e-AWB Sponsored by:

Chairman’s Opening Remarks Felix Keck, Managing Director, TRAXON Europe

Welcome Address Nick Rhodes, Director Cargo, Cathay Pacific Airways Limited Jackson Chan, e-AWB Services Manager e-Freight, Cathay Pacific Airways Limited

IATA World Cargo Symposium e-AWB Vision IATA World Cargo Symposium Nick Rhodes – Director Cargo Jackson Chan – Manager e-Freight 09 Mar 2011

Agenda Introduction CX EDI Agreement CX e-AWB CX e-AWB Vision Q & A

e-AWB Timelines Feb10 Mar Apr May Jul Sep Oct Nov Dec Jan11 Implementation Strategy approved by S/C Briefing sessions to Forwarder’s Management Start trail run Conclude EDI Agreement HKG e-AWB Cut over Feb10 Mar Apr May Jul Sep Oct Nov Dec Jan11 HAFFA + key customers pre-alerted. Notice & briefing invitation issued Technical and operation training to Forwarder’s OPS Team Start Pilot Run All HKG Forwarders are ready

Why 100% e-AWB in HKG One International Airport Strong Home-Based Carrier Close-unit Cargo Community Co-operative Government and Customs Strong IT Support – GLSHK “Can-Do” Hong Kong Spirit Project Champion

CX EDI Agreement

CX Agreement adapted from IATA Model Agreement

What are differences? IATA Model Agreement CX Agreement Difference? Master Agreement Basically same Annex A –Technical Annex Annex B- Conditions of Contracts for contracts concluded by electronic means Same Annex C – Recommended practice 1670 Nil Annex D – Terms for initiating and concluding cargo contracts in respect of Warsaw Carriage CX only – for non MC99 ** destinations Annex E - Conditions of Contracts for contracts concluded by paper means Annex F – Airport Schedule CX only – adopt e-AWB by airport * *TPE/KHH/BKK/HKT/CMB/KTM/DPS/JKT/SUB/PNH/HAN/SGN/CEB/MNL/DAC/MOW

CX e-AWB

e-AWB Scope of Document Shippers Origin-Destination Carrier Origin Freight Forwarders Import Goods Declaration Customs Release Import Export Customs Import Customs Invoice Packing List Certificate of Origin Letter of Instruction Dangerous Goods Declaration Destination Freight Forwarders Master Air Waybill House Waybill House Manifest Export Goods Declaration Customs Release Export Flight Manifest Transfer Manifest Export Cargo Declaration Import Cargo Declaration The remaining documents are not in scope, as they are not currently supported by international standards (not even on paper, as they are local documents).  Note: Four more documents were added in year 2010 17.Flight Book List, 18.Security Declaration, 19.Transit Declaration and 20.CITES Certificate e-AWB only covers Master Air Waybill and House Manifest out of 20 Documents in this diagram Consignees

Objectives of e-AWB Removal of paper AWB & replace by electronic AWB data between Freight Forwarder and Airline. Replacing paper contract by electronic contract Establish first mandatory step for e-Freight

Design Principles One standard process between Freight Forwarder and Airline. All cargo types. All destinations, MC99 or non-MC99 Countries.

How to implement it? Options: To sign an Agreement for EDI with Forwarder (Global agreement with Annex F for each individual location) To exchange electronic messages via CDMP or direct host-to- host connection. CX IT Provider is GLSHK (Ezycargo/Ezyfreight) * Forwarder send FWB/FHL to Airline and receive FNA/RCS from Airline Options: 1. Host to Host connection (Forwarder’s own system, Local IT Provider, Global IT Gateway) 2. Ezycargo/Ezyfreight

Design Approach One standard procedure to Freight Forwarder – No AWB Paper for all destinations ex-HKG Freight Forwarder has to send electronic Air Waybill and House Data to CX e-Freight (ezyfreight) System. Other required documents can be manually uploaded to electronic airline pouch CX will accept the AWB within 30 mins and inform Ready For Carriage with EDI message (RCS) or reject with error message (FNA) CX will print AWB and House Manifest on behalf of forwarder based on individual destination requirement

