NewGen ISS Program Update

Agency Accreditation Models Global Default Insurance NewGen ISS Integrated Program Elements NewGen ISS is composed of four key interconnected areas of focus: Agency Accreditation Models Credit Management IATA EasyPay Global Default Insurance

               Accreditation Models Standard Accreditation no Cash Facility Accreditation Models Refresher on Accreditation Models Cash  Credit Limit n/a Standard Accreditation with Cash Facility  CC  Financial Assessment  IATA EasyPay  Chargeback Insurance Cash  Credit Limit  Multi-Country Accreditation  CC  Yearly Financial Assessment  IATA EasyPay  Financial Security / Default Insurance Cash  Credit Limit   Quarterly Assessment of Parent  CC Parent Guarantee  IATA EasyPay   Super BSP*  Financial Security / Default Insurance Agents may voluntarily convert across models as their business evolves, while maintaining their IATA code(s).

Credit Events vs Administrative Non-Compliances Accreditation Models Credit Events vs Administrative Non-Compliances Proposed: Credit Event: Incident related to the agent’s credit worthiness & ability to pay e.g. Late/short payment Current: Irregularity Agent failure to meet requirements incl. matters related to reporting & remittance rules Administrative Non-Compliance: Agent failure to comply with accreditation requirement e.g. Failure to report change of location Payment-related defaults will be continue with withdrawal of all ticketing.

Overview of credit management model NewGen ISS Overview of credit management model Financial Security + Remittance Frequency Accreditation Model Credit Status Credit Conditions Cash Facility Financial Information + Credit History ‘Credit’ Available to Agent Applicable to those agents choosing to be accredited with a cash facility. Financial assessment and the credit history considered into the agent’s credit status. Introduction of a financial assessment framework for Multi-Country agents. On-going assessment of agents’ credit history considering credit events.

*         Assessment NewGen ISS Establishing credit status & conditions Credit Conditions Credit History Credit Status Fin. Review  Cash Facility A * Financial Security only if required in LFC for Standard Agents PASS PASS  R&S of BSP PASS FAIL  Cash Facility B  Financial Security FAIL PASS  R&S of BSP  Cash Facility FAIL FAIL C  Financial Security  R&S most frequent

$ NewGen ISS Cash Facility Continued selling using CC and IATA EasyPay Open to additional financial security Agent’s Cash Facility Agent’s accumulated cash sales Open to voluntary advanced payments at any time.  Remittance Date . . . Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Previous Period Sales Current Period Sales

NewGen ISS IATA EasyPay A new industry payment method: ‘Pay-as-you-go’ solution New and alternative to cash and credit card form of payment Voluntary for agents to use IATA EasyPay is a closed-loop and proprietary online payment system for Travel Agents to issue tickets through the BSPs. It will allow the implementation of new accreditation models for Travel Agents and new risk management procedures (such as credit limit for Agencies). As a new form of payment, IATA EasyPay will: “Pay-as-you-go” solution for Agents, risk free for Airlines, amount is irrevocably blocked when the ticket is issued. Economical: with a low cost per transaction Will accelerate the cash flow – Airlines should receive the payments in up to 48/72 hours since the Travel Agent issues the ticket Additional payment method, not replacing any of the existing ones Global, To be implemented in all (152) BSPs worldwide Voluntarily used by Agents and Voluntarily incentivized by Airlines Quick time to market at a global scale, using already existing infrastructure, Available for all agents and all airlines participating in BSP

New accreditation models Reduced bank guarantees NewGen ISS IATA EasyPay Benefits for Agents IATA EasyPay New accreditation models Reduced bank guarantees Voluntary Easy Available for all Airlines Available for all Airlines Voluntary Voluntary 150 BSPs 150 BSPs

Global default insurance NewGen ISS Global default insurance Additional. Voluntary. IATA to establish framework. Marketed globally. Flexible. A financial security type additional to those currently acceptable under Resolution 850p. Agents may voluntarily choose to join global insurance policy, if required to provide a financial security. IATA to establish a framework for brokers and insurers to introduce this additional financial security. Marketed by the brokers to ensure best possible terms for IATA, its member airlines and travel gents worldwide. Flexible for agents to amend insured amount when compared with bank guarantees and other financial securities.

Thank you! For More Information Email: newgeniss@iata.org Website: www.iata.org/newgeniss Thank you!