IATA: The Take Off of the Electronic Era In Aviation

The Take Off of the

Electronic Era in Aviation

IATA - The Take Off of the Electronic Era of Aviation 1 © IATA

Our panelists

Bryan Wilson, Project Director, Direct Data Services, IATA

David McEwen, Manager Passenger Interline Standards, IATA

Céline Lavinay-Hourcade, Manager, IATA and Secretary of the e-AWB Advisory Group

The webinar will be moderated by

Dr Efstathios (Stathis) Kefallonitis, Ph.D, State University of New York


IATA - The Take Off of the Electronic Era of Aviation

Bryan Wilson, Project Director,

Direct Data Services, IATA

Bryan Wilson joined IATA in April 2005 as project director for Electronic Ticketing – with the objective of enabling 350

airlines around the world to implement 100% electronic ticketing within two and a half years. With just one short

extension the job was finished on 31 May 2008, and the airline industry became 100% electronic as IATA stopped

issuing travel agents with paper ticket stock the following day. IATA estimated the airline industry saved $3B per annum

as a result of this transformation.

Subsequently, Bryan became CIO at IATA for two years, after which he reverted to his role as an industry project director

in working to build an airline managed database of global travel.

His background is with British Airways where he worked for 26 years in both IT and Strategy, having started his career in

Operational Research and finishing with 6 years in charge of the BA route network and then 2 as the CIO.

He has subsequently worked for SITA in Geneva as their SVP for Applications Services, providing systems and aircraft

communications to over 170 airlines.

Bryan holds Masters degrees in Natural Sciences from Cambridge University and in Operational Research at Lancaster

University UK.

3 © IATA


David McEwen, Manager Passenger

Interline Standards, IATA

David has a wide background in tariff‟s, ticketing and passenger services having started his aviation career in 1979 as a

reservations agent with British Airways. He subsequently moved to Manchester airport where he was responsible for

passenger service and ticketing at KLM.

After seven and half years working as a fares and ticketing instructor with Gulf Air in Bahrain he returned to the United

Kingdom when he joined Virgin Atlantic to manage their worldwide ticketing training and procedures. He joined IATA in

April 2001 and is responsible for managing IATA‟s Passenger Interline Standards setting activity particularly ticketing.

David was instrumental in helping to set up the Simplifying the Business Projects and was influential in delivering 100

percent electronic ticketing in BSPs. He has traveled extensively and has spoken at many events on a wide range of

subjects and provided in-house workshops to a number of airlines. He is now supporting the IATA E-services and

Automated Baggage Rules projects as well as managing the industry Ticket Tax Box Database.

4 © IATA


Céline Lavinay-Hourcade, Manager, IATA

and Secretary of the e-AWB Advisory Group

Céline is an "e" specialist: she started her carrier as an e-Business Consultant in Paris working on electronic

marketplace, e-banking and e-procurement projects. She then worked for Amadeus as Product Manager for Reservation

& Ticketing solutions before joining IATA five years ago.

Céline worked as the Engagement Manager for Simplifying the Business programme. She supported the StB initiatives

and especially the Electronic Ticketing project until its completion.

She then left the Passenger world and joined IATA Cargo and its e-freight team, focusing her efforts on the delivery

aspects of the project (where and when with the countries readiness assessment process and how with the

implementation toolkit). Céline is now in charge of the global roll-out of the electronic Air Waybill.

5 © IATA


IATA

Electronic Ticketing

Project

Bryan Wilson

IATA Project Director

6 © IATA


How to get an industry to 100% ET

or

How to coordinate 420 companies

across the globe to complete a single

project to a single timeframe

7 © IATA


The start – ensuring sponsorship

IATA brought ET with four others projects to its

Board and AGM in June 2004

Branded „Simplifying the Business‟

Airline industry opportunities

Reduce Costs across Industry

Improve Customer Service

A simple business case to which 240 airline CEOs

became committed – save $9 a ticket!

