Information Proves Powerful

Q4 2007 Streamlining and securing business operations with customer visibility

In This Issue Information Proves Powerful 01 AirCore Community Group 02 Flight Security 03 Next-Gen Loyalty Solution 04 Billund Airport and Unisys 05 RFID Revolution 06 Unisys Community Groups 08 Unisys Helps TravelSky Gear Up for Olympics 10 US$ Services Getting Cheaper 11 AirCore Ad Campaign Wins Industry Award 14

Editor’s Note Information Proves Powerful Dear Colleagues, Unisys Passenger Services Seminar attracts thought leaders, The year 2007 is closing and it was an eventful trend setters to solve critical industry challenges year for Unisys AirCore: Hahn Air took the booking Legacy systems remain the workhorse of The driver is revenue generation and suite into production and, the airline industry. But they’re rapidly losing differentiation. [I’m not following this: later in the year, upgraded power. As Richard Clarke, principal analyst Revenue generation and differentiation “drive” to release 2.7. A great deal with Travel Technology Research, put it, the imperative to reduce costs and maximize of groundwork has been “We are putting lipstick on the pig…it’s a revenue? Is it that the lack of new/sustainable covered in the past year, and we continue to work really beautiful pig…but, at the end of the means of revenue generation and lack of on several opportunities that we expect to bring day it’s still a pig…” differentiation are causing the need to into the AirCore community in 2008. Last October, a dynamic group of executives reduce costs and increase revenue?] The New Year will also bring additional evidence gathered at Unisys International Management He challenged traditional airlines to seek of the strength of Unisys Passenger Services Centre just outside Nice, France, to participate new ways to increase revenues by focusing solutions. Our team will be visible at many in Unisys annual Passenger Services Seminar. on the most valuable opportunities – which industry seminars and conferences around the The event provided an opportunity to may not be obvious. Ancillary revenues world where they will demonstrate AirCore’s generate the most profit: sell the extras many features and elaborate on its message. interact with industry experts about the ever The message is extraordinarily strong, offering pressing question: how to decrease costs and market the core product. numerous benefits for airlines and an alternative and increase revenues to enhance the David Pellar, VP Business Development to high cost IT services and distribution. bottom line. From varying perspectives, EMEA/India at ITA Software, agreed. Pellar In addition, we will make a bold move in the speakers focused on the challenge of believes that by unbundling product offerings, Loyalty market by beginning development of the improving revenues by effectively meeting airlines can redefine airfare pricing and follow-on to our highly successful Customer Loyalty the demands of today’s consumer. shopping through transparency. Not only Solution. This solution has been operational at would this improve yields through self-service Air Miles (UK), Northwest Airlines, Cathay Pacific Clarke opened the seminar with a state Asia Miles and several other airlines for the best of the industry overview, cautioning airlines upsell, but it would also build consumer part of ten years. While its capabilities are still to look beyond the here and now and not trust and loyalty. Pellar pointed out, however, relevant, the loyalty market has changed markedly to assume that the small profits being that most legacy systems were not equipped and has expanded well beyond the airline sector. generated today will continue. The imperative to efficiently meet such demands, thereby Our follow-on solution will address and incorporate is to reduce costs and maximize revenue. losing the opportunity to gain or retain today’s new business requirements, as discussed customer loyalty. later in this newsletter. (continued on page 2) The New Year will also see our move to incorporate Unisys Airport solutions into the passenger services hub. Too long have they been satellite products. Soon they will become extensions into the airport domain of our main solution suite. So 2007 is over…but 2008 holds exciting possibilities and promise. I wish you and yours very peaceful holidays and a prosperous New Year.

Best regards

Mike McNamara VP and Partner Unisys Passenger Services Solutions AirCoreNEWS Q4 2007 AirCore Community Group Convenes on France’s Côte d’Azur

The French Côte d’Azur was the auspicious charter. Participants heard about the role of backdrop for the inaugural meeting of the Unisys within industry organizations and were AirCore Community Group (ACG) last given an overview of all the current activities October. Convening at Unisys International and new standards coming from the industry. Management Centre, the event introduced An integral part of this exercise was to have what is expected to be a continuing and each client rate the business priority of the growing conference of AirCore clients. new industry items. These ratings help The ACG provides a forum for Unisys clients establish AirCore work plans for the near to meet with Unisys staff to exchange future, ensuring that AirCore solutions are ideas, news, progress, challenges, and on target with clients’ business objectives. plans. The newly created user group will As part of the group’s initiation, the first meet several times annually during the early issue of AirCore Information Releases (AIR) growth years of AirCore, and then annually was published, reporting on results of the thereafter. Each meeting’s agenda is inaugural session. Since then four additional tailored to address major issues facing AIRs have been distributed to ACG members, clients, the industry, and Unisys at that time. covering topics relating to flight security, data The ACG is coordinated by Art Kourajian and security, and a report on an IATA reservation Debbie McBride from Unisys. meeting. An AIR will be distributed after The October session offered an agenda every IATA industry meeting that is attended replete with introductory presentations that by Unisys staff. The second ACG session is outlined plans for the group and solidified its scheduled for mid-February 2008.