AWB Printing Based on Destination Inbound Customs Clearance Neutral AWB Laser AWB e-Freight (4 copies) (Print 1 A4 paper copy) (No paper AWB onboard) Local Customs accept PEK / CTU / CKG / FOC / HGH / KMG / NKG / NGB / TAO / PVG / WUH / XMN / CAN / CEB / HKT / PNH / JKT / SUB / KTM / DEL / BOM / MAA / RUH / JED / MOW / CMB/ BKK / DPS / MNL / HAN / SGN / DAC/ DXB / KIX / PNH JNB / CSX / PUS / FUK / NGO / SPK / ADL / CNS / PER / BRU /MXP / ROM / ARN / BAH / YYZ / LAX / SFO / IAH / ATL / DFW / MIA / SYX / PEN / BLR / KHI / BKI / HND / SDJ /OKA AKL / AMS / HKG / KUL / LHR / ICN / SIN / SYD / YVR / NRT / MEL / BNE/ FRA / CDG / MAN / JFK / ORD/ PER/ KHH/ TPE Note: Master Waybill will be printed in either Neutral or Laser A4 House Manifest will be printed in Laser A4 Neutral AWB will be printed for truck and Interline shipments Hopefully in near future, AWB will be printed by destination only when required.

e-AWB Process – Overview Freight Forwarders Service Providers Airlines ERP Web Receive Information FWB/FHL Prepare Consol (system starts data validation) Receive Freight (warehouse receipt) Deliver Freight Freight on Hand FSU/FOH (system starts data validation) Validate Information (data and scan) e-Pouch (documents for airline acceptance: license, declaration letter etc) Scan Documents (system validation) Resolve Issues (with forwarder if any) FNA (with airline if any) Freight Acceptance FSU/RCS Print Cargo Receipt (if need be) (produce cargo receipt) Deliver Pouch (to airline if any) Fly Pouch (to destination if any)

Sample of e-AWB Pouch Label

Difference between e-AWB and e-Freight To remove paper Air Waybill and replaced by electronic message (FWB). To remove all physical papers required for air transport, and convert them to electronic messages. Examples: Air Waybill, House Manifest, House AWB, Invoice, Packing List, Certificate of Origin, etc. Can implement on non-IATA declared e-freight stations. Only implement on IATA declared e-Freight stations. No IATA Cargo IMP code Need to input IATA Cargo IMP code: EAW or EAP The whole chain involves: Origin Freight Forwarder  Origin Airline Shipper  Origin Freight Forwarder  Origin Airline  Origin GHA  Origin Customs  Destination Customs  Destination GHA  Destination Airline  Destination Freight Forwarder  Consignee Common Practice for e-AWB & e-Freight : Documents which can’t be converted to electronic data can be sent to Airline through Ezycargo as e-Pouch.

Latest Status CX/KA have successfully cutover 100% e-AWB in HKG as planned on 01Jan11 e-AWB have been shipped to almost all CX/KA destinations and 100+ offline stations All EDI Agreements signed 2/3 of HKG forwarders are connected by host-to-host

CX e-AWB Vision

e-AWB Vision Move AWB document printing from Forwarder to Airline origin station Move AWB document printing from origin to destination, print only by exception Implement 100% e-AWB for all CX/KA online stations by end 2012 Remove Forwarder Pouch by implementing e-Freight

