SIS – Simplified Interline Settlement SIS Functional Review San Diego, ACH Annual Meeting 2011 Gianna Monsch, aerwise

Agenda General & Basics IS Functionality – more in detail Special Cases SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS Overview SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Interline Settlement - Today Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Billed Entity Settlement sheets – (weekly) ACH Recap sheets - weekly Billing Entity F3– (weekly) ICH F12 – (weekly) F1 – net amounts of inv F2 - summary Cargo IDEC File (monthly) ATPCO Cargo IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) Pax IDEC File (monthly) prorate engine prorate engine 2 History of interline billing Based on issuing and receiving paper long before computers existed Large numbers of people in factory-type operations Batch-oriented Boxes of paper moved around the department in sequence as each sub-process completed Invoicing was done manually, and supported by boxes of tickets and supporting calculations All this had to be shipped to airlines, frequently getting delayed or even lost Systems were usually built as replications of manual processes We now have 3 different data streams (Invoices, IDEC and Claims), often with different data Going forward from May 2008 ET is mandatory in the settlement systems, and will become universal as paper fades away IDEC is already mandatory for interline ET ICH is now paperless, and running on weekly cycles, with flexible input requirements, Encourages faster billing Reduces batch sizes and risk However… Weekly batching and billing means more work, and Weekly IDEC requires substantial development work, and Reconciliation problems between invoices, IDEC and claims have got worse, and The ACH has already voted to abolish paper billing support, so We have an opportunity to rethink the interline process to take advantage of an all-data world ARC-Compass (NFP storage) GDSs BSPs Previously released sales record AIA F&F F&F: receives NFP value SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Integrated Settlement Settlement Processes ICH ACH IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Overall Processes Overall Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository 2 Prorate Engine Usage File Processes at time of Sales NFP engine ARC COMPASS™ SIS P3 – ACH Annual Meeting - SIS Functional Review 5 February 2011 5

File Formats SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Billing & Invoicing Processes File Formats Integrated Settlement Format Conversion: Billed Entity’s choice of format does not depend on the billing carrier’s Settlement Processes ICH ACH IS-WEB IS-WEB Billed Entity Billing Entity “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™ How are files, including supporting documents, sent & received? Validation happens on all submissions, but is important to mention here regarding timeframes and “linking” to existing records. Receive (or download) invoices Send files (or enter online) Validation Format Conversion SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Invoice Data Input Invoice Input Data Files can be transferred using secure FTP or secure HTTP protocols Members also have an option of manually capturing Invoice information on IS-WEB Passenger Freight Non-Transportation UATP IS-IDEC - IS-XML IS-WEB SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Input & Output Formats Files (upload & download) IS-WEB-All IS-IDEC-Passenger and Cargo IS-XML-Passenger, Cargo, Miscellaneous and UATP IS-WEB-All Others – Usage File for Pax All formats contain same fields for a given record type Billing participant can use any format at any time (“input combination”) Billing participant choice doesn’t affect billed participant (“format conversion”) Billing participant may submit billing data as often as they want Billing data files to be uploaded to IS via iiNet Record layouts and descriptions are documented in the Integrated Settlement Participant Guide (ISPG) located at: http://www.iata.org/whatwedo/finance/clearing/sis/Pages/materials-ISPG.aspx SIS P3 – ACH Annual Meeting - SIS Functional Review 9 February 2011

File Formats – IS-IDEC No longer data exchange file, but rather used to create an invoice and settlement file Similar to IDEC, with enhancements: Existing fields made mandatory (source codes, etc) New records added (Rejection Memos, tax breakdowns, etc) New fields added (for e-billing, additional info, etc) Unnecessary records / fields removed (batch total records, etc) 500 byte records (instead of 160 byte) Every carrier will need system enhancements to support IS-IDEC SIS P3 – ACH Annual Meeting - SIS Functional Review 10 February 2011

File Formats – IS-XML New XML format for Integrated Settlement Based on IATA Aviation Invoice Standard, used by IATA InvoiceWorks Identical fields and validation requirements to IS-IDEC Every carrier will need to make system enhancements to support IS-XML IS-IDEC vs. IS-XML is an IT decision – it is immaterial to the RA department Potential Benefits of IS-XML IS-XML format is more flexible and thus better than IS-IDEC for variable record structure (like Non-Transportation billings) Potential Benefits of IS-IDEC Relatively little system development for carriers with a sophisticated IDEC solution in place already IS-IDEC format is more efficient (processing, storage, and internet bandwidth) than IS-XML for a fixed record structure SIS P3 – ACH Annual Meeting - SIS Functional Review 11 February 2011