Information Proves Powerful (continued from page 1)

Taking the concept of loyalty, choice and In addition to providing consumers with satisfaction with the results. ANA selected options to another level, Bob Offutt, Senior choice, airlines should rethink what they’re AirCore to move its business operations Technical Analyst at PhoCusWright Inc., doing about revenue integrity. Kolbeinn into a new, open, Web-based environment. shared his thoughts about the benefits of Arinbjarnarson, VP of Sales and Marketing By implementing AirCore, ANA expects social networking and computing. He provided at Calidris, brought to light that at least significant reductions in the total cost of examples of several airlines that were using US$12 billion of revenue leaks out of the ownership of its reservation and boarding social networking strategies to build loyal industry every year. This is often due to the management system, and it will enable communities and enhance their brand and inefficiency of data management within silo- them to implement Internet-based, new profits. Customer loyalty is also gained by based legacy systems. Managing passenger business models quickly in response to defining and living a brand. Graham Hales, movement is not one passenger moving changing market trends. Interbrand’s Chief Communications Officer, through the process, but many processes Attendees were also provided with an stressed the importance of defining the moving the passenger. “Airlines need to overview of the AirCore solution, including organization’s brand and then, more impor- create a plan for stopping the revenue new features and functionality. The demo tantly, ensuring that its people live the brand. leakage and acquire the right tools – not addressed the many business issues high- Graham Hill, Customer Value Management only tools that will solve the immediate lighted during the sessions, and how AirCore expert at Customer Think, led an interesting problem, but tools that can grow with the was able to leverage next-gen technology to discussion on “The Value-Driven Airline in increasing demands of the airline.” achieve mandates of tomorrow’s consumers. a Customer 2.0 World” that focused on Fred Dillman, CTO and Strategic Program Guests and speakers enjoyed lively frequent flyer programs and other loyalty Lead at Unisys, discussed the business conversations focused on the profitability schemes and the challenges they present. importance of Open Source. By opening up of airlines in the future and walked away Loyalty programs are at their most profitable innovative ideas and intellectual property with valuable ideas to take back to their when they provide a platform for a one-stop to partners and competitors, Open Source organizations. Unisys looks forward to shopping, value-added customer experience. enables an idea to evolve at a rapid pace. seeing these same familiar faces and Terry Elliot, Consulting Manager, Customer Included in the seminar was an impromptu many new ones at its upcoming 2008 Loyalty Solution at Unisys, provided a status report on ANA’s implementation of Travel and Transportation conference glimpse of future of loyalty systems, as AirCore by Toru Sato, SVP of IT Services at being held in Beijing, China next April. part of the research currently underway at ANA. Sato-san covered the airline’s bench- Unisys for their next-gen Loyalty solution. marking of AirCore and expressed ANA’s

2 AirCoreNEWS Q4 2007 Flight Security Moves into Real-Time

The complexion of passenger clearance • The Government allows “APIS pre-departure • At any time during this process, the and flight security will completely change clearance,” meaning that brief data CBP may send an unsolicited real-time in 2008 – from a post-departure, non- (passenger name and date of birth) can message to notify the airline that the interactive process, to a pre-departure, be sent up to 72 hours before flight status of a passenger has changed. interactive process. departure. A logical time for this would be This can cause the airline to reverse its The post-departure process began in the when check-in opens and the RES system boarding procedure for that passenger or mid-1990s with a passenger security list called transfers its passenger data to the DCS. to de-board that passenger on arrival at PAXLST. This list was sent to U.S. Government The Government responds with cursory the next down-line station. security agencies after flight departure and “fly/no-fly” messages, and an initial The effective date for this new process is contained pertinent identification information set-up in their data base for the expected 19 February 2008 – ninety days after about each passenger on board. A PAXLST passengers on this flight. declaring this process a law. Airlines, how- had to be filed with the U.S. Government ever, can file for an extension if they notify for every commercial passenger flight that the CBP by the end of 2007 of their plans for arrived or departed from a U.S. airport, or compliance and a reasonable implementation flew over U.S. territory. schedule. Without this official exemption, the Data fields included passenger name, pass- U.S. Government will impose fines on airlines port number, passport issuance information, for every flight and for every passenger this date of birth and nationality. This security is not filed or is not filed correctly. clearance process was coined APIS, an In addition to these new regulations from acronym for Advance Passenger Information the U.S. Government, there are many System. The word “advance” referred to other countries that are structuring similar passenger information that was collected processes for security. And airlines must in advance of the flight, even though it prepare to satisfy the regulations of every was dispatched after flight departure. country to/from which they fly. It was the airlines’ responsibility to check a “Watch List” during the check-in process. Some of the future features of the APIS This list was provided and updated by the process being considered by security U.S. Government and downloaded onto the agencies include: airlines’ home systems. • Selectee. The CBP may include in their • As passengers check-in, the airline sends a response to AQQ or APIS30 a Selectee Much of the data fields remain the same in real-time APIS message with more complete category for one or more travelers. the new APIS procedures being adopted in data; this function is called “AQQ,” or APIS This means that further scrutiny and 2008. However, the timing and the delivery Quick Query. The CBP returns a real-time re-clearance must be undertaken. have both changed. Interactive APIS has response for “fl y /no-fly,” per passenger. The individual airlines might also have been introduced, which includes passenger The boarding pass cannot be issued their own Selectee criteria in place data collected and sent to the Government without this positive response. However, within their RES or DCS systems. before flight departure. The new APIS check-in boarding passes can be issued messages are sent in a real-time EDIFACT for downline flights, with the expectation of • Known Traveler ID. This is a voluntary mode – with the expectation of a real-time APIS clearance downline, if required. If the registration program that the U.S. response from the Government with a airline performs AQQ, it no longer has to Government will begin in the future that “fly/no-fly” response, per passenger. check the Watch List, a responsibility that allows very frequent travelers to submit to The process involves the TSA (Transportation will be assumed by the CBP as part of the a civilian security clearance. They will be Security Administration), the DHS (Department real-time transaction. assigned a Known Traveler ID which can be sent with their AQQ or APIS30 entry of Homeland Security) and the CBP (Customs • Some 30 minutes or more before flight for faster/assured clearance. and Border Protection) agencies. departure, all passengers who have not There are many variations on this theme of been processed by AQQ must be sent on • Redress ID. This is a voluntary registration pre-flight APIS: an APIS30 list with all passenger security program for people whose name is on a no-fly list, but only by the coincidence of • Passenger security data fields are (or can data. The Government will return a “fly/ having the same name as the actual be) collected and stored in passenger no-fly” response, which must be received person listed on the Watch List. They will bookings at any time after their booking is (with an all-clear) before the flight can be assigned a Redress ID that can be made. Data can be collected at the time depart. (If all locally-boarded passengers sent with their AQQ or APIS30 entry for of check-in if the airline prefers, or before have been cleared with an AQQ, then the faster/assured clearance. the flight if the data is not available from APIS30 does not have to be sent.) the passenger during booking. • A Flight Close Message must be sent within 30 minutes of flight departure. This list is based on the old, familiar PAXLST and must include all locally boarded passengers.

