1. Integrated Settlement Interfaces Webcasts SIS – Simplified Interline Settlement

2. August 2008SIS – Materials – Pax Prime Billing Webcast2 Welcome to the SIS webcast!  Audio available over this webcast or via a dial-in number  Phone Number: +1 514 392 3303  Conference ID: 7026529  1 hour long  30 minute presentation  30 minute Question & Answer (Q&A) session  Please hold all questions until the second half  You will be unable to speak  All questions must be typed into a Q&A window which will appear later  Feedback can be entered using the status box on your screen ------------------------------>

3. August 2008SIS – Materials – Pax Prime Billing Webcast3 Welcome to the SIS webcast!  Audio available over this webcast or via a dial-in number  You should now be able to hear something if your audio is working! If not, you need to dial in:  Phone Number: +1 514 392 3303  Conference ID: 7026529  1 hour long  30 minute presentation  30 minute Question & Answer (Q&A) session  Please hold all questions until the second half  You will be unable to speak  All questions must be typed into a Q&A window which will appear later  Feedback can be entered using the status box on your screen ------------------------------>

4. August 2008SIS – Materials – Pax Prime Billing Webcast4 Overview of this webcast  Simplified Interline Settlement Webcasts  Input Formats Overview  Files (IS-IDEC & IS-XML)  Web Interface (IS-WEB)  Validation  Next Steps  Questions & Answers

5. August 2008SIS – Materials – Pax Prime Billing Webcast5 Presenters  Gianna Monsch, External Consultant Project Management  James Shannon, IATA Project Coordination

6. August 2008SIS – Materials – Pax Prime Billing Webcast6 SIS Webcasts  August 6  Passenger Billings (including prime, sampling, auto-billing, non-prime, audit trail, and supporting documents)  August 7  Integrated Settlement Data Interfaces (including IS-WEB and validation)  Cargo & Miscellaneous (including Cargo original billings and rejections)  September 3  General SIS Webcast (repeat of webcast done in July)  See http://www.iata.org/whatwedo/finance/clearing/sis/webcast.htm for schedules and materials http://www.iata.org/whatwedo/finance/clearing/sis/webcast.htm

7. August 2008SIS – Materials – Pax Prime Billing Webcast7 Introduction to SIS (General Webcast)  “Integrated Settlement” is based on the principles of completely paperless billing, invoicing, and settlement  Benefits include:  Data quality improvements to the billed carrier  Billing carrier’s upload format doesn’t impact billed carrier’s download format  Reduction in paper and courier fees and internal supply chain (paper handling) costs  Automation & Optional Services  Quicker cash flow due to reduced rejection timeframes  ‘Airline Profile’ to be a centralized database for all IS options and permissions  IS features discussed are subject to change

8. August 2008SIS – Materials – Pax Prime Billing Webcast8 Non-core Functionality  Core functionality of SIS enables paperless billing and settlement.  The non-core functionality is considered by the SIS Working Groups to be “value-added services”; its final inclusion is dependent upon implementation costs and airline demand and will likely be billed to carriers separately, based on usage.  Non-core functionality is detailed in the relevant presentations (Pax prime, Pax non-prime, Cargo/Miscellaneous)

9. August 2008SIS – Materials – Pax Prime Billing Webcast9 Interline Settlement - Now ICH ATPCO (incl F&F pre IDEC Validation) Billed Airline Billing Airline Cargo IDEC File (monthly) Pax IDEC File (monthly) F12 – (weekly) F1 – net amounts of inv F2 - summary Cargo IDEC File (monthly) Pax IDEC File (monthly) F3– (weekly) Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) AIA F&F F&F: receives NFP value All: May receive sales records ARC-Compass (NFP storage) Previously released sales record prorate engine prorate engine GDSs BSPs ACH Recap sheets - weekly Settlement sheets – (weekly)

10. August 2008SIS – Materials – Pax Prime Billing Webcast10 SIS – Simplified Interline Settlement Billed Airline Integrated Settlement Billing Airline Enabling Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Enabling Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC

11. August 2008SIS – Materials – Pax Prime Billing Webcast11 Input Formats  Files (upload & download)  IS-IDEC  IS-XML  IS-WEB  Others – Usage File for Pax  All contain same fields and record structure  Billing carrier can use any format at any time (“input combination”)  Billing carrier’s choice doesn’t affect billed carrier (“format conversion”)  Available formats depend on functionality (see other webcasts)  This presentation applies to Passenger, Cargo, and Miscellaneous

12. August 2008SIS – Materials – Pax Prime Billing Webcast12 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)  400 byte records (instead of 160 byte)

13. August 2008SIS – Materials – Pax Prime Billing Webcast13 File Formats – IS-XML  New XML format for Integrated Settlement  Based on IATA Aviation Invoice Standard, developed by the Airport Invoice Task Force (AITF) and currently used by IATA InvoiceWorks  Identical fields and validation requirements to IS-IDEC

14. August 2008SIS – Materials – Pax Prime Billing Webcast14 IS-WEB  Web-based user interface to create, read, and delete invoices and records  Identical fields and validation requirements to IS-IDEC and IS-XML  Validation in real-time minimizes possibility of later validation errors  View and print records in a standard format  Same system as for other web-based services (Audit Trail, airline profile updates, etc)  Extensive user access controls (administrator grants view/edit and upload of supporting documents per user per area)

15. August 2008SIS – Materials – Pax Prime Billing Webcast15 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  Coupon (C3 on Pax IDEC) breakdown records:  Tax, VAT breakdown  Breakdown records for Rejection, Billing, Credit Memos:  Reason Breakdown, Coupon Breakdown (with Tax & VAT)  Breakdown records for ‘Other Charges’ (Cargo only)

16. August 2008SIS – Materials – Pax Prime Billing Webcast16 Passenger Rejection Memo Breakdowns Rejection Memo (SFI = 21) Reason Breakdown (SFI = 31) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) Coupon Breakdown (SFI = 32) Coupon Breakdown (SFI = 32) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = 34)

17. August 2008SIS – Materials – Pax Prime Billing Webcast17 Validation  Validation will be necessary in the Integrated Settlement environment as quality data is essential:  No paper invoice or “back up” to determine what the electronic data means  Uploaded data is no longer a data exchange file in support of a paper invoice, but rather the base for invoicing and settlement  Some existing fields will continue to be passed through the system without validation for use on a bilateral basis

18. August 2008SIS – Materials – Pax Prime Billing Webcast18 Examples of Validation  Format Rules  Ensures data types (e.g. numbers), length, etc  Correct Values  Settlement method is one of five values (e.g. ICH or ACH), but also depends on which clearing house the carrier is a member of  Mandatory Fields  Source Code, Ticket Issuing Airline, Coupon Number, etc  Rejection & Correspondence Timeframes and Order Enforced  1 st RM  2 nd RM  3 rd 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

19. August 2008SIS – Materials – Pax Prime Billing Webcast19 Results of Validation  Timeline  Will occur within a maximum of 6 hours after submission  Will also occur after closure if the file was submitted on time (but failures can’t be fixed in that period)  Notification of validation results sent to submitting carrier  Success  Files go on to next step of IS (e.g. e-invoicing & settlement)  Failure (options and permissions to be set in profile)  Invoice or entire file is held until corrected  Web Correction (IS-WEB interface)  Delete (then, optionally, resubmit)

20. August 2008SIS – Materials – Pax Prime Billing Webcast20 Other File Format Features  20 character “airline’s own use” field (only for Pax)  Value signs (+/-) where appropriate

21. August 2008SIS – Materials – Pax Prime Billing Webcast21 Next Steps – Sep to Dec 2008  Webcasts through September  RA annual meeting (September 08)  Presentation and breakout sessions for information and discussion  FinCom (September 08)  Update on SIS (they strongly support the project)  Board of Governors (December 08)  They wish to see radical change and will decide the way forward  They will be looking for initiatives that reduce operating costs, improve data quality, and help to meet environmental objectives  SIS Project Team  Continues the momentum through to Phase 3

22. August 2008SIS – Materials – Pax Prime Billing Webcast22 Questions? Email: sis@iata.org SIS Website:  www.iata.org/whatwedo/finance/clearing/sis/index.htm www.iata.org/whatwedo/finance/clearing/sis/index.htm