Breakdown Records Breakdown Records have been added where necessary to provide for detailed, possibly repeating, data and to provide for large amounts of text E.g., a coupon can have 0 or more tax breakdown records, each detailing a tax type and amount Examples Coupon Prime Billing breakdown records: Tax, VAT breakdown Breakdown records for Rejection, Billing, Credit Memos: Reason Breakdown, Coupon Breakdown (with Tax & VAT) SIS P3 – ACH Annual Meeting - SIS Functional Review 12 February 2011

Example Breakdowns (Pax Rejection Memo) (SFI = 21) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = 34) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 41) SIS P3 – ACH Annual Meeting - SIS Functional Review 13 February 2011

IS-WEB Web-based user interface to create and receive invoices and records Identical fields and validation requirements to IS-IDEC and IS-XML Validation in real-time minimizes possibility of later validation errors Potential Benefits The web interface is hosted by IATA, so no system development is required by carriers Potential Negatives More internet bandwidth will be required than file formats, and the connection will have to be stable IS transaction fees 25% higher  Not an alternative to a Revenue Accounting system SIS P3 – ACH Annual Meeting - SIS Functional Review 14 February 2011

Validation SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Billing & Invoicing Processes Validation Integrated Settlement Validation: Guarantees links between records (e.g. 2nd and 1st RMs) Enforces timeframes and “order” (1st RM -> 2nd RM -> 3rd RM) Ensures file is properly formed Other validations Settlement Processes ICH ACH IS-WEB IS-WEB Billed Entity Billing Entity “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™ How are files, including supporting documents, sent & received? Validation happens on all submissions, but is important to mention here regarding timeframes and “linking” to existing records. Receive (or download) invoices Send files (or enter online) Validation Format Conversion SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Sanity Check First, Then Validation Files will go through and must pass, “Sanity Check” before moving to the next, more rigorous, “Validation” process Sanity Check will: Check for formatting issues Validation will: If errors encountered, file will continue to go through Validation process and report all errors In IS-WEB Email with validation error report (in detail) as per Member Profile Take up to 4 hours to complete CAUTION: Be sure to finalize your invoices allowing enough time for validation to complete and time to correct any errors before the submission deadline (same as Recap Sheet due date and time) SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Examples of Validation Format Rules Ensures data types (e.g. numeric/alphanumeric), length, etc as defined Correct Values e.g. Settlement method cannot be “ACH” if both airlines are only ICH members Mandatory Fields Source Code, Ticket Issuing Airline, Coupon Number, etc Rejection & Correspondence Timeframes and Order Enforced 1st RM  2nd RM  3rd RM  Correspondence Mandatory Breakdown Records Are Present Tax breakdown records are present if coupon tax is populated and the breakdown record sums match the tax field Billing entity will be notified of validation results Invoices (and possibly files) failing validation will not go any further SIS P3 – ACH Annual Meeting - SIS Functional Review 18 February 2011

After Validation Validated invoice billing totals sent to the ACH for settlement Clearing House will combine the IS billing totals with the Recap Sheet billing totals and settle the combined total CAUTION: Do not add IS billing totals to a Recap Sheet or it will be billed to the other participant TWICE The billed participant may retrieve their billed and settled invoices data via the IS Web (At period end – as per IS Calendar) The billed participant will be able to retrieve their billed data files (At period end – as per IS Calendar) The billed participant will receive a billing file at the end of each period instead of one time per month SIS P3 – ACH Annual Meeting - SIS Functional Review 19 February 2011

Correspondence SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Billing & Invoicing Processes Correspondence 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 Correspondence is an exception to the previous slide and can only be submitted / received via IS-WEB. Processes at time of Sales NFP engine ARC COMPASS™ Receive Correspondence (including attachments) Enter Correspondence (including attachments) Validation SIS P3 – ACH Annual Meeting - SIS Functional Review 21 February 2011 21

Correspondence Correspondence can include an “authority to bill” flag which identifies when the authority to bill has been granted Not tied to settlement periods like transactions in Integrated Settlement – real-time and similar to e-mail but via IS-WEB interface Notifications sent when Correspondence has been created and sent to you Additional notifications sent when time limits are set to expire Validation ensures no “cross-over” – correspondence can only be in reply to another correspondence (or 3rd-stage RM Pax and Freight or 2nd stage RM ACH non transport) cannot be out-of-order SIS P3 – ACH Annual Meeting - SIS Functional Review 22 February 2011

