4 th Interline Billing and Settlement Operations (IBS OPS) General Meeting 17 September 2018 (08:00-18:00) As you are aware, the Interline Billing

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1 4 th Interline Billing and Settlement Operations (IBS OPS) General Meeting 17 September 2018 (08:00-18:00) As you are aware, the Interline Billing and Settlement Operations is an amalgamation of the old ICH User Group and the Revenue Accounting Working Group. As the Agenda contains both ICH and Revenue Accounting Items, we will be interspersing Agenda items throughout the meeting. Don t miss the opportunity to come to Madrid and learn more about: The year in ICH The latest bankruptcy updates and Special Clearances Changes to the 2019 Revenue Accounting Manual New RATD Enhancements Industry Updates New IATA online collaboration tool the Standards Setting Workspace (SSW) In order to vote on changes to the Revenue Accounting Manual, a carrier must be in attendance and an IATA Member Airline. There is no proxy voting. Break-out Sessions Meeting 17/18 September 2018 (13:00-15:00) This year we will be hosting Break-out Sessions! With interesting topics addressing the important areas of Interline Billing and Settlement, and SIS invoicing. Please ensure you have indicated which 4 sessions you are interested in attending for each meeting with your registration. Involuntary and Voluntary Reroute Settlement Focus Session Applicable Fare/Lowest Applicable Fare Interline Settlement Best Practices, including Rejection Memo Reduction Interline TFC problems and Solutions ICH Blockchain: A Complementary or Competitive Relationship Settlement & FX Center of Excellence: Getting the best out of the Treasury Dashboard and the new currency clearance "ICCS" system: IATA Team Introduction to SIRS ( Multilateral Involuntary Reroute Settlement Agreement Solving Taxes: Industry Standard Calculation-ATPCO Deep dive into new SIS functionalities and benefits Best practices and tips for how to make the best use of SIS SIS functionality and the way forward SIS E-invoicing Suppliers and Airlines Benefits Workshop Suppliers and Airline Sharing Experience 7 th Simplified Invoicing and Settlement (SIS) General Meeting 18 September 2018 (09:00-17:30) Come to the 7 th SIS General Meeting and participate in discussions on efficiently using the system, cost control opportunities, best practices and data quality. Signatories to the IS Participation Agreement will have the opportunity to vote on items being presented for system enhancements, discuss billing rule changes that impact SIS, as well as share their experiences using SIS with the entire SIS community. Make sure you involve and bring along your Accounts Payable colleagues especially for Miscellaneous / Non-Transportation invoice types. There will be discussions about suppliers invoices and how best to use the system to take advantage of the new features. The SIS Team will be present onsite to assist all SIS Participants with any questions they have, so don t forget to bring examples and make time in your schedule for some exclusive one-on-one discussions. Be sure not to miss out on the extremely popular (and generous) Vendor Prize Draws, taking place on 18 September following the SIS General Meeting.

2 Competition Law Guidelines for IATA Industry Meetings IATA is publishing these Competition Law Guidelines to ensure that IATA Industry Meetings are conducted in full compliance with all applicable competition laws. Statement of Policy IATA Industry Meetings shall be conducted in full compliance with United States antitrust laws, the competition rules of the European Union, and the competition laws of all other relevant jurisdictions. Procedural Guidelines IATA Industry Meetings shall be conducted pursuant to the following procedures in order to ensure compliance with all relevant competition laws: 1. All discussions or conversations among meeting participants, including during breaks and scheduled or nonscheduled social activities connected with the meetings must follow these Guidelines. 2. Meetings shall be conducted in accordance with written agendas that are reviewed in advance by IATA counsel familiar with the competition laws of the United States, the European Union and all other relevant jurisdictions to assure that the agenda items are in compliance with these laws. 3. All presentations shall be reviewed and approved in advance by IATA s competition compliance attorney. Prohibited Agreements and Activities 1. Unless attendees of IATA Meetings are advised to the contrary by competition counsel, the following types of agreements, whether express or implied, are STRICTLY PROHIBITED: a. Any collective agreement concerning prices or charges for airline services; b. Any collective agreement allocating markets, territories, customers, suppliers or agents; c. Any collective agreement relating to prices or charges to be paid to suppliers, and any other agreement that is intended to, or that in operation is likely to, harm non-participants, including without limitation any agreement that is intended to, or in operation is likely to, exclude a non-participants from any market; and d. Any agreement that is intended to, or in operation is likely to induce airlines or their suppliers or agents to engage in collective anticompetitive behaviour, or to collectively punish any business enterprise for its exercise of independent business judgment. 2. Recognizing that the existence of an unlawful agreement or concerted practice may be inferred from circumstances, including the exchange of information by competitors, discussions or disclosures of the following types of information, are also PROHIBITED, except when such information has otherwise been made public or IATA competition counsel advises that such discussions are legally permissible: a. Individual airline rates, charges or surcharges; b. Individual airline costs; c. An individual airline s intentions regarding increasing, reducing or reallocating aircraft capacity (including entering or exiting routes);

3 d. An individual airline s intentions regarding charging for certain products or services or changes to the existing charges for such products or services; e. Information on individual airlines customers; and f. Any other sensitive commercial or proprietary information that the company would not disclose in the absence of an express or implied agreement to exchange such information for the purpose of reducing or restricting competition in the airline industry. 3. The foregoing applies equally to discussions, instant messaging and social media discussions whether directed to announce participants or other parties not present in the meeting. Participants are reminded that live streaming of this meeting to parties not present in person is not permitted except as indicated by and with the express permission and knowledge of the Chairperson and IATA and only in the event that specific participation on a given item from a party not present in person is required. Unauthorized recording of the meeting is prohibited.

4 Industry Meetings Madrid, September 2018 Agenda Administration Items: 17/18 September 2018 IBS OPS SIS GM A1 Opening of Meeting A2 Competition Law Guidelines for IATA Industry Meetings A3 Welcome Presentation and Delegate Introductions A4 Principal and Primary Vendor Introductions A5 Approval of the Minutes from the 2017 Industry Meetings: 3 rd Interline Billing and Settlement General Meeting (Dublin) 6 th SIS General Meeting (Dublin) A6 Introduction of the Electronic Voting System A7 Date and Place Next General Meeting A8 Any Other Business A9 Vendor Prize Draws A10 Close of Meeting 4 th IBS OPS GM Updates and Reporting items: 17 September 2018 IR1 IR2 IR3 IR4 IR5 IR6 Chairman s Welcome and Report on IBS OPS Working Group Activities ADS Industry Update (NPM, One Order, NDC, Xrates Currency, Ticketing, etc.) New RATD Enhancements Update The Year in ICH Bankruptcy and Special Clearance Update IATA Standard Setting Workspace (SSW) 7 th SIS GM Updates and Reporting items: 18 September 2018 SR1 SR2 SR3 SR4 SR5 SR6 SR7 SR8 Welcome Presentation Report from the SIS Steering Group Industry Economic Performance Update SIS GM6 Action items Review of published Report SIS General Update Supplier to Airlines e-invoicing Update SIS Solution Update ATPCO Updates

5 Agenda Items (to be presented and discussed at the Industry Meetings during WFS: 17 September 2018) RAM Chapter/Paragraph Subject From Impacts: RAM SIS ICH P1 Multi RAM Removal of Paper Traffic Documents Editor Group P2 Intro Terminology Definition of Persistence/Repetitive Errors IBS OPS WG P3 A /1.12 Supplementary Changes Austrian Airlines P4 A Passenger & Excess Baggage Billing Rules British/Emirates P5 A Note1 Passenger & Excess Baggage Billing Rules IBS OPS WG P6 A /2 Voluntary Reroutings, Billing Values IBS OPS WG P7 A2 2.5 Involuntary Rerouting & Planned Schedule Changes IBS OPS WG P8 A2 2.5 Involuntary Reroutings, Billing Values Xiamen Airlines P9 A /4 Involuntary Reroutings and Billing Values Kuwait Airways P10 A / Definition of Normal fares for Settlement Purposes IBS OPS WG P11 A / Definition of Normal fares for Settlement Purposes Lufthansa P12 A Frequent Flyer Exchange/Reissue Austrian Airlines P13 A2 2.6 Flight Interruption Manifest (FIM) Editor Group P14 A2 3 Fares To Be Used in Billings Delta/Swiss/Emirates P15 A2 3 Fares To Be Used in Billings-Clarification IBS OPS WG P16 A3 1.1 Passenger & Excess Baggage Billing Support Editor Group P17 A Prorate Slips Austrian Airlines P18 A Involuntary Reroutings, Refund Adjustment China Southern P19 A Involuntary Reroutings, Refund Adjustment Lufthansa P20 A9 Attachment G Passenger Source Code 31 IBS OPS WG P21 A9 Attachment G New Passenger Source Codes Rejection Reduction P22 A0 Attachment G Passenger Reason Code 5Z Rejection Reduction P23 A Supporting Documents for Rejection All Nippon Airways P24 A Note 2 Time Limit for Exchange Transactions IBS OPS WG P25 A Correspondence Amount Validation IBS OPS WG P26 B Addition SPA Coding Checklist IBS OPS WG P27 B 13 UATP (Place Holder) Secretary P28 B 13 UATP Rejection Reduction C1 A5 2 Rates To Be Used in Billings (Cargo) China Southern

6 Agenda Items (to be presented and discussed at the Industry Meetings during WFS: 18 September 2018) SIS Item Subject From Impacts: RAM SIS ICH S1 A13_Addition of new charge code for_ REDEMPTION Alitalia S2 A13_Addition of new charge code for_ ACCRUAL Alitalia S3 Display city name next to the location ID Emirates S4 Bulk Correspondence Processing Lufthansa S5 Instant Download of Correspondence including Supporting Docs Lufthansa S6 Search for Multiple Correspondences Lufthansa S7 SIS Price Changes ISPA Attachment A SIS SG S8 SIS SLA Update ISPA Attachment E SIS SG S9 Creating AWB information file for memo data (Cargo) All Nippon Airways S10 New sub status for the correspondence BM created All Nippon Airways S11 IS-WEB Invoice Search Criteria China Southern S12 SIS Monthly Passenger Report Rejections Reduction S13 SIS Correspondence Aging Report Rejections Reduction S14 YQ and YR Validations Rejections Reduction S15 Hard validation of Double Billings for First Billings Lufthansa S16 Hard validation of Double Billings in Rejection Stages Lufthansa S17 A13_Billing Category MISC-Charge Category MAIL-Charge Code MAIL SAS S18 Multiple files handling for carriers with full file loading SAS S19 Billing Category MISC-Charge Category Service Provider-Charge Code: Aviation Fuel SIS OPS

7 Agenda Item P1 Page 1 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents Submitted by: RAM Editor Group ***Important Notice*** Due to time constrains during the IBS OPS General Meeting, this paper will not be discussed and directly go for voting. If you have any feedback or comment please share it with IATA and RAM Editor Group directly from the below s: meydanlia@iata,org Harold.Schwart@delta.com socreusot@airfrance.fr matthew.holden@ba.com a.jhaveri@hahnair.com With the exception of Excess Baggage Tickets, provision for paper documents has been removed from all IATA Resolutions. For this reason, the RAM Editor Group has been tasked with removing all references to paper documents other than Excess Baggage Tickets, from the RAM. Problem: RAM procedures regarding paper documents are in the RAM and a thorough review of the RAM was required to delete procedures that are no longer applicable. Proposal: The RAM Editor Group proposes the following changes to RAM Chapters in Part A containing references to paper documents. Although FIMs are no longer supported by IATA Resolution, the Editor Group proposes to settle FIMs in accordance with long standing procedures but has removed these from Part A and placed these into Part B as follows: A2 PASSENGER AND EXCESS BAGGAGE BILLING RULES Throughout this manual all references to flight coupons shall include segments of electronic tickets, physical flight/baggage coupons and/or computer generated ticket image facsimiles thereof, based on ticketing system data and conforming to RAM Chapter A3, Paragraph 1.5. Throughout this manual references to MCOs shall also apply to all service type documents such as MPDs, VMPDs and EMDs. A2, Carriers are entitled to the fare or prorate thereof and charges effective on the date the ticket (or EMDPTA, if applicable) was issued for travel on the specific dates and journey shown on the ticket/emd. A2, 1.2 Billing Passenger and Excess Baggage Flight Coupons which Give Incomplete or Contradictory Information Paper Tickets Only 1

8 Agenda Item P1 Page 2 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group A2, In cases not covered by Paragraph above, where a flight coupon shows incomplete or contradictory information for the calculation of the amounts to be billed the billing airline is entitled to bill an amount not exceeding the applicable local fare or excess baggage charge for the sector(s) billed., provided that the billing is supported by a scanned copy of the flight coupon or ticket image facsimile based on ticketing system data, marked by stamp or other means Debit for incomplete flight coupon. This is an exception to the rule in RAM Chapter A3, Paragraph 1.1 Supporting Documents Requirements Original Billings A2, The issuing airline may reject any item billed under this sub-paragraph with the difference between the correct fare or excess baggage charge (or prorate thereof) and the amount billed only if the difference is more than USD30 gross or its equivalent. The minimum requirement of USD30 does not apply, if the issuing airline is able to prove that when issued, the ticket concerned was complete and not contradictory. The issuing airline must support its rejection with full details, i.e. either electronic copies of all conjunction tickets or alternatively a computer generated ticket image facsimile to show routing, carrying airlines and fare calculation points, of the basis on which the fare or excess baggage charge (and prorate) has been established. A2, If an airline raises an initial debit in accordance with Paragraph but fails to indicate Debit for Incomplete Flight Coupon, it cannot subsequently quote this as the basis of its charge should it receive a rejection debit from the issuing airline. A2, When a ticket issued under the Area Settlement Plan of ARC is improperly validated the issuing airline for interline billing purposes will be determined as follows: Invalidated ticket - no airline code and no issuing airline name:- the first airline named in the routing of the ticket(s) will be considered the issuing airline. (a) Validated with other than carrier identification plate (issuing agent manually records airline code and/or issuing airline and they conflict or one is missing):- issuing airline will be identified in the following order of priority: (i) (ii) (iii) First, the 3 digit airline code preceding the ticket serial number. If less than 3 digits appear (due to improper placement of ticket or plate in ticket writer) it will not be used to establish airline identity; Second, the airline named in the issued by box; Third, the airline named in the routing of the ticket(s). (b) Duplicate validation: Issuing airline will be identified in the following order of priority: (i) The airline named in the Issued by box; (ii) The first airline in the routing of the ticket(s). Note 1: For the purpose of determining the issuing airline, routing as mentioned in this paragraph shall be considered to be as indicated: (a) in the Good for Passage box for single ticket issues (except ATB's) and for the first ticket of multiple ticket issues (except ATB's) (b) in the Fare Construction box for the second and subsequent tickets of multiple ticket issues and for ATB's. 2