3 AirCoreNEWS Q4 2007 AirCore Architecture Benefits Next-Gen Loyalty Solution

When a family finds themselves outgrowing In a similar way, those of us involved in Flexibility: Every application needs this, but their home, the only practical solution is to the Unisys Customer Loyalty Solution have Loyalty demands flexibility and adaptability go and look at some larger homes that are been exploring the AirCore architecture to in virtually every dimension. AirCore’s for sale. As you look for features that are see how it can benefit and enhance our Services-Oriented Architecture allows “required” for your family, the architecture next-generation Loyalty solution. Here are us to quickly introduce new presentation of each potential home reveals its strengths four requirements that we believe are channels, combine Web services in and weaknesses. critical to any next-gen Loyalty solution. innovative ways for a particular client, and distribute the application onto multiple servers, platforms and locations. Interfaces: It’s difficult to name an application with more varied interface requirements – Intelligent Video Surveillance: and each is absolutely critical to operation. AirCore’s Interface layer implementation can Unleashing Security to Respond in Real-Time be specific to a presentation channel and can be implemented using different design Unisys and Vidient introduce an innovative proactive security system – patterns. It handles externally-generated Intelligent Video Surveillance triggers and events to the architecture. And all sorts of interfaces are supported, Complimentary Webcast: • Comprehensive Response Management – from JSP to XML/XSL, WAP, PDA, rich GUI 22 February 2008 enabling security personnel to fat clients – even iDTV. respond quickly and according to Today’s security agents are reactive, not Security: Loyalty systems are analogous to specific security policy proactive. They monitor security via a bank banking systems, and carry equal security of screens tied to a closed circuit television • Versatility – can be deployed on a few requirements. AirCore’s Process Control (CCTV) surveillance system. And they must cameras or on thousands across any layer implements Java-based Authentication be constantly vigilant to security breaches. size enterprise, allowing the system to and Authorization Service, down to field-level grow as needed No longer. Unisys and Vidient have introduced controls and across all access points. It an exciting proactive security system – • Agility – designed and implemented even supports multiple logon modules, so Intelligent Video Surveillance. Unlike traditional within an Open Systems, standards-based when an employee signs on, it checks the CCTV, this system displays or sends an alert framework that integrates components Employee database to make sure they are when suspicious activities occur. This includes specific to individual customer applications in “OK” status. motion detection, tailgating, loitering, wrong-way Batch processing: The wide range of travel by people or vehicles, and removed or partners and participants for Loyalty left objects – all detectable indoors or outdoors Webcast Details generate some of the most demanding regardless of weather conditions. Date: 22 February 2008 batch processing requirements. AirCore’s And Intelligent Video Surveillance integrates Time: 11.30 am - 12.30 pm EST Batch Framework Subsystem meets our easily with existing security systems and even needs. It provides manual and automatic Registration: Compliments of triggering, job staging, and scheduling, allows you tailor it to the types of detections Unisys and Vidient and alerts you need. in a coherent, integrated solution. Admiral David Stone, former Assistant Speakers As every homeowner quickly learns, Secretary of the Department of Homeland Admiral David Stone architecture matters. We think the same Security and head of the TSA will introduce former Assistant Secretary of the is true for next-generation Loyalty, and our expert team who will lead you through Department of Homeland Security for the are gratified to discover that AirCore’s the dramatic demonstration of this proactive Transportation Security Administration (TSA) architecture can support us. As we move security solution. forward, we will certainly continue to take Brooks McChesney advantage of every architectural feature to Intelligent Video Surveillance from Unisys and Founder and Executive Vice president of Vidient craft a Loyalty solution ready to meet the Vidient offers: Ed Schaffner needs of today and tomorrow. • Breakthrough Accuracy – high accuracy of Director Integrated Security Programs, For more information about Unisys next-gen detection with a low rate of false alarms Unisys Corporation Loyalty solution, contact Terry Elliott at • Site-wide Coverage – offering an extensive [email protected]. set of behaviors for both indoor and outdoor monitoring needs, providing comprehensive Cick here to register for coverage across your organization this important webcast

