Business Changes For E-ticketing 3 rd Annual Middle East Aviation I.T. Forum 21 & 22 November 2005 Dubai UAE Rob Drotar Product Manager

Straightforward Travel | Date | 2 Sita And Electronic Ticketing SITA is an airline owned organization addressing all airline I.T. requirements SITA has experience with many airlines worldwide  Each at various stages of electronic ticket implementation SITA is an IATA Simplifying the Business Preferred Partner Programme Member offering services in the arena of each initiative

Straightforward Travel | Date | 3 Simplifying Travel - Where? Simplifying Travel and Transportation Plan TripCheck-inBoardingFlightArrival … at airports, for airlines, for airline operations … while on board, at borders, for cargo … end-to-end

Straightforward Travel | Date | 4 Simplifying Travel - How? Product Portfolio. Product A Product B Product C Product D Product E Product FProduct G Product H Comprehensive Suite of Distribution Products and Solutions Foundation Services: Core processes – reservations, pricing, ticketing, departure etc Transformation Architecture: Enables market reach, adaptability Integration-led Approach: Component flexibility Optimisation Solutions: Improve performance, precision Simplifying Travel and Transportation Integrated Solution Portfolio Integrated Solution Portfolio Distribution Self Service Transportation Security Transportation Security Baggage Management Baggage Management Cargo Common Use Airport Common Use Airport Onboard Communication Onboard Communication Flight Automation Flight Automation

Business Changes For E-ticketing E-ticketing and the Middle East

Straightforward Travel | Date | 6 In The Press ‘Arab Airlines Decide on E-Tickets Implementation and Look at new IT Platforms’ (P.R. 4/5/05) ‘AACO members, in totality, will be E-Ticket ready by the end of 2006, one year ahead of the IATA deadline’ AACO ‘IATA builds readiness for ET rollout with Regional Workshops’ ‘Now we are ready to take first steps!’ Participant at Amman workshop

Straightforward Travel | Date | 7 State Of The Region The industry's year end 2005 goal is that 40% of tickets sold via IATA's Billing Settlement Plans (BSPs) are electronic By the end of the 3rd quarter, in the Middle East, the percentage of e-tickets sold via IATA's Billing Settlement Plans was 2.2% There is a lot to do … and a lot to do quickly!

Straightforward Travel | Date | 8 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 9 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 10 Initial Actions Pinpoint the business drivers Make the ‘build it’ or ‘buy it’ decision Assemble a multi-discipline electronic ticketing project team  the team ought to include, among others, principals from your: n Finance department n Sales/Distribution department n Operations department n Marketing department This team will guide the airline’s review of current processes and activities, ensure the entire team understands the near and long term objectives

Straightforward Travel | Date | 11 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 12 Revenue Accounting The revenue accounting system will need to process a nightly file of ‘used’ coupons Users of sales based systems may wish to consider taking financial data at daily intervals Interline billing arrangements may need updating to ensure electronic ticketing has been appropriately provided for  E.g. IDEC participation is mandatory

Straightforward Travel | Date | 13 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 14 Process Planning Develop internal processes  Passenger Handling  Revenue Accounting  Marketing Internal training  Call centre  Airport/City Ticket Office n General Sales Agents (GSA)  Departure Control n Ground handlers

Straightforward Travel | Date | 15 Process Planning Develop internal processes  Passenger handling  Revenue Accounting  Marketing Internal training  Call centre  Airport/City ticket office n General Sales Agents (GSA)  Departure control n Ground handlers

Straightforward Travel | Date | 16 Develop Internal Processes With e-ticket in mind, each procedure or process should be reviewed and these questions asked  “Does this still work?”  “Does this still make sense?” Asking this of every procedure and process will take a long time to address There is a need for focus

Straightforward Travel | Date | 17 Process Planning Develop internal processes  Passenger handling  Revenue Accounting  Marketing Internal training  Call centre  Airport/City ticket office n General Sales Agents (GSA)  Departure control n Ground handlers

Straightforward Travel | Date | 18 Process Planning Develop internal processes  Passenger handling  Revenue Accounting  Marketing Internal training  Call centre  Airport/City ticket office n General Sales Agents (GSA)  Departure control n Ground handlers

Straightforward Travel | Date | 19 More About Ground Handlers A number of options are available for a ground handler to engage an airline’s electronic ticket  Some options, such as ETL, represent some degree of risk  Others, such as Control or Interactive Method, defined in Resolution 722h, are quite secure

Straightforward Travel | Date | 20 More About Ground Handlers A number of options are available for a ground handler to engage an airline’s electronic ticket  Some options, such as ETL, represent some degree of risk  Others, such as Control or Interactive Method, defined in Resolution 722h, are quite secure