9 Agenda Item P1 Page 3 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Note 2: In case the second and subsequent tickets of multiple ticket issues are incomplete with regard to the Fare Construction box, for interline billing purposes the issuing airline will have to be identified by the ASP. This responsibility will rest with the billing airline. A2, 1.3 Billing of Fraudulently Altered Paper Ticket/MCO Coupon(s)/Counterfeit Tickets A2, Billing of Fraudulently Altered Ticket/MCO Coupon(s) Settlement for properly reported tickets/coupons where the value and/or routing on billed flight coupons differs from the auditors coupon/computer generated ticket image facsimile shall be as follows: A2, Each flight coupon of such a ticket or single coupon EMD MCO shall be settled based on the applicable coupon value of the originally reported sale. A2, In the event that the airline issuing a multi coupon MCO is overbilled because of fraudulent alteration of amounts, the airline(s) honouring such overstated MCO shall absorb the net loss on a prorate basis as requested by the MCO issuing airline through correspondence within normal time limits. Example: Airline A issues multiple coupon MCO for a value of USD103 Passenger alters coupon 1 to indicate value was originally USD703 and destroys coupon 1 Airline B honours coupon 2 for USD300 and indicates new residual value USD403 Airline C honours coupon 3 for USD350 and indicates new residual value of USD53 Airline D honours coupon 4 for USD53 Airline A collected USD103 Total billed by airlines B-D USD703 Net Loss USD600 Airline A request authorisation to rebill Airlines B-D on the following prorate basis: To Airline B = To Airline C = To Airline D = Total request = USD600 A2, Billing of Counterfeit Coupons A2, Any loss arising in connection with the honouring of counterfeit documents shall be borne solely by the honouring airline. Refer to IATA Resolution 781 Paragraph 5 for definition of counterfeit document. A2, The airline that issues a FIM against counterfeit tickets shall be liable for payment to the honouring airline. The value of the FIM shall be based on the face value of the ticket in accordance with involuntary reroute procedures. A2, 1.4 Billing Unspecified EMDs Miscellaneous Charges Orders (MCOs) A2, The amount the billing airline is entitled to receive from the value exchange coupon(s) of EMDs MCOs is limited to the amount stated in the Amount in Figures box of a one exchange coupon MCO sale value box of EMD. and the Coupon Value box(es) of a multi exchange coupon MCO. 3

10 Agenda Item P1 Page 4 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Note: In accordance with IATA Resolution 725, any EMD, or EMDs presented together having a total value exceeding USD5,000 or equivalent (at the banker s buying rate) shall not be honoured without authorization of the issuing carrier. An electronic copy of such authorization shall be attached to the exchange coupon(s) for billing purposes. A2, In the event of an airline honouring an MCO failing to enter the correct residual value it shall be responsible for any loss arising as a consequence of such failure. Note: In accordance with IATA Resolution 725a, any MCO, or MCOs presented together having a total value exceeding USD5,000 or equivalent (at the banker's buying rate) shall not be honoured without authorisation of the issuing carrier. An electronic copy of such authorisation shall be attached to the exchange coupon (s) for billing purposes. A2, 1.5 Billing EMDs Prepaid Ticket Advices (PTAs) and Specified Miscellaneous Charges Orders (MCOs) A2, The airline honoring an EMD a PTA or a specified MCO shall debit the issuing airline for the amount in the currency of the country of payment of the PTA or the EMD specified MCO as stated thereon. Note 1: In accordance with IATA Resolution 012 currency of the country of payment means the currency in which international fares are denominated. This means the currency in which international fares are denominated in the country of issue of the EMD PTA/MCO. Note 2: In the event that the ticketing office of an airline uses only part of the value of a PTA it is required to act in accordance with IATA Resolution 731. Note 32: In accordance with IATA Resolution 725a, any EMD MCO, or EMDs MCOs presented together having a total value exceeding USD5,000 or equivalent (at the banker's buying rate) shall not be honored without authorization of the issuing carrier. An electronic copy of such authorization shall be attached to the exchange coupon(s) for billing purposes. Note 43: With regard to the billing value of EMDs PTAs and specified MCOs issued in countries which establish passenger fares and excess baggage charges in US Dollars, (see Attachment A to IATA Resolution 024a), US Dollars is the currency of the country of payment. Note 54: With regard to the billing value EMDs of PTAs and specified MCOs issued in countries which establish passenger fares and excess baggage charges in Euros (see Attachment B to IATA Resolution 024a), Euros is the currency of the country of payment. Example 1: EMD PTA/specified MCO issued in Brazil for travel commencing in Argentina: Fare from Argentina quoted in US Dollars Equivalent fare paid will be in BRL EMD PTA therefore shows both USD and BR Billing value will be the US Dollar amount since the EMD PTA/specified MCO is issued in Brazil - a country in which fares are denominated in US Dollars. 4

11 Agenda Item P1 Page 5 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Example 2: EMD PTA/specified MCO issued in France for Travel commencing in Brazil: Fare from Brazil quoted in US Dollars Equivalent fare paid will be in EUR Billing value will be the EUR amount since the EMD PTA/specified MCO is not issued in a country from which fares are denominated in US Dollars. Note 4 does not apply to this case. Example 3: EMDPTA/specified MCO issued in Brazil for travel commencing in France: Fare from France quoted in EUR Equivalent fare paid will be in BRL Billing value will be a US Dollar amount - the currency of the country of payment. As no US Dollar amount will be shown on the EMDPTA, such US Dollar value will be derived from the EUR amount. This conversion shall be performed at the exchange rate published by the IATA Clearing House for the five banking days ending on the 25th of the month preceding the actual month of sale, irrespective of 10% variation. Example 4: EMDPTA/specified MCO issued in the USA for travel commencing in Japan: Fare from Japan quoted in JPY Equivalent fare paid will be in US Dollars Billing value will be the US Dollar amount - the currency of the country of payment. Example 5: EMDSpecified MCO issued in Brazil Amount in the For Value Box: USD 1264 Equivalent Amount Paid BRL Note 4 applies to this example. The amount to be billed shall be based on the USD amount. Example 6: EMDPTA/specified MCO issued in Croatia for travel commencing in Switzerland: Fare from Switzerland quoted in CHF Equivalent fare paid will be in HRK The amount to be billed shall be based on a EUR amount, but as no such amount will be shown on the ticket, the EUR amount will be derived from the fare in CHF. This conversion shall be performed at the exchange rate published by the IATA Clearing House for the five banking days ending on the 25th of the month preceding the actual month of sale, irrespective of 10% variation. 5

12 Agenda Item P1 Page 6 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group A2, The selling airline is responsible for the collection and payment to the ticketing airline of the amount specified in the EMDPTA. Any interlineable TFCs collected by the selling airline will be remitted to the ticketing airline. The ticketing office is responsible for arranging an additional collection from the selling office or making an additional collection from the passenger, if an under-collection is discovered. A2, Definition For the purpose of interline billing, an interlineable TFC is defined as a TFC which, in accordance with the terms under which it is levied by the relevant authority, must be remitted by the airline which performs the transportation, and which may be collected at the time of ticket issue by an airline other than the transporting airline. TFCs which must be remitted by the ticket issuing airline, in accordance with the terms under which they are levied by the relevant authority are not interlineable TFCs and must not be billed on an interline basis. If the EMDPTA issuing airline has to remit non-interlineable TFCs to the relevant authority then the EMDPTA issuing airline must not be billed by the ticket issuing airline for such TFCs. When a tax code is applicable for a specific coupon and the relevant tax code is shown on the ticket, such tax will be considered to have been collected for all coupons to which such TFCs are applicable When a tax code is applicable for a specific coupon and the relevant tax code is shown on the ticket, such tax will be considered to have been collected for all coupons to which such TFCs are applicable. A2, The correct TFC amount published in the IATA Industry Revenue Accounting Tax Database (Enhanced RATD) may be billed if the TFC is applicable. The determination of applicable TFC must be based on the complete ticket sales (e.g.: ISR, TCN,) data, if available, regardless of collection at the time the ticket is issued. If a Carrier Specific Amount for the coupon concerned is published in the Enhanced RATD, it shall be allocated to the corresponding coupon as published at time of ticket issuance for the respective travel date. In the absence of an applicable Carrier Specific Amount, the billing amount is based on the amount published in the Enhanced RATD except if a carrier specific exemption applies and is present in the Enhanced RATD. Note: Carrier specific amounts can be billed from the date the new RATD is the only source for interlineable taxes and the current/old RATD has been discontinued. A2, TFCs shall not be billed on FIMs. Renumber subsequent paragraph to A2, Miscellaneous Charges Orders (MCOs)/EMD When a Reservation Charge fee has been collected in accordance with IATA Resolution 727a, it shall not be billed and shall accrue to the Member issuing the MCO/EMD. A Note: Effective until: 31 October 2018 When more than one normal sector fare for the class of service performed is published by the new operating carrier, the lowest of such fares is to be used. If no normal carrier fare for the class of service performed is published by the new operating carrier, the IATA fare may be used. 6

13 Agenda Item P1 Page 7 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group A2, 2.6 Flight Interruption Manifest Paragraph 2.6 to be moved to Chapter B9 in its entirety Flight Interruption Manifests (FIMs) shall be settled in accordance with RAM Chapter B9. CHAPTER A3 PASSENGER AND EXCESS BAGGAGE BILLING SUPPORT 1. SUPPORTING DOCUMENTS REQUIREMENTS 1.1 Original Billings Interline invoices for billing source codes 1, 2, 3, 23, 25, 26, 27 and 90 do not require supporting documents to substantiate billings. Note: Supporting document requirements for optional settlement procedures published in Part B are outlined in those specific agreements. 1.2 Rejections Rejections shall provide sufficient information to support the reason for rejection and to justify the rejected amount. Please see RAM Chapter A10, Paragraphs 1.3 & 1.4 for details Prorate Slips In cases of more difficult or complicated prorate calculations, it is recommended that the prorate slip, showing the prorate in full detail, be submitted with any rejection memo. Please see RAM Chapter A9, Attachment C for details. 1.3 Billing/Credit Memos Billing and Credit Memos shall provide sufficient information to identify and substantiate the claim/credit. Please see RAM Chapter A9, Attachment D & E for details. 1.4 Endorsements When control of an electronic ticket or EMD has been passed by the validating carrier to the receiving carrier, an endorsement is considered granted No endorsement is required if an endorsement waiver agreement exists between the carrier shown in the carrier box of such flight coupon and the billing carrier. If requested by the ticketing carrier the billing airline must prove the existence of such endorsement waiver agreement with either the Agreement itself or an Endorsement Waiver Agreement Disclosure form No endorsement is required in the case of code share billings, where travel occurs as ticketed and the billing carrier has a code share agreement with the marketing carrier shown on the flight coupon. In such cases, the billed carrier may not reject for lack of endorsement or for proof of the existence of an endorsement waiver agreement No endorsement is required for coupons affected by involuntary rerouting if the billing carrier is part of the ticketed itinerary affected by the rerouting. 7

14 Agenda Item P1 Page 8 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group When an endorsement is required, a carrier can provide proof of the endorsement by attaching an electronic copy of the endorsement to the invoice via an approved IS format. 3. BILLINGS FOR LOST DOCUMENTS Billing of lost coupons, PTAs, Miscellaneous Charges Orders or FIMs shall be accepted by issuing airlines without being supported by flight coupons, PTAs, Miscellaneous Charges Orders or FIMs provided that: 3.1 Excess Baggage Coupon Billing Limit Billing for a lost coupon of an excess baggage ticket shall be limited to those cases where the value of the lost coupons is USD5 or more. 3.2 Billing Document and Information Required The airline billing a lost document should provide as much information as possible to substantiate the claim, including the airline form, serial number, sector and as much other information as is available. 3.3 Invoicing Lost documents must be invoiced in accordance with RAM Chapter A9, Paragraph Endorsement Evidence Required An airline debiting on a lost document basis shall give evidence of endorsement when applicable and if so required by the issuing airline. (See Chapter A3, Paragraph 1.4). 3.5 Liability of Debiting Airline The debiting airline in billing a lost document agrees thereby to indemnify the airline debited against loss by misuse of the original document. 3.6 Rejections Rejections against Lost Document Billings shall provide sufficient information to support the reason for rejection and to justify the rejected amount. Please see RAM Chapter A10, Paragraphs 1.3 and 1.4 for details. 4. MULTIPLE BILLINGS RECEIVED 4.1 If an airline is billed more than once for a paper document, either in full or in part, it shall be entitled to reject the billings deemed to be incorrect; such rejection shall, however, give sufficient details of the accepted billing (billing airline, number and date of invoice). If the billed airline is unable to determine which billing is correct, it may reject both billings in each case giving sufficient details (billing airline, number and date of invoice) of the other billing to each carrier. The billed carrier will accept the re-bill from the carrier that can support the billing as per RAM Chapter A10, Paragraph

15 Agenda Item P1 Page 9 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Electronic Tickets or EMDs billed without the Settlement Authorization Code as support for the billing, may be rejected to the billing airline for the total value billed if/when duplicate usage of the coupon occurs. Usage information shall include: (a) name of the billing airline and month of billing for items that duplicated to another billing, or (b) the flight number and date of usage for items that duplicated to online usage, or (c) relevant extract from the Airline Billing Analysis or online sales/refund report for items that duplicated to a refund, or (d) the ticket/emd image of the original and new exchanged ticket/emd for items that duplicated to an exchange usage The terms of Chapter A10, Paragraph 5 (Time Limits for Billing) shall not apply in the case of rejections raised in accordance with sub-paragraph 4.1 and In those cases, the time limit as outlined in Chapter A10, Paragraph 5.1 for first rejection shall begin on the date: (a) on which the ticketing airline was billed for the original document, or (b) on which the original document was refunded to the passenger, or (c) on which the ticketing airline honored the original document for carriage, or whichever of the above is the latest. (d) on which the ticketing airline is debited on a lost coupon basis, whichever of the above is the latest. CHAPTER A4 PASSENGER REFUNDS 2. REFUND ADJUSTMENT 2.1 Refund Adjustment Process A Refund Adjustment may be performed to cover refund transactions involving retroactive application of: A a change in the entitled class of service (cabin of travel) and for refund transactions resulting from the receiving carrier having made and ticketed a new sale to the customer as a result of the original ticket being: Mislaid (in the case of paper documents) Unavailable for travel where an electronic ticket is valid for travel, and has previously been made available by the issuing carrier, but where the receiving carrier is unable to retrieve or accept it. 3. BILLING RULES 3.3 Adjustment Limitations Notwithstanding the foregoing, in the absence of an MCO EMD or flight coupon no interline adjustment will take place (irrespective of any prior reference to the carrying airline) where the amount to be billed is less than USD2 per ticket. CHAPTER A9 INVOICES AND CREDIT NOTES For billing (listing) of FIM documents, the pre-printed FIM serial number shall be used on the coupon record. If the FIM is not numbered in accordance with Resolution 735e or Recommended Practice 1720a, the billing airline can use fictitious numbers for billing (listing). 9