4 AirCoreNEWS Q4 2007 Unisys to Streamline Check-in Processes at Denmark’s Billund Airport

Last October Unisys signed a contract “We are incredibly pleased with the way in Language Facility that enables an airport with Billund Airport in Denmark to provide which Unisys approached our project,” said agent to connect to multiple airline solutions and services for the airport’s Anders Nielsen, vice president of development check-in systems with minimal training. passenger facilitation operations. The for Billund Airport. “The company has an APPS features the following solutions that second largest but fastest growing airport excellent track record in airport project will be implemented for Billund Airport: in Denmark, Billund is located just outside management and is able to bring various • Check-in Assistant – an application built Copenhagen and handles domestic and parties together to meet our business needs. around open systems standards that international flights. One of the airport’s We believe this will result in a more efficient allows agents to simultaneously connect strategic goals is to become number one airport for our employees and travellers.” to multiple hosts in Denmark/Northern Europe when it comes As part of this project, Unisys has built • Local Check-in Assistant – a local to service for passengers and airlines. upon its successful relationship with airport departure control solution for charter Unisys will help to make that goal a reality technology company RESA and is integrating and low-cost carriers in its role as prime contractor and systems RESA’s CREWS CUTE System for Billund • Internet Check-in – for Local Check-in integrator. Unisys will implement a Passenger Airport. Unisys is also deploying the Unisys Assistant Facilitation Solution that will allow the airport Airport Passenger Processing System (APPS), to meet key operational objectives, including: which includes a world-class Common • CUSS Module – for Local Check-in Assistant • Use of check-in counters and gates • Considerably higher level of automation and passenger self service, including home Internet check-in as well as Common-Use Self-Service (CUSS) kiosk Billund Airport has established airport check-in effective and ambitious goals for • Compliance to IATA’s “Simplifying the Business” objective for 100 percent its operations and passenger use of barcode technology management. Together with • Common bagdrop though the use of a Bagdrop Mini Common Language RESA, we are confident we can Facility (CLF) meet Billund’s needs and help achieve their business objectives for better passenger facilitation.

5 AirCoreNEWS Q4 2007 Whatever Happened to the RFID Revolution?

There have been lots of reports of trials of radio frequency identification To get the full benefit of RFID at airports, (RFID) tags in the airline industry such as for tracking passenger baggage therefore, antennae have to cover all possible routes. And even then, this information is of or cargo ULDs. limited value in tracing lost baggage if the Many major carriers such as Air France, DHL and Singapore Airlines have airport at the other end is not also equipped performed pilots and, as previous reported in this newsletter, TNT has with readers. been using tags to track ULDs within its European air hub in Liège, Belgium. To track ULDs – something that is generally seen as the obvious first cargo use – the Baggage tracking trials have been carried out at airports as varied as problem is even more acute. The benefit London Heathrow, Hong Kong, Tokyo Narita and Kuala Lumpur as part of having full visibility of ULDs is not in doubt: as Irland points out, many airlines of IATA’s Simplifying the Business program. or handlers send out staff in trucks around But are we any closer to the widespread implementation of RFID for airports to see where their ULDs end up. either baggage or cargo tracking? To answer that question, it is important But since ULDs can end up almost anywhere to understand the nature of the trials carried out so far. – at any gate, by the cargo terminal, in a repair shop or the de-icing area – antennae would need to be installed in all these places to provide useful visibility. Most trials have focused on the technical While that payback sounds attractive, to issues of RFID readers. These include how achieve it IATA estimated that the 80 busiest And just as equipping one airport doesn’t to position antennas and how to process airports in the world would all have to be help track at other airports, any system the data they produce, or how to deal with RFID-enabled. Price insists this is not would have to cover multiple carriers as signals bouncing off metal surfaces. For a impossible – he points to IATA’s record in ULDs are often loaned through interlines. while there was also an issue of the different implementing e-ticketing for passengers as So to get the true benefits of applying RFID frequencies used by RFID tags in various an example of how the industry can embrace to cargo ULDs, ideally all a carrier’s ULDs, parts of the world. technological change – but he admits that in each airport and for all partners, would need to be enabled. These technical issues have largely been it is “a tough road to haul.” resolved, according to Andrew Price, RFID To try to ease the process, IATA is currently This suggests that the industry needs project manager at IATA. Setting up RFID considering an interim package of measures: to team up and share assets for RFID systems remains complex as readers have easier steps that airlines could take towards reading if the benefits are to be realized. to be tuned in order to eliminate double the ultimate goal. These are due to be IATA’s Transition Plan could kick start such readings and the effects of other environ- considered by the IATA Board of Governors a process. Price says its role is not to mental factors. But while the software for in December. persuade airports to implement RFID, but it does hope that by setting up information interpreting RFID data is still in its infancy, Why is it necessary to have so many airports networks to allow airports and airlines Price says that the early problems with the involved? Jeffrey Irland, director of enterprise to share their needs and experiences – technology have now been addressed. security at Unisys, says it is important to as it did with e-ticketing – it can facilitate The big issue now is justifying the investment realize the differences between the aviation industry change. required. Under the Simplifying the Business environment and that at Wal-Mart, which programme, IATA created a business case for famously insisted that all its suppliers put Irland points out that if infrastructure was put the use of RFID in baggage tracking, which RFID tags on goods. in place for baggage – for example, readers at aircraft gates – then it could also be used suggested that airlines could save up to As Irland points out, while it is relatively for cargo uses. It might at least give airline $343 million a year from improved read easy for Wal-Mart to position a reader at the cargo departments some basic infrastructure rates compared to barcodes, and a further entrance to its warehouses and know that all on which they could build a business case $390 million if tags included baggage service the goods will pass those points, at airports for further investment. messages. These savings compare to a baggage could end up passing down a total estimated cost for lost baggage to the variety of routes and through any of the industry of $3bn each year. airport gates.