Straightforward Travel | Date | 21 More About Control & Interactive Methods Highlights of the Control Method are:  Coupons are passed to the ground handler’s database  The ground handler interacts natively with the coupon  Final status is returned Highlights of the Interactive Method are:  Coupons remain in the Operating Carrier’s database  Change of status messages are sent directly to the Operating Carrier’s electronic ticketing database n Negative responses prohibit check in

Straightforward Travel | Date | 22 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 23 Market Activities Review high volume channels  Prioritize sales channels  Prepare marketing activity Plan electronic ticketing roll out to partners  Request GDS participation agreement update  Exchange General Business Requirement documents (GBRs) with key interline partners

Straightforward Travel | Date | 24 Market Activities Review high volume channels  Prioritize sales channels  Prepare marketing activity Plan electronic ticketing roll out to partners  Request GDS participation agreement update  Exchange General Business Requirement documents (GBRs) with key interline partners

Straightforward Travel | Date | 25 More About Priorities When prioritizing sales channels and interline partners the key information is often  “Who do I work with today?”  “Who do I want to work with tomorrow?” An ordinal focus on which partners are most important may cause you to miss opportunities to work with others lower on your list  At the end of the day you need to connect them all

Straightforward Travel | Date | 26 Market Activities Review high volume channels  Prioritize sales channels  Prepare marketing activity Plan electronic ticketing roll out to partners  Request GDS participation agreement update  Exchange General Business Requirement documents (GBRs) with key interline partners

Straightforward Travel | Date | 27 Market Activities Review high volume channels  Prioritize sales channels  Prepare marketing activity Plan electronic ticketing roll out to partners  Request GDS participation agreement update  Exchange General Business Requirement documents (GBRs) with key interline partners

Straightforward Travel | Date | 28 Activities And Expectations: GDS The GDS participation agreement must reflect electronic ticketing  GDS will open a project and provide a questionnaire n Hosted carriers may seek assistance in the completion of the questionnaire  The GDS may require a higher level of connectivity n E.g. Direct Sell

Straightforward Travel | Date | 29 Activities And Expectations: GDS You, and your system provider, will coordinate with the GDS on all project activities  Test plan  Implementation date Provide a marketing message, where available, to the GDS to be used in a ‘trailer’

Straightforward Travel | Date | 30 Market Activities Review high volume channels  Prioritize sales channels  Prepare marketing activity Plan electronic ticketing roll out to partners  Request GDS participation agreement update  Exchange General Business Requirement documents (GBRs) with key interline partners

Straightforward Travel | Date | 31 Activities And Expectations: Interline Exchange General Business Requirement documents (GBRs) with key interline partners  When hosted, your service provider can assist with the GBR review n Typically a conference call or meeting Ensure interline billing systems and processes necessary for electronic ticketing are in place  E.g. IDEC participation

Straightforward Travel | Date | 32 Activities And Expectations: Interline You, and your system provider, will coordinate with the other airline, and its system provider, on all project activities  Test plan  Implementation date Advise GDSs with which you participate and IATA of your new interline electronic ticketing agreement  GDSs may perform additional testing  IATA will update the MITA

Straightforward Travel | Date | 33 Market Activities Confirm readiness of Billing Settlement Plans (BSP) with which participation is required Confirm airports/local authorities readiness for electronic ticketing  Familiarize authorities with receipts and other new travel documents File electronic eligibility in your schedule

Straightforward Travel | Date | 34 Market Activities Confirm readiness of Billing Settlement Plans (BSP) with which participation is required Confirm airports/local authorities readiness for electronic ticketing  Familiarize authorities with receipts and other new travel documents File electronic eligibility in your schedule

Straightforward Travel | Date | 35 More About Eligibility Controlled by flight number/segment Set in the host system and filed Eligible flights are displayed by participating partners and ignored by non-participating partners May be recapped at the time of sale in an interactive sell response where required

Straightforward Travel | Date | 36 Where To Begin? When taking a decision to introduce e-ticketing, key arenas include:  Initial Actions  Revenue Accounting  Process Planning  Market Activities  Additional Opportunities

Straightforward Travel | Date | 37 Additional Opportunities Increase focus on your automation agenda  Electronic ticketing is ideal for Internet booking and kiosk, web, and mobile phone check-in Increase focus on revenue protection  Eliminate lost and counterfeit tickets  Eliminate coupon sequence abuse  Automate reissues

Straightforward Travel | Date | 38 Turn to us In the electronic ticketing arena SITA offers:  Applications services  Consulting services  Business transformation Ask your SITA Client Manager for more information about how SITA is Simplifying Distribution Where To Turn?

Straightforward Travel | Date | 39 At SITA INC, we create straightforward solutions that simplify air travel and transportation. We leverage our know-how, technology and expertise to make the passenger experience easier, safer and hassle-free. We say straightforward because it goes beyond easy and simple. It means reducing complexity and delivering results. That’s what we do. Simplifying Distribution