16 Agenda Item P1 Page 10 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Attachment B PASSENGER PRIME COUPON BILLING A10 Ticket/FIM Issuing Airline 4 Numeric Mandatory It should be a valid airline numeric code C40 Ticket/FIM Coupon Number 2 Numeric Mandatory It should be a valid coupon no. in case of billings FIMs without a coupon no. the value "09" is allowed T10 Ticket/Document/FIM Number 11 Numeric Mandatory This is the Ticket/Document/FIM Number present on the source document is not a valid ticket number S70 Source Code 2 Numeric Mandatory It should be a valid Prime Billing or a FIM billing Type of Source Code Attachment C PASSENGER REJECTION MEMO R60 FIM Number/Billing Memo Number 11 Alphanumeric Conditional FIM number is mandatory if Rejection Reason Code is related to FIMs. Only one FIM can be rejected per RM. It should be populated if Source Code = "44" or "45" or "46". It should match the Audit Trail information maintained in SIS Billing Memo Number should be present if the Rejection is against a billing memo and should match the Audit Trail information maintained in SIS C40 FIM Coupon Number 2 Numeric Conditional It is Mandatory if Rejection Reason Code relates to FIMs. Only one FIM coupon can be rejected per RM. It should be populated if Source Code = "44" or "45" or "46" It should match the Audit Trail information maintained in SIS F50 FIM BM CM Indicator 1 Alphabetic Conditional This field will be populated in case FIM Number/Billing Memo/Credit Memo Number is populated. Valid values are: F FIM B Billing Memo C Credit Memo A30 'From' Airport of Coupon 4 Alphabetic Conditional It should always be populated in case of Passenger Coupon Uplift and FIMs. It should be a valid IATA airport/city code A30 `To' Airport of Coupon 4 Alphabetic Conditional It should always be populated in case of Passenger Coupon Uplift and FIMs It should be a valid IATA airport/city code. The 'To airport/city code' should not be same as the `From airport/city code' 10

17 Agenda Item P1 Page 11 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group A50 Net Reject Amount 11 Numeric Mandatory It should be Sum of the following fields: Gross Amount Difference, Tax Amount Difference, ISC Amount Difference, Other Commission Amount Difference, Handling Fee Amount Difference, UATP Amount Difference and VAT Amount Difference If FIM Number/Billing Memo Number field in the parent Rejection Memo Record is zero filled, the amount should not exceed $100,000 This is the value in currency of listing expressed in two decimal places. Rejection Memo Reason Codes for Passenger Billings Reason Code Reason Description Bilateral Agreement required Yes/No' Coupon Breakdown Record Mandatory Yes/No Comment 2D Billing Outside Time Limit/Out of Period No Yes Can include multiple transactions in a rejection memo (see RAM Chapter A10, Paragraph 4.1.2) 2E Stolen/Fraudulently Altered Ticket/MCO EMD No Yes Can include multiple transactions in a rejection memo (see RAM Chapter A10, Paragraph 4.1.2) 2F Billed Coupon is Void No Yes Can include multiple transactions in a rejection memo (see RAM Chapter A10, Paragraph 4.1.2) 5A Invoice Level Error No No (e.g. wrong exchange rate) 5B FIM Rejection/Rebill No Yes Only one FIM coupon shall be included on one rejection memo (see RAM Chapter A10, Paragraph 4.1.2) 5C FIM settlement based Yes No on bilateral agreement 5Z Others 3 No No 0A-0Z For bilateral use Yes No For bilateral use Yes No 1 Rejection Reason Codes with a 'Yes' in this column can only be used if a bilateral agreement to that effect exists between the billing and billed carriers. 11

18 Agenda Item P1 Page 12 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group 2 The condition for a UATP reclaim is that both the ticket issuing and uplifting carriers are UATP signatories. 3 This code cannot be used instead of any of the others specified in this table. If used incorrectly, this in itself can provide a reason for rejection. Attachment D PASSENGER BILLING MEMO T10 FIM Number 11 Numeric Optional This is the FIM Number present on the source document. C40 FIM Coupon Number 2 Numeric Optional This should be the coupon number of the FIM billed. Valid values can be 01, 02. In case of billing FIM having no coupon number 09 is allowed. A30 'From' Airport of Coupon 4 Alphabetic Conditional It should always be populated in case of Passenger Coupon Uplift and FIMs. It should be a valid IATA airport/city code A30 `To' Airport of Coupon 4 Alphabetic Conditional It should always be populated in case of Passenger Coupon Uplift and FIMs It should be a valid IATA airport/city code. The 'To airport/city code' should not be same as the `From airport/city code' Attachment E PASSENGER CREDIT MEMO T10 FIM Number 11 Numeric Optional This is the FIM Number present on the source document. C40 FIM Coupon Number 2 Numeric Optional This should be the coupon number of the FIM billed. Valid values can be 01, 02. In case of billing FIM having no coupon number 09 is allowed. A30 'From' Airport of Coupon 4 Alphabetic Optional It should always be populated in case of Passenger Coupon Uplift and FIMs. It should be a valid IATA airport/city code A30 `To' Airport of Coupon 4 Alphabetic Optional It should always be populated in case of Passenger Coupon Uplift and FIMs It should be a valid IATA airport/city code. The 'To airport/city code' should not be same as the `From airport/city code' 12

19 Agenda Item P1 Page 13 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Attachment G PASSENGER SOURCE CODES 1 Lifted Passenger Coupons 2 Exchanged Passenger Coupons 3 Refunded Passenger Coupons 4 Rejected Documents-1s t Rejection 5 Re-billed Documents-2n d Rejection 6 Rejected Documents-3' d Rejection 8 Lost Ticket Billings 9 Billing Memos 14 Flight Interruption Manifests 21 Mutilated/Illegible Documents 23 EMD Billings (also applies when issued for excess baggage) 24 Credit Memos 25 Excess Baggage Coupon Billings (refers to paper documents only) 26 Multi Purpose Documents Billings (refers to paper documents only) 27 Rebilling of UAF Coupons in Non-Sampling 44 Rejected Flight Interruption Manifests-1s t Rejection 45 Re-billed Flight Interruption Manifests-2n d Rejection 46 Rejected Flight Interruption Manifests-3' d Rejection 51 Sample Form C Coupons 54 Sample Sample Evaluation (Form D) 55 Sample Sample Audit/Re-bills (Form F) 56 Sample Sample Re-bills (Form XF) 74 1s t Stage Billing Memo Rejection 75 2 nd Stage Billing Memo Rejection 76 3I' d Stage Billing Memo Rejection Optional Source Codes for Bilateral Use" 31 Non-Sample Involuntary Reroute Lifted Passenger Coupons Prime Billing Source Codes Billing Memo Source Codes Billing Memo Source Codes Rejection Memo Source Codes 90 Frequent Flyer Prime Coupon Billing 91 Rejected frequent Flyer Coupons-1s t Rejection 92 Re-billed Frequent Flyer Coupons-2n d Rejection 93 Rejected Frequent Flyer Coupons-3' d Rejection 94 Billing Memos Frequent Flyer Coupons 95 Exchanged Frequent Flyer Coupons 96 Refunded Frequent Flyer Coupons * The use of optional source codes must be bilaterally agreed between the billed and billing airlines. 13

20 Agenda Item P1 Page 14 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group CHAPTER A10 REJECTIONS AND TIME LIMITS-PASSENGER BILLINGS Duplicate billings (MANDATORY) Supporting information shall include details of the other billing (billing airline, invoice number and date) and any other information that might prove useful (e.g. esac, ticket image etc.) Lack of Endorsements (MANDATORY) Request evidence of proper endorsement or endorsement waiver agreement FIM Electronic copy (image) of the original document, including information on the correct fare and prorate calculation, if applicable Involuntary Reroute (MANDATORY) Electronic copy (image as specified in RAM A3 Attachment A) of the original document showing full details of the original ticketed journey Other Provide comprehensive details for reason of rejection together with supporting calculation, if applicable. 2.4 Re-billed Rejected Items Re-billing Mis-lifted FIMS: When a FIM coupon is mis-lifted, billed to and subsequently rejected by the FIM issuing airline, the carrying airline must provide proof of carriage along with the electronic copy of the mis-lifted FIM to the issuing airline whose name and airline code is pre-printed on the FIM or whose airline code is shown in the Diversion by box. 3. MINIMUM VALUE FOR REJECTION 3.1 General Rejections Except in the case of persistent errors, the minimum value for the first or subsequent rejection of passenger transactions shall be USD 5, or for tax billings USD 2, or the equivalent using the same exchange rate as used in the original billing. The USD 5 amount mentioned above is before deduction of Interline Service Charge (gross). 3.2 Missing Endorsements Except in the case of persistent occurrences, if no endorsement for a billed coupon was secured, the airline being billed shall not reject the billing for the reason for a missing endorsement, unless the amount billed for that coupon exceeds USD 100 gross or its equivalent, using the same exchange rate as in the original billing. For electronic tickets, endorsement is not required for coupons to which the provisions of RAM Chapter A3, Paragraph apply. 4. REJECTION FORMS AND LISTINGS An airline can raise a rejection memo directly via the IS-WEB input interface. Alternatively, the rejection memos created by the airline can be uploaded using the file upload facility provided by SIS, in the format outlined in RAM Chapter A9, Attachment C (Passenger Rejection Memo) and RAM Chapter A7, Attachment C (Cargo Rejection Memo). 4.1 Passenger Rejections On the rejection memo, the airline raising the rejection shall separately specify for each value component they reject (Gross, ISC, Other Commission, UATP, Handling Fee, Tax and VAT) the total value of the latest charge from the other carrier, the total value they accept, and, finally, the difference being rejected. All values shall be shown in the currency of listing. 14

21 Agenda Item P1 Page 15 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Example: No more than one item may be included on one rejection memo unless all items being rejected are for the same reason, have the same rejection reason code and relate to the same invoice. In case of FIM rejections in accordance with Chapter A2, Paragraph 2.6.2, only one FIM coupon shall be included on one rejection memo When a rejection memo is raised for the reason of prorate difference, one rejection memo may contain more than one item provided the routing, carrying airlines and the amount to be prorated are the same Only one rejection memo can be raised for any billed item (that had been billed on a specific invoice as a single item), incorporating all reasons for the rejection in that rejection memo If one rejection memo contains multiple rejection reasons on the same item according to paragraph (e.g. prorate difference and/or ISC reclaim and/or tax difference), the rejected amounts for each component must be shown separately on the rejection memo nd and 3rd stage rejection memos must have a direct one-to-one relationship with the respective 1st and 2nd stage rejection memos (e.g. only one 2nd stage rejection memo can be raised against a 1st stage rejection memo, and one 2nd stage rejection memo can only relate to one 1st stage rejection memo). 4.2 Rejection Memo Supporting Documents A carrier raising a rejection memo via SIS is not required to provide original, paper documents in support of its rejection. It shall provide detailed reasons and supporting information on the rejection memo, and if required, provide additional support in the form of electronic attachments (e.g. ticket image, FIM image), containing new information that will assist the other airline evaluate the charge. 5. APPLICABLE TIME LIMITS AND CORRESPONDENCE REQUIREMENTS 5.1 Original Billing, Rejection and Correspondence Stages. 6. BILLINGS OR REJECTIONS OUTSIDE THE TIME LIMITS 6.1 General Billings or rejections outside the time limits set out under Paragraph 5 above will be permitted when such billing or rejection is consequent of a billing or correspondence from a third airline/party and should be effected within 6 months after receipt of the latter billing or finalisation of correspondence, evidence of which must be attached. 6.2 Lost Documents For time limits applicable to rejections of billings on a lost document basis see Chapter A3, Paragraph Agreed Exceptions Any other billing or rejection outside the deadline may be accomplished only with the consent of the airline to whom the billing is to be directed. Such consent must be asked for and granted in writing. An airline may not assume that such consent has been given, if a reply has not been received within an arbitrary deadline of their own choosing. 7. CURRENCY OF REJECTIONS See Chapter A12 Paragraph 1.2 and Paragraph LANGUAGE TO BE USED IN REJECTIONS AND CORRESPONDENCE Rejections and correspondence must be conducted through English, except where a carrier has designated in RAM Chapter A3, Paragraph 2, another language acceptable for receipt of rejections/correspondence. 15

22 Agenda Item P1 Page 16 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group CHAPTER A11 INTERLINE SERVICE CHARGE AND OVERRIDING COMMISSION 3. EXCHANGED TRANSPORTATION DOCUMENTS (a) Where no new air transportation documents are issued: Where all remaining flight coupons are uplifted and the remaining value entered onto an unspecified MCO EMD, no interline service charge will be allowed when the exchanged flight coupons are billed. In this case the flight coupons billing shall be supported by a scanned copy/computer generated ticket image facsimile, of the unspecified MCO(s) EMD(s). (b) Where new air transportation documents are issued, leaving a balance which is refunded in cash or by credit to a customer s account (and, in this respect, the provision of a surface carrier s ticket or Miscellaneous Charges Order EMD issued for unspecified travel ranks as a cash refund) the refunding (honouring) airline will either; (i) Deduct Interline Service Charge on the full value of the honoured documents when debiting the airline which issued them and recover the amount of Interline Service Charge applicable to the refund value by a separate debit provided the value thereof exceeds USD 5 or the equivalent thereof. Such separate debit shall contain the following details: - Number of old exchanged document - Number of new reissued document - Amount refunded - Interline Service Charge rate - Interline Service Charge amount billed Support of such debits by copies of documents is not needed, but the airline billing must provide scanned copies/computer generated ticket image facsimile of such documents if requested by the airline billed in specific instances, provided that the Interline Service Charge amount is not less than USD 10 or the equivalent thereof. (ii) Or recover the Interline Service Charge applicable to the refund value at the same time as the lifted flight coupon or Miscellaneous Charges Order EMD is billed. In this case, the flight coupon or Miscellaneous Charges Order EMD billing shall be supported with the following details of the charge: Coupon value billed Less Interline Service Charge at % on (amount) Plus tax if applicable Net total billing value 4. REFUNDED TRANSPORTATION DOCUMENTS 4.1 General Where a cash refund (and in this respect the provision of a surface carrier s ticket or an MCO EMD issued for unspecified travel ranks as a cash refund) is made without new air transportation documents being issued no Interline Service Charge will be allowed. CHAPTER A12 CURRENCY 1. PASSENGER 1.1 Currency of Original Billing Interline passenger invoices (and credit notes) issued for billings of fares, non-transportation items on the same documents as fares, and non-transportation items on MCO/PTA EMD not related to fares will be submitted in currency as follows: 16

23 Agenda Item P1 Page 17 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group Billings through the IATA Clearing House Clearances shall be effected in US Dollars (USD), unless both members agree to one of the currencies currently available in the IATA Clearing House Billings outside the IATA Clearing House Unless otherwise agreed bilaterally between entities, the currency of billing will be one of the currencies currently available in the IATA Clearing House Definition of Transaction Month Transaction month is the month in which the liability to the claimant arises through the performance of a service. In the case of charges to another airline, this is the month in which the document or charge to the responsible airline (e.g. flight coupon, EMD, or MCO coupon) is uplifted/accepted for transportation/exchange/refund PTA and Specified MCOs EMD The full value of a PTA and specified MCO an EMD in the Currency of the Country of Payment is as defined in Chapter A2, Paragraph Reissued/Exchanged tickets originally sold outside country of commencement of travel When tickets sold for passenger transportation commencing outside the country of payment are reissued/exchanged, billings of the new tickets shall be based on the correct fare in the "Fare" box in the currency of the country of commencement of travel. The provisions of this rule do not apply to the issue of tickets in exchange for MCO s EMDs or to tickets issued for "Involuntary Rerouting" Tickets sold outside country of commencement of travel For tickets sold outside the country of commencement of travel, billings should be based on the correct amount collected in the currency of the country of payment. Example: Ticket sold in Australia for commencement of travel in Singapore Itinerary SIN SYD Fare SGD 1000 Equivalent Fare Paid AUD 922 The amount to be billed shall be based on the AUD amount, the currency of the country of payment Reissued/Exchanged tickets originally sold outside country of commencement of travel When tickets sold for passenger transportation commencing outside the country of payment are reissued/exchanged, billings of the new tickets shall be based on the correct fare in the "Fare" box in the currency of the country of commencement of travel. The provisions of this rule do not apply to the issue of tickets in exchange for EMDs or to tickets issued for "Involuntary Rerouting" 17