6 AirCoreNEWS Q4 2007

The other approach is to try to create more “It was clear from the proposals received Ultimately, it sounds as if what RFID really limited business cases based on smaller that the tracking and tracing of ULDs is needs is leadership from one or more scale implementation. Unisys is currently technically feasible and that the application innovative companies, and Irland wonders working with a major U.S. airline at one of its could be applied to other assets including if the ideal candidates might not be airports key hubs to see if it can create a business ground service equipment,” says Steve that could install the RFID infrastructure case for ULD tracking there. The idea is Smith, program director for IATA’s e-freight and then charge airlines for usage. to demonstrate that there is a return on initiative. “What is not clear, and where Certainly if someone installed the infra - investment from installing RFID, even if IATA is conducting more in-depth analysis structure, he reckons users would follow. the real benefits will come later when other with airlines, is whether the costs of “If there was a network in place, putting airports or airlines adopt the technology. implementation, based on the current cost tags on ULDs or baggage would be pretty Other ideas for more limited applications of technology, outweigh the business benefits.” much a no-brainer,” he says. “If several of RFID might include looking at what Irland IATA is also working to update its big airports agree on standards with IATA, calls “the scariest points” – those where Recommended Practices for RFID, with they have the potential to attract more most problems occur – or on the busiest particular focus on active tags, since the business through differentiated services, lanes. Alternatively tags could be used baggage project has already done a lot of better visibility and greater security.” for specific types of high value products. work on passive tags. Investment returns might be low at first but have the potential to grow as other uses are added and share the costs of Figure 1. Transition Plan Results – Summary. the infrastructure. Ultimately benefits will also come from changing processes. “If you just use RFID to replace the guy who drives around looking for your containers, then there are some benefits, but they are not huge,” says Irland. “The bigger benefits come if you think about what you can do with the new visibility – for example, take the ULD and stage it where needed for the next flight.” He urges companies to think carefully about such opportunities. “At the moment, too many people are saying if we can’t RFID enable the whole network then it is useless. But you have to think about an incremental approach – plan for your current needs, but also think about where any system might end up.” IATA has also been doing some work on the possible use of RFID in cargo. In 2006, it worked with a number of airlines to produce a set of user requirements for a global track and trace system for ULDs at the top 75 percent of airports based on a shared infrastructure. It then issued a request for information to determine potential solutions – using both RFID and other means – and reviewed the suppliers’ submissions in June 2007. Printed with permission of IATA.

7 AirCoreNEWS Q4 2007 Unisys Community Groups Reap Benefits

Thirty years ago Unisys created its AIRCARE All AIRCARE and AirCore members have input program, which takes a community approach into the process and all enjoy the advantages to maintaining and enhancing applications. of a solution that reflects changing market Unique in the industry, AIRCARE membership requirements. The AIRCARE and AirCore is available to customers of Unisys USAS formula enables the development of software solutions for reservations, departure control, applications at a fraction of the cost that passenger processing, airline communications airlines would spend to build or upgrade and logistics. Based on the popularity and their own systems. Through these programs, value of AIRCARE, Unisys recently created member airlines have access to a wide range a similar organization for AirCore clients, of applications such as electronic ticketing, called the AirCore Community Group married segments control, alliances, code (see AirCoreNEWS, Q207). share, EDIFACT, XML and cargo applications. The rationale for both organizations is simple: In addition, membership provides a pool transportation providers offer many of the of highly skilled staff to support airline same basic services. In fact, experts agree information technology staff. that up to 80 percent of systems deliver no But there are even more advantages to competitive advantage. So why pour signifi- membership. cant time, expense and human resources Unisys is a charter member of IATA’s Partnership into basic functionality that results in little Program, an industry-wide, global community or no differentiation? of airline domain experts. We not only learn With the AIRCARE and AirCore community and gain knowledge about emerging new approach, Unisys clients share the costs – industry standards, but we take an active and benefit from the economies of scale – role in influencing the design of new features, of continuous improvement of core systems. ensuring continuous compatibility of Unisys Transportation solutions. Unisys has been fostering this cooperation since the inception of the IATA Partnership Program in 1990. Unisys staff members now participate in over 40 industry meetings each year. And summary reports are provided to AIRCARE and AirCore members. In this way Unisys is kept aware of new trends in the industry, before they happen, so we can be better prepared to adapt Unisys solutions as necessary. This greatly benefits our clients because with our IATA membership and industry awareness, we can implement new standards on time, releasing them to airline clients even before the items become effective in the industry.

8 AirCoreNEWS Q4 2007

In 2007, Unisys staff members participated in, and chaired, the following industry meetings

Transportation Industry Meetings with Unisys Airports User Group Meeting Unisys Participation

Airports Council International (ACI)

Airline General Meeting (AGM) Management Council

Joint ATA /IATA Airport Services Committee (ASC)

Joint ATA /IATA Passenger Services Conference (JPSC)

IATA PADIS EDIFACT/Airports (APTS) Working Group 27 February - 29 February, 2008 IATA PADIS EDIFACT/Reservations Working Group Unisys International Management Centre St-Paul-de-Vence (Nice), France IATA PADIS XML Working Group

IATA PADIS EDIFACT Flight Security Unisys is pleased to announce the 13th Unisys Airports User Group Meeting. Working Group (AQQ/APIS) This event will be hosted by Unisys at the Unisys International Management Centre, IATA PADIS EDIFACT Board Saint-Paul-de-Vence, France, from Wednesday to Friday, February 27-29, 2008.