8 © IATA


IATA‟s Board/AGM mandate: 5 focus areas

ET- 100% ET by end 2007

70% by end 2006

40% by end 2005

CUSS - common use self service

RFID - radio frequency identification for baggage tags

BCBP - Bar coded boarding passes

IATA e-freight

9 © IATA


We had a project – needed a methodology

First attempt was to just work with big airlines

they would bring the volume

But soon became clear

we needed a program that was INCLUSIVE

10 © IATA


IATA‟s StB approach for a global project

Mix team approach

Dedicated global team of 39 people – just 5 for ET

Reaching out through 140 local IATA managers

Adapt global approach to local needs

Identify and engage all stakeholders

Bring stakeholders together

Offer advice on industry standards, and solutions

Actively communicate across industry

11 © IATA


Campaign Approach – 6 over 3 years

Face-to-face meeting with each airline

Specific objectives – eg first campaign:

Create and Confront awareness

Push all carriers to start their program

Active reporting

To airline CEOs on their airline status

To IATA AGM for all airlines

12 © IATA


e-ticketing: Simple Colour Status

Full Interline ET Capability

Issuing ET

Planning for ET capability

No plans for ET

13 © IATA


7%

13%

5% 75%

0%0%

14%

21%

38%

27%

e-ticketing: Reporting progress of industry

Nov 04 May 05

14 © IATA


e-ticketing: Diagnosing needs

Red Airlines

58%49%

35%26% 23% 21%

10%

0%10%20%30%40%50%60%70%

CIS

Africa

Asia

Pacific

MENA

Europe

Amer

icas

North

Asia

Green Airlines

24%

17%

11%

6% 5% 4%0%

0%

5%

10%

15%

20%

25%

30%

Amer

icas

Europe

Asia

Pacific

Africa

North

Asia

MENA

CIS

15 © IATA


e-ticketing: tracking and targetingET Penetration & Targets by Region

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec Ja

n

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec Ja

n

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

2004 2005 2006

Global

The Americas

Europe

Asia and Pacific

Africa

North Asia

Middle East

70% Dec 06

40% Dec 05

16 © IATA


Review targets - we showed 100% would not happen

95%

96%

97%

98%

99%

100%

ET

% i

n B

SP

s

0.1% 33 Airlines will not choose ET

1.0% Travel Agents choosing paper

2.4% 20% of interline journeys

17 © IATA


But a final 5 month delay was needed

92%

93%

94%

95%

96%

97%

98%

99%

100%

Dec

-07

Feb-

08

Apr-0

8

Jun-

08

Aug-0

8

Oct

-08

Dec

-08

80 highest of Top 100

20 lowest of Top 100

Smaller airlines ET

Long term paper

ET

18 © IATA


And tracked the final months carefully– 93.4%(Feb 08)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan

06

Feb

06

Mar

06

Ap

r 06

May 0

6

Ju

n 0

6

Ju

l 06

Au

g 0

6

Sep

06

Oct

06

No

v 0

6

Dec 0

6

Jan

07

Feb

07

Mar

07

Ap

r 07

May 0

7

Ju

n 0

7

Ju

l 07

Au

g 0

7

Sep

07

Oct

07

No

v 0

7

Dec 0

7

Jan

08

Feb

08

Mar

08

Ap

r 08

May 0

8

Global

United States

North Asia

Europe

The Americas

Asia Pacific

MENA

Africa

CIS

Targets

19 © IATA


How we made it happen?

1. Clarify the business case

2. Provide the helping hand

3. Promote solution providers

4. Name and shame

5. Dealing with problems

6. Even introducing airlines wanting to work

together

20 © IATA


1) Business case – how to save $9 a ticket

Benefits from ET

Eliminate pure paper & printing costs

Better Revenue Accounting & Revenue Integrity

Reduce local ticketing costs

Step towards more self-service

Costs from NOT doing ET

Need organise own ticketing processes

Loss of distribution channels

Loss of Interline partners

Costs of ET Project

System provider

costs

GDS fees to

activate

Internal team costs

Ongoing ET costs

System provider

costs

2004

2007But its still not the right

answer for every airline

21 © IATA


2) Offering a real helping hand

The ET Buddy System for Red/Orange

members IATA is proposing to pay airlines who have implemented ET to provide help to

other airlines

IATA has engaged 1 fulltime expert consultant

Funds are approved to provide up to 15 days help on-site or on-call from an

airline expert

22 © IATA


3) Working with industry partners

1400 Systems for E-Ticketing Rob Levy (IATA)

1430 Introduction to the Systems Providers

Intro to Sabre Gavin Duffy

Intro to SITA Jean-Marc Perreaux

Intro to Amadeus Justin Barlow

Intro to Lufthansa Systems Alex Ormeno

1510 Discussion on Systems

and Solutions offered Bryan Wilson

Partners participated in > 30 ET workshops over 3 years

23 © IATA


4) Using humor to name and shame!

IATA‟s top priority is on airlines that are still

very dependent on paper

Airline Short Name Paper Tickets

Saudi Airlines 359,174.