24 Agenda Item P1 Page 18 of 18 Subject: Editor Group Rewrite to Remove References to Paper Documents /cont. Submitted by: RAM Editor Group CHAPTER B2 INTERLINE SERVICE CHARGE AND OVERIDING COMMISSION 3. LIMITATIONS ON THE PAYMENT OF INTERLINE SERVICE CHARGE non-agency teletype ticket stock, issued in the USA/Canada, on which the billing airline s numeric code appears in the validation block as the transmitting airline; miscellaneous charges orders where the air transportation for which they have been issued in not specifically described therein; Renumber remaining paragraphs of Paragraph 3. RAM Chapter B11 - SIMPLIFIED BILLING PROCEDURES 1. FLIGHT INTERRUPTION MANIFEST (FIM) In regard to passengers transferred with a Flight Interruption Manifest (FIM), issued in accordance with IATA Resolution 735e, some members have agreed to bill each other following a simplified formula can be used to bill the FIM, taking into account such factors as number of passengers class of service, local fare to transfer manifest destination, standard fare absorption percentage (to cover such things as discounts and prorates) and Interline Service Charge. 1.2 Procedural Advantages Such a procedure avoids the necessity of the forwarding member having to provide copies of relevant flight coupons to the receiving member and enables the receiving member to bill the forwarding member without delay..remains unchanged. 18

25 Agenda Item P2 Page 1 of 1 Subject: Definition of Persistent/Repetitive Error for Settlement Purposes Submitted by: IBS OPS WG IATA RAM does not define Persistent / Repetitive Error. specify what it constitutes. The RAM just uses the word persistent but does not Problem: The meaning of Persistent /Repetitive Error is subjective and arbitrary. Some carriers may define Persistent / Repetitive Error to mean anything greater than one with the same attributes leading to disagreements in the Interline community. In an effort to support the industry initiative to reduce the volume of rejections, the RAM must define Persistent/Repetitive Error to relieve ambiguity and provide guidance to carriers. Proposed Solution: 1) Add the definition of Persistent / Repetitive Error for Settlement Purposes under the Introduction and Administration Terminology section (7) - Explanation of Definitions used in the Revenue Accounting Manual as follows: Persistent / Repetitive Error - Errors shall be identified as involving five or more items with identical amount or rate or type for a given value component (e.g. Fare amount or Fare % rate; ISC amount or ISC % rate; TFC code or TFC amount or TFC % rate ) with an aggregate total of USD $25.00 gross minimum. 2) Revise RAM A to include a reference to the definition as follows: 3.1 General Rejections Except in the case of persistent error, the minimum value for the first or subsequent rejection of passenger transactions shall be USD 5, or for tax billings USD2, or the equivalent using the same exchange rate as used in the original billing. The USD 5 amount mentioned above is before deduction of Interline Service Charge (gross). Note: Refer to the terminology section (7) for the definition of persistent error. 19

26 Agenda Item P3 Page 1 of 1 Subject: Supplementary Charges, RAM Chapter and RAM Chapter 1.12 Submitted by: Austrian Airlines (OS) For decades these two RAM paragraphs were not changed, since decades they were successfully bypassed by many airlines. Problem: Carriers or their service providers regularly write to other airlines to obtain an approval of the additional charge of CPNs less than USD 200,- or under billed taxes, with reference to their: - Good relationship - System error - Persistent error which most airlines then accept. Proposed Solution: In order to introduce a timely directive, we propose the following amendment: Change as follows: The TFCs shall be billed to the issuing airline simultaneously and on the same coupon billing as the relative document. It must be shown in the currency of listing, separately specifying the amount of TFCs per tax code on the same transaction as the fare billing of the relative document. Separate TFCs billings are not permitted. Supplementary TFC billings can only be raised in accordance with chapter A Change 1.12 as follows: Supplementary fare (or prorated share thereof) billings can only be raised against an item previously billed if the error exceeds USD 100 per individual coupon after deduction of ISC Supplementary TFC billings can only be raised against an item previously billed if the error value exceeds USD 10 per individual coupon. Such supplementary billings shall be limited to original billings for Passenger Tickets and Electronic Miscellaneous Documents. They are shall be listed on a Billing Memo bearing Reason Code 8E Adjustment/Supplementary Billing and have coupon breakdown. 20

27 Agenda Item P4 Page 1 of 1 Subject: RAM Chapter A2 Paragraph Submitted by: Emirates & British Airways Over the years, the IBSOPSWG and its predecessor, the RAWG has filed several clarifications to this paragraph aimed at improving understanding of the rules for billing taxes on involuntary reroute tickets. Problem: Currently the taxes to be billed following involuntary reroute are determined by a comparison of old and new journeys, the taxes originally applicable, new arising taxes, and a cap on the value to be billed. The comparison is further complicated when the new routing contains more sectors than the original routing, several sectors for which the same tax applies; or different origin, destination, or via points to the original routing. Such complexity pushes revenue accounting technology to its limits. In an automated world our current rules often require inefficient manual ticket investigation. Inevitably our industry is suffering thousands of unnecessary rejections born from confusion and misunderstanding. Proposed Solution: We propose a radical simplification of billing rules for involuntary re-routes insofar as the taxes which arise for the new routing shall be applicable for billing regardless of collection. Also new, is that if the RATD contains an exemption for involuntary changes, the exemption shall no longer be ignored. We propose that all wording, notes and examples of the current be deleted and replaced with the following rule: For involuntary changes, the TFC amounts published in the IATA Revenue Accounting Tax Database (RATD) arising from the revised routing shall be deemed applicable. Furthermore, exemptions filed in the RATD relating to involuntary changes shall be applied. The determination of applicable TFC must be based on the complete ticket sales data (eg: ISR, TCN), if available. 21

28 Agenda Item P5 Page 1 of 1 Subject: RAM Chapter A2 Paragraph , Note 1 Submitted by: IBS OPS WG Over the years, the IBSOPSWG and its predecessor, the RAWG has filed several clarifications to this paragraph aimed at improving understanding of the rules for billing taxes on involuntary reroute tickets. Problem: In last year s meeting in Dublin, two separate proposals to change tax billing rules (P3 and P4) both failed to attract enough airline support to be adopted in the RAM. Both were far reaching, complicated changes that would have involved deep investment and system change for airlines. However, in the meeting, there was one small part of P3 which airlines appeared to like, following an informal show of hands. The change is modest could be applied with very little cost or impact to airlines. Proposed Solution: The Working Group proposes no change to paragraph except for the removal of a sentence which requires valid RATD exemptions from involuntary re-routing to be ignored when interline billing. Removing these words will allow the rules of the RATD to apply in full, without confusion or exception. It will also align interline billing closer to the rules for TFC application so that if a TFC applies to a journey, it can be billed. The working group hopes this will make the interline billing of taxes simpler and easier to apply. Note 1: Any TFCs code arising from the revised routing which were applicable to the original routing shall be billed for the published TFC amount applicable to the revised routing but may not exceed the applicable TFC amount for the original itinerary. This applies irrespective of any exemption from involuntary reroute published in the RATD for the respective tax. 22

29 Agenda Item P6 Page 1 of 1 Subject: Voluntary Reroutings, Billing Values RAM Chapter A2, Paragraph and Submitted by: IBS OPS WG The Manager, Airline Distribution Standards (Pay/Account Vertical) has received requests to clarify the intent and proper application of RAM A2, 2.4 Voluntary Rerouting. As a result, the IBSOPSWG agreed to review the paragraph and provide wording clarification for the WFS 2018 IBSOPS General Meeting Agenda. In case of voluntary reissue made at the passenger s request, the reissuing airline is responsible for re-calculation of the correct fare and applicable TFCs. Any difference in fare or TFCs from the original issue shall be collected from, or refunded to, the customer. Problem: The current wording creates confusion by making reference to the values of the reissued ticket and the newly issued ticket. The prorate value(s) of the newly reissued/exchanged ticket is independent of the prorate value(s) of the original ticket. To clarify the intent and remove any confusion, the WG proposes to replace the existing paragraph in its entirety with the below. Proposed Solution: Delete the current A2, and Paragraphs and replace with the below. 2.4 Voluntary Rerouting, Billing Values When after voluntary rerouting, an itinerary is changed so that a lower fare is no longer applicable, the issuing airline will be billed for the lifted flight coupons at the value that would have applied to the relative coupon(s) had they been used for travel In case of voluntary rerouting, the coupons of the original ticket shall be billed on the basis of the information shown on the ticket. This evaluation is independent of the fare calculation of the newly reissued/exchanged ticket The reissuing airline is entitled to retain the difference between, on the one hand, the sum of the value of coupons plus any additional collection and, on the other hand, the billings received against new ticket(s) issued The coupons of the newly reissued/exchanged ticket shall be billed on the basis of the information shown on the reissued/exchanged ticket without any reference to fare information of the original ticket. 23

30 Agenda Item P7 Page 1 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes Submitted by: IBS OPS WG In February 2018 IATA hosted an exploratory workshop regarding standards for involuntary rerouting. The workshop was attended by personnel from customer experience, commercial, operational, and financial teams from several airlines together with technology providers and other industry stakeholders. The objective of this workshop was to discuss industry issues related to involuntary rerouting, with focus on improved automation standards to support processes to secure inventory. It became clear that a complete review of existing Resolutions and Recommended Practices would be necessary to close gaps, remove ambiguities, and align requirements of all stakeholders. Outputs to date are proposed amendments to Resolutions 735d and R766 with the intent to clearly define involuntary rerouting versus planned schedule change and align interline settlement standards in the Revenue Accounting Manual. With the consensus of workshop participants, highlights of the proposed amendments to R735d moving forward to Passenger Services Conference in October 2018 are as follows: 1- INVOLUNTARY REROUTE means a change to a passenger s itinerary as originally ticketed due to an interruption in the operation of a carrier s flight or inability to provide transportation for confirmed space, occurring within 48 hours of the scheduled departure date of the first impacted flight. 2- A change of carrier is not required to satisfy the requirements of an involuntary reroute. 3- Upgrading to a higher compartment class (cabin class) shall not occur unless specifically permitted by the New Operating Carrier when responding to the request or unless bilaterally agreed. 4- In responding to a request, the New Operating Carrier may provide guidance on how the re-routing should be effected, for example the New Operating Carrier may advise which Reservation Booking Designator to use. 5- Any involuntary change to a passenger s itinerary as ticketed that cannot be considered as an involuntary reroute shall be considered a Planned Schedule Change and the characters SKCHG shall be used in the endorsement /restriction area of the reissued document. Another output of the workshop is a flowchart for the RAM to help accountants distinguish between involuntary rerouting and planned schedule change. Problem: The RAM provides little guidance for settlement of documents reissued due to Planned Schedule Change and lacks definitions for involuntary rerouting or Planned Schedule Change. In most cases, tickets issued due to Planned Schedule Change are issued by the original validating carrier. This may or may not be the carrier responsible for the planned schedule change. Similar to involuntary rerouting, tickets reissued due to Planned Schedule Change are not re-priced by ticketing systems as there are no additional charges served to the customer. This is true for both fare and TFCs. Accordingly, clear procedures for the applicable fare and TFC to be used for interline settlement must be provided. At the 43 rd GPM held in November 2017, it was agreed to treat tickets reissued due to Planned Schedule Change similar to tickets reissued for voluntary rerouting. The Multi-lateral Proration Agreement has been amended accordingly. 24

31 Agenda Item P7 Page 2 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes.../cont. Submitted by: IBS OPS WG In light of this ruling and to simplify processing by proration systems, the working group believes TFC settlement should be consistent with this logic and follow the same path as voluntary rerouting. Furthermore, while less common, in the event of routing change the original validating carrier should have collected TFCs applicable to the original routing. This would mitigate any gain/loss resulting from the change in TFC amounts. Moreover, to achieve benefit of the workshop effort, reduce disputes and assist with settlement in case of incorrect ticketing, the following points should be addressed in the RAM. To align interline settlement standards with Resolution 735d, definitions for involuntary rerouting and planned schedule change should be provided To assist accountants with the application of timeframes in R735d, a flowchart to distinguish between involuntary rerouting and Planned Schedule Change should be added to the RAM Interline settlement procedures in case of involuntary rerouting and schedule change should be provided with examples for clarity IPAC should review Article D6 of the PMP for possible amendment since change of carrier is not required to satisfy requirements defining an involuntary rerouting An involuntary rerouting designation shall be considered invalid for any coupon with a scheduled departure date 5 or more days from the issue date of the reissued ticket Proposed Solution: 1- Add the following definitions in the RAM section for Explanation of Definitions used in the Revenue Accounting Manual. 1- Involuntary Rerouting - INVOLUNTARY REROUTE means a change to a passenger s itinerary as originally ticketed due to an interruption in the operation of a carrier s flight or inability to provide transportation for confirmed space, occurring within 2 days of the first scheduled departure date of the reissued ticket. In determining whether the change has occurred within 2 days, the day on which the ticket is reissued shall be compared to the first scheduled departure date of the reissued ticket. A change of carrier is not required to satisfy the requirements of an Involuntary Reroute. Note 1: For purposes of interline settlement and Revenue Accounting systems the RAM has translated 48 hours used in Resolution 735d to be equivalent to 2 days. Note 2: An involuntary change to an originally ticketed itinerary is required to meet the conditions of an involuntary reroute. 2- Planned Schedule Change Any ticket with an indication of schedule change in the endorsement/restriction area of the ticket shall be considered to be issued due to Planned Schedule Change. Additionally, if a ticket is designated as an involuntary reroute and is issued more than 2 days, regardless of the time difference, prior to the first scheduled departure date shown on the reissued ticket, then the ticket shall be considered to be a planned schedule change. Note: An involuntary change to an originally ticketed itinerary is required to meet the conditions of a Planned Schedule Change. 25

32 Agenda Item P7 Page 3 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes.../cont. Submitted by: IBS OPS WG 3- First Impacted Flight also known as the first sector of the involuntary change to the passenger s new itinerary shown on the new, reissued ticket. In context of this procedure, this is the first scheduled departure date on the reissued ticket. 4- Scheduled Departure Date also known as the ticketed departure date. 2- Amend A2, 2.5 as follows: 2.5 Involuntary Reroutings, Billing Values a. Move the existing A2, 2.5 to new A2, 2.8 b. Replace existing A2, 2.5 with paragraphs below. An involuntary rerouting is defined as a change to a passenger s itinerary as originally ticketed due to an interruption in the operation of a carrier s flight or inability to provide transportation for confirmed space. Sectors on the reissued ticket may only be recognized as involuntary rerouting when the reissued ticket has an issue date 2 days or less from the first scheduled departure date shown on the reissued ticket. A change of carrier is not required to satisfy the requirements of an Involuntary Reroute. Where an involuntary change to a passenger s itinerary as originally ticketed is made and an involuntary reroute designation is shown but the first scheduled departure date is more than 2 days from the issue date of the reissued ticket, such ticket shall be considered issued due to Planned Schedule Change. An involuntary designation shall be considered invalid for any coupon with a scheduled departure date 5 or more days from the issue date of the reissued ticket. When counting the number of days for this procedure, the issue date of the reissued ticket shall be day one. Example: Issue Date = 01 May Scheduled Departure Date = 05 May The timeframe between issue date and scheduled departure date is 5 days. A flowchart to assist with the application of timeframes in R735d and help distinguish between Involuntary Rerouting and Planned Schedule Change is provided in the Introduction and Administration section of the RAM. 26