IATA Reservations Committee (RESCOM) The agenda will address new airport functionality and those industry changes currently IATA Reservations Working Group and taking place. Specific topics include: 2D Bar Code Boarding Pass, 100% E-ticketing, AIRIMP Board (RESWG) ARINC Connect and Secure Flight.

IATA Additional Services Task Force (OSTF) Unisys is involved in all of these emerging industry initiatives, but we would like to take this opportunity to hear the views of our clients and others about how these IATA Flight Security Procedures Task Force technologies impact your business and what developments you see on the horizon. IATA DCS Message Working Group (DCSMWG) There has been a great deal of press about the expected growth in the airline industry, but how do airports expect to cope? Through discussions and ample networking Joint ATA /IATA Passenger Ticketing Committee opportunities, we’ll gain additional insights and learn from the experts. (JPTC)

Electronic Miscellaneous Document (EMD) For details about the agenda and to register, visit: AIRPORTS USER GROUP. Working Group Please register before Friday, January 13, 2008 to ensure your accommodation. And remember to update your registration with arrival and departure details as early IATA Simplifying the Business (StB) Group as possible. This enables our staff to organize appropriate airport transfers. IATA Aircraft Movement Control Messages Working Group (AMC/ WG) Unisys provides complimentary registration, accommodation (2 nights), meals and transfers. And we’ll even include a short lesson in petanque to help you enjoy the EDIFACT Inter-Airline Thru-Check-in pleasures of this French pastime. Implementation Group (IATCI)

Open-Travel Alliance (OTA) Worldwide Consortium of Travel Enterprises

IATA Cargo Business Processes Panel e-Freight Working Group/XML Working Group

Cargo EDIFACT Working Group

IATA Cargo Data Interchange Task Force (CDITF)

IATA /FIATA Customs Working Group (IFCWG)

9 AirCoreNEWS Q4 2007 Major Upgrade Helps TravelSky Gear Up for the 2008 Olympics New computer system architecture will help travelers to the Beijing Olympic Games get there more quickly and securely

Unisys has signed a contract to upgrade A new Unisys ClearPath Dorado 380 “Through cooperation with Unisys on this computer systems for TravelSky Technology mainframe system will be clustered with project, we expect that our system’s Limited, the sole domestic provider of TravelSky’s two existing Dorado 280 production capacity will help reach new information technology solutions for China’s mainframes. This advanced technology levels of performance and be better air travel and tourism industry. allows TravelSky to process a higher number equipped to handle the traffic peak at The upgraded system is designed to provide of transactions – such as reservations and the 2008 Olympics,” said Mr. Xu Qiang, TravelSky with the intensified processing load calculations critical to flight safety – president of TravelSky. capacity and information availability needed more quickly and securely. The company “TravelSky is a longstanding Unisys client, to handle an expected surge of travelers anticipates that the implementation of the and we are committed to providing solutions throughout the 2008 Olympic Games in new system will not only make it one of the to help achieve its business vision,” said Beijing. According to travel trade estimates, most reliable travel systems in the world, Andrew Whittaker, vice president for Unisys approximately 300,000 overseas and it will also enable them to satisfy the ever Global Commercial Industries in Asia Pacific. more than two million domestic travelers increasing growth of China’s aviation market, will visit Beijing during the period of the eventually becoming one of the biggest players 2008 Olympic Games. in this space. “The 2008 Olympic Games are undoubtedly one of the most important international events to come to China. Unisys is most honored to have the The "Dancing Beijing" emblem, depicting a Chinese seal opportunity to use our solutions and inscribed with the character "Jing" (from the name of the host city) in the form of a dancing figure. technology expertise to assist TravelSky Decorative flower garden in Tiananmen Square depicting in supporting the Games.” various Olympic sports.

Wikipedia — Image taken from the Creative Commons section of Flikr.com. 10 AirCoreNEWS Q4 2007 US$ Services Are Getting Cheaper for Most While the U.S. has long offered great value for products and services, foreign organizations are seeing even greater value because of currency changes

As our chart shows, the U.S. dollar has lost Figure 2. Value of Selected Currencies Compared to the U.S. Dollar. value compared to many major currencies over the last few years. Brazilians for instance now pay less than 60 percent of their local currency for U.S. dollars compared to January 2003. The U.S. dollar is at a long-term low against the Euro, and the Indian Rupee has become over 15 percent more expensive for U.S. companies in that period. Even the Chinese Yuan, which has long followed the U.S. dollar, is becoming more expensive in U.S. dollar terms. For overseas clients of companies such as Unisys, whose services are priced in U.S. dollars, the bottom line is that the currency changes have meant real price reductions. For U.S.-based clients, the message is that buying overseas has become more expensive.