Malaysia Airlines 271,618.

Lufthansa 164,526.

Indian 161,666.

Air India 130,933.

Air China 130,172.

Thai Airways International 124,098.

China Eastern 116,735.

Olympic Airlines 113,540.

China Southern 95,969.

Japan Airlines International 94,456.

Cathay Pacific Airways 76,337.

Air France 73,775.

PIA 70,667.

Emirates 66,574.

Jet Airways 66,472.

Garuda Indonesia 63,070.

Focus on the paper polluters

24 © IATA

IATA - The Take Off of the Electronic

Era of Aviation

5a) Showing the source of problems


5b) Show problems & Solutions

Manual baggage delivery Manual ET security check

26 © IATA


IET Requests

By airline name

IET

MatchmakerMatchmaker Requests

Enrolled

Airlines

IET Requests

For last 7 days

6) And even introducing airlines

The IET Matchmaker!

27 © IATA


And so to a successful conclusion

Solutions for itineraries not

ET enabled

Moving on to all the other

paper documents?

Has the industry saved the

$3billion?

Will you be holding all the ET aces?

The end game – Midnight 31 May 0828 © IATA

IATA e-services Project

EMD Implementation Status


Why IATA is striving for a

global EMD standard for

Ancillary Revenues?



Airlines Ancillary Services trend up by 43%

to USD15 billion in 2009 (Source : Ideaworks)

IATA e-services - vision

100% EMD to facilitate sales, fulfillment and collection of

ancillary services through all distribution channels

EMD*

Traditional Miscellaneous

Documents Direct sales

&

GDSOptional services

Ancillary

Services

Multi- channel

Sales

Distribution

Industry accepted

Electronic

Miscellaneous

DocumentIATA - The Take Off of the Electronic Era of Aviation 32 © IATA

Up to $2.9 billion industry benefits annually

Improve revenues with multi-channel growth of ancillary services

$2bn revenue increase

Reduce cost by eliminating paper documents and better back-office

productivity

$450m-$900m cost savings

IATA e-services – financial benefits


A global industry standard for issuance, fulfillment and collection of ancillary

services

A common sales process across all channels, like travel agents via the GDS

Provides a means for audit and control of collection and payment of ancillary

services

Can replace all miscellaneous documents or airlines proprietary solutions

Can be interlined to partners

Considered as an integral part of the business model where carriers sell

ancillary services (e.g. ATPCO - Optional Service Fee Product)

Increase visibility in Revenue Accounting and Revenue Management

IATA e-services – EMD adoption benefits


End-2010: 6 major GDS and 10 airlines EMD capable (achieved!)

End-2011 : 40 airlines EMD capable, and

6 major GDS EMD live* in IATA BSP* A travel agency connected to the GDS has issued one EMD for one airline, reported in IATA BSP

End-2012: all airlines EMD capable

End-2013: 100% EMD usage in BSP

2010 2011 2012 2013

e-services – IATA Board Target

1st January 2014:

end of vMCO/vMPD

=> 100% EMD


What is an EMD?


What is a Electronic Miscellaneous Document?

An EMD replaces all types of standard traffic miscellaneous

documents for both agency sales and airline direct sales

Two Versions

EMD-S (Stand Alone)

EMD- A (Associated)

Concept

1 document to replace all miscellaneous documents rather than have

separate standalone resolutions

Reason for Issuance Code (RFIC) – Defines the document

Qualified with another code to clearly identify the actual usage


Two types of EMD An EMD-S is a standalone record of a transaction,, its usage is not

linked to a ticket.

An EMD-A is always associated (stapled) to the ticket, meaning that

it will be used when the ticket is used and the passenger checks in

Whether an S or A is used is determined by each carrier based on

their own internal commercial policy related to revenue accrual.

EMD-S only

2%

Not decided

yet

25%

Both EMD-S

and EMD-A

73%

Source: StB e-services campaign – Oct 2010

Industry trend toward both EMD types

Less than 2 % of airlines intend to

develop EMD – S only


EMDs works like Electronic Tickets

Value coupons

Determine the coupon usage (status e.g. open or used)

Exchanged, refunded, voided, displayed

Plus, associated and disassociated

A receipt is issued to the customer

Pricing can be automated or manual

Interlined

EMD-A lifted with the ET

EMD-S works slightly differently in that an airline confirms usage either at issuance or later.


