A4A Passenger Facilitation Barbara Kostuk, Managing Director, Passenger Facilitation September 2014

About A4A Together with our affiliates, our members transport more than 90 percent of U.S. airline passengers and cargo traffic. o A4A Members: Alaska Airlines, Inc., American Airlines, Inc., Atlas Air, Delta Air Lines, Inc., FEDEX, Hawaiian Airlines, Inc., JetBlue Airways Corporation, Southwest Airlines Company, United Airlines, Inc., UPS Airlines, US Airways; Associate Member: Air Canada »Airlines for America (A4A), is the trade association of the principal United States airlines »A4A’s National Airline Policy To educate and encourage passengers, airline employees, communities, businesses, shippers and investors to urge the federal government to support a comprehensive policy which enables the industry to increase air service across the nation. Five pillars: o Reduce Taxes o Reform Regulatory Burden o Modernize Air Traffic System o Compete Globally o Stabilize Process

September 2014 A4A Passenger Facilitation Council Maintaining close collaborative relationships with the Bureau of Customs and Border Protection, other U.S. government agencies, and foreign government agencies to provide industry input into the formulation and implementation of regulatory initiatives; Assessing and articulating the impact of regulatory proposals on the industry; Establishing passenger facilitation priorities; Sharing information among members and with other A4A councils as appropriate; Educating the public, regulators and stakeholders regarding the airlines passenger facilitation capabilities, limitations, and challenges; and Developing consensus industry positions on passenger facilitation issues of significance to the industry and advancing those positions with regulatory agencies. »Mission/Charter: The mission of the A4A Passenger Facilitation Council is to identify new and emerging issues and concerns on regulatory and legislative proposals, develop consensus industry positions and proposed solutions, and influence policy and implementation of regulatory initiatives relating to passenger processing by Federal Inspection Services. This will be achieved by:

September 2014 What is “Passenger Facilitation”?

September 2014 What is “Passenger Facilitation”? The entire passenger international journey beginning with the reservation and ending with the departure from the customs arrival at a foreign destination This includes the integration of operations across the stakeholder environments of airlines, airports and governments Reducing unnecessary regulation and improving inspection procedures to expedite the movement of people and goods over international boundaries Overseeing development, coordination, application and implementation of immigration and customs passenger programs and the carrier’s worldwide passenger programs as they relate to immigration and customs entry and exit compliance »It involves: »Liaises with: Immigration and customs authorities around the world on issues related to visas and government requirements for passenger data

September 2014 Passenger Facilitation Need to increase the number of U.S. Customs and Border Protection (CBP) officers to handle increased traffic Expansion of “Preclearance” o CBP operates U.S. border inspection facilities for the clearance of air passengers and their goods at 15 locations in 6 foreign countries o CBP and the U.S. Congress would like to expand to additional foreign destinations New Technology for Clearing Passengers into the United States o Trusted Traveler Programs such as Global Entry, allowing approved registered travelers to “enter” the United States without having to see a Customs officer o Automated Passport Control (APC) Kiosks, allowing passenger to provide passport data and entry information on a kiosk o Mobile Passport Control (MPC), an APP allowing passenger to provide passport data and other entry information prior to arriving in the Customs hall Biometric Air Exit o DHS is testing ways to collect biometrics for foreign nationals departing the United States at airports Harmonizing Passenger Data Requirements o Foreign government requests for Advanced Passenger Information (API) and Passenger Name Record (PNR) data »Current Issues

September 2014 Harmonizing Passenger Data Requirements Today in the worldwide aviation market o Over 120 countries collect API data; with an additional 43 countries who have authorized/anticipate the collection of API (from countries as diverse as Albania to the United State) o There are 10 countries who collect PNR data; with an additional 31 who have authorized/anticipate the collection of PNR (from countries as diverse as the Czech Republic to the Ukraine) Each country wants its regulation to be implemented ASAP Each project must be prioritized o Carrier IT resources generally unable to handle multiple projects simultaneously o Most critical markets will take priority o Programming on a single project can average days o Carrier must consider potential financial liabilities for failure to meet project time-lines o Carrier must ensure compatibility with other systems o Carrier must undergo connectivity testing between carrier and government »Carrier Challenges

September 2014 Harmonizing Passenger Data Requirement Russia: API inbound and outbound PLUS Overflight reporting India: New outbound API requirement Mexico: PNR – September 30, 2014 Brazil: API inbound and outbound, PNR for many Japan: PNR push by end of 2014 Indonesia: API in 2014 Philippines: API (and PNR anticipated) by end of 2014 Malaysia: API in 2014 Vietnam: API in 2014 United Kingdom: Seeing API and PNR on select routes China: Combination of requirements Australia: PNR push and Data Quality initiatives United States: Data Quality initiatives »Requests for 2014

September 2014 Harmonizing Passenger Data Requirements France: API and PNR European Union (EC): Multiple additional PNR Push Requirements Bolivia: API Peru: Interactive API Ireland: API and PNR Canada: Development of outbound API and interactive API »Anticipated for 2015

September 2014 Harmonizing Passenger Data Requirements Russia API/PNR Revised regulation published May 2014 – waiting for a final review and Presidential signature Calls for carriers to provide overflight API data for passengers and crew beginning December 1, 2014 (Carriers who fly to Russia are already providing API for passengers) o Overflight and crew reporting: requires complete API data 24 hours prior to flight’s departure and then again at departure – Carriers rarely have full API data 24 hours out New regulation on data privacy for Russian nationals adopted in July o Which would regulate the collection, processing and storage of personal data for Russian nationals o Could create major problems for both carriers and GDS’s whose data is stored outside of the Russian Federation »API and Overflight Reporting »Passenger Name Record The requirement to provide PNR data has been authorized, but it has yet to be enforced

September 2014 Harmonizing Passenger Data Requirements Asia-Pacific Region »India Inbound API is in force since 2011 New requirement for outbound API that differs from the inbound requirement (new non- standard messaging) »Myanmar Planned interactive API with an associated passenger charge for providing the data (industry strongly opposes) »Republic of Palau Announced a non-standard API program in January 2014 »Vietnam API in force via the immigration authorities; Customs now wants separate API provision »Malaysia Moving forward with interactive API

September 2014 Harmonizing Passenger Data Requirements The Americas »Bolivia Coordinating on implementation of an API regime Want to impose a $5US per passenger fee to offset costs (opposed by industry) »Brazil API successfully launched PNR required – issue with EC privacy law »Dominican Republic Industry awaiting changes to API process »Guatemala API authorized »Mexico API in force Current PNR exemptions (due to EC privacy laws) due to expire September 30 »Turks and Caicos Interested in implementing an API regime »United States Carriers working with Customs and Border Protection to improve API data quality

September 2014 Harmonizing Passenger Data Requirements European Commission Privacy Laws Prohibits in many instances, the transfer of personal information from the European Union (EU) to a third country unless the third country has procedures that adequately protect that information o Information from passenger reservations made within the EU cannot be transferred to third-country immigration or customs agencies unless this “adequacy determination” has been made – Directly affects carriers who may carry a passenger from the EU and then into a third country such as Mexico, Brazil and the UAE whose legislation directs carriers to provide PNR data about passengers on flights to their countries The EU has formal agreements with the United States and Canada for the transfer of PNR data, but has not entered into agreements with any other countries The issue keeps growing as more and more countries are requiring PNR data The issue puts the carriers in the middle of two conflicting government requirements »European Commission Directive 95/46/EC

September 2014 What is “Passenger Facilitation”?