Welcome Aboard! AirCore family welcomes Janelle Marte

Little did I know that getting my morning cup I was recruited by a former colleague to a Since joining Unisys, of Joe at a coffee bar on the final day of the small start-up software company that had each day has brought 2006 Res Expo Conference in Dallas would developed a business travel and booking new experiences and lead to a whole new career. management application geared specifically challenges. There are My professional background is somewhat to business travelers. The more I learned very few industries of a mixed bag. I had been working as a about the industry, the more intrigued I that are changing hands-on Exercise Physiologist in outpatient became. Representing this software company’s as rapidly as air Rehabilitation and Sports Medicine clinics core product is what brought me to the transportation. My for about 8 years when one of my patients Res Expo and led to my chance meeting enthusiasm about encouraged me to join his team as a with Mike McNamara at the coffee bar. AirCore and the sales representative in the Technology and When Mike began talking about AirCore, passion I feel for its Telecommunications industry. This was I knew this was a solution that was going role in the industry Janelle Marte quite a change from my career path, but to make a global impact. You see, prior to just continues to grow. I was intrigued by the prospect of doing joining this company my primary experience I’m excited about the AirCore offering and something new. Through hard work, in the airline industry was as a consumer – proud to be a member of such a dedicated persistence and managing to be in the more specifically, a road warrior. Yes, group of people bringing this innovative right place at the right time, I built a I was one of those passengers that silently solution to market. successful career as a Global Account complained about poor service. What I now Manager for large Multinational Carriers. find most amazing is the level of complexity airline staff must deal with daily – using very Fast forward 10 years… outdated systems.

11 AirCoreNEWS Q4 2007 AirCoreNEWS – Acknowledgements

You’re Invited! Dear Colleagues, This publication has been produced solely Our industry has come a long way in recent years. by the Unisys Passenger Services team, Ticketless travel is here. Safety has never been better. and I want to thank each of them all for their E-freight is fast-becoming a reality. RFID is poised extra efforts. I would especially like to thank to revolutionize baggage handling. Airlines are using Susan Hunter, AirCoreNEWS managing editor, bar-coded boarding passes. Common use self-service for her care and dedication to making every kiosks are used in 59 airports. Self service is defining issue meet its deadline and sparkle! a new age for travel. And airlines are beginning to Thanks Susan. show profits. But despite positive fiscal results and transformation initiatives, this good news is overshadowed by stories of poor service, poor customer satisfaction and a lack of trust in our industry. Qualitatively, aviation is falling behind. Delays, cancellations and passenger outrage coupled with cargo security vulnerabilities are evident around the world. And this dissatisfaction is being Unisys Travel and fueled by today’s major media outlets and a consumer- driven environment. Transportation Conference Our 2008 conference will focus on new ideas and new ways to heighten consumers’ and shippers’ perceived 21 - 23, April, 2008 value of services, including: Shangri-La Hotel • Customer-centric solutions that build customer satisfaction and loyalty Beijing, China • Next-generation loyalty solutions for passengers and logistics operations • Reducing cost while increasing satisfaction and trust • Customer value: know it and use it – or lose it • Trust: how to measure it and increase it Join us in the most rapidly expanding market in the world – China – as we examine an international marketplace that is ripe with opportunity, yet uncertain about successful strategies and technologies. We invite you to join industry experts, analysts and your colleagues in air transportation to create and share a vision of the future. As your host, Unisys provides complimentary registration to all programs and events, meals, and the spouse tour. Are you receiving AirCoreNEWS? Visit the conference website for additional detail: www.unisys.com/go/uaua If not, email Mike McNamara at [email protected] Best regards, to ensure you’re on our mailing list. And visit www.unisys.com/transportation

Olivier Houri for archived issues of AirCoreNEWS. President and General Manager Unisys Global Transportation

12 AirCoreNEWS Q4 2007 Industry Organizations Address Major Issues in 2007-08

Organizations that administer and direct airline rules, procedures and IT requirements have had a full and varied agenda over the past year, and these challenges will continue into 2008 as well. Regulations and new industry standards are being placed before the airlines from all sides: their own marketing departments, IATA and governmental security organizations. In 2007 IATA committees addressed the following issues and some of these issues will continue to be discussed in 2008:

Organization Feature Issue

IATA 2007-2008 A supplement of features/functions to achieve 100% electronic ticketing (ET) by the new industry deadline of 01JUN08.

IATA 2007 The expansion and full listing of tax types on ETs.

IATA 2007-2008 The beginning of electronic miscellaneous documents (EMD) to complement ET – another step toward all-electronic documents for passenger travel. No deadline is set for EMD, but it is expected to appear in the industry in the late 2008-2009 time frame.

EU 2007 Provisions for passengers with reduced mobility (PRM) at European Union (EU) airports, where airports rather than airlines provide passenger assistance, with a deadline of 01APR08.

U.S. Government 2007-2008 Advancements in flight security and passenger scrutiny; real-time clearance of boarding passengers to/from U.S. airports and over U.S. territory; 19FEB08 is the first deadline for the first phase of the new rules.

IATA 2008 100% bar-coded boarding passes, with a deadline of 01JAN11.

IATA 2007 Paid services at airports and in-flight, using the EMD for tracking ordering, payment, and fulfillment. A slow introduction into the industry, with greater appearance in 2008; a special new fee-product administered by OAG and ATPCO.

These initiatives will continue to present challenges to every airline department and to airline service providers as well. There has been a great deal of work accomplished on these items, and a great deal still remains to reach completion. The projects all have short implementation deadlines and all vie for top priority everywhere. The issues are complex and new, and present implementation challenges at every site. On an industry level, the complexities magnify when the solutions are to be unified, interline enabled and brought online in a synchronized time frame. These challenges also are present for Unisys for both the USAS solutions and the new AirCore solutions. However, Unisys presence at the meetings of industry and regulatory agencies helps keep our knowledge and our products in sync with the industry and current with our clients’ needs. All of the issues mentioned above are either in development or planned for development in Unisys Transportation solutions.

