1. ICH Update 2010 ICH User Group Nicholas Coote Clearing House Manager

2. KUL – 20-22 Oct 20102010 ICH UG Meeting2 Where have we come from?  The deepest recession for 20 years, possibly since the 1930s  ICH volumes in 2009 were down by 20% on 2008  More in P, C and U, less in M  23 suspensions in 2009  Several major bankruptcies

3. KUL – 20-22 Oct 20102010 ICH UG Meeting3 What is in store for 2010?  Demand is increasing, and faster than capacity  Load factors up from around 72% to nearly 79%

4. KUL – 20-22 Oct 20102010 ICH UG Meeting4 Business confidence is back

5. KUL – 20-22 Oct 20102010 ICH UG Meeting5 Profits are increasing

6. KUL – 20-22 Oct 20102010 ICH UG Meeting6 Clouds on the horizon?  Not in the clear yet – 2011 is looking mixed  Load factors seem to have passed their peak  Business confidence seems to have turned

7. KUL – 20-22 Oct 20102010 ICH UG Meeting7 ICH activity  Throughput is increasing – up by 8% on last year  Led by UATP and Cargo  Plenty of new joiners  11 Airlines, 10 Associates and 2 Sponsored  Only 6 suspensions so far this year, with a loss ratio of just 0.0001%  The remainder was covered by security deposits or by recoveries after the event

8. KUL – 20-22 Oct 20102010 ICH UG Meeting8 Changes related to the SIS project  New interface to SIS to replace ICH-Web and F12  Streamlined interclearance with the ACH  New reports to show sources of data (ICH Web or SIS)  New Suspended Member reports  Other changes  Improvements to F3 processing  NOTE: Existing ICH reports will continue to be available after SIS implementation

9. KUL – 20-22 Oct 20102010 ICH UG Meeting9 Changes to service pricing in 2011  Participation structure and fees have been unchanged since inception  Need to start rethinking both in the light of SIS needs  Non-IATA Airlines, Strategic Partners, Airline Subsidiaries and Sponsored airlines  Billings up to USD1m pa – USD10,000 pa  Billings up to USD10m pa – USD20,000 pa  Associate Members and Sponsored non-airlines  Billings up to USD1m pa – USD16,000 pa  Billings up to USD10m pa – USD32,000 pa  ICH Web fees and billing over USD10m – rates are unchanged

10. KUL – 20-22 Oct 20102010 ICH UG Meeting10 Changes to service pricing in 2011  New baseline pricing implemented for SIS users  Billings up to USD100,000 pa – USD1,000  No ICH-Web fees – use of ICH-Web not permitted  Applies to Airline Members and Associate Members  Effective from go-live, and included within the SIS Participation Fee

11. KUL – 20-22 Oct 20102010 ICH UG Meeting11 SIS Migration Surcharge  Reminder  At SIS go-live, the SIS Migration surcharge comes in  Published in March 2009 and also highlighted last year  Applies to all ICH Web users  Charge likely to apply to period October-December 2011  Rate varies according to number of invoices processed and status of Member  Published amounts will be prorated accordingly

12. KUL – 20-22 Oct 20102010 ICH UG Meeting12 SIS Migration Surcharge

13. KUL – 20-22 Oct 20102010 ICH UG Meeting13 Changes to settlement rules in SIS  Settlements will be based on invoices, not claims  No invoice = no settlement  Adjustments will be based on invoices, not claims  Incorrectly issued invoices; error identified before Closure:  Issue a credit invoice to correct the settlement balance  Same Charge Category and Charge Code, and reference the original invoice  Goes through ICH in the normal manner  Maintains the link between invoice values and settlement values  Settlement value is changed by the ICH after Closure due to a Protest/Adjustment:  Issue a credit invoice as above with Settlement Method Indicator = R  Signifies ‘Reversal’, and SIS will not route it to the ICH to avoid a duplicated adjustment

14. KUL – 20-22 Oct 20102010 ICH UG Meeting14 Changes to settlement rules in SIS  ICH-Web blocking for migrated users  Applies once you have migrated a complete billing Category (P, U, C or M)  The migrated Member can notify the ICH of its move of that Category, and the ICH will publish this to the Membership  After 6 months, ICH-Web access will be closed to both billing and billed Members  Effectiveness date still under discussion  All billings thereafter must go through SIS, in both directions  May mean manual entry through IS-Web

15. KUL – 20-22 Oct 20102010 ICH UG Meeting15 Changes in the Regulations  Full review by ICH Panel  New edition in 2011  Review of Protest procedures  Changes to  Claims entry and submission (Procedure 1)  Report outputs (Procedure 2)  Signatory processes (Procedure 3)  Service charges and fees (Procedure 11)  New concepts, such as handling and disposal of duplicate claims

16. KUL – 20-22 Oct 20102010 ICH UG Meeting16 Note on security  Increase in scam emails targeting ICH members  Reference unpaid debts to IATA  REMEMBER:  IATA emails will only come from name@iata.org or dept@iata.orgname@iata.orgdept@iata.org  All IATA emails are digitally signed – check the certificate  Our true bank accounts are published in ICH Procedure 4  Report any attempts at fraud to the ICH  If in doubt, ask us  Note also:  We won’t change your notified bank account unless we recognise the signatories  Two approved signatories are required for us to action requests

17. KUL – 20-22 Oct 20102010 ICH UG Meeting17 ICH WG  LA resigned from the Panel,  Now LH (Chair), UA, KL  Open for applications for membership  Must be a senior financial manager from an IATA Member, in good standing, approved by CFO  CV to be submitted to Financial Committee for review  Must be able to travel to meetings (not more than twice per year)

18. KUL – 20-22 Oct 20102010 ICH UG Meeting18 ICH UG  Focus on SIS – this will probably be the last major industry meeting before go-live  Most of the meeting has been given over to SIS briefings  SIS fundamentally changes the way you make your claims  E-invoice instead of ICH-Web/F12  Take the opportunity to talk to the SIS project team, and colleagues from other airlines  ICH staff will answer any questions on impacts on ICH processes  Give us any suggestions for improvements or changes in the services we provide

19. KUL – 20-22 Oct 20102010 ICH UG Meeting19 Final note  For ICH Members SIS is mandatory  You don’t have to migrate immediately, or all at once  You can be part ICH-Web and part SIS  In the SIS world, your invoice is your claim  Benefit: Settlement always reconciles to invoices  Corollary: Failed invoice = no settlement  A huge change for all of us, including ICH itself  We will do all we can to support and assist our Members during the transition

20. KUL – 20-22 Oct 20102010 ICH UG Meeting20 Thank you Email: ich@iata.org ICH Website: www.iata.org/ich