Inbound Customs Clearance e-AWB Vision (cont..) Inbound Customs Clearance e-Freight (No paper AWB onboard) Local Customs accept AKL / AMS / HKG / KUL / LHR / ICN / SIN / SYD / YVR / NRT / MEL / BNE/ FRA / CDG / MAN / JFK / ORD/ PER/ KHH/ TPE PEK / CTU / CKG / FOC / HGH / KMG / NKG / NGB / TAO / PVG / WUH / XMN / CAN / CEB / HKT / PNH / JKT / SUB / KTM / DEL / BOM / MAA / RUH / JED / MOW / CMB/ BKK / DPS / MNL / HAN / SGN / DAC/ DXB / KIX / PNH JNB / CSX / PUS / FUK / NGO / SPK / ADL / CNS / PER / BRU /MXP / ROM / ARN / BAH / YYZ / LAX / SFO / IAH / ATL / DFW / MIA / SYX / PEN / BLR / KHI / BKI / HND / SDJ /OKA All CX stations are e-freight enabled station

Q & A ?

Thank You !

Keynote: The Iberia e-AWB Experience In Madrid Angel Cabeza Rivas, Head of Network & Product Development, Iberia Cargo

IBERIA CARGO / Head of Network & Product Development IBERIA e-AWB VISION Angel Cabeza IBERIA CARGO / Head of Network & Product Development IATA World Cargo Symposium, Istanbul, March 9th, 2011

AGENDA 1. IB vision on e-AWB 2. The solution 3. The Status 4. What's next

The AWB is the common document for all shipments… IBERIA e-AWB VISION The AWB is the common document for all shipments… Let´s Make it HISTORY ! eFreight Benefits & Shipments eAWB Now Number of Documents & Complexity

IBERIA eAWB KEY SUCCESS ELEMENTS THE SOLUTION IBERIA eAWB KEY SUCCESS ELEMENTS Spanish Customs Support IATA RP1670 full endorsment as IB eAWB standard Agreement eBusiness HelpDesk: eAWB & eFreight are MAJOR changes for all participants IT Systems readiness: iberia-cargo.com & TRAXON GLOBAL CCS Forwarders & IBERIA Top Management willingness to embrace this initiative and get eAWB benefits in early stages

IBERIA e-FREIGHT & e-AWB STATUS IBERIA as part of the IATA eAWB Working Group support the IATA RP 1670, and takes it as the Standard IB eAWB Agreement More than 10 with Global & Local Forwarders from Spain, Colombia, Germany have already signed with IB eAWB Agreement Other 2 Global and 8 Local Forwarders to join during 2011

Over 2.000 eFREIGHT (eAWB) shipments each month and growing IBERIA e-FREIGHT & e-AWB STATUS Over 2.000 eFREIGHT (eAWB) shipments each month and growing e-AWB CAGR 2008-2010: +65% % eAWB by origin MAD: 19% SPAIN: 12% NETWORK: 5%

IBERIA 5th Airline in the World & 1st European Airline IBERIA e-FREIGHT & e-AWB STATUS IATA MIP, Dec 2010 IBERIA 5th Airline in the World & 1st European Airline

Everything is in place now to make WORLDWIDE WHATS NEXT? Everything is in place now to make WORLDWIDE the e-AWB iniciative a REALITY. IT Systems are ready. We All (Shippers, Forwarders & Carriers…) are willing to start! ALL WE NEED IS A FIRMLY SUPPORT FROM INTERNATIONAL CUSTOMS Legal framework is favourable with MP4/MC99, and the eAWB Agreement defined

Keynote: The Emirates e-AWB Experience in Dubai Niranjan Navaratnarajah, Manager Cargo Systems and E-Freight, Emirates SkyCargo

“Moving Toward 100% e-AWB" By Niranjan Navaratnarajah Manager cargo Systems & E-Freight

Remember the Benefits. Reduction in processing cost Greater accuracy Reduction in cargo handling delays Elimination of the requirements to file and store paper AWB Real-time access to AWB information when required and not from stores

How did we do it. Door to Door Campaign with Global Account Customers Campaign Locally with trusted customers Educate and explain the e-AWB concept to Staff and Customers. Be creative and offer differential Service offerings. Simplify it, e-AWB and e-Freight, Separate but connected.