Supporting Documents SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents Supporting documents can be attached to most record types (including Pax Prime Billings, Freight, Non-Transportation) Two types of supporting documents: Electronic Presentation - Supporting document that is digital but not in a defined and structured format. The document might be a PDF file or an image that a computer can read but not extract data from. E-Electronic Document – Supporting document that is in a defined and structured format which can be parsed by a computer. Example formats are IDEC, XML, or CSV. SIS P3 – ACH Annual Meeting - SIS Functional Review 24 February 2011

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™ Batch Transfer e.g. FTP Batch Transfer e.g. FTP SIS P3 – ACH Annual Meeting - SIS Functional Review 25 February 2011 25

Central Repository & Supporting Docs What? Any type of accepted supporting document (image, PDF, 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)S 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 P3 – ACH Annual Meeting - SIS Functional Review 26 February 2011 26

Audit Trail SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Audit Trail & Rejection History 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 Drill down through tickets, coupons, tax breakdowns, correspondences, etc View audit trail of linked correspondences, rejections, and prime billings Find outgoing correspondences that haven’t been responded to Go directly to appropriate action (create RM, create correspondence, create billing memo) All the operational data is being stored; what can be done with it? SIS P3 – ACH Annual Meeting - SIS Functional Review 28 February 2011 28

Member Profile SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Bringing it All Together Member Administration will contain centralized preferences for your company: User Administration with the ability to create users and customize user permissions Member Profile to set your own preferences, such as: Who to contact for IS alerts, file validation failures, etc Rules as to how IS will operate for your company (apply digital signatures, allow corrections, etc) Processing Dashboard will provide a centralized overview of all submitted files and their statuses throughout the Integrated Settlement SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Key Differences for Freight & Non- Transport SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Key Differences for Freight All freight record types also represented in IS-IDEC, IS-XML, and IS-WEB The IATA e-freight project will introduce e-electronic formats (structured data) for these supporting documents over time Before then, carriers can bilaterally decide to use e-electronic formats, or to not transfer supporting documents at all SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Key Differences for Non-Transportation IS-IDEC cannot be used for Non-Transportation billings (only IS-XML and IS-WEB) All Non-Transportation and UATP billings are uniquely defined by a charge category and charge code, allowing for routing to the correct person/department, automatic posting, or even automatic reconciliation UATP: carriers can opt-in to a service, where UATP-ATCAN will send the billing (via IS-XML) to SIS on behalf of the billing carriers. Non-Transportation and UATP use Rejection Invoices (not Memos) and Credit Notes (not Memos) Examples: Charge Category Charge Code GroundHandling Baggage Cargo PartnerAlliance FF Miles SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Questions? SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Agenda General & Basics IS Functionality – more in detail Special Cases SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS Overview Billed Billing Entity Entity Settlement Processes ICH ACH Integrated Settlement Settlement Processes ICH ACH IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Overall Processes Overall Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Processes at time of Sales NFP engine ARC COMPASS™ SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Only the functionality is shown, which you are allowed to use (Member Profile – User – Permissions) Alerts (from the system and additionally sent by email to this user) Messages from SIS-Operation On behalf of - SIS-Ops - ICH Ops - ACH Ops Upcoming Milestones Announcements SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Insight into IS (Integrated Settlement) SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS – Integrated Settlement Billed Entity Integrated Settlement Billing Overall Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File Billing & Invoicing Processes Billing Record DB SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Billing and Invoicing Process ICH ACH IS-WEB Interface ICH Interface ACH Validation IS-WEB Supp. Doc. Invoice PDF Supp. Doc. IS-XML Billing Outward Billing Record DB IS-IDEC IS-XML Supp. Doc. IS-IDEC Supp. Doc. Digital Signature Billing Value Confirmation Validation & Correction (IS-WEB) Value Determination & Auto-Billing Usage File Digital Signature ATOS ATPCO Billing Carrier ATPCO SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS-WEB For Everybody IS-WEB is also used for other web-based services Audit Trail Pax & Cargo & Miscellaneous Correspondence Online Corrections after validation failure Processing Dashboard Airline profile updates Web Analysis Reports View and print invoices in a standard format Extensive user access controls (your company’s administrator can grant detailed permissions) SIS P3 – ACH Annual Meeting - SIS Functional Review 41 February 2011

