SIS – Simplified Interline Settlement Passenger Prime Coupon 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 – Pax Prime Billing 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 – Pax Prime Billing Webcast August 2008

Overview of this webcast Simplified Interline Settlement Webcasts & Introduction Interline Settlement Today & Scope of Webcast Time of Sales (including Own Prorate Storage & Switching, NFPs) After Uplift / Usage (including Value Determination & Auto-Billing) Sampling File Formats Next Steps Questions & Answers 1 SIS – Materials – Pax Prime Billing Webcast August 2008

Presenters Gianna Monsch, External Consultant Project Management James Shannon, IATA Project Coordination SIS – Materials – Pax Prime Billing 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 – Pax Prime Billing 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 – Pax Prime Billing 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 includes (but is not limited to): Time of Sales Processes Some file formats for some processes Sampling-specific functionality for processes other than Provisional Billing and Rejections (Sampling over general IS processes is “core”) Non-core functionality is coloured orange on the following pages SIS – Materials – Pax Prime Billing 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 – Pax Prime Billing 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 Usage File Processes at time of Sales NFP engine ARC COMPASS™ SIS – Materials – Pax Prime Billing Webcast August 2008

Time of Sales – Now (Optional) Billed Airline Settlement sheets – (weekly) ACH Recap sheets - weekly Billing Airline F3– (weekly) ICH F12 – (weekly) F1 – net amounts of inv F2 - summary ATPCO Pax IDEC File (monthly) (incl F&F pre IDEC Validation) Pax IDEC File (monthly) prorate engine prorate engine Sales Exchange and F&F processes as they exist today ARC-Compass (NFP storage) GDSs BSPs Previously released sales record Sales Records, NFPs AIA F&F F&F: receives NFP value All: May receive sales records Sales Records Optional Proration, Storage, Switching SIS – Materials – Pax Prime Billing Webcast August 2008

Billing & Invoicing Processes Processes at time of Sales Time of Sales – 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 Very similar to today, but with the own prorate forwarding & storage and more control over the process via the airline profile Uses same record structures as today Usage File Processes at time of Sales ARC COMPASS™ NFP engine Sales Records & Own Prorates Sales Records, NFPs, & Sales Carrier’s Own Prorates Optional Proration (final & non-final), Storage, Switching (based on airline profile) SIS – Materials – Pax Prime Billing Webcast August 2008

Neutral Fare Prorates – With IS NFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes NFP non-final could minimize rejections without any obligation by the carriers Neutral Prorate Correction Service (NPCS) Corrects errors with sales records Prorate still considered to be “neutral” Increasingly complex levels of correction as allowed by the carrier’s profile (Update the master tables, etc) Correction level added to record All Time of Sales processes, including NFP and NPCS are non-core SIS – Materials – Pax Prime Billing Webcast August 2008

Time of Billing – Now Pre-IDEC Validation for F&F NFP values Billed Airline Pre-IDEC Validation for F&F NFP values (updates the PMI) Billing Airline ATPCO Pax IDEC File (monthly) (incl F&F pre IDEC Validation) Pax IDEC File (monthly) prorate engine prorate engine Carrier submits billing file (might contain F&F values that we talked about at time of sales). Pre-IDEC occurs if it’s a F&F value 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 – Pax Prime Billing Webcast August 2008

Submitting Billing Information – With IS Billing File / Data (similar to today) Integrated Settlement Billing File / Data (similar to today) 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 Very similar process as occurs today Usage File Processes at time of Sales NFP engine ARC COMPASS™ Billing Value Confirmation (Leaves “Original PMI”, updates “Value Confirmation PMI”) *Core/non-core illustration applies to prime coupon billings only SIS – Materials – Pax Prime Billing Webcast August 2008

Time of Billing – IS Value Determination Billing File / Data (similar to today) Integrated Settlement Billing File / Data (similar to today) 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 Once data is stored in ARC COMPASS®, what can be done with it? Value Determination can retrieve the prorates from COMPASS® on request. Also will include Excess Baggage prorates. In addition to any prorate switching that is done at time of sales. Usage File Processes at time of Sales NFP engine ARC COMPASS™ Usage File Prorate Values SIS – Materials – Pax Prime Billing Webcast August 2008

Time of Billing – IS Auto-Billing Billing File / Data (similar to today) Integrated Settlement No Billing File From Carrier 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 Once data is stored in ARC COMPASS®, what can be done with it? Auto-Billing is the next step of Value Determination and will create a weekly billing file on behalf of the airline. Usage File Processes at time of Sales NFP engine ARC COMPASS™ Usage File Billing and Invoice Files Created Within IS Daily Revenue Recognition File Weekly Pro-forma Invoice Report SIS – Materials – Pax Prime Billing Webcast August 2008

Sampling Provisional Invoice (as today with prime coupon billing via IS-IDEC, IS-XML, and IS-WEB, but with elements from Forms A and B) Universe Adjustment (Form C) Digit Announcement Digit Selection Digit Evaluation (Forms D and E) Rejection Memos & Correspondence (as today with non-sample but with elements from Forms F and XF) More than other areas, final Sampling functionality will be based on cost and demand SIS – Materials – Pax Prime Billing Webcast August 2008

Sampling – Provisional Invoice 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 Usage File Processes at time of Sales NFP engine ARC COMPASS™ Provisional Invoice Weekly or Monthly (P4) Provisional Invoice Weekly or Monthly (P4) Store Invoices (Monthly Consolidation & Digit Selection) Consolidated Provisional Invoice (P4) SIS – Materials – Pax Prime Billing Webcast August 2008

Sampling – Universe Adjustment 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 Universe adjustment will be a submission of the coupons which need to be removed from the universe. The coupons will not need any breakdown records. Usage File Processes at time of Sales NFP engine ARC COMPASS™ Universe Adjustment (No breakdowns) Universe Adjustment (No breakdowns) Store Adjustment (Digit Selection) SIS – Materials – Pax Prime Billing Webcast August 2008

Sampling – Sample Finalization 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 Digit Announcement will be done by IATA as today. Digit Selection can by done as today by the billed airline or can be done by IS (using the records from the Provisional Invoice minus those from the Universe Adjustment) and sent to the billed airline. Digit Evaluation can only be input via IS-IDEC, but can be downloaded via IS-IDEC, IS-XML, or IS-WEB. Usage File Digit Selection (optional) Processes at time of Sales NFP engine ARC COMPASS™ Digit Evaluation (like Forms D & E) Digit Evaluation (like Forms D & E) Digit Announcement SIS – Materials – Pax Prime Billing Webcast August 2008

Passenger File Formats Process IS-IDEC IS-XML IS-WEB Prime Coupon Billing ü Rejection, Billing, & Credit Memos Value Determination & Auto-Billing Other: Usage / Value Request File Sampling – Provisional Invoice Sampling – Universe Adjustment Sampling - Finalization Sampling – Rejection Memos Subject to change based on costs and carrier demand See ‘IS File Formats’ and ‘Pax Non-Prime’ webcasts for more information SIS – Materials – Pax Prime Billing 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 – Pax Prime Billing Webcast August 2008

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