33 Agenda Item P7 Page 4 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes.../cont. Submitted by: IBS OPS WG Examples: Example 1: Example 2: Example 3: Example 4: Date of Issue of Reissued Ticket 01 May First scheduled departure date on reissue 02 May Date of Issue of Reissued Ticket 01 May Original routing: NYC DL LON departure 01 May Revised routing: NYC DL LON departure 02 May Date of Issue of Reissued Ticket 01 May First scheduled departure date on reissue 03 May Date of Issue of Reissued Ticket 01 May Original Routing: LON BA x/hkg JL TYO JL x/sin BA LON Revised Routing: LON CX x/hkg JL TYO JL x/sin BA LON Coupons 1 and 2 ticketed departure date 01 May Coupons 3 and 4 ticketed departure date 05 May *Ticketed departure date is 5 or more days from the date of issue *No change made to coupons 3 and 4. These coupons are not INVOL or Schedule Change Treat As: INVOL INVOL Schedule Change INVOL Ignore INVOL* 5- Add new paragraph A2, shown below The TFC to be used for interline billing in case of involuntary rerouting shall be in accordance with RAM A2, and relevant paragraphs of A2, Create a new paragraph A2, 2.8 entitled Planned Schedule Change. A2, 2.8 Planned Schedule Change Planned Schedule Change means any modification to the operation of a flight as filed in an airline's schedules which may require passenger notification, and/or rebooking and/or re-ticketing. Planned Schedule Change procedures are defined in Recommended Practice The characters INVOL shall not be used in the endorsement/restriction text in the case of a Planned Schedule Change. Even if involuntary reroute is indicated on the coupon, in the case of a planned schedule change, ignore the involuntary designation. Any ticket with an indication of schedule change shown in the endorsement/restriction area of the ticket shall be considered to be issued due to Planned Schedule Change. Additionally, if a ticket is designated as an involuntary reroute and is issued more than 2 days, regardless of the time difference, prior to the first scheduled departure date shown on the reissued ticket, then the ticket shall be considered to be issued due to Planned Schedule Change. Tickets reissued due to Planned Schedule Change shall be settled in accordance with RAM A2, 1.1 and Chapter A2, Paragraph 3 based on the ticketed information and date of issue of the original ticket. The TFC to be used for interline billing in case of Planned Schedule Change shall be in accordance with RAM A2, and relevant paragraphs of A2,

34 Agenda Item P7 Page 5 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes.../cont. Submitted by: IBS OPS WG When counting the number of days for this procedure the issue date of the reissued ticket shall be day one. Example: Issue Date = 01 May Departure Date = 05 May The timeframe between issue date and scheduled departure date is 5 days. A flowchart to assist with the application of timeframes in R735d and help distinguish between Involuntary Rerouting and Planned Schedule Change is provided in the Introduction and Administration section of the RAM. Examples of Planned Schedule Change: Treat As: Example 1: Endorsement/Restriction Text shows SKCHG Schedule Change Example 2: Endorsement/Restriction Text shows Invol due to Sched Change Schedule Change Example 3: Endorsement/Restriction Text shows INVOL Date of Issue of Reissued Ticket 01 May First scheduled departure date on reissue 04 May Schedule Change 28

35 Agenda Item P7 Page 6 of 6 Subject: Settlement of Involuntary Rerouting and Planned Schedule Changes.../cont. Submitted by: IBS OPS WG 29

36 Agenda Item P8 Page 1 of 1 Subject: Passenger and Excess Baggage Billing Rules, Involuntary Rerouting, Billing Values RAM Chapter A2, Paragraph 2.5, Submitted by: Xiamen Airlines Presently, RAM A2, paragraph , it regulates how to settle the billing for AD/ID/CG etc. discounted industry tickets when using the FIM. However, in RAM A2, paragraph 2.5, when using other method except FIM to complete the involuntary rerouting for discounted industry tickets, it did not have the exact section or paragraph to settle such billing. Besides, FIM is about to be ceased in recent years. Problem: Different airlines now have the different understanding when rerouting a discounted industry ticket by using exchange method other than FIM. Therefore, it is necessary to agree on an explicit solution to settle the rerouting billing of discounted industry tickets. Proposed solution: Xiamen Airlines suggests to use and refer to the A2, paragraph , the similar method stated under the FIM section to be applied in A2, Paragraph 2.5 in order to have a specified section to regulate the billing for other involuntary rerouting of discounted industry tickets (ID/AC/AD/DG/CG passengers). It could be added in A2, Paragraph 2.5 as a new sub-paragraph: With regard to ID/AC/AD/DG/CG passengers, the billed airline will be entitled to recharge the difference between the amount(s) billed and 50% of the applicable full normal local one-way fare, for the sector flown, effective at the date of travel. And When more than one normal sector fare for the class of service performed is published by the new receiving carrier, the lowest of such fares is to be used. If no normal carrier fare for the class of service performed is published by the new receiving carrier, the highest one-way special fare published by new receiving carrier for the class of service performed may be used. If no such fare is available, half of the highest return special fare published by the new receiving carrier for the class of service performed may be used. 30

37 Agenda Item P9 Page 1 of 1 Subject: Involuntary Rerouting and Billing Values Submitted by: Kuwait Airways Billing on involuntary rerouted passenger to other airlines. The fare collected by forwarding/ticketed airlines is at IT/BT fare, these fares are published in official tariffs. RAM A & says receiving/carrying airline shall receive value that would have accrued to the original carrier, calculated in accordance with the ticketed information, MPA and RAM A2 para 3. Problem: Most of times airlines published fares are as equal to their private fares or low, due to this receiving airline end up in getting very LOW prorate shares for the forwarding airlines. Proposed Solution: In line with Chapter B11 Simplified Billing Procedure, there should be a provision to bill a minimum prorate value, by applying a Value per Mileage (VPM) based on class of travel. 31

38 Agenda Item P10 Page 1 of 1 Subject: Definition of Normal Fares for Settlement Purposes Submitted by: IBS OPS WG The Manager, Airline Distribution Standards (Pay/Account Vertical) has received requests to clarify the definition of normal fares for proper application of RAM Chapters A2, 2.5.6; ; & As a result, the IBSOPSWG agreed to review the notes under these paragraphs and provide wording clarification for the WFS 2018 IBSOPS General Meeting Agenda. Problem: The definition of normal fares is available under IATA resolutions 012 & 101 as well as in the PMP Section C. However, airline commercial and pricing departments are increasingly choosing to deviate from these definitions while filing and classifying their fares as Normal or Special in the fare distribution systems. After consulting major fare distribution system providers and tariff experts, we are given to understand that the concept of categorizing fares based on Normal vs Special is on the way out. Further most Proration engines automatically tap into the fare distribution systems and categorize fares as Normal vs Special based on the filing by the fare owner. For clarification and removal of any confusion and subsequent rejections the WG proposes to clarify the application of Normal or Special fares for settlement purposes under the RAM. Proposed Solution: Add the definition of Normal & Special Fares for settlement purposes under the Introduction and Administration Terminology section (7), Explanation of Definitions used in the Revenue Accounting Manual as follows: Normal & Special Fares For settlement purposes a fare shall be classified as normal or special based on the filing by the fare owner in the fare distribution system and/or GDS under the fare rule title and explanation. Revise the notes under paragraphs A2, 2.5.6; ; & referencing the definition of Normal & Special Fares for settlement purposes as follows: When more than one normal sector fare for the class of service performed is published by the new receiving carrier, the lowest of such fares is to be used. If no normal carrier fare for the class of service performed is published by the new receiving carrier, the highest one-way special fare published by the new receiving carrier for the class of service performed may be used. If no such fare is available, half of the highest return special fare published by the new receiving carrier for the class of service performed may be used. Refer to the terminology section (7) of the RAM for the definition of normal or special fares for settlement purposes. 32

39 Agenda Item P11 Page 1 of 3 Subject: Definition of Normal Fares for Settlement Purposes Submitted by: Lufthansa The Revenue Accounting Manual has various occurrences where it refers to normal fares: Chapter A2 Paragraph 2.5.6: Involuntary Rerouting of frequent flyer award tickets Chapter A2 Paragraph & : Frequent flyer award tickets on a FIM 33

40 Agenda Item P11 Page 2 of 3 Subject: Definition of Normal Fares for Settlement Purposes.../cont. Submitted by: Lufthansa Chapter A2 Paragraph : Travelcard on a FIM Chapter A2 Paragraph : ID/AC/AD/DG/CG tickets on a FIM 34

41 Agenda Item P11 Page 3 of 3 Subject: Definition of Normal Fares for Settlement Purposes.../cont. Submitted by: Lufthansa The Manager, Airline Distribution Standards (Pay/Account Vertical) has received requests to clarify the definition of normal fares for proper application of RAM Chapters A2, 2.5.6; ; ; & Problem: However the RAM does not offer a definition of what is to be treated as normal fare. Normal fare definitions are available in IATA resolutions 012 & 101, but airline commercial and pricing departments often deviate from these definitions when filing and classifying their fares. Moreover they do not offer rules precise enough to be used for revenue accounting purposes. PMP Section C also offers a definition but IPAC pointed out that their definition is only to be used for the purpose of proration. Proposed Solution: Instead of trying to find a normal fare definition or create a new one we propose to get rid of all occurrences of normal fares in the RAM. The sections ; ; & are all part of the rules for FIM s which will become obsolete as of 2019 (assuming that the papers to delete MCOs (including PTAs), Paper tickets and FIMs pass). The only remaining occurrence is A2, regarding settlement of INVOL frequent flyer award tickets. This is where today most disputes occur. Besides to the problem of finding the correct normal fare there are also problems around identifying award tickets. We propose to replace RAM chapter A2, with the following paragraph: When a frequent flyer award ticket is accepted for travel or reissued for involuntary rerouting, the above mentioned rules (A ) are equally applicable. As a consequence frequent flyer award tickets would be settled at the lowest applicable fare as other tickets. This solution would solve the problem around normal fare and identification of frequent flyer award tickets as the same rules would apply. 35

42 Agenda Item P12 Page 1 of 1 Subject: Frequent Flyer Exchange/Reissue RAM Chapter A2, Paragraph Submitted by: Austrian Airlines At the WFS 2017 RAM A has been changed to reflect that reissued tickets are treated the same way as exchanged tickets. Problem: Following the confirmed changes based on IATA-resolution 012, this change should also be done in A Proposed Solution: When a frequent flyer award ticket is accepted for travel or reissued/exchanged for involuntary rerouting 36

43 Agenda Item P13 Page 1 of 4 Subject: Flight Interruption Manifest - RAM Chapter A2 Paragraph 2.6 Submitted by: RAM Editor Group This year the working group has been editing the RAM to remove references to paper documentation no longer supported by passenger resolutions. We have had to do this to ensure the RAM stays within the scope of IATA resolutions. Problem: Despite the above, large numbers of airlines still issue and accept FIMs for passenger transportation. The Working Group thinks this is likely to continue a few more years. Where this happens between airlines, it is now by bi-lateral agreement. Proposed Solution: We believe airlines will still find it useful to have a set of rules in the RAM for FIM settlement, so we propose that the FIM settlement provisions of A2 2.6 be moved into a new, optional B chapter. Issuing and accepting a FIM is now optional for airlines, but where carriers choose to accept the FIM, the billing of that FIM must be carried our according to this new chapter (unless bi-laterally agreed otherwise). We propose Chapter A2 Paragraph 2.6 be deleted (and paragraph 2.7 renamed as 2.6) and moved to new Chapter B9 as follows: CHAPTER B9 FLIGHT INTERRUPTION MANIFEST BILLING RULES (New Chapter) Flight Interruption Manifest Whereas the issuance and acceptance of Flight Interruption Manifests (FIMs) is subject to bilateral agreement between the issuing and receiving carrier, the billing and settlement of these documents, once accepted, shall be in accordance with the provisions of this chapter. 1 Original Billing Values 1.1 Where a Flight Interruption Manifest (Passenger) has been issued in accordance with IATA Resolution 735d (36 th Edition), the receiving carrier shall bill the airline whose name and airline code is pre-printed on the FIM, unless only in the case of genuine mid-flight diversion a carrier is correctly identified in the Diversion by box of the FIM, in which case the receiving carrier shall bill the carrier identified. The value to be billed is an amount not exceeding the applicable full normal local one way fare or excess baggage charge effective at the date of travel for each passenger reflected on the Flight Interruption Manifest. The billing must be one single amount for one single FIM. Note 1: The basis of the billing should be the class paid, if entered on the FIM, otherwise the class of service performed. Note 2: In code share situations the FIM issuing airline shall accept a billing from either the marketing or the receiving carrier. 37

44 Agenda Item P13 Page 2 of 4 Subject: Flight Interruption Manifest - RAM Chapter A2 Paragraph 2.6 /cont. Submitted by: RAM Editor Group Note 3: The airline whose name and airline code is pre-printed on the FIM, or only when diversion en-route occurred, the carrier identified in the Diversion by box of the FIM, if applicable, is responsible for settlement to the receiving airline, even if it fails to bill the airline whose ticket stock was exchanged for the FIM. Example 1 Involuntary reroute UA 016 Ticket: SYD UA LAX NZ LON LH FRA NZ LAX-LON flight is cancelled. NZ issue 086 FIM for: LAX AA NYC LH FRA In reason for issue the cancelled box is ticked. UA is entered in the diversion box (incorrect). AA and LH will bill NZ, the FIM issuing airline, NOT UA, whose airline code was entered in the Diversion Box in error. Note: As per Resolution 735e (36 th Edition) only one of the two boxes should be completed: either the reason for issuance or Diversion by box. Example 2 Diversion en-route NZ 086 Ticket: LON NZ LAX Due to a medical emergency the aircraft diverts to YWG. NZ do not operate scheduled flights to YWG and therefore don't keep FIM stock at YWG. AC completes AC014 FIMs on behalf of NZ for: YWG UA DEN AA LAX No reason for issue is ticked. NZ is correctly shown in the diversion box. UA and AA will bill NZ, the carrier who experienced the diversion, as shown in the diversion box. 1.2 Billing of Flight Interruption Manifests will be supported by a scanned copy of the original of coupon 1 or 2 of the Flight Interruption Manifest. A supplementary billing will be supported by a scanned copy of the Flight Interruption Manifest and contain reference to the original Flight Interruption Manifest billing month. In those cases where a teletype Flight Interruption Manifest has been used, the electronic copy of teletype will support the Flight Interruption Manifest billing. Note 1: See Chapter B11 for simplified procedure. Note 2: Mislifted FIM coupons: When a FIM coupon is mis-lifted, billed to and subsequently rejected by the FIM issuing airline, the carrying airline must provide proof of carriage along with the electronic copy of the mis-lifted FIM to the issuing airline whose name and airline code is pre-printed on the FIM or whose airline code is shown in the Diversion by box. 38

