ICH User Group UATP Update October 2010

What is UATP? Low cost payment network privately owned by 21 airlines worldwide Founded in 1936 (the world’s first charge card) UATP is accepted as a valid form of payment by more than 260 Merchant airlines and thousands of travel agencies Annual UATP sales (2009) totaled approximately USD 9 billion Processed through GDSs & directly like other payment solutions (e.g., VISA) One of the four ICH settlement classes

Participants in the UATP Network Issuers – are the airlines who issue their own UATP card and have the direct relationship with the Corporate Subscribers Merchants – are the entities who accept the UATP card as a form of payment through distribution channels Corporate Subscribers – are the cardholders of the UATP card. UATP accounts are held by thousands of major corporations worldwide UATP – is the organization which provides the infrastructure and support to permit the program to operate and grow

Background In 2006, UATP and IATA worked together to establish the ATCAN-ICH link Created an automated means for participants to have UATP transactions submitted for settlement via ICH UATP Members could opt-out of the link Currently supporting 140 Merchants

SIS and UATP In late 2009, UATP began working with IATA to implement SIS as a replacement to the ATCAN-ICH link UATP established a working group to address SIS (UATP WG) Working group reports to full membership biannually

Master Invoice Many UATP Members expressed concern over the potential for significant invoice fees under SIS UATP WG and IATA worked together to create a master invoice Master invoice aggregates multiple ATCAN invoices and adjustments/chargebacks to create a single SIS invoice per settlement period for each Merchant/Issuer pairing Reduces costs to UATP Members

Master Invoice Original Inv 1 Original Inv 2 Original Inv 3 Original Inv 4 Original Inv 5 Original Inv 6 Original Inv 7 Original Inv 8 Original Inv 9 Original Inv 1 Original Inv 2 Original Inv 3 Original Inv 4 Original Inv 5 Original Inv 6 Original Inv 7 Original Inv 8 Original Inv 9 ATCAN Inv 1 ATCAN Inv 2 ATCAN Inv 3 Original Inv 1 Original Inv 2 Original Inv 3 Original Inv 4 Original Inv 5 Original Inv 6 Original Inv 7 Original Inv 8 Original Inv 9 ATCAN Master Inv 1** SIS ICH Original Inv 1 Original Inv 2 Original Inv 3 Original Inv 4 Original Inv 5 Original Inv 6 Original Inv 7 Original Inv 8 Original Inv 9 Discount Net SIS Reconciliation Data File Original Inv 1 Original Inv 2 Original Inv 3 Original Inv 4 Original Inv 5 Original Inv 6 Original Inv 7 Original Inv 8 Original Inv 9 Discount Net SIS Legal Invoice* Master Inv 1 Discount Summary Sheet Master Inv 1 (aggregated total) Existing UATP Process * May include all legal invoice elements ** ATCAN invoice numbers will be dropped

UATP-SIS Process Cardholder Airline Merchant ATCAN (Acquirer) 2) Merchant Submits Invoice Data ICH 8) Issuer Collects From Issuer 8) ICH Pays Merchant Issuer 1) Subscriber Buys Ticket 5) Issuer Invoices Cardholder 6) Cardholder Pays Issuer 3) Merchant Receives Report 4) ATCAN Invoice Data To Issuer Data Funds SIS 7) ATCAN Submits to ICH Through SIS

Opt-In/Opt-Out UATP Members may opt-out of the automated process Members would need to establish their own connectivity to SIS Would submit UATP transaction in the same manner as other settlement classes

Comparison Opt-InOpt-Out Reduced Cost through Master Invoice YesNo Minimal In-House DevelopmentYesNo Reduced Billing/Settlement Errors YesNo Reconciliation Data FileYesNo

Recent Accomplishments Reconciliation File – Finalized and approved IS-XML Format – Finalized and approved ISPG – Completed edits to UATP section “Middleware” – Concept approved Invoices – Undergoing final review for format and content

Next Steps Work with IATA through their development phase Define opt-in/opt-out groups Develop “middleware” application Pilot submission to SIS with small group in Q Fully implement Q Further updates via UATP Bulletins beginning in November 2010

Questions?