1. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20081 Future of Mail by Air Initiative; A Reliable & Sustainable Network & Paper Free Transport Reliable Sustain- able Paper- free Network In the Future Align business processes & systems with Airlines to become a low cost – high quality customer Align processes & systems with Posts to avoid extra costs and to become a high quality supplier Higher Visibility of Mail in Transport Lower operating cost Higher yield on Mail product More data – easier to manage Mail Deal with legal aspects, coordinate interface with ground handlers and border agencies Reliable Sustain- able Paper- free Network In the Future

2. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20082 More Visibility Posts need more visibility now !! Receptacle ID is “common data element” for Mail systems Cargo systems: NO piece (receptacle) ID level tracking Mail systems YES, but:  to be expanded (more airlines, more airports)  to be enhanced (positive data capturing, M39 standard) Participants Future of Mail by Air initiative commit to  Piece ID level tracking, no virtual events and mystical scans  Common solutions to capture data and report events in most cost effective way  Enhance systems and use new CARDIT-RESDIT message standard (M39) to support process and system alignment

3. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20083 PAWB - process optimization and automation; reduce cost, increase yield PAWB is NOT only about monitoring & visibility Sourcing / Capacity reservation  Posts to provide electronic volume forecasts; Posts and Carriers to automate capacity reservation process Accounting  Simplify accounting process, implement electronic invoicing and consider centralized accounting solutions Border agency electronic data interface  Posts and Carriers to align information exchange with border agencies PAWB number is the key to align Cargo and Mail systems and add functionality for Mail

4. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20084 Pre-requisite Process & System alignment Link the common entity in all business processes Delivery Bill + Cons. ID MAWB + MAWB No. HAWB + HAWB No. Cargo Piece + UPID Delivery Bill + Cons. ID Letter Bill + Dispatch ID Receptacle + ID Cargo Piece + UPID HAWB + HAWB No. MAWB + MAWB No. Receptacle + ID Letter Bill +Dispatch ID Delivery Bill + Cons. ID Process & System Alignment CARGOMAIL

5. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20085 Pre-requisite Process & System alignment Link the common entity in all business processes Delivery Bill + Cons. ID MAWB + MAWB No. HAWB + HAWB No. Cargo Piece + UPID Delivery Bill + Cons. ID Letter Bill + Dispatch ID Receptacle + ID MAWB + MAWB No. Receptacle + IDCargo Piece + UPID PAWB No. Association Missing entity Now processes and systems can be integrated Process & System Alignment CARGOMAIL

6. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20086 Mail System (CARDIT-RESDIT) XXX 12345678 (PAWB no) 1) AABBBCDDFFFGAUN80123001000123 2) AABBBCDDFFFGAUN80123002000098 3) AABBBCDDFFFGAUN80123003000141 4) AABBBCDDFFFGAUN80123004000106 5) AABBBCDDFFFGAUN80124001000088 6) AABBBCDDFFFGAUN80124002000075 7) AABBBCDDFFFGACE80125001000065 8) AABBBCDDFFFGACE80125002000113 1 consignment = PAWB linked to 8 unique piece IDs (receptacle IDs) Cargo System ( CARGO IMP ) XXX 12345678 (PAWB nr) “MAL” special handling code to identify consignment as Mail PAWB nr. = 8 mail pieces = 1 consignment Assign PAWB number to Receptacle IDs Use “MAL” special handling code Mail System (CARDIT-RESDIT) XXX 12345678 (PAWB no) AABBBCDDFFFGAUN80123001000123 AABBBCDDFFFGAUN80123002000098 AABBBCDDFFFGAUN80123003000141 AABBBCDDFFFGAUN80123004000106 AABBBCDDFFFGAUN80124001000088 AABBBCDDFFFGAUN80124002000075 AABBBCDDFFFGACE80125001000065 AABBBCDDFFFGACE80125002000113 1 consignment = one origin- destination pair: From BBB to FFF Mail System (CARDIT-RESDIT) XXX 12345678 (PAWB no) AABBBCDDFFFGAUN80123001000123 AABBBCDDFFFGAUN80123002000098 AABBBCDDFFFGAUN80123003000141 AABBBCDDFFFGAUN80123004000106 AABBBCDDFFFGAUN80124001000088 AABBBCDDFFFGAUN80124002000075 AABBBCDDFFFGACE80125001000065 AABBBCDDFFFGACE80125002000113 1 consignment = Unique service level : A = Priority mail Mail System (CARDIT-RESDIT) XXX 12345678 (PAWB nr) AABBBCDDFFFGAUN80123001000123 AABBBCDDFFFGAUN80123002000098 AABBBCDDFFFGAUN80123003000141 AABBBCDDFFFGAUN80123004000106 AABBBCDDFFFGAUN80124001000088 AABBBCDDFFFGAUN80124002000075 AABBBCDDFFFGACE80125001000065 AABBBCDDFFFGACE80125002000113 3 mail dispatches = 1 consignment