45 Agenda Item P13 Page 3 of 4 Subject: Flight Interruption Manifest - RAM Chapter A2 Paragraph 2.6 /cont. Submitted by: RAM Editor Group 1.3 When a charter passenger is transported on a FIM in accordance with IATA Resolution 735f the chartering member shall pay the applicable fare and charges of the new receiving member for the class of service used. When more than one carrier is involved in the rerouting, the applicable fare from the origin to the destination of the involuntary rerouting shall be shared by such carriers (receiving member(s)) in accordance with prorate agreements. 2 Adjustment to Original Billing Values 2.1 For FIMs numbered in accordance with Resolution 735e (36 th Edition) the billed airline will be entitled to recharge the difference between the amount(s) billed and the prorate value(s) established in accordance with RAM Chapter A2 Paragraphs 2.5.1, and when supported by electronic copies of the flight/excess baggage coupons concerned. For unnumbered FIMs and FIMs not numbered in accordance with Resolution 735e (36 th Edition) or Recommended Practice 1720a the billed airline will not be entitled to any recharge, except: When the billed value is higher than the amount the billing airline is entitled to in accordance with Paragraph 1.1. If a FIM is issued for a flight interruption/diversion en-route and the carrier billed is the carrier identified in the Diversion by box. In both the above situations normal rejection rules will apply. Note 1: Any applicable interlineable taxes/fees/charges shown on the supporting coupons shall be excluded from the recharge and the FIM billing airline shall not raise a subsequent debit to claim them. Note 2: The New Receiving Carrier(s) is only entitled to bill excess baggage charges if an excess baggage document number is mentioned on the FIM as outlined in the IATA PSC Resolution 735e para In the case of billing disputes, relating to 1.1 above, if the issuing carrier cannot supply an official tariff reference as per RAM A2 Paragraph 3, Fares to be used in Billings, then the uplifting airline will bill on the basis of the lowest applicable official fare of the original ticketed airline(s), available for sale to any carrier. In order to determine the fare owner, apply the standard fare selection rules for the original routing. 2.3 For frequent flyer award tickets, where the receiving carrier for the rerouted portion is different from the original ticketed carrier, the billed airline shall be entitled to recharge the difference between the amount(s) billed and 50% of the applicable full normal local one way fare for the sector flown, effective at date of travel. Note: When more than one normal sector fare for the class of service performed is published by the new receiving carrier, the lowest of such fares is to be used. If no normal carrier fare for the class of service performed is published by the new receiving carrier, the highest one way special fare published by the new receiving carrier for the class of service performed may be used. If no such fare is available, half of the highest return special fare published by the new receiving carrier for the class of service performed may be used. 39

46 Agenda Item P13 Page 4 of 4 Subject: Flight Interruption Manifest - RAM Chapter A2 Paragraph 2.6 /cont. Submitted by: RAM Editor Group Exception: When the involuntary reroute includes frequent flyer awards and fare value coupons, the sector value(s) for the transportation performed will be calculated as follows: (a) from the origin of the involuntary rerouting = 50% of the applicable full normal local fare, to the destination of the frequent flyer effective at date of travel; coupon/s. (b) fare value coupon = actual coupon value The total of (a) and (b) above is shared by the new receiving member(s) in accordance with prorate agreements. Example: LAX SYD = frequent flyer award coupon SYD BNE = fare value coupon Origin of the involuntary rerouting = AKL Involuntary rerouting = AKL MEL BNE Calculation: AKL SYD = 50% of the applicable full normal local fare, effective at date of travel SYD BNE = actual coupon value The combined total AKL SYD plus SYD BNE is shared over the revised - involuntary rerouting AKL MEL BNE in accordance with prorate agreements. 2.4 When passengers using a Travelcard (a Pass used instead of a normal ticket for prepaid travel covering either a pre-decided or an unlimited number of trips) are rerouted, the billed airline will be entitled to recharge the difference between the amount(s) billed and 75% of the applicable full normal local fare for the sector flown, effective at the date of travel. 2.5 With regard to ID/AC/AD/DG/CG passengers, where the full fare basis and passenger type code as shown on the ticket has not been entered on the FIM, the billed airline will be entitled to recharge the difference between the amount(s) billed and 50% of the applicable full normal local one way fare, for the sector flown, effective at the date of travel. Note: When more than one normal sector fare for the class of service performed is published by the new receiving carrier, the lowest of such fares is to be used. If no normal carrier fare for the class of service performed is published by the new receiving carrier, the highest one way special fare published by the new receiving carrier for the class of service performed may be used. If no such fare is available, half of the highest return special fare published by the new receiving carrier for the class of service performed 40

47 Agenda Item P14 Page 1 of 1 Subject: Lowest Applicable Fare - RAM Chapter A2 Paragraph 3 Submitted by: Delta, Emirates and Swiss Determination of the lowest applicable fare is a primary pain point and cause for interline rejections. The IBSOPSWG has reviewed various options to simplify the process but has been unable to agree on a standard to simplify the procedure. Problem: Unpublished fares are prevalent in the industry raising awareness of the settlement issues they present and need for standardization and simplification. For most airlines the process to determine the lowest applicable fare is manual, time consuming, and is prone to rejection. Perhaps taking baby steps to begin the discussion and resolve some of these cases is the direction to take. Consider the case of a published fare but ticketed with a non-industry standard ticket designator to indicate it has been discounted or ticketed under an incentive commission program. The presence of the non-industry standard ticket designator has caused such tickets to be interpreted as unpublished fares. One minor step to simplify the process of determining the lowest applicable fare would be to ignore the non-standard ticket designator and settle such coupons on the published applicable fare for fare basis ticketed. Ex. NYC DL LON m CFFUS/XXT5 DL NYC m CFFUS/XXT5 The CFFUS fare is published for $10, rt but was discounted due to a sales program. Proposed Solution: Amend RAM A2, Paragraph 3 as follows: 3. FARES TO BE USED IN BILLINGS The Applicable fare shall be based on the published Fare Basis as indicated on the ticket. Should the Fare Basis not be found in a tariff available to the general public it shall be assumed that the fare is of a private type. The Fare Basis shall be identified as all characters to the left of the special character (ex. /,//). The ticket designator (characters to the right of /, //), shall not be used to determine if the fare is of a private type. Unless bilaterally agreed between carriers. 41

48 Agenda Item P15 Page 1 of 1 Subject: Lowest Applicable Fare - RAM Chapter A2 Paragraph 3 Submitted by: IBS OPS WG This is a clarification paper, the existing RAM rule will not change. In 2012 the 46 th Revenue Accounting Meeting at Bangkok approved supplementary paper P4 (written by S7). The paper changed the wording of the last sentence of A2 paragraph 3: For the purposes of defining Applicable the original ticketing requirements shall be recognized, provided all standard automated parameterized fare conditions and requirements are met Problem: The paper explained the change quite clearly explaining that fare rules filed incorrectly as Notes (which are not automated parameterized) cannot be read by ticketing systems when they guarantee a fare as valid. Such notes should therefore not be used for interline settlement. Unfortunately the words automated parameterized can lead to confusion. Proposed Solution: We propose that the last sentence of A2 Paragraph 3 be amended as follows: For the purposes of defining Applicable the original ticketing requirements shall be recognized, provided all automated parameterized fare conditions (excluding those filed as Notes) and requirements are met. 42

49 Agenda Item P16 Page 1 of 1 Subject: Passenger and Excess Baggage Billing Support - RAM Chapter A3 Submitted by: RAM Editor Group With the exception of Excess Baggage Tickets, provision for paper documents has been removed from all IATA Resolutions. For this reason, the RAM Editor Group has been tasked with removing all references to paper documents other than Excess Baggage Tickets, from the RAM. Problem: During the review of RAM Chapter A3 the Editor Group has made the following observation regarding supporting documents requirements. 1- A new optional source code 31 was adopted last year for which billing support is not required. As this point is not directly related to amendments for removal of references to paper documents, the RAM Editor Group is raising this as a separate proposal and voting item. Proposed Solution: The RAM Editor Group proposes the following change to RAM A3. CHAPTER A3 PASSENGER AND EXCESS BAGGAGE BILLING SUPPORT 1. SUPPORTING DOCUMENTS REQUIREMENTS 1.1 Original Billings Interline invoices for billing source codes 1, 2, 3, 23, 25, 26, 27, 31 and 90 do not require supporting documents to substantiate billings. Note: Supporting document requirements for optional settlement procedures published in Part B are outlined in those specific agreements. 43

50 Agenda Item P17 Page 1 of 1 Subject: Prorate Slips - RAM Chapter A3, Paragraph Submitted by: Austrian Airlines In the current rule for the supporting document requirements on rejection memos it is just a recommendation to attach prorate slips. Problem: Proration gets more and more difficult and without a prorate slip it is sometime challenging to find out carriers evaluation logic. Proposed Solution: Amend paragraph A as follows: For rejections due to prorate differences it is mandatory that the prorate slip, showing the prorate in full detail, be submitted with any rejection memo. 44

51 Agenda Item P18 Page 1 of 1 Subject: Involuntary Reroutings, Refund Adjustment RAM Chapter A4, Paragraph Submitted by: China Southern Airlines With the removal of Flight Interruption Manifests (FIMs) as an interline procedure, more and more operating carriers are inclined to reissue to their own electronic documents when they deal with their involuntary rerouting situation. And many of them were reissued by their GDS system automatically without the acceptance of passengers. Some passengers may not agree with the rearrangement of route or time so they don t use it and ask for the refund. At this point, passengers will be guided to the original issuing carrier to refund. Problem: Most of the time, the new issuing carrier has billed the original issuing carrier at the time of reissue and it will be accepted by the original issuing carrier. So passengers have to wait until the original issuing carrier reclaim their revenue from the new issuing carrier. And this process some time will be time-consuming if authorization is involved. Proposed Solution: To accelerate the process and reduce the time of waiting, we propose that refund transactions of automatically involuntary reissue should be added to the category of Refund Adjustment involving retroactive application. Then the original issuing carrier can bill the new issuing carrier under Source code 03 directly without the authorization from the new issuing carrier. Paragraph will be amended as follows: A Refund Adjustment may be performed to cover refund transactions involving retroactive application of: - a change in the entitled class of service (cabin of travel) and for refund transactions resulting from the receiving carrier having made and ticketed a new sale to the customer as a result of the original ticket being: - Mislaid (in the case of paper documents) - Unavailable for travel where an electronic ticket is valid for travel, and has previously been made available by the issuing carrier, but where the receiving carrier is unable to retrieve or accept it. - Automatically involuntary reissue (unused) 45

52 Agenda Item P19 Page 1 of 2 Subject: Refund Adjustment for Involuntary Downgrades Submitted by: Lufthansa RAM Chapter A4 Paragraph stipulates when a refund adjustment may be performed: 46

53 Agenda Item P19 Page 2 of 2 Subject: Refund Adjustment for Involuntary Downgrades.../cont. Submitted by: Lufthansa Problem: The examples only refer to refund adjustments related to Unavailable for travel scenarios and in Paragraph only refers to refund adjustments in case of a voluntary downgrade. There is no indication or example about how to calculate a refund adjustment for an involuntary change in the entitled class of service. Proposed Solution: We propose to add an additional paragraph to close the gap for involuntary downgrades: The amount of an interline adjustment which arises due to involuntary downgrading shall be the difference between: The applicable fare or prorated portion thereof of the original coupon in the purchased class of service according to RAM Chapter A2 Paragraph 3 and The lowest applicable published fare or prorated portion thereof of the downgraded coupon in the performed class of service according to RAM Chapter A2 Paragraph 3 The adjustment shall be processed as per RAM Chapter A4 Paragraph The current Paragraph shall be renumbered as

54 Agenda Item P20 Page 1 of 1 Subject: Passenger Source Codes - Source Code 31 Submitted by: IBS OPS WG At WFS 2017, a new source code was voted for billing of involuntary rerouted coupons. This source code is optional. Problem: Source code 31 has been referenced in RAM chapter A9 attachment G as an optional source code for bilateral use. This causes confusion and leads some carriers to think that source code 31 can only be used if bilaterally agreed which is not the case. Source code 31 is only optional and does not require bilateral agreement between airlines. In other words, SC 31 is optional only from the perspective of the billing airline. Billed airline has no option to disagree/dispute receipt of SC 31 from the billing airline and billed airlines passenger revenue accounting system has to be able to process it. Proposed Solution: Change the referencing of Source code 31 in RAM chapter A9 attachment G. Remove Source code 31 from Optional source codes for bilateral use Optional source codes for bilateral use 31 Non Sample Involuntary Reroute Lifted Passenger Coupons And add a new sub paragraph titled Optional source codes Optional source codes 31 Non Sample Involuntary Reroute Lifted Passenger Coupons. 48

55 Agenda Item P21 Page 1 of 1 Subject: New Passenger Rejection Reason Codes Submitted by: Rejection Reduction Pilot Airlines The IBS OPS WG has been tasked by the IATA Financial Committee (FINCOM) to reduce the number of billing disputes within the airline industry. A smaller group within the IBSOPS airlines was created to work with IATA and identify areas where we could reduce incorrect billings or rejections. Problem: When SIS was introduced back in 2011 the reason codes assigned were more generic. Some examples are 1A Valuation Error 1B Fare Reclaim 1G Taxes, Fees and Charges Reclaim However, there isn t enough details for the reason of the rejection, for example SPA not applicable or Involuntary reroute. If an airline needs to analyze their rejections and what are the major causes of rejections they will need to analyze the reason description (a free text field) as they cannot drill down further. Proposed Solution: The following 7 new reason codes are being proposed to be added to the existing list of Passenger Rejection reasons in order for future rejections to be more specific and give additional information to the airline receiving the rejection. Having specific reason codes will also allow for more in-depth data analysis to identify the various reasons of rejections. 1) SPA Applicable * 2) SPA Not Applicable * 3) Involuntary Rerouting Fare + tax differences ** 4) Involuntary Rerouting Fare Difference * 5) Involuntary Rerouting Tax Difference *** 6) Tax Not Applicable *** 7) YQ/YR rejections *** *similar to 1B validations only fare rejections **similar to 1A validations ***similar to 1G validations only Tax rejections The IBS OPS RAM editor group will assign the 2-digit alphanumeric codes for the above reasons if the paper passes. 49

56 Agenda Item P22 Page 1 of 1 Subject: Passenger Reason code 5Z Submitted by: Rejection Reduction Pilot Airlines The IBS OPS WG has been tasked by the IATA Financial Committee (FINCOM) to reduce the number of billing disputes within the airline industry. A smaller group within the IBSOPS airlines was created to work with IATA and identify areas where we could reduce incorrect billings or rejections. One of the areas where incorrect rejections were identified was in cases of misuse of passenger reason code 5Z. Problem: Passenger reason code 5Z can only be used in exceptional cases where no other reason code is applicable. Some airlines continue to use it to bypass the system when they experience linking failures or when they do not want to capture breakdown records. At times, they are sent with little information in the reason description which puts the burden on the billed airline to try and identify the reason of rejection or reject it back for lack of information. In 2017 approx. 448,000 rejections were raised with reason code 5Z, out of which 100,000 were 3 rd stage rejections. Proposed Solution: Two options proposed OR 1) Remove reason code 5Z. If airlines feel there are rejection reasons not covered by the current list of reason codes, then a new reason code for these specific reasons could be added. 2) Make breakdown records mandatory for reason code 5Z. This way the code is still available but if used the coupon breakdown must be entered. This will stop the misuse. 50