IS-WEB - Various Processes Billing Record DB Audit Trail Correspondence Member Administration Web Analysis Reports Processing Dashboard IS-WEB SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Correspondence is sent immediately Integrated Settlement Settlement Processes ICH ACH IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Overall Processes Overall Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Processes at time of Sales NFP engine ARC COMPASS™ SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Validation SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Validation of Data Files (1 of 4) Accept Invoice Data Files Perform Sanity Checks Perform Detail Validation Further Processing Sanity Checks (General) File naming convention Duplicate filename check Successful Decompression of file Invalid character set check SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Validation of Data Files (2 of 4) Sanity Checks (IS-IDEC) Bad Structure check (missing mandatory record/incorrect sequencing) Missing mandatory fields within records check Incorrect record length/counts/ data type check Inclusion of Non-migrated transaction checks Sanity Checks (IS-XML) Check against XML schema definition file Total number of Invoices and Total amounts listed in Transmission Summary Inclusion of Non-migrated transaction checks In case of Sanity Check Errors, the entire file is rejected. Invoice data is not loaded in the Billing Record Database. SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Validation of Data Files (3 of 4) Accept Invoice Data Files Perform Sanity Checks Perform Detail Validation Further Processing Detail Validation Reference Data validation (e.g. Airline Codes, Airport Codes, Tax Codes, etc) Settlement Details (e.g. Settlement Method Indicator, Currency of Clearance, etc) Calculation of Total Values (e.g. Sum of all amounts specified at coupon level should be equal to the total amount of the respective Source Code, etc) Billing Audit Trail check in case previous billing was through IS (e.g. Link information provided for a Rejection Memo, Rejection Stage, etc) Invoice Number check to be unique within a Calendar year across Billing Categories (Pax, Cargo, UATP, Misc) for a Billing Entity SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Validation of Data Files (4 of 4) All errors encountered are reported in the Validation Report Validation report is made available in 2 to 4 hours of receipt of the Invoice File Actions in case of Error Sanity Check Error: Correct the errors reported and submit a fresh file Non Correctable Error: Correct the errors reported and submit the Invoice/file Correctable Error: If Online Correction option is used then Correct the error on IS-WEB and revalidate the Invoice OR Correct the errors reported and re-submit the Invoice/file Note: Any online correction made only in IS will result in Billing Data to be out of sync with the Carrier’s Internal Accounting System SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents (1 of 5) 100% Paperless billings in SIS Invoice data as well as Supporting Information to be in electronic format If IS Format Invoice data provided then there is NO need to provide printed and/or scanned copies of: Invoices Listings (Coupon Listing, Rejection/Billing/Credit Memos etc) Memos (Rejection/Billing/Credit Memos) Paper Coupons to support Prime Billings IS Format provide placeholders to provide Detailed Reason for raising a Memo Prorate Slip Details Supporting Documents uploaded and linked in IS need not be re-uploaded while rejecting the billing. Only new Supp Docs (if any) need to be provided SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents (2 of 5) Electronic File Type Supported Plain text files (.txt and .csv) Plain HTML files (.htm and .html) without any embedded hyperlinks or image file references Rich Text files (.rtf) Portable Document Format files (.pdf) JPEG Image files (.jpg or .jpeg) – Min Resolution 200 dpi TIFF Image files (.tif or .tiff) - Min Resolution 100 dpi IS will only validate the file extension and not the content Additional file formats accepted by the members can be specified in the Member Profile Supporting Documents can be provided even after the Billing Period Closure till the Supporting Documents Linking Deadline timestamp SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents (3 of 5) Linking of Supporting Documents Manually linked on IS-WEB Automatically Linked by IS if a Supporting Documents zip file with Index information (Folder based, CSV Index file based or XML Index file based) is provided Passenger Freight Non-Transportation UATP Prime Billing Coupon Original AWB Invoice Rejection Memo Billing Memo Credit Memo RM/BM/CM Coupon Breakdown SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents (4 of 5) Automated Linking by IS Reads the Index information provided in the Supporting Documents Zip file Searches for the transaction referred by the Index file in its Billing Record Db If a match found, links the Supporting Documents to the transaction Billing Month Billed Airline Invoice No File Name Jan 2010 P1 125 IN231138 Loadsheet.pdf IN232339 Lounge-Access.jpg 157 PXB133433 LoanDetails.txt SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Supporting Documents (5 of 5) IS will only consider transactions of Invoices which are successfully validated for Automatic Linking IS will take care of timing issues Supporting Document File submitted first and Invoice File (IS-IDEC, IS-XML) submitted later Supporting Document File submitted and Invoice successfully validated later In case IS not able to link documents due to invalid/incorrect Index information, correction of Index will be allowed through IS-WEB SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Outputs SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Outputs (1 of 2) IS Output files are made available to Billed Entities by the “Billing Output Generation Date” as published in the IS Calendar which is typically 3 days after Billing Period Closure Outputs include: Invoice Files in IS-IDEC and/or IS-XML format As a Billed Participant : PDF Copy of Invoices Detailed Listings (Coupon listing, RM/BM/CM Listing... Etc) Digital Signature and Other Legal files Memo copies (RM, BM, CM) Supporting Documents SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

