IATA Simplifying the Business

EMD Implementation update New StB program

Stockholm, 22. November 2012

Sebastien Touraine IATA – Project Manager e-services

e-services (100% EMD) 1  COPYRIGHT IATA 2012 IATA e-services background

e-services (100% EMD) 2  COPYRIGHT IATA 2012 Airlines Ancillary Services trend continues… $36.1 billion projected in 2012 (Source : Ideaworks Oct -12 )

Jay Sorensen - Ideaworks: ABCs to EMD report, Oct -11

“$32.5 billion projection in 2011 could jump to $100 billion in the future as travel agencies and online travel agents become integral components of ancillary revenue distribution”

e-services (100% EMD) 3  COPYRIGHT IATA 2012 IATA e-Services initiative: Airline CEOs endorsement at IATA Board

1. Airlines CEOs acknowledged growing industry trend of airline ancillary services IATA Board of Governors approved the IATA e-Services project in December 2009

2. Airlines CEOs endorsed IATA Simplifying the Business model to deliver the project IATA e-Services next major IATA StB initiative after 100% ET

e-services (100% EMD) 4  COPYRIGHT IATA 2012 IATA e-Services – Vision

100% EMD to facilitate sales, fulfillment and collection of ancillary services through all distribution channels

Traditional Miscellaneous Documents Ancillary Direct sales Services Travel Agencies EMD Optional services

Multi-channel Industry adopted Sales Electronic Distribution Miscellaneous Document

e-services (100% EMD) 5  COPYRIGHT IATA 2012 What is a Electronic Miscellaneous Document? An official IATA standard document to facilitate fulfillment of optional/ancillaries services: Airlines Sales: direct or via travel agencies connected to a GDS Services delivery at the airport Revenue collection by airlines revenue accounting system EMD works like ET An IATA standard document is issued for the services A receipt is issued to the customer Value coupons Concept Two Versions: EMD-S (Stand Alone) or EMD A (Associated to ET) Reason for Issuance Code (RFIC) defines the document (i.e baggage charges, in- flight or airport services, financial fees, merchandising, etc…) Reason for Issuance sub-code (RFISC) qualifies the actual coupon usage, aligned with ATPCO optional services fees filing

e-services (100% EMD) 6  COPYRIGHT IATA 2012 e-Services – IATA Board Target 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 (achieved!) End-2012: 75%* industry EMD capability and increase EMD usage in IATA BSP End-2013: 100% EMD usage in BSP

st 2010: 2011: 2012: 2013: 1 January 2014: Pioneer Pivotal Critical Final end of vMCO/vMPD year year year year => 100% EMD

* EMD capable airlines should represent at least 75% of passenger volume by end 2012

e-services (100% EMD) 7  COPYRIGHT IATA 2012 EMD Deployment Industry Status

e-services (100% EMD) 8  COPYRIGHT IATA 2012 Status of airlines in scope for e-Services 72 airlines have implemented EMD, representing 61% of traffic volume: 49 airlines are EMD capable (only direct sales) 23 airlines are EMD live in IATA BSP (via travel agents)

End 2012, approximately 80 airlines will be EMD capable representing 75% of traffic volume

EMD Volumes in 2012

Millions of EMDs through direct sales

Expected to exceed 500,000 EMDs through travel agents in almost 30 BSPs with at least 25 airlines.

Source: 26 October 2012 (subject to update)

e-services (100% EMD) 9  COPYRIGHT IATA 2012 23 airlines EMD live in 25 BSPs* Airlines having reported EMDs issued by a Travel Agency in IATA BSP : 2I - Star Up S.A. IB - IBERIA Lineas Aéreas de España Sociedad Anónima Operadora AA - American Airlines Inc. JL - Japan Airlines Co., Ltd. AB - Air Berlin PLC & Co. Luftverkehrs KG KL - KLM Royal Dutch Airlines AF - Air France MF - Xiamen Airlines AT - Compagnie nationale Royal Air Maroc MS - Egyptair AY - Finnair Oyj NZ - Air New Zealand Ltd. AZ - Alitalia - Compagnia Aerea Italiana S.p.A. QR - Qatar Airways Co. (W.L.L.) BA - British Airways P.l.c. SS - Corsair CA - Air China Ltd. SV - Saudi Arabian Airlines Corporation CZ - China Southern Airlines TX - Air Caraibes HU - Hainan Airlines Co. Ltd. UU - Air Austral YM - Montenegro Airlines AUSTRIA MOROCCO BRAZIL NETHERLANDS BULGARIA NEW ZEALAND CHINA -PEOPLES REPUBLIC OF NORDIC & BALTIC CZECH REPUBLIC/SLOVAKIA PERU 25 IATA BSPs having EGYPT PORTUGAL FINLAND ROMANIA reported EMDs issued FRANCE RUSSIAN FEDERATION by a Travel Agency: GERMANY SAUDI ARABIA GULF AREA SPAIN ITALY SWITZERLAND/LIECHTENSTEIN * Source: 26 October 2012 (subject to update) JAPAN UKRAINE UNITED KINGDOM e-services (100% EMD) 10  COPYRIGHT IATA 2012 49 EMD Capable* Airlines having declared issuing at least one EMD:

9H - Dutch Antilles Express B.V. HR - Hahn GmbH Air Lines NX - Air Macau Company Limited A3 - Aegean Airlines S.A.-Aviation Ltd. Company Air Italy I9 -S.p.A. OB - Boliviana de Aviacion (BoA) AH - Air Algerie IG - Meridiana fly S.p.A. OM - MIAT Mongolian Airlines AI - Air India Limited JJ - TAM Linhas Aereas PX - Air Niugini Pty Ltd. B7 - UNI Airways Corporation KA - Hong Kongirlines Dragon Ltd. A PZ - TAM - Transportes Aereossur S.A. del Merco BR - EVA Airways Corporation KE - Koreano. AirLtd. Lines C RJ - ALIA - The Royal Jordanian Airline CI - China Airlines Ltd. KU - Kuwait Airwaystion Corpora S7 - Siberia Airlines JSC CX - Cathay Pacific Airways Ltd. LY - Elsrael Al (EL Airlines AL I Ltd.) SB - Aircalin (Airternational) Caledonie In DN - Groupe air Senegal MD - Air Madagascar Nationale (Societe Malgache de Transports) SC - Shandonglines Co., Air Ltd. EK - Emirates ME - Middle East Airlines AirLiban Scandinavian Airlines SK - Systems EY - Etihad Airways MH - Malaysia Airlines SQ - SIA - Singapore Airlines Ltd. FB - Bulgaria Air MI - SilkAir (S) Pte. Ltd. TK - THY - Turkish Airlines Inc. FI - Icelandair (Flugleidir H.F.) MK - Air Ltd. Mauritius UL - SriLankan Airlines Ltd. FM - Shanghai Airlines MN - Comair Ltd. VA - Virgin Australia International Airlinesd Pty Lt HG - NIKI Luftfahrt GmbH MU - China Eastern Co., Ltd. Airlines VS - Virgin Atlantic Airways WF - Wideroe Flyveselskap ASA WM - Windward Islands Airways Int'l N.V. ZH - Shenzhen Airlines Co. Ltd. ZI - Aigle Azur

* Source: 26 October 2012 (subject to update)

Improve agents revenues with new sales of ancillary services “Seat +” with AF/KLM or IB with some GDS in Europe Various Ancillaries Air New Zealand with 3 major GDSs

Integrated in GDS front-end (“a la carte” catalogs to EMD issuance, complexity handled behind the scene by GDS) and adapted with automated GDS tools (automated exchange, etc…)

One unique document issued by travel agents replacing all VMCO and VMPD types

Allow a better back-office productivity, help to reduce disputes by better usage tracking, i.e fraud reduction

e-services (100% EMD) 13  COPYRIGHT IATA 2012 End 2013 IATA deadline: vMCO/vMPD sunset vMCO/vMPD documents in BSP are mainly reservation change fees, refund, etc.. Majority of vMCOs issued in Europe by travel agents use Amadeus GDS vMPDs are issued by travel agents in several BSPs around the world

In BSP Nordics & Baltics , very few vMPD but almost 250’000 vMCO issued per year mainly by Air Baltic, Norvegian, SK , KL, AY, AF, LH, BA and AB

In BSP Nordics/Finland : EMD implemented with 1A & 1G with AY, BA, AB (approx. 20’000 EMD). Recent implementation with 1S for AY in Finland

AY has 70% EMD penetration worldwide, and even 85% in Home market Finland in Oct-2012

2013 Industry Deadline (100% EMD in BSP) : on 1 st Jan – 2014 , vMCO/vMPD accounting documents should be replaced by EMD, or the airline should advise agents with alternative processes e-services (100% EMD) 14  COPYRIGHT IATA 2012 For regular updates: e-Services web page

www.iata.org/e-services

Simplifyinge-services the Business(100% EMD)  16 International Air Transport Association 2012COPYRIGHT IATA 2012