57 Agenda Item P23 Page 1 of 1 Subject: Supporting documents for rejection as prorate difference, RAM Chapter A10, Paragraph 1.5 Submitted by: All Nippon Airways (NH) RAM chapter A10, Pharagraph1.5 states as Support the rejection with electronic attachments containing new information that will assist the other airline evaluate the charge. (e.g. ticket image, prorate slip) for initiating rejections. Proration details information such as Proration Slip is very important for the billed airlines to understand how the rejected value amount was calculated by the billing airlines and evaluate the rejection is correct or not. Problem: A number of rejections don t include any supporting documents regarding to proration details of ATBP value, prorate factor, sectors and proration methods etc. because there is no statements in the current RAM which encourage the billed airlines to provide the efficient supporting document toward other airlines for rejecting, especially as Prorate difference. It causes the further rejections because the billed airlines can t evaluate the root cause of prorate difference between the two airlines. Proposed solution: In order to enable both the billing and the billed carriers to evaluate the reason of prorate difference each other and to reduce the number of persistent rejections, we propose to add a sentence to current RAM chapter A10, Pharagraph1.5 as follows: A Support the rejection with electronic attachments containing new information that will assist the other airline evaluate the charge (e.g. ticket image, prorate slip). In case of rejecting as prorate difference, any supporting document with the amount to be prorated, prorated sectors, prorate factor and other proration details shall be provided. 51

58 Agenda Item P24 Page 1 of 1 Subject: Time Limit for Exchange Transactions, RAM Chapter A10, Paragraph 5.1, Note 2 Submitted by: IBS OPS WG RAM A10, 5.1 provides billing time limits for Original Billing, Rejection and Correspondence Stage documents and since July 2017, the time limit set for all billings is 4 months from the transaction month. However, in RAM A10, 5.1, Note 2, there is some verbiage that seem to allow billing Exchange transactions within six (6) months of its expiry date. This results in confusion of whether the time limit for an Exchange Transaction is four (4) months or six (6) months. Problem: RAM A10, 5.1, Note 2 actually addresses 2 different types of Exchange Transactions 1) an exchange involving a normal coupon, and 2) an exchange involving a coupon where an Extension of Ticket Validity is involved. Since the billing time limits differ, there is much confusion and misinterpretation because Note 2 does not clearly define the time limits between the two types of Exchange Transactions. Proposed Solution: The IBS OPS Working Group propose that we change the verbiage in Note 2, to separately address the time limit of an Exchange Transaction involving a normal coupon and the time limit of an Exchange Transaction involving a ticket where the validity has been extended as per Resolution 735a. Proposed Note 2: With regard to ticket exchange transactions, when so required by the billed airline in order to establish that the above time limits have been observed, it will be the responsibility of the billing airline to provide proof from an electronic copy(s) of the new ticket(s) that the billing for the exchange billed coupon is not later than four (4) months of the transaction date. Such proof may not be requested by the billed airline when the billed exchange coupon s expiry date has been extended as per IATA Resolution 735a (Extension of Ticket Validity), and the coupon has been billed within six (6) months of its expiry date. This may result in an exception to the above time limits. (See IATA Resolution 735 for Period(s) of Validity). Previous Version Note 2: With regard to ticket exchange transactions, when so required by the billed airline in order to establish that the above time limits have been observed, it will be the responsibility of the billing airline to provide proof of the transaction date from an electronic copy(s) of the new ticket(s). Such proof may not be requested by the billed airline when the coupon has been billed within six (6) months of its expiry date. This may result in an exception to the above time limits. (See IATA Resolution 735 for Period(s) of Validity). 52

59 Agenda Item P25 Page 1 of 1 Subject: Correspondence amount validation Submitted by: IBS OPS WG RAM chapter A10, Paragraph states "Correspondence may be initiated only if the total value in dispute is USD or more. The minimum value amount applies to the net difference after any applicable Interline Service charge or UATP Issuer discount is deducted. Subject to the grouping criteria of being met, repetitive error of less than USD per item may be combined and entered into correspondence when the total amount is USD or more. Problem: There are occasions where a carrier raises the disputed amount at the correspondence stage to meet the minimum of USD even though the first to the third rejection stages (SC04, 05, and 06) were below USD Proposed Solution: Add another provision in 5.3 to be numbered indicating that the correspondence value shall not be raised to the correspondence minimum when the amount in dispute at the final rejection (SC06) stage falls below USD A SIS validation of the value at SC06 is greater than USD Changes in Billing Values Both the carrying Airline A and the issuing Airline B are entitled to increase or decrease their previous evaluations during any rejection /correspondence stage provided that the time limit applicable to that stage is met Correspondence value may not be raised to the correspondence minimum when the total value in dispute falls below USD at SC06 final rejection. 53

60 Agenda Item P26 Page 1 of 2 Subject: SPA Checklist Submitted by: IBS OPS WG One of the key actions of the IATA Financial Committee (group of airline CFO s) is to improve efficiency in airlines back office processes and a key area where improvement is required is in the area of passenger interline rejections. It has been observed that approximately 1 million rejections are raised per month. The Interline Billing and Settlement (IBS OPS) Working Group has been tasked by the IATA Financial Committee to improve the efficiency by cutting down on incorrect rejections through: education, awareness, proposing changes to the billing rules, adding new validations in SIS that enforce this efficiency and conduct one to one follow up with airlines which have higher rejection rate than the industry percentages. Problem: IBS OPS WG is aware that a significant contributor to rejections is incorrect or missing coding or disagreement on the interpretation of the terms of the bilateral commercial agreements (SPAs). Proposed Solution: IBS OPS WG formed the following SPA Checklist and this checklist will be added as part of RAM B Chapter for the airlines who are willing to use it during their SPA Coding. The below Notes follow the SPA Checklist. Notes: 1) SPA Effect/Discontinue date type "Billed Coupon Date" suggestion may not be a codable option 2) Ticket Type Removed two letter passenger type code as this is intended to be a check off list, not a complete list of variables 3) Joint carriage condensed the examples so it doesn't appear to be an attempt to compile a complete list of variables 4) Original/Reissues condensed the examples so it doesn't appear to be an attempt to compile a complete list of variables 54

61 Agenda Item P26 Page 2 of 2 Subject: SPA Checklist Submitted by: IBS OPS WG CATEGORY CODING OPTIONS A. VALIDITY DATE: Effective / Discontinue Date Type Ticket Issue Date Ticket Travel Date Original Issue Date B. TICKET TYPE: Original / Reissue Original + Reissue against Own / Original + Reissue Against any SPA Airline Document Airline Document Involuntary Reroute * SPA Applicable SPA Not Applicable Schedule Change * SPA Applicable SPA Not Applicable FIM SPA Applicable SPA Not Applicable Corporate Fare* SPA Applicable SPA Not Applicable Group travel* SPA Applicable SPA Not Applicable Frequent Flyer* SPA Applicable SPA Not Applicable General Sale Agent* SPA Applicable SPA Not Applicable Tour Conductor/Guide* SPA Applicable SPA Not Applicable Seaman* SPA Applicable SPA Not Applicable Super Commission* SPA Applicable SPA Not Applicable C. JOURNEY TYPE: Side Trip SPA Applicable Not Applicable Stopover /Transfer Applicable Not Applicable Differential Applicable Fare Basis + Class Differential Applicable Lower Fare Basis + Class Differential No Class Differential Plus Up Applicable Not Applicable Seasonality Commencement of Travel Date Travel Date Fare Basis Flight Range Include Exclude (Own/Partner/Codeshare) (Own/Partner/Codeshare) D. ATBP: Ticket Stock Own Stock Partner Stock Fare Owner Own Fare Partner Fare Fare Type Normal / Special (ATPCO filing / RBD) Published / Unpublished (Defined) Sector Type Applicable to Single Sector ATBP Applicable to Multiple Sector ATBP Class of Service First / Business / Premium Economy / Economy Default Joint Carriage Required in ATBP Not Required in ATBP but Required in the GFP / Routing Not Required Third (3rd) Party Participation Not Allowed in ATBP but Allowed in Allowed (MC / OC) GFP / Routing Not Allowed Through SPA Application Applicable (Consecutive Carriage) (With/Without Transfer Point) Not Applicable Through SPA with Different RBD (Consecutive Carriage) Class Heirarchy Routing Qualifications (MC / OC) Apply Revenue Share Based On RBD Of First Sector or Last Sector Carrier XX is between TC12 in combination with YY within TC2 Apply Revenue Share Based On Higher RBD or Lower RBD Carrier XX is between Africa and Europe in combination with YY within Europe Do Not Apply Through SPA E. SETTLEMENT METHOD: Revenue Share Fixed Rates % of PFM / TPM / VPM SRP Default Rates Minimum Prorate Rule Apply MPR Check Do Not Apply MPR Check F. SURCHARGE: Q Surcharge YQ/YR Carrier Imposed Fee SPA CODING CHECK LIST Applicable (Based on ATPCO Filing) Applicable (Fixed Rate) Applicable (Based on Special Instructions) Applicable (ATPCO Filing) Not Applicable Applicable (When collected and shown on the ticket) G. TICKET DISCOUNT: Infant SPA will apply with discount SPA will apply without any further SPA Note Applicable discount (MPA will apply) Child SPA will apply with discount SPA will apply without any further SPA Note Applicable discount (MPA will apply) ID / AD SPA will apply with discount SPA will apply without any further SPA Note Applicable discount (MPA will apply) Other SPA will apply with discount SPA will apply without any further SPA Note Applicable discount (MPA will apply) H. INTERLINE FEE: Interline Service Charge (ISC %) SPA will apply with discount Industry Rate Not Allowed Handling Fee (HFEE %) SPA will apply with discount Industry Rate Not Allowed Code Share Commission (CSC %) SPA will apply with discount Industry Rate Not Allowed I. Annexure/Attachments: Code Share J. Footnote / Recommendations: a) * Requires Ticketing element to be identified to trigger SPA application, i.e. Endorsement, Tour Code, Farebasis Code, and etc. b) Revenue Accountants should provide feedback to their Revenue Management team before SPA is finalized to ensure SPA clarity and codability c) SPA Airline partners with same proration engine are encouraged to Snyc up SPA coding and conduct joint testing d) Settlement of 3rd party marketed, own/spa partner operated coupons shall be specified clearly e) Other RBD settlement (RBD penalty or MPA) shall be specified clearly f) All RBDs of Own/SPA Airline per cabin may be listed in the agreement Note: The Category Description is not intended to be a complete list of variables but rather a sample Not Applicable

62 Agenda Item P27 Page 1 of 1 Subject: Housekeeping/Information Item RAM Chapter B13: UATP Submitted by: IATA, Secretary RAM Chapter B13 UATP UATP have been contacted and requested to update RAM Chapter B13 accordingly. 56

63 Agenda Item P28 Page 1 of 1 Subject: UATP discounts to be included in prime billings Submitted by: Rejection Reduction Pilot Airlines The use of the UATP discount field was introduced in SIS in 2011 for use by the airlines to include UATP discounts on prime billings. It was designed to facilitate the application of discounts on prime billings for travel documents with UATP form of payment (FOP), similar to the concept of the Interline Service Charge (ISC). Problem: It has been found that not all Passenger Revenue Accounting Systems (PRAS) have been developed to apply UATP discounts on processed prime billings, given data quality issues and system limitations. The result ended up being the use of rejection memos by billed carriers to reclaim UATP discounts from the billing carriers. According to IATA s Rejection Memo Reduction progress report for 2017 (billings following RAM billing rules), UATP reclaim ranks 4th place in most volumetric 1st stage rejections and represents the reason code with the largest increase of 1st stage rejection memos of 274% from 2015 to It also ranks 7th place in most volumetric 2nd stage rejections and represents the reason code with the largest increase of 2nd stage rejection memos of 256% from 2015 to Proposed solution: This paper proposes to make mandatory the use of the available UATP discount field in all prime billings The RAM editor working group will determine the appropriate chapter and section for inclusion. 57

64 Agenda Item C1 Page 1 of 1 Subject: Rates to Be Used in Billing - RAM Chapter A5. Paragraph 2 Submitted by: China Southern Airlines As 2018 RAM Chapter A5. Paragraph 1.1 Basic Entitlement stated, the billing carrier is entitled to receive the rate (prorated portion thereof) applicable on the date of issue of the air waybill for the journey flown, irrespective of erroneous entries of rates on air waybills. In 2018 RAM Chapter A5. Paragraph 2, it stipulates that An airline is entitled to the effective interlineable rate or charge or prorated portion thereof as published in the applicable TACT publication, irrespective of any other rate or charge. Problem: Some airlines publish different rates of one route for peak season and slack season. Limited by aircraft situation, cargo may not be transported on the booked date. As 2018 RAM Chapter A5. Paragraph 2 describes indistinctly, some billing airlines chose the rate of flown date when issuing invoices to receive higher interline revenue. Proposed Solution: To avoid adjustment and enhance interline settlement efficiency, we propose to amend RAM Chapter A5. Paragraph 2 as follows: An airline is entitled to the effective interlineable rate or charge or prorated portion on the date of issue of the air waybill thereof as published in the applicable TACT publication, irrespective of any other rate or charge, except as may be otherwise agreed bilaterally. 58

65 7 th SIS General Meeting, 18 September 2018 Agenda Administration Items: A1 A2 A3 A5 A6 A7 A8 A9 A10 Opening of Meeting Competition Law Guidelines for IATA Industry Meetings Delegate Introductions Approval of the Minutes from the 6 th SIS General Meeting Introduction of the Electronic Voting System Date and Place Next General Meeting Any Other Business Vendor Prize Draws Close of Meeting SIS GM Updates and Reporting items: SR1 SR2 SR3 SR4 SR5 SR6 SR7 SR8 Welcome Presentation Report from the SIS Steering Group Industry Economic Performance Update SIS GM6 Action items Review of published Report SIS General Update Supplier to Airlines e-invoicing Update SIS Solution Update ATPCO Updates SIS Agenda Items and Carrier Papers: SIS Impacts: Subject From Item RAM SIS ICH S1 A13_Addition of new charge code for_ REDEMPTION Alitalia S2 A13_Addition of new charge code for_ ACCRUAL Alitalia S3 Display city name next to the location ID Emirates S4 Bulk Correspondence Processing Lufthansa S5 Instant Download of Correspondence including Supporting Docs Lufthansa S6 Search for Multiple Correspondences Lufthansa S7 SIS Price Changes ISPA Attachment A SIS SG S8 SIS SLA Update ISPA Attachment E SIS SG S9 Creating AWB information file for memo data (Cargo) All Nippon Airways S10 New sub status for the correspondence BM created All Nippon Airways S11 IS-WEB Invoice Search Criteria China Southern S12 SIS Monthly Passenger Report Rejections Reduction S13 SIS Correspondence Aging Report Rejections Reduction S14 YQ and YR Validations Rejections Reduction S15 Hard validation of Double Billings for First Billings Lufthansa S16 Hard validation of Double Billings in Rejection Stages Lufthansa S17 A13_Billing Category MISC-Charge Category MAIL-Charge Code MAIL SAS S18 Multiple files handling for carriers with full file loading SAS S19 Billing Category MISC-Charge Category Service Provider-Charge Code: Aviation Fuel SIS OPS