7. © IPC, 2008 IATA World Cargo Symposium, 05 th March 20087 Will the CARDIT & RESDIT messages still be in the picture? YES, but messages to be enhanced and expanded CARDIT – RESDIT M39 standard in 2009 In addition “allocation/booking” & invoice messages What is the “key” to align processes and systems between air carriers and posts? The link between PAWB number (cargo system) and receptacle ID (mail system) What EDI interfaces will be used between airlines and posts?

8. The Future of Mail By Air | Rome | March 5th, 2008Page8IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Advantages use of PAWB number for Posts Direct AdvantagesIndirect advantages PAWB nr. Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT-RESDIT + Transparency in transport & handover to Post “Mail Booked is Mail Flown” Allows for Centralized Accounting Border Agencies - Paper Free transport Wider geographical coverage (airports & airlines) Transparency in transport & handover to Post “Mail Booked is Mail Flown” Allows for Centralized Accounting Border Agencies - Paper Free transport Wider geographical coverage (airports & airlines) Optimization pre-production processes for Post Improved and automated interaction Carrier-Post & (Post-Post) Standardization processes for Mail and Commercial products Optimization pre-production processes for Post Improved and automated interaction Carrier-Post & (Post-Post) Standardization processes for Mail and Commercial products

9. Future of Mail by Air Initiative  Direct Advantages  First Step to merge mail and freight systems Lowers systems costLowers systems cost Paper free transportPaper free transport Communication with tracking systemsCommunication with tracking systems Allows for electronic customs clearanceAllows for electronic customs clearance  Indirect advantages  Allows for combined accounting practices with freight/mail  Combined processing/scanning Black HolePAWB nr. Not in place CARDIT-RESDIT Advantages to using PAWB for Airlines Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

10. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200810  Background and Concept  Electronic Handshakes & Process optimization  BOOKING  MONITORING  ACCOUNTING  Way Forward – Phasing Future of Mail by Air

11. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200811 ELECTRONIC HANDSHAKES  Allocation / allotment template = “handshake” per IATA season on capacity per flight per weekday Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

12. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200812 ELECTRONIC HANDSHAKES  Allocation / allotment template = “handshake” per IATA season on capacity per flight per weekday  Booking / Booking message = “handshake” on the capacity committed for a mail consignment per flight Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

13. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200813 ELECTRONIC HANDSHAKES  Allocation / allotment template = “handshake” per IATA season on capacity per flight per weekday  Booking / Booking message = “handshake” on the capacity committed for a mail consignment per flight  Handover Origin – POA / RESDIT 74 = “handshake” on what receptacle IDs are part of the consignment received Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

14. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200814 ELECTRONIC HANDSHAKES  Allocation / allotment template = “handshake” per IATA season on capacity per flight per weekday  Booking / Booking message = “handshake” on the capacity committed for a mail consignment per flight  Handover Origin – POA / RESDIT 74 = “handshake” on what receptacle IDs are part of the consignment received  Handover Destination – POD / RESDIT 21 = “handshake” on when (date time) what (receptacle IDs) was delivered by Carrier at destination Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

15. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200815 ELECTRONIC HANDSHAKES  Allocation / allotment template = “handshake” per IATA season on capacity per flight per weekday  Booking / Booking message = “handshake” on the capacity committed for a mail consignment per flight  Handover Origin – POA / RESDIT 74 = “handshake” on what receptacle IDs are part of the consignment received  Handover Destination – POD / RESDIT 21 = “handshake” on when (date time) what (receptacle IDs) was delivered by Carrier at destination  Invoicing message = “handshake” on what the Post shall pay the Carrier based on electronic POA and or POD Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

16. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200816  Before IATA season  agree allotment template per route  X days before flight  “pre-booking” based on most accurate forecast, correction for trends, holidays, season etc.  “correction booking” in case of large mailings  X hours before flight  “correction booking” based on production volume alert if outside tolerance level  CARDIT is final booking, with actual volumes Future of Mail by Air Initiative; Forecasting & Booking

17. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200817 Booking & alignment systems Origin Post Carrier Cargo System Carrier Mail System Booking portal CAPE Vision FWB CARGO 2000 CARDIT Historic Data Allocation Request Confirm allocation Allotment Template Forecast Tool Booking Request Mailing & Production alert Confirm booking PAWB assignment (1) Booking Correction Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

18. The Future of Mail By Air | Rome | March 5th, 2008Page18IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Booking 1,000 kg 6 Months A A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

19. The Future of Mail By Air | Rome | March 5th, 2008Page19IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Booking 1,000 kg 6 Months 1,200 kg? N N 1,000 kg200 kg? A A B B A A - 3wks Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

20. The Future of Mail By Air | Rome | March 5th, 2008Page20IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Booking 1,000 kg 6 Months 1,200 kg? N N 1,000 kg200 kg? A A B B A A 1,500 kg? N N 1,200 kg300 kg? A A B B -3 wks Y Y Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation -3 hrs

21. The Future of Mail By Air | Rome | March 5th, 2008Page21IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Booking 1,000 kg 6 Months 1,200 kg? N N 1,000 kg200 kg? A A B B A A 1,500 kg? N N 1,200 kg300 kg? A A B B 1,450 kg - 3wks Drivers  Optimum use of preferred Carrier  More effective use available capacity  Quality & Cost optimization for both Post & Carrier Drivers  Optimum use of preferred Carrier  More effective use available capacity  Quality & Cost optimization for both Post & Carrier Y Y Y Y Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation 3hrs Closure

22. Future of Mail by Air Initiative Booking  Advantages to booking the mail  Planning!! Capacity restricted flights are managedCapacity restricted flights are managed Other postal customers are not inconvenienced or delayedOther postal customers are not inconvenienced or delayed Freight customers are not off loadedFreight customers are not off loaded Able to sell unused spaceAble to sell unused space Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

23. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200823  Background and Concept  Electronic Handshakes & Process optimization  BOOKING  MONITORING  ACCOUNTING  Centralized Solutions and Paper Free Transport Future of Mail by Air

24. © IPC, 2008IPC initiative Future of Mail by Air 24 Monitoring & alignment systems Origin Post Carrier Cargo System Carrier Mail System Booking portal Confirm booking CAPE Vision RESDIT 74 PAWB assignment (2) RESDIT 24 RESDIT 21 FWB Booking Request CARGO 2000 CARDIT Route Map RCS DEPDEL PAWB assignment (1) Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

25. © IPC, 2008IPC initiative Future of Mail by Air 25 PREDESCARDIT RESDIT 74RESDIT 24 If not loaded Future of Mail by Air Initiative; Nesting and smart scanning Delivery RESDIT 21 PAWB - RCS PAWB - DEP PAWB - DEL Tarmac Flight AMU destinati on Post origin Post scans receptacles while loading ULD and creates nest ID: container-journey ID Handler scans container-journey ID or reports ULD ID at collection to report possession Post attaches container-journey ID label on ULD Handler scans container-journey ID or reports ULD not loaded for uplift event Handler scans container-journey ID or reports ULD on delivery to AMU to report handover to Post Post links container- journey ID to ULD ID in CARDIT

26. The Future of Mail By Air | Rome | March 5th, 2008Page26IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 PAWB 000- 12345678 Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

