All Carriers - Old IDEC  Old IDEC Migration  Old IDEC Files and Submission Deadlines  Non-migrated Billed Carriers - Old IDEC  Recognition of SIS Down Converted Transactions  Down Converted Transactions – Source Codes  Invoice Header Values and Invoice Numbers  Batch Size  Sampling – Number of Invoices per Period  All Carriers - Migration Impact  Non-migrated Billed Carriers – SIS Impact

25. February 2011SIS P3 – ACH Annual Meeting - Technical Migration25 Migrating Passenger: Approach Three (3) Certification Processes : Partly – structured approach 1.Prime Billing Sampling Provisional Invoice (Form A and B) 2.Any other transactions 3.Any other transactions Any other transactions:  Rejection Memos  Billing Memos  Credit Memos  Sampling all other formats Always first !

26. February 2011SIS P3 – ACH Annual Meeting - Technical Migration26 Migrating Passenger: Examples 1.Prime Billing & Sampling Provisional Invoice (Form A and B) 2.RM 3.BM, CM, Sampling Form D/E and F, XF OR 1.Prime Billing & Sampling Provisional Invoice (Form A and B) & RM 2.Sampling Form D/E and F, XF 3.BM and CM OR 1.Prime Billing & Sampling all Forms 2.RM 3.BM and CM OR 1.All together

27. February 2011SIS P3 – ACH Annual Meeting - Technical Migration27 Migrating Freight: Approach Two (2) Certification Processes : Partly – structured approach 1.Original Billing 2.Any other transactions 3.Any other transactions Any other transactions:  Rejection Memos  Billing Memos  Credit Memos Always first !

28. February 2011SIS P3 – ACH Annual Meeting - Technical Migration28 Migrating Non-Transportation: Approach Two (2) Certification Processes : Partly – structured approach 1.Original Billing Any other transactions:  Rejection Invoices  Invoice based on an “Authority to Bill”

29. February 2011SIS P3 – ACH Annual Meeting - Technical Migration29 Pre SIS go-live: Basic Member Profile All Carriers: Set up basic SIS Member Profile in IS-WEB  Needed to control old IDEC process  Needed to control IS-WEB access  Needed to validate submissions of migrated carriers

30. February 2011SIS P3 – ACH Annual Meeting - Technical Migration30 Rejection Values - 1 Context:  2nd and 3rd RM: the representation of rejection values have changed in SIS  showing the total amounts instead of difference amounts Migrated carriers:  After migration, there will still be RMs coming in, for billings performed before migrating  If the rejecting carrier is non-migrated, these RMs come in the „old format“  showing difference amounts Results in: migrated carriers need to handle these cases in their own RA systems

31. February 2011SIS P3 – ACH Annual Meeting - Technical Migration31 Rejection Values - 2 Non-Migrated carriers:  RMs from non-migrated carriers may be based on the difference value or may be based on the total value (depending on the rejecting carriers internal processes)  RMs from migrated carriers will be based on total values When you reject this RM, you have to go through IS-Web and use the total concept Results in:  Non-migrated carriers need to handle these cases in their own RA systems (see ISPG, chapter 3.8.)

32. February 2011SIS P3 – ACH Annual Meeting - Technical Migration32 Agenda  All Carriers - Old IDEC  Old IDEC Migration  Old IDEC Files and Submission Deadlines  Non-migrated Billed Carriers - Old IDEC  Recognition of SIS Down Converted Transactions  Down Converted Transactions – Source Codes  Invoice Header Values and Invoice Numbers  Batch Size  Sampling – Number of Invoices per Period  All Carriers - Migration Approach  Non-migrated Billed Carriers – SIS Impact

33. February 2011SIS P3 – ACH Annual Meeting - Technical Migration33 Migrated carriers remove paper invoice Migrated Billing Carriers can remove the paper invoice  Migrated billing carriers may remove the paper invoice three (3) months after migration  Bilateral agreements for an earlier or later removal possible  ACH proposes to remove paper immediately  Non-migrated billed carriers have to access IS-WEB in order to receive their invoices (Access IS-WEB, manually search their invoices and supporting documents and print them out on their printer and paper)

34. February 2011SIS P3 – ACH Annual Meeting - Technical Migration34 Non-Migrated Carriers to respond via SIS Pax and Cargo:  RAM A10 – Part 1: If an airline receives a billing or rejection or correspondence that was submitted via SIS, and it wishes to dispute that billing, rejection or correspondence, it has to do so via SIS, therefore for such cases RAM Chapter A10 Part 2 applies. As a non-migrated carrier, you will use SIS (IS-WEB) latest from September 2011 on !

35. Questions? We’d be glad to address all your questions through the SIS Forums, register for an account at:  www.iata.org/SISForumwww.iata.org/SISForum 35 Thank you. February 2011SIS P3 – ACH Annual Meeting - Technical Migration