How did we do it. Explained that the e-AWB agreement is simply replacing the Condition of Contract on the AWB. Contrary to opinion, the e-AWB agreement protects the interests of Customers. Have an open dialog with Customs, Airline and Agent on a feasible solution to achieve e-AWB in the local market. DXB customs don’t want the MAWB

What are the challenges? Global Forwarders are cautious to accept and adapt e-AWB even though their IT systems are e-AWB capable already. Forwarder local offices hesitant to adopt e-AWB, what's in it for us? Countries which have ratified the MP4/MC99 treaties where customs are still demanding original AWB documentation.

What are the challenges? Changing the mind set among customers to accept electronic data (EDI) instead of paper documents. Numerous legacy IT systems in place. Customs IT landscapes are very diversified.

Keeping our Targets in View. 100% e-AWB by end 2014 70% e-AWB by end 2013 30% e-AWB by end 2012 10% e-AWB by end 2011

“Moving Toward 100% e-AWB" Thank You

Keynote: How to Roll-Out Successfully e-AWB? Céline Lavinay-Hourcade, Manager, Cargo Industry Management, IATA

Objectives of e-AWB project Replace the paper Air Waybills by the electronic version. No more paper AWB tendered to airlines! Provide a win-win-win scenario for airlines, freight forwarders and ground handlers by lowering costs, increasing data accuracy and improving customer experience

Key milestones for the Industry 2010: standard approved (RP1670) by the Industry and piloted by 9 airlines in 8 countries 2011: 6% e-AWB 2012: 30% e-AWB & standard EDI multi-lateral agreement 2013: 70% e-AWB 2014: 100% e-AWB

e-AWB today 10 cargo hubs in 10 countries where e-AWB has already been piloted by 12 airlines 162 airlines & local FFA to be actively engaged in April/May by IATA to raise awareness and mobilize the industry toward the 2014 mandate 111 countries where e-AWB is legally feasible accounting for 95% of the global air freight volumes

Reduce your costs and delays Improve your customer service Start e-AWB, now!

Simple steps for your e-AWB project Set up your project team Define your deployment plan Ensure technology is in place Sign your first EDI agreements Engage and align your partners Use the support from IATA

Set-up your project team Get the support from your Senior Management (Sales, IT, Legal, Operations, Customer support) Your e-AWB project champion needs to have a lot of IT background, the cargo experience and the passion to make it happen

Define your deployment plan When? First signed EDI agreement 100% out of home market 100% where feasible How? By freight forwarder? By GHA? Where? Home market? e-AWB markets? Top trade-lanes? e-freight trade-lanes? All trade lanes or only MC99/MP4 trade lanes?

Ensure technology is in place Ensure you have the capability to send, receive & archive FWB, FSU/RCS messages and Cargo Receipt Offer web portal to your customers without EDI capability Improve your data quality

Sign your first EDI agreements Define your strategy Contact your top 20 customers? Engage all your customers in the same market? Contact the local FFA and let them push for their members to sign the EDI agreements? Involve the right people: Legal is in the driver seat, Sales and Claims departments need to be trained & informed

Engage and align your partners Communicate Explain Align Ground handlers Freight forwarders Interline partners Airports IT providers Insurance companies

Use the support from IATA Already available e-AWB basics e-AWB specifications IATA RP1670 on www.iata.org/eawb Coming soon e-AWB scorecards e-AWB e-learning module e-AWB Interactive Map to check the airports readiness e-AWB Handbook IATA Regional Workshops

For more information, go to the IATA website www.iata.org/eawb

e-AWB Questions & Answers Moderator: Celine Lavinay-Hourcade, Manager, Cargo Industry Management, IATA Panel: Jackson Chan, e-AWB Services Manager e-Freight, Cathay Pacific Airways Limited Niranjan Navaratnarajah, Manager Cargo Systems and E-Freight, Emirates SkyCargo Angel Cabeza Rivas, Head of Network & Product Development, Iberia Cargo

Chairman’s Closing Remarks Felix Keck, Managing Director, TRAXON Europe