27. The Future of Mail By Air | Rome | March 5th, 2008Page27IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading RESDIT 74 RESDIT 24 RESDIT 21  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 ULD 1 1  50 received ULD 1 1  50 Flight 1 ULD 1 1  50 12:00 RCS DEPDEL PAWB 000- 12345678 FLIGHT A A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

28. The Future of Mail By Air | Rome | March 5th, 2008Page28IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading RESDIT 74 RESDIT 24 RESDIT 21  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 ULD 1 1  50 received ULD 2 51  100 received ULD 1 1  50 Flight 1 ULD 2 51  100 Flight 2 ULD 1 1  50 12:00 ULD 2 51  100 15:00 RCS DEPDEL PAWB 000- 12345678 FLIGHT A A FLIGHT B B Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

29. The Future of Mail By Air | Rome | March 5th, 2008Page29IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading RESDIT 74 RESDIT 24 RESDIT 21  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 ULD 1 1  50 received ULD 2 51  100 received ULD 1 1  50 Flight 1 ULD 2 51  100 Flight 2 ULD 1 1  50 12:00 ULD 2 51  100 15:00 Events based on PAWB/NESTING scanning RCS DEPDEL PAWB 000- 12345678 FLIGHT A A FLIGHT B B Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

30. The Future of Mail By Air | Rome | March 5th, 2008Page30IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading RESDIT 74 RESDIT 24 RESDIT 21 RESCON  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 ULD 1 1  50 received ULD 2 51  100 received ULD 1 1  50 Flight 1 ULD 2 51  100 Flight 2 ULD 1 1  50 12:00 ULD 2 51  100 15:00 50  Bag 1 Bag 2 : : Bag 50 Events based on PAWB/NESTING scanning RECEPTACLE SCANNING RCS DEPDEL PAWB 000- 12345678 FLIGHT A A FLIGHT B B 1A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

31. The Future of Mail By Air | Rome | March 5th, 2008Page31IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: ULD - loading RESDIT 74 RESDIT 24 RESDIT 21 RESCON  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100  Bag 1 Bag 2 Bag 3 Bag 4 Bag 5  :  Bag 100 ULD 1 1  50 ULD 2 51  100 ULD 1 1  50 received ULD 2 51  100 received ULD 1 1  50 Flight 1 ULD 2 51  100 Flight 2 ULD 1 1  50 12:00 ULD 2 51  100 15:00 50  Bag 1 Bag 2 : : Bag 50 50  Bag 51 Bag 52 : : Bag 100 Events based on PAWB/NESTING scanning RECEPTACLE SCANNING RCS DEPDEL PAWB 000- 12345678 FLIGHT A A FLIGHT B B 1 1 A B Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 1 100

32. The Future of Mail By Air | Rome | March 5th, 2008Page32IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CARDIT 100 1

33. The Future of Mail By Air | Rome | March 5th, 2008Page33IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: Loose-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 1 10 Not Accepted Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 CARDIT 100 1

34. The Future of Mail By Air | Rome | March 5th, 2008Page34IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 1 PAWB 2 000- 87654321 10 Not Accepted Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 CARDIT 2 100 1

35. The Future of Mail By Air | Rome | March 5th, 2008Page35IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 1 PAWB 2 000- 87654321 10  Bag 91 Bag 92 : Bag 100 2 10 Not Accepted Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 CARDIT 2 100 1

36. The Future of Mail By Air | Rome | March 5th, 2008Page36IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 10  Bag 81 Bag 82 : Bag 90 80 Bag ? 1 1 1 PAWB 2 000- 87654321 10  Bag 91 Bag 92 : Bag 100 2 DEP 10 Not Accepted A B Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 RESDIT 24 CARDIT FLIGHT A FLIGHT B 2 100 1

37. The Future of Mail By Air | Rome | March 5th, 2008Page37IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 10  Bag 81 Bag 82 : Bag 90 80 Bag ? 1 1 1 PAWB 2 000- 87654321 10  Bag 91 Bag 92 : Bag 100 2 DEP 10  Bag 91 Bag 92 : Bag 100 2 DEL 80 Bag ? 1 10  Bag 81 Bag 82 : Bag 90 1 10 Not Accepted A B B B A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 RESDIT 24 RESDIT 21 CARDIT FLIGHT A FLIGHT B 2 100 1