IS Outputs (2 of 2) PAX-P-AA-0001-20120403 BA-0125 INV-ACBCE12345 E-INVOICE LISTINGS MEMOS SUPPDOCS SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Questions? SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Agenda General & Basics IS Functionality – more in detail Special Cases SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Passenger SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Some of the Changes More information in tomorrows presentation Source Codes Are mandatory for all billings Stages of rejections now have unique source codes Rejections Have rejection memo numbers Standardized method to calculate and display billed, accepted and rejected amounts Batches No longer limited to 200 transactions. Expanded to 99,999 Numbers must be unique within an invoice, but not within a clearance period or clearance month Invoices Invoice number is A/N and XXXX in length; number must be unique, across all billing categories, for a calendar year i.e.: Passenger invoice numbers cannot duplicate UATP, Non-Transportation or Freight invoice numbers More information in tomorrows presentation SIS P3 – ACH Annual Meeting - SIS Functional Review 66 February 2011

Sampling Provisional Invoice (as today with prime coupon billing, but with elements from Forms A and B) Coupon level taxes and breakdown records included in provisional billing Universe Adjustment (Form C) Digit Evaluation (Forms D and E) Form G (ACH) Rejection Memos & Correspondence (as today with non-sample but with elements from Forms F and XF) All via IS-IDEC, IS-XML, and IS-WEB Optional Service allows the billed airline to receive one monthly file for provisional billings; in addition to a file at the end of each period SIS P3 – ACH Annual Meeting - SIS Functional Review 67 February 2011

Processes at time of Sales – Changes NFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes (as today) NFP non-final could minimize rejections without any obligation by the carriers Additional fields have been added to the records New Optional Functionalities Own Prorate Switching and Storage process will allow the sales carrier to send prorated coupons to ATPCO (Record 6) which are then forwarded or made available to the addressed carrier (planned uplifting carrier) Additionally carriers can have these values checked via the BVC (Billing Value Confirmation) process at time of billing Storage: Coupon records are also stored in the ARC Compass database and can be used in Auto-Billing. SIS P3 – ACH Annual Meeting - SIS Functional Review 68 February 2011

Billing Value Confirmation SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Pre IDEC Validation – Now 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 ARC-Compass (NFP storage) GDSs BSPs Previously released sales record 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 AIA F&F F&F: receives NFP value All: May receive sales records SIS P3 – ACH Annual Meeting - SIS Functional Review 70 February 2011 70

Billing Value Confirmation – 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 process as occurs today Usage File Processes at time of Sales ARC COMPASS™ NFP engine Billing Value Confirmation (Leaves “Original PMI”, updates “Value Confirmation PMI”) SIS P3 – ACH Annual Meeting - SIS Functional Review 71 February 2011 71

Value Determination & Auto-Billing SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Billing & Invoicing Processes Value Determination 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 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 P3 – ACH Annual Meeting - SIS Functional Review 73 February 2011 73

Billing & Invoicing Processes Auto-Billing 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 Usage File Processes at time of Sales NFP engine ARC COMPASS™ 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 Billing and Invoice Files Created Within IS Daily Revenue Recognition File Weekly Invoice Posting File SIS P3 – ACH Annual Meeting - SIS Functional Review 74 February 2011 74

Questions? SIS P3 – ACH Annual Meeting - SIS Functional Review February 2011

Thank you. Questions? We’d be glad to address all your questions through the SIS Forums, register for an account at:  www.iata.org/SISForum SIS P3 – ACH Annual Meeting - SIS Functional Review 76 February 2011 76