Key

Misc. docs. Processes & Systems

EMD impacts industry systems

IATA BSP

3rd PartiesAirlinePricing

Revenue management

Fares distribution

Travel Agent

Passenger

Data Processing

Center

RET

Global Distribution

System

PNR

Revenue Accounting

HOT

Reservation Booking

PNR

Airport Handling

AgentChecked-in / FlownDeparture

Control System

PNL

Airline Crew

E-Ticketing

BSPlink

Impacts

Industry systems

Messages


EMD Deployment

Industry Status



12 airlines are already EMD capable: (VS, AY, TK, CA, CZ, AF, AZ, UU, JL, MS, KL, MU)

For all airlines in scope, 220 airlines (representing 84% of passenger volumes) are committed to EMD implementation

Status of airlines in scope for e-services

Status: Jan 2011

EMD capability - Top 200 airlines Top 200 airlines EMD implementation

plans by PAX Vol.12

56

97

29

6

Airline capable

Airline with firm plan

Airline committed by end 2012

Airline not committed yet

Airline with no intention

16%

33%36%

6%

10%

GDS EMD deployment is an industry priority

IATA urges airlines and GDSs to work together as 96% of airlines engaged said they are planning to deploy EMD in all sales channels (including direct sales and through GDS as well)

Only direct

sales (e.g.

ATO/CTO,call

center)

4%

All sales channels

96%

Sales channel deployment



GDS and System Providers are committed to

support EMD

6 major GDS (handling 95% of passengers

GDS bookings) are already EMD capable

IATA visited majors System Providers

to ensure that EMD servers are under

development

Major GDS

95%

Other GDS

5%

GDS by ticket volumes in BSP (Jan 2010)

*Major GDS: Amadeus, Sabre, Abacus, China

Travelsky, Galileo and Worldspan

However, IATA urges airlines and industry providers to accelerate their

implementation slot allocations to make EMD a reality and bring the much

needed benefits to the industry


EMD in the interline business

87% of committed airlines plan to use EMD in interlining scenario

Plans to use EMD for interlining

Yes

87%

No

13%

*Air Transportation - e.g. pre-reserved seat, upgrade

*Financial impact - e.g. fees collection, refund, residual value

EMD service to interline

0

10

20

30

40

50

60

70

80

90

100

Baggage *Air

transportation

*Financial

impact

Airport

services

In-flight

service

Surface

transportation

Merchandise

Nu

mb

er

of

air

lin

es



IATA e-services: EMD status summary

220 airlines are committed to be EMD capable by 2012 deadline

representing 84% of passenger volumes

12 airlines are EMD capable

58 airlines communicated an implementation date by end of 2011.

96% of committed airlines plan to deploy EMD in all sales channels

working towards 100% EMD usage in all BSPs by end 2013.

1 GDS received IATA BSP signoff in November, 2010 under DISH 20.2

6 major GDSs must be live in IATA BSP in 2011 with testing started 1st

Half 2011

Source: EMD Status Jan-2011


IATA EMD implementation

support and priorities


IATA e-services: project activities in 2010

Documents available

EMD standard - Resolution 725fgh

Web page www.iata.org/e-services with project update, fact sheet and Business

case

Airline Guide to EMD Implementation– 1st edition (free!)

www.iata.org/whatwedo/stb/e-services/Pages/guide.aspx

Industry awareness campaign and mobilization

Successful airline engagement with 219 committed airlines worldwide

Support EMD pioneer airlines to achieve10 airlines capable target in 2010

System providers / GDS visits to ensure that EMD is under development


http://www.iata.org/e-services



http://www.iata.org/whatwedo/stb/e-services/Pages/guide.aspx




Organize EMD regional workshops to drive airline implementation in 2011

Area 2: EUROPE + MENA + AFRICA MAD 23 & 24-Mar-2011

Area 1: AMERICAS MIA 13 & 14-Apr-2011

Area 3: ASPAC SIN 04 & 05-May-2011

Area 3: NORTH ASIA BJS 21 & 22-Sep-2011

Attendance is free of charge, and open exclusively for Airlines, GDSs and IT

System Providers impacted by EMD implementation.