38. The Future of Mail By Air | Rome | March 5th, 2008Page38IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 10  Bag 81 Bag 82 : Bag 90 80 Bag ? 1 1 1 PAWB 2 000- 87654321 10  Bag 91 Bag 92 : Bag 100 2 DEP 10  Bag 91 Bag 92 : Bag 100 2 DEL 80 Bag ? 1 10  Bag 81 Bag 82 : Bag 90 1 Events based on PAWB/NESTING scanning 10 Not Accepted A B B B A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 RESDIT 24 RESDIT 21 CARDIT FLIGHT A FLIGHT B 2 100 1

39. The Future of Mail By Air | Rome | March 5th, 2008Page39IPC (Meeting), (Date Month Year), (Place) Future of Mail by Air Initiative Monitoring: LOOSE-loaded  Bag 1 Bag 2 : Bag 100 PAWB 1 000- 12345678 RCS 90  Bag 1 Bag 2 : Bag 90 10  Bag 91 Bag 92 : Bag 100 10  Bag 81 Bag 82 : Bag 90 80 Bag ? 1 1 1 PAWB 2 000- 87654321 10  Bag 91 Bag 92 : Bag 100 2 DEP 10  Bag 91 Bag 92 : Bag 100 2 DEL 80 Bag ? 1 10  Bag 81 Bag 82 : Bag 90 1 Events based on PAWB/NESTING scanning 80  Bag 1 Bag 2 : Bag 80 1 10  Bag 81 Bag 82 : Bag 90 1 10  Bag 91 Bag 92 : Bag 100 2 10 Not Accepted A B B B A B B A Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation RESDIT 74 RESDIT 24 RESDIT 21 RESCON CARDIT RECEPTACLE SCANNING FLIGHT A FLIGHT B 2 100 1

40. Monitoring  CARDIT – RESDIT Exchanges  AA currently exchanges with our largest Postal Customers  CARDIT – RESDIT provides piece level tracking  AA scans mail and uses AccuCode’s vMail system to generate RESDITS to Posts for Possession, Load/Departures, and Delivery  AA uses scan data to prevent and immediately react to possible service failures  Weekly performance evaluations with USPS based on scans

41. Monitoring  Challenges  Current freight monitoring systems are not piece level  Containers loaded by the post are not scanned  Not all mail is bar coded  Cost prohibitive to install scanning in all stations

42. Monitoring  Challenges Met  Future freight tracking systems will provide piece level tracking  New M39 CARDIT allows post to inform carrier which pieces are in a post built unit  IPC’s Mail Registration device allows carriers to utilize existing postal scans

43. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200843  Background and Concept  Electronic Handshakes & Process optimization  BOOKING  MONITORING  ACCOUNTING  Centralized Solutions and Paper Free Transport Future of Mail by Air

44. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200844 Starting point: reliable electronic data POA and POD  If POA and POD include link PAWB number and receptacle IDs it is possible to invoice:  at consignment level by PAWB number for Carrier  at postal shipment level / dispatch ID for Post Options under consideration:  Self payment procedures using EDI “INVOIC”  Centralized solutions, e.g. IATA - Central Accounting System CASS (single invoice / settlement for multiple Post – Carrier relations) Future of Mail Transport by Air Reliable and simplified electronic invoicing

45. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200845 Accounting & alignment systems Origin Post Carrier Cargo System Carrier Mail System Central Settlement Confirm INVOIC CAPE Vision POA - RESDIT 74 POD - RESDIT 21 INVOIC Request CARGO 2000 POA POD Pay for Performance Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation

46. The Future of Mail By Air | Rome | March 5th, 2008Page46IPC (Meeting), (Date Month Year), (Place) Customer 1 (PPO) Global Match Hub CN Doc. PPO 1 PAWB Link Global Match Accounting: PAWB settlement scenario Future of Mail by Air Initiative Customer 2 (PPO) Customer 3 (PPO) CN Doc. PPO 2 CN Doc. PPO 3 CN Data PPO 3 Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CN Data PPO 2 CN Data. PPO 1

