SIS – Simplified Interline Settlement Cargo & Miscellaneous 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 window which will appear later Feedback can be entered using the status box on your screen ------------------------------> SIS – Materials – Cargo Misc Webcast August 2008

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 your audio 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 window which will appear later Feedback can be entered using the status box on your screen ------------------------------> SIS – Materials – Cargo Misc Webcast August 2008

Overview of this webcast Simplified Interline Settlement Webcasts & Introduction Interline Settlement Today & Scope of Webcast Cargo Billing Miscellaneous Billing Central Repository & Supporting Documents Audit Trail & Rejection History (Cargo Only) E-Invoicing File Formats Next Steps Questions & Answers 1 SIS – Materials – Cargo Misc Webcast August 2008

Presenters Gianna Monsch, External Consultant Project Management James Shannon, IATA Project Coordination SIS – Materials – Cargo Misc Webcast August 2008

SIS Webcasts August 6 August 7 September 3 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.htm for schedules and materials SIS – Materials – Cargo Misc Webcast August 2008

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 Some basic background in case the General webcast hasn’t been viewed SIS – Materials – Cargo Misc Webcast August 2008

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 coloured orange on the following pages SIS – Materials – Cargo Misc Webcast August 2008

Interline Settlement - Now Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Billed Airline Settlement sheets – (weekly) ACH Recap sheets - weekly Billing Airline F3– (weekly) ICH F12 – (weekly) F1 – net amounts of inv F2 - summary Cargo IDEC File (monthly) ATPCO Cargo IDEC File (monthly) What’s the scope of this presentation? Pax IDEC File (monthly) (incl F&F pre IDEC Validation) Pax IDEC File (monthly) prorate engine prorate engine ARC-Compass (NFP storage) GDSs BSPs Previously released sales record AIA F&F F&F: receives NFP value All: May receive sales records SIS – Materials – Cargo Misc Webcast August 2008

SIS – Simplified Interline Settlement Integrated Settlement Settlement Processes ICH ACH 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 Intro to the combined processes. Multiple file inputs, etc Other Processes at time of Sales NFP engine ARC COMPASS™ SIS – Materials – Cargo Misc Webcast August 2008

Cargo Billing SIS – Materials – Cargo Misc Webcast August 2008

Cargo Billing – with IS Original Billings Rejection Memo & Charge Memo (same record but different fields used) Correspondence Can also be sent outside of Integrated Settlement (e.g. via email) SIS – Materials – Cargo Misc Webcast August 2008

Cargo Billing – Original Billings Integrated Settlement Settlement Processes ICH ACH 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 Intro to the combined processes. Multiple file inputs, etc Other (TBD) Processes at time of Sales NFP engine ARC COMPASS™ Billing File / Data (similar to today) Billing File / Data (similar to today) *Core / non-core file formats have not yet been fully defined SIS – Materials – Cargo Misc Webcast August 2008

Cargo Billing – RMs, CMs, Correspondence Integrated Settlement Email or Other (correspondence only) Settlement Processes ICH ACH 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 Intro to the combined processes. Multiple file inputs, etc Other Processes at time of Sales NFP engine ARC COMPASS™ Billing File / Data (similar to today) Billing File / Data (similar to today) *Email / other for correspondence is a unilateral choice made by the billing airline SIS – Materials – Cargo Misc Webcast August 2008

Correspondence – With IS Correspondence can include an “authority to bill” flag which identifies when the authority to bill has been issued Not tied to settlement periods like transactions in Integrated Settlement – real-time and similar to e-mail but via IS-WEB interface Validation ensures no “cross-over” – correspondence can only be in reply to another correspondence (or 3rd-stage RM) and cannot be out-of-order SIS – Materials – Cargo Misc Webcast August 2008

Miscellaneous Billing SIS – Materials – Cargo Misc Webcast August 2008

Miscellaneous Billing Integrated Settlement Settlement Processes ICH ACH 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 Intro to the combined processes. Multiple file inputs, etc Other Processes at time of Sales NFP engine ARC COMPASS™ Billing File / Data Billing File / Data SIS – Materials – Cargo Misc Webcast August 2008

Supporting Documents SIS – Materials – Cargo Misc Webcast August 2008

Supporting Documents – With IS Integrated Settlement Settlement Processes ICH ACH 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 A specific look at supporting docs Usage File Processes at time of Sales NFP engine ARC COMPASS™ * Could be used with all record types (including prime coupon billings, Cargo, etc) SIS – Materials – Cargo Misc Webcast August 2008