Mark your calendar and register now at:

http://www.iata.org/whatwedo/stb/e-services/Pages/workshops-2011.aspx

IATA e-services: action plan in 2011 (1/2)







Coordinate implementation between airlines, system providers, GDSs to facilitate

EMD deployment in BSPs (EMD Matchmaker)

Create an e-services Working Group to discuss implementation issues and EMD

standards if required

Coordinate with other systems impacted by EMD deployment (revenue

accounting, DCS, ground handlers) to mitigate implementation risks

Facilitating EMD interlining (EMD Matchmaker)

IATA e-services: action plan in 2011 (2/2)

IATA e-services: EMD implementation priorities

3 main EMD airlines implementation phases

1. EMD capability on direct sales (all airlines committed by end 2012)

2. EMD deployment in GDS , reported in BSP -> 100 % usage in BSP (end 2013)

3. EMD interline capability based on business requirements (bilateral, MITA, alliance)

GDS EMD live (one EMD issued by partner airlines in a BSP) deployment

is a priority

Stakeholder management with other systems impacted by EMD introduction

Revenue accounting

DCS & ground handlers


For updated information, go to e-services

web page www.iata.org/e-services






The e-Cargo Take Off

Céline Lavinay-Hourcade

Manager, Cargo Industry & e-AWB rollout

Air cargo‟s modernization challenge

Electronic messages exist since the 80‟s, but the air cargo industry still relies on paper & human intervention

Airfreight shipment generates up to 30 different paper documents!

Behaviors have not changed yet: bookings, track & trace still predominantly based-on human intervention


IATA standards: from paper to “e”

2008

Standards for XML messages

2005 2015

e-freight programme launched as part of StB

Standards for EDI messages (Cargo-IMP)

1980’s

Standards for paper documents

1930’s


What is e-freight?Shippers

Export

Customs

Import

Customs

Origin

Freight Forwarders

Carriers

Consignees

Destination

Freight Forwarders

Removal of up to 20 paper documents

Which slow the supply chain down!


Why launch e-freight?

Moving air freight industry to the “e” era to increase competitiveness and

attractiveness, lower costs and delays

A programme with deadlines to drive the industry and make it happen!

The industry needs leaders and pioneers to pilot and start


What happened since 2005?

We built the e-

freight “runways”

Lobbying

governments and

Customs

Working with the local

air freight community

Enabling cargo hubs

We built the e-

freight “aircraft”

Working with other industry

bodies to develop the

standards and run PoCs

Learning from the front

runners

e-freight is now ready to take off!

We prepared the

“flight plan”

Building a Industry Coalition

Launching smaller projects

Using the IATA network and

the successful StB model


The e-freight take off will start with e-AWB

Number of Documents & Complexity

Benefits &

Shipments

e-AWB

e-freight

Now: ~30 paper documents / shipment

e-Security Declaration


Objectives of e-AWB project

Replace the paper Air Waybills by the electronic version. No more paper AWB tendered to airlines!

Provide a win-win-win scenario for airlines, freight forwarders and ground handlers by lowering costs, increasing data accuracy and improving customer experience


What is e-AWB?

Front Back

FWB message EDI model agreement

+

+e-AWB

Paper Air

Waybill


Key milestones for the Industry

2010: standard approved (RP1670) by the Industry and piloted by 9 airlines in 8 countries

2011: 6% e-AWB

2012: 30% e-AWB

2013: 70% e-AWB

2014: 100% e-AWB


e-AWB today

10 cargo hubs in 10 countries where e-AWB has already been piloted by

12 airlines

1.54% e-AWB penetration, after 1 month, 2 airlines are using 100% e-

AWB out of their home market

111 countries where e-AWB is legally feasible accounting for 95% of the

global air freight volumes


The delivery approach to reach 100%

Enhancing the product

Providing tools

Engaging the Industry

Mobilizing the stakeholders to act

Tracking progress

Solving issues

Promoting success!


IATA‟s supporting materials

Existing materials

www.iata.org/cargo

IATA Cargo IMP Manual

e-freight Handbook, Specifications and Scorecards

e-AWB Basics, Specifications and RP1670

e-Security Declaration Basics, Specifications and RP1630

Coming in 2011

IATA Cargo XML Manual

e-Cargo Regional Workshops

e-freight Matchmaker

e-AWB Handbook, Scorecards,

e-learning module, Interactive

map

Contact us: [email protected]


http://www.iata.org/cargo

mailto:[email protected]

e-Customse-Security

Declaration

e-Pouch

What‟s next for e-Cargo?

e-Scheduling

Quality

e-AWB

e-freight= paper free

in air freight

Track & Trace e-Claims

e-Capacity

numberAWB

e-Tariffs

e-Booking


For more information, go to the IATA website

www.iata.org/cargo


http://www.iata.org/cargo

Your Questions

[email protected]



Thank you

[email protected]



IATA: The Take Off of the Electronic Era In Aviation

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