47. The Future of Mail By Air | Rome | March 5th, 2008Page47IPC (Meeting), (Date Month Year), (Place) Carrier (Airline)` Customer 1 (PPO) Global Match Hub CN Doc. PPO 1 PAWB Link Global Match Accounting: PAWB settlement scenario Future of Mail by Air Initiative Customer 2 (PPO) Customer 3 (PPO) CN Doc. PPO 2 CN Doc. PPO 3 CN Data PPO 3 PAWB and/or CN Doc. CARDIT RESDIT Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CN Data PPO 2 CN Data. PPO 1 PAWB and/or CN Doc.

48. The Future of Mail By Air | Rome | March 5th, 2008Page48IPC (Meeting), (Date Month Year), (Place) Carrier (Airline)` Int’l Postal Accounting Karlsruhe Int’l Postal Accounting Karlsruhe Customer 1 (PPO) Global Match Hub CN Doc. PPO 1 PAWB Link Global Match Accounting: PAWB settlement scenario Future of Mail by Air Initiative Customer 2 (PPO) Customer 3 (PPO) CN Doc. PPO 2 CN Doc. PPO 3 PAWB CN Data Taken from Original CN Docs + PAWB De-Link CN Data PPO 3 CN Data. PPO 1 CN Data PPO 2 CN Data PPO 3 PAWB and/or CN Doc. CARDIT RESDIT Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation CN Data PPO 2 CN Data. PPO 1 PAWB and/or CN Doc.

49. The Future of Mail By Air | Rome | March 5th, 2008Page49IPC (Meeting), (Date Month Year), (Place) Carrier (Airline)` Int’l Postal Accounting Karlsruhe Int’l Postal Accounting Karlsruhe Customer 1 (PPO) Global Match Hub CN Doc. PPO 1 PAWB Link Global Match Accounting: PAWB settlement scenario Future of Mail by Air Initiative Customer 2 (PPO) Customer 3 (PPO) CN Doc. PPO 2 CN Doc. PPO 3 PAWB CN Data Taken from Original CN Docs + Transport Invoice PAWB De-Link CN Data PPO 3 CN Data. PPO 1 CN Data PPO 2 CN Data PPO 3 PAWB and/or CN Doc. CARDIT RESDIT Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation Customer Invoice CN Data PPO 2 CN Data. PPO 1 PAWB and/or CN Doc. Advise of settlement

50. Invoicing  Consignment level invoicing  Provides most accurate tracking and billing  Can utilize PAWB in existing accounting systems  Electronic Accounting  Already in place for some posts  Lowers cost and speeds payment  Provides for efficient and timely claims processing

51. © IPC, 2008 IATA World Cargo Symposium, 05 th March 200851 Short term – 1 Q 2009  CARDIT-RESDIT M39 implementation and expansion  IPC Mail registration device implementation  Allotment template building and automated forecasts Medium term – 2009-2010  Standard booking and invoice message  Pilot trials Mail in booking portals, Cargo 2000  Pilot trial paper free mail by air Long term – > 2011  Cargo system piece ID tracking  Centralized accounting and Clearing house mail  Expansion paper free mail by air Future of Mail Transport by Air Initiative; Way Forward

52. The Future of Mail By Air | Rome | March 5th, 2008Page52 Ongoing Q2 2008 End 2008 - 2009 2010 Onwards Way Forward - phasing Invoicing Handover to Post Handover to Post Transport Handover to Carrier Handover to Carrier Production Booking Booking Allocation MEDICI Interface to Customs CARDIT/ RESDIT M39 Roll-out Using GlobalMatch, we are working towards Paper Free Transport and PAWB implementation: Pilot Test Trials FoMBA Implementation FoMBA

53. The Way Forward  AA (vMail) will implement M39 in March  AA (vMail) is ready to accept scan data from IPC Mail Registration Devices  Combining systems is not plug and play and will be phased in