Central Repository & Supporting Docs What? Any type of supporting document (image, PDF, IS-XML, etc) How long? As long as the data is operationally required When? Before or after the associated record is uploaded (with “pending attachments” flag, which allows for notifications if not uploaded) How? To be determined in the next phase with the help of the supplier What?: Limitations may be put in place to keep the size down (no TIFFs, for example) How Long?: Time limit + buffer period, reset every time something new happens (e.g. rejection of rejection) How?: Could be embedded in the XML file, could be via FTP or a web (HTTP) POST, etc SIS – Materials – Cargo Misc Webcast August 2008

Audit Trail (Cargo Only) SIS – Materials – Cargo Misc Webcast August 2008

Audit Trail & Rejection History (Cargo) With operational data being stored: Future records (e.g. rejections) don’t need supporting documents re-attached IS-WEB can be used to search and take action on previous billings: Search & browse through all records for which your carrier billed or was billed View audit trail of linked correspondences, rejections, and original billings Find outgoing correspondences that haven’t been responded to Go directly to appropriate action All the operational data is being stored; what can be done with it? SIS – Materials – Cargo Misc Webcast August 2008

Audit Trail Analysis & Reporting (Cargo) Search by prefix code, coupon number, source code, billing period, authority to bill, etc Drill down through tickets, coupons, tax breakdowns, correspondences, etc Viewing and downloading of analysis (reporting) available Actions (where applicable): View the rejection history Create a rejection memo Create correspondence Create a billing memo SIS – Materials – Cargo Misc Webcast August 2008

Cargo & IATA e-freight Currently all cargo attachments are “electronic presentation” (scanned images or other visual representations) When IATA e-freight is fully implemented: Most records will be “e-electronic” (a structured, machine-readable format) and the format will be required by IS Both the billed and billing carriers will have digital copies of some records, which will no longer need to be attached in IS Before e-freight is fully implemented, carriers may bilaterally choose to send the e-electronic records or to not send any records SIS – Materials – Cargo Misc Webcast August 2008

E-Invoicing SIS – Materials – Cargo Misc Webcast August 2008

Billing & Invoicing Processes E-Invoicing Create invoice file (where applicable) Optionally create and verify digital signature Optionally store e-invoice in a legal archive Settle claims via ICH / ACH Make invoice (incl. optional digital signature and verification) available for download Integrated Settlement Settlement Processes ICH ACH 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 Intro to the combined processes. Multiple file inputs, etc Other Processes at time of Sales NFP engine ARC COMPASS™ Billing File / Data (similar to today) Billing File / Data (similar to today) SIS – Materials – Cargo Misc Webcast August 2008

E-Invoicing Carriers can submit a: Billing file containing all information necessary to be a legal invoice, therefore submitting a legal invoice Billing file without necessary data (such as reference data or digital signature) IS adds the necessary data or digital signature, thereby creating the legal invoice IATA will be legally mandated by the carriers to supplement the billing file with this information Invoice will be made available via IS-WEB SIS – Materials – Cargo Misc Webcast August 2008

E-Invoicing Need for digital signature depends on both billing and billed carriers (option in airline profile and specified on upload file) Legal e-invoice archive will be an option for carriers that need it Billed carriers do not need to be concerned with the billing carriers’ requirements pertaining to e-invoices (or vice versa) – IS will handle this with the input of individual carriers SIS – Materials – Cargo Misc Webcast August 2008

E-Invoicing Reference Data Settlement Method An invoice contains legally-required fields (e.g. VAT number, company name, etc) Those fields can be stored in the airline profile and added during the legal invoice creation Or the billing carrier can upload them in the billing file (any discrepancies between the uploaded data and the profile will be sent in an alert) Settlement Method New field that designates how the billing will be settled: ICH, ACH, bilaterally, or not at all SIS – Materials – Cargo Misc Webcast August 2008

E-Invoicing - General Claims and protests will be settled with the clearing houses like today SIS – Materials – Cargo Misc Webcast August 2008

Cargo & Miscellaneous File Formats Process IS-IDEC IS-XML IS-WEB Cargo – Original Billing* ü Cargo – RMs, CMs, Correspondence Miscellaneous – All * Non-core file formats have not yet been defined; “Other” (such as CSV) will be non-core and based on carrier needs Subject to change based on costs and carrier demand See ‘IS File Formats’ and ‘Pax Non-Prime’ webcasts for more information SIS – Materials – Cargo Misc Webcast August 2008

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 2 SIS – Materials – Cargo Misc Webcast August 2008

Questions? Email: sis@iata.org SIS Website: www.iata.org/whatwedo/finance/clearing/sis/index.htm SIS – Materials – Cargo Misc Webcast August 2008