1. Passenger Non-Prime Billing Webcasts SIS – Simplified Interline Settlement

2. August 2008SIS – Materials – Pax Non-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 Non-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 Non-Prime Billing Webcast4 Overview of this webcast  Simplified Interline Settlement Webcasts  Rejection Memos  Billing & Credit Memos  Correspondence  Central Repository (for supporting documents)  Audit Trail  File Formats  Next Steps  Questions & Answers

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

6. August 2008SIS – Materials – Pax Non-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 Non-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 Non-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 includes (but is not limited to):  IS-XML File Format  Non-core functionality is coloured orange on the following pages

9. August 2008SIS – Materials – Pax Non-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 Non-Prime Billing Webcast10 Rejection, Billing, & Credit Memos – With IS 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 Send RMs, BMs, CMs Send Supporting Docs (either order) Receive RMs, BMs, CMs Receive Supporting Docs Validation Validation:  Guarantees links between records (e.g. 2 nd and 1 st RMs)  Enforces timeframes and “order” (1 st RM -> 2 nd RM -> 3 rd RM)  Ensures file is properly formed

11. August 2008SIS – Materials – Pax Non-Prime Billing Webcast11 Correspondence – With IS 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 Send Correspondence (including attachments) Receive Correspondence (including attachments) Validation Validation:  Guarantees links between records (e.g. 2 nd and 1 st RM)  Enforces timeframes and “order”  Ensures file is properly formed

12. August 2008SIS – Materials – Pax Non-Prime Billing Webcast12 Correspondence – With IS  Correspondence can include an “authority to bill” flag which identifies when the authority to bill has been issued  Not tied to settlement periods like transactions in Integrated Settlement – real-time and similar to e-mail but via IS-WEB interface  Validation ensures no “cross-over” – correspondence can only be in reply to another correspondence (or 3 rd - stage RM) and cannot be out-of-order

13. August 2008SIS – Materials – Pax Non-Prime Billing Webcast13 Supporting Documents – With IS 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 * Could be used with all record types (including prime coupon billings, Cargo, etc) ??

14. August 2008SIS – Materials – Pax Non-Prime Billing Webcast14 Central Repository & Supporting Docs  What?  Any type of supporting document (image, PDF, IS-XML, etc)  How long?  As long as the data is operationally required  When?  Before or after the associated record is uploaded (with “pending attachments” flag, which allows for notifications if not uploaded)  How?  To be determined in the next phase with the help of the supplier

15. August 2008SIS – Materials – Pax Non-Prime Billing Webcast15 Audit Trail & Rejection History  With operational data being stored:  Future records (e.g. rejections) don’t need supporting documents re-attached  IS-WEB can be used to search and take action on previous billings:  Search & browse through all records for which your carrier billed or was billed  View audit trail of linked correspondences, rejections, and prime billings  Find outgoing correspondences that haven’t been responded to  Go directly to appropriate action

16. August 2008SIS – Materials – Pax Non-Prime Billing Webcast16 Audit Trail Analysis & Reporting  Search by accounting code, coupon number, source code, billing period, authority to bill, etc  Drill down through tickets, coupons, tax breakdowns, correspondences, etc  Viewing and downloading of analysis (reporting) available  Actions (where applicable):  View the rejection history  Create a rejection memo  Create correspondence  Create a billing memo

17. August 2008SIS – Materials – Pax Non-Prime Billing Webcast17 Rejection History (example view) ActivityDateRecord / Supporting Docs 1 st Correspondence1 May$35; “I do not agree with you …” 3 rd Rejection1 Apr$50; Long Explanation.doc 2 nd Rejection1 Mar$100; “See attached”; ticket.jpg 1 st Rejection1 Feb$100; “No coupon in our system” Prime Billing1 Jan$100 Create Correspondence

18. August 2008SIS – Materials – Pax Non-Prime Billing Webcast18 Passenger File Formats ProcessIS-IDECIS-XMLIS-WEB Rejection Memos (incl. Sampling, but with additional fields) Correspondence (incl. Sampling, but with additional fields) Billing & Credit Memos Rejection & Correspondence History (Audit Trail)  Subject to change based on costs and carrier demand  See ‘IS File Formats’ and ‘Pax Prime’ webcasts for more information

19. August 2008SIS – Materials – Pax Non-Prime Billing Webcast19 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

20. August 2008SIS – Materials – Pax Non-Prime Billing Webcast20 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