13 AirCoreNEWS Q4 2007 Customer-Focused AirCore Ad Campaign Strikes Gold

Every picture tells a story, and that’s exactly The winning ad was second in a series that “While we designed our message to draw what Mike McNamara, Unisys AirCore’s focuses on treating customers like people, attention to the capabilities of our AirCore vice president, had in mind in 2005 when he rather than numbers. solutions, we were pleased to learn that the came up with a unique, passenger-focused “To know what a customer wants, and to judges concluded that the ad stimulated AirCore advertising campaign. be able to deliver it quickly and meaningfully positive feelings about Unisys as a company,” “Every day we’re hearing about the challenges is a powerful tool for any airline,” Mike adds. says John Strain, vice president of marketing airlines face and the frustrated travelers “That’s what AirCore promises, and that is for Global Transportation. they’re trying to serve. Achieving customer the rationale driving our ad campaign.” The ad series has been placed in key airline loyalty is not only more difficult today than Unisys AirCore is a suite of innovative industry journals aimed at airline executives. ever before, it’s also more important,” marketing, sales and service solutions that Even in a sluggish economy, advertising says Mike. tackles reservations and departure control, clearly creates a competitive advantage, That attitude and the resulting campaign just and sets new standards for the industry. according to industry studies. A majority won a Gold Award from Air Transport World It gives airlines visibility into the unique of executives agree that seeing a company (ATW), a premier industry trade magazine. wants and needs of passengers, allowing advertise even during slower times makes According to ATW Editor William Freeman, for extraordinary personalization, security them feel more positive about the company’s 300 airline industry professionals judged and agility. As the ad series says, AirCore commitment to its products and services. numerous aviation ads from around the globe. is “making even the little things matter.” “It is very satisfying to win this award from Judges confirmed that the Unisys campaign a recognized industry group. It gives us “was simple to understand with a clear visual confidence that our ideas are on the right message, and was excellent in conveying track”, says Mike. the intended message: that you can feel comfortable and safe with Unisys.”

14 AirCoreNEWS Q4 2007

15 AirCoreNEWS Q4 2007

About Customer Loyalty Solution Why Unisys? The most widely used loyalty program in Why do leading transportation organiza- Solutions for Secure the world today, the Unisys Customer Loyalty tions around the world choose Unisys? Business Operations Solution (CLS) transforms standard frequent- Because we deliver: Unisys provides solutions for secure flyer, lounge, specialty and staff programs • Visibility: clear understanding of the business operations through its into proactive, high-impact customer connections between strategy, process, unique blueprinting methodology retention vehicles. Your top customers applications and infrastructure can reserve preferred seats automatically, and market-driven technologies: • Insight: better, faster decision making obtain real-time flight information and enjoy • Enterprise Security based on integrated data and systems streamlined check-in. They get the services • Outsourcing they expect and your airline becomes a • Agility: the ability to move nimbly and • Real-time Infrastructure carrier of choice, not a commodity. The take advantage of rapid market shifts open system design allows you to build • Security: risk mitigation, predictability • Open Source Solutions and Support on existing systems without getting tied and stability in key operations • Microsoft Solutions to a specific vendor or architecture. And • Focus: solutions that address core by centralizing on one database, you get operations – passenger processing, Harness the Power of Unisys: accurate, current data every time, as well loyalty programs, cargo handling and as advanced promotion communications regulatory compliance Combining the capabilities of Unisys capabilities. Benefits include: • Experience: 50+ years experience blueprinting methodology with our • Enhanced customer loyalty and consultants from the executive trusted core competencies of Consulting, • Optimized revenue ranks of the industry Systems Integration, Outsourcing, • Enhanced personalization and more • Leadership: “must-read” publications Infrastructure and Server Technology. accurate segmentation like Unisys Scorecard, FastForward This is the power that Unisys brings • Reduced program management and and AirCoreNEWS communications costs • Results: systems that process to your enterprise. • Increased alignment of CRM strategy 29% of world’s airline passengers and operations and 31% of the world’s air cargo • Relationships: 200+ airlines – About Unisys AirCore including 19 of the world’s top 25 – 600+ airports and top industry groups The next-generation replacement for conventional airline reservations, inventory • Scope: solution design and delivery and departure control systems, AirCore all over the world – the Americas, supports many key processes through Europe and Asia/Pacific a single, integrated repository of current, accurate and complete customer data. Customer-centric and proactive, AirCore reveals who your best customers are, what they want and the best way to deliver it. Because of its flexible design and platform, airlines can implement only the Are your business operations secure? features they require, and modifications and upgrades can be made quickly and easily – usually in hours, not months. For legacy airlines and low-cost carriers, AirCore delivers: • Secure operations and reduced costs • Better decision making based on improved information flow For more information about Unisys Transportation Solutions, • Enhanced customer service and loyalty • Increased business and technical flexibility visit our website at www.unisys.com/transportation or • Improved technology ROI and reduced email [email protected] implementation risk Specifications are subject to change without notice.

Unisys, the Unisys logo, and AirCore are registered trademarks of Unisys Corporation. UIMC photographs © 2007 Unisys, Gabriel Martinez, and Eric Zaragoza. All other brands or products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.

16 Printed in the United States of America 12/07