66 SIS GM7 - ISPA Page 1 of 1 For your information, below is an extract from the Participation Agreement (ISPA) outlining the steps to perform amendments to SIS. 6. MODIFICATIONS 6.1 Amendments to System functionality may be submitted as a proposal to the SIS General Meeting duly convened in accordance with paragraph 5.2 and shall be referred initially to the SIS Steering Group for review. If accepted by the SIS Steering Group they will be referred to SIS Operations (as defined in Attachment C) for analysis and costing. SIS Operations shall develop the specifications and, at their discretion, confirm them with the SIS Steering Group (as defined in Attachment C). The final agreed proposal shall be submitted to the SIS Steering Group for approval. Changes to system functionality may be proposed by the Participants at any time before the deadline of the SIS General Meeting. Major changes to system functionality must be approved by IATA to ensure operational efficiency. 6.2 Amendments to System functionality as a result of industry mandated changes shall be initiated by the SIS Steering Group and referred to SIS Operations for review and costing. SIS Operations shall develop the specifications and, at their discretion, confirm them with the SIS Steering Group. The final agreed proposal shall be submitted to the SIS Steering Group for approval. 6.3 Amendments to the then current Agreement which are accepted by IATA and agreed by seventy five percent (75%) of those present at the SIS General Meeting, duly convened in accordance with paragraphs 5.2 and 5.3 shall become effective and shall be applied by all SIS Participants, as from a date which shall be determined by the SIS Participants present and entitled to vote at the SIS General Meeting. 6.4 To be eligible to vote for changes to this Agreement with Attachments, the Participant must be transmitting and receiving invoices through the Service. 6.5 Where changes to the RAM, ACH Manual of Procedure, or other industry rulings require changes to this Agreement, the SIS Steering Group is empowered to agree to the appropriate amendments to this Agreement. The SIS Steering Group shall notify the Participants of all amendments, giving their date of effectiveness. 6.6 In addition, when IATA s review of an operational and/or individual Participant problem suggests that an editorial change would improve understanding, IATA may make editorial amendments provided they do not change the intent of the Agreement and/or procedures. Editorial amendments that do not change the intent of the Agreement and/or procedures will be notified via the RAM. IATA will notify the ACH Secretary-Treasurer. 6.7 All changes and amendments made in accordance with paragraphs 6.5 and 6.6 above will be submitted to the next SIS General Meeting for final ratification.

67 Agenda Item S1 Page 1 of 1 Subject: Addition of new charge code for Redemption Submitted by: Alitalia Description of the change/addition: Add new charge code: FF Redemption under charge category Partner Alliance Charge category/ Charge code of the change/addition: Partner Alliance / FF Redemption Reference: New Reason(s) for change/addition: Request the possibility to add the FF Redemption in Partner Alliance; key for identifying appropriate Miles service, allowing invoice automatic posting, reconciliation and sorting to right service representative. Actually, Miles services concern Accrual and Redemption with the following different meaning : Accrual means: mileage accrual which includes base miles, class of service bonus miles, elite tier bonus miles and promotional bonus miles, and elite qualification mileage accrual, flown by the Frequent Flyer Members as set on the Frequent Flyer Agreement between the Airline Parties Redemption means: the miles collected by the Frequent Flyer members can be redeemed for Award tickets on the flights as set in the Frequent Flyer Agreement between the Airline Parties Currently, Carriers are billing SIS invoices inserting Accrual / Redemption information, manually, on line item description field ( see examples attached concerning FF Miles invoices received from AZ 055 ) Scopes of the change/addition: IS-XML Standard RAM SIS Problems if no change/addition: If new charge code is not define, current Charge Code FF Miles will not allow automatic invoices posting and oblige Accounting Department users to check invoices manually ( one by one ) reading information on Line Item Description field 1

68 Agenda Item S2 Page 1 of 1 Subject: Addition of new charge code for Accrual Submitted by: Alitalia Description of the change/addition: Add new charge code: FF Accrual under charge category Partner Alliance Charge category/ Charge code of the change/addition: Partner Alliance / FF Accrual Reference: New Reason(s) for change/addition: Request the possibility to add the FF Accrual in Partner Alliance; key for identifying appropriate Miles service, allowing invoice automatic posting, reconciliation and sorting to right service representative. Actually, Miles services concern Accrual and Redemption with the following different meaning: Accrual means: mileage accrual which includes base miles, class of service bonus miles, elite tier bonus miles and promotional bonus miles, and elite qualification mileage accrual, flown by the Frequent Flyer Members as set on the Frequent Flyer Agreement between the Airline Parties Redemption means: the miles collected by the Frequent Flyer members can be redeemed for Award tickets on the flights as set in the Frequent Flyer Agreement between the Airline Parties Currently, Carriers are billing SIS invoices inserting Accrual / Redemption information, manually, on line item description field ( see examples attached concerning FF Miles invoices received from AZ 055 ) Scopes of the change/addition: IS-XML Standard RAM SIS Problems if no change/addition: If new charge code is not define, current Charge Code FF Miles will not allow automatic invoices posting and oblige Accounting Department users to check invoices manually ( one by one ) reading information on Line Item Description field 2

69 Agenda Item S3 Page 1 of 1 Subject: Display city name next to the location ID Submitted by: Emirates Airlines Carriers create multiple locations in IS Web under option Locations of Manage Member Profile. SIS assigns location ID to each location which is stored in this screen. To find out location name or city name of a location, user generally goes to above screen and selects the location number (ID) in search field of the screen. There is no facility to search location ID based on location or city name unless user opens every location based on location ID and views complete screen which is very time consuming. The drop down list in search field just shows the location ID but does not show the location city. Proposed solution: City code should be populated next to location ID in drop down list under Please Select field. Recommend to add location name field (Free text not mandatory) and append that along with the city code in Locations screen. The new field location name can be before the existing field City Name. With this change, the drop down list will look as follows: 2 BOM Airport Charges 3 BOM Cargo 3

70 Agenda Item S4 Page 1 of 1 Subject: Bulk Correspondence Processing Submitted by: Lufthansa In certain situations it required to shift correspondences back and forth between two airlines, e.g. due to ongoing commercial discussions. Problem: To do so we have to go into each and every correspondence and reply with the same comment like Case still under commercial discussion. Please send the correspondence back. Once the case is solved the correspondences might have to be authorized or replied maybe with a confirmation as attachment. Proposed Solution: Our proposal is to implement two new buttons in the correspondence search Bulk Reply and Bulk Authorize (Full). All checked positions need to be in a status that allows to reply or to authorize a correspondence. In case the Bulk Reply button is used a popup should open where the user can enter a reply text and optionally attach one or multiple Supporting Documents. 4

71 Agenda Item S5 Page 1 of 1 Subject: Instant Download of Correspondence including Supporting Docs Submitted by: Lufthansa In order to archive correspondence information from IS-Web we need to download all correspondences including the Supporting Documents and put them into our Revenue Accounting System. Problem: This can be done from the Audit Trail view by using the checkbox Include Supporting Document(s). When we click Generate PDF without Supporting Documents the PDF download starts immediately, with Supporting Documents the ZIP file is created in the background and the link is sent via . Proposed Solution: We would like to be able to download the ZIP file instantly without the need to wait and consolidate the s coming in later. At least it would be good to have the correspondence number in the file name of the ZIP file to be able to better match the download with the correspondence. 5

72 Agenda Item S6 Page 1 of 1 Subject: Search for Multiple Correspondences Submitted by: Lufthansa In our Revenue Accounting System we capture all ongoing correspondences to count, track, categorize and archive them. This also helps to monitor specific correspondence reasons. Problem: To get status updates of these correspondences we use the Correspondence Search in SIS. Today it is only possible to use specific search criteria as shown below or to select individual correspondences. Often have a list of specific correspondences for a defined correspondence reason which we would like to monitor particularly. We would like to be able to search for a bunch of known correspondence numbers. Proposed Solution: We propose to extend the Correspondence Ref. No. field to allow entering (copy & paste from clipboard) multiple correspondence numbers at the same time. 6

73 Agenda Item S7 Page 1 of 2 Subject: SIS Price Changes - ISPA Attachment A Submitted by: SIS Steering Group As described in Attachment A Pricing Schedule of the Standard IS Participation Agreement, the SIS service is run on an operational cost-recovery basis and the applicable membership and participation fees should cover the necessary costs to operate the service and maintain a neutral revenue. The current applicable fees have been defined based on cost estimates done before the service go live in 2011 and have not been modified ever since. SIS prices have been reviewed in order to incentivize the correct usage of the platform and promote quality of data being exchanged that is impacting the process efficiency on both, billing and billed parties. Prices have been reviewed with SIS Steering Group and have been agreed 2 stages of price increase. First stage with effective date 1 January 2018 that have been also presented to SIS General Meeting in September Second stage with effective date 1 January 2019 that will be presented to SIS General Meeting in September A. First stage of SIS price increase - effective 1 January 2018 Transaction Type Old Price New Price Group A: Passenger/Cargo Billing Memo Base Medium Large Base Medium Large $ $ $ $ $ $ Group B: Passenger/Cargo Rejection Memo, Correspondence MISC Supporting Documents Per KB Base Medium Large Base Medium Large $ $ $ $ $ $ Base Medium Large Base Medium Large $ $ $ $ $ $ B. Second stage of SIS price increase - effective 1 January 2019 Quarterly volume threshold Transaction Type Invoices per Pax, Cargo, UATP, Misc IS Transaction Fees Current Price (eff. Jan 1 st 2018) $0 $5,000 $15,000 + $4,999 $14,999 New Price (eff. Jan 1 st 2019) $0 $5,000 $15,000 + $4,999 $14,999 $0.57 $0.45 $0.33 $0.57 $0.45 $0.33 7

74 Agenda Item S7 Page 2 of 2 Subject: SIS Price Changes - ISPA Attachment A Submitted by: SIS Steering Group Group A1 per Pax: Prime Coupon, Credit Memo, Sampling Provisional Invoice Coupon, Sampling Digit Evaluation Coupon, Value Determination Request, Autobilling Request (1) Cargo: Original Billing (AWB), Credit Memo Group A2 per Pax: Billing Memo Cargo: Billing Memo Group B1 per Pax: Sampling UAF Coupon Group B2 per Pax: Rejection Memo (including Sampling), Correspondence Cargo: Rejection Memo, Correspondence Misc: Correspondence Supporting Documents per kilobyte Pax, Cargo Supporting Documents per kilobyte Misc Digital Signature (& Validation, as appropriate) Optional legal archiving (per invoice) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 Attachment A of the IS Participation Agreement will be amended accordingly to reflect the new pricing and effective January 1st Additionally, under section 3 of the Attachment, a new charge will be added for the optional multiclient feature released in May The applicable fees for this optional service are: No. of Secondary Accounts Annual Fee ( x member/year) Minimum Fee Maximum Fee Between 2-4 $500 $1,000 $2,000 Between 5 12 $400 $2,000 $4,800 More than 12 $5,000 flat fee $5,000 $5,000 8

75 Agenda Item S8 Page 1 of 1 Subject: SIS SLA Update Attachment E of the ISPA Submitted by: SIS Steering Group Attachment E Service Level Agreement of the Standard IS Participation Agreement includes the details of the various SLAs between IATA and the SIS Participants, as defined before the service go live in Following the various system enhancements and infrastructure updates implemented in the recent years, the service levels have been reviewed by the SIS Steering Group together with the IATA Team to be more meaningful taking into account the current system performance. The new service levels are: 1) System availability The general conditions will remain unchanged, where the service has to be available on a 24 hour, 7 days per week basis, with system up-time averaging 99.5% on a rolling annual average and a maximum unplanned outage of up to 4 hours per year. Effective Jan 2019, the system availability will be calculated excluding Saturdays, which will be considered as weekend. 2) File Processing The new SLA for file processing will be applicable for both files with errors and files without errors, which have to be processed within 24h of receipt and within 4 hours in 99.85% of cases. Previously, files without errors had to be processed within 6 hours and files with errors within 4 hours. 3) Web Response The SLA for web response has been increased to 97.50% of requests (other than report generation or file transfer) to be processed within 3 seconds. Previously, the target was 80% of requests. 4) Fault reporting and clearance The SLA for incident reporting and management will remain unchanged. Attachment E of the IS Participation Agreement will be updated to reflect these changes which will become effective Jan 1 st

76 Agenda Item S9 Page 1 of 1 Subject: Creating AWB information file for memo data (Cargo) Submitted by: All Nippon Airways Currently, there is no AWB Number column in memo data list (Named CMEMLST-XXX) in "LISTING" file of "Offline archive file" which can be acquired from "Downloads File*" function. * IS-Web : General File Management Download File Problem: Each memo (Billing Memo, Credit Memo, and Rejection Memo) is used for examining the validity of billed amount, also cargo settlement data have controlled under the AWB number in general. However, since there is no AWB number in the memo data list which described on the Back Ground, user needs to search target AWB number on the XML file, HTML file or IS-Web screen one by one based on the memo number. In such situation, to search based on the target AWB data or refer to the information details such as Net amount, Reasons, etc. is very time consuming. Proposed solution: Create a new report listed in AWB level which contains all of items in each memo or minimal items listed in below; <Items from each Memo> From To Memo Number Invoice Number Billing Month Billing Period Billing Code Stage Number Currency of Memo Your Reference Your Invoice Number Your Billing Month Your Billing Period BM/CM Indicator Weight Charges Valuation Charges ISC Amount Other Charges Amount VAT Amount Net Amount Reason for XXX Additional Remarks 10

77 Agenda Item S10 Page 1 of 1 Subject: New sub-status for the correspondence Submitted by: All Nippon Airways IS-web Correspondence Search Criteria screen supports user to find the correspondence and the status of each correspondence is shown by Correspondence Status and Correspondence Sub Status. Correspondence Status Open Closed Expired Correspondence Sub Status Received Saved Responded Ready for submit Billed Due to Expiry Pending Accepted By Correspondence initiator The correspondence which is responded from the requested carrier is shown as Open - Received, and the initiating carrier creates billing memo if the authority to bill is granted for the correspondence. After Billing memo is invoiced, the status of correspondence changes to Closed - Billed. Problem: IS-Web allow user to create single Billing Memo for one correspondence. If user tries to create another BM for same correspondence by pressing initiating billing memo button, the warning navigates that Billing Memo was already created for it. Because there is currently no sub-status showing that Billing Memo has been already created but is not invoiced yet, the status remains as Open - Received on Correspondence Search Criteria screen even after billing memo is created for the correspondence. It is not obvious for the initiating carrier to find for which correspondence they have created billing memo and which is not. As a result, the initiating carrier unintentionally selects the same correspondence which has been processed and the warning screen appears. Proposed solution: In order to make the correspondence shown on Correspondence Search Criteria screen more clear, we propose to add the following new correspondence Sub-status for the Correspondence which billing memo is created and waiting for invoicing. New sub-status: Invoice created 11

78 Agenda Item S11 Page 1 of 2 Subject: IS-WEB, Invoice Search Criteria Submitted By: China Southern Airlines Currently, when a user needs to search an invoice with the specific invoice number, he/she needs to enter the complete invoice number, even if the invoice number starts by the zero 0. Problem: Sometimes we use Excel to help us process the audit. However, when the invoice numbers start by zero-0, Excel may not show such 0. In such case, it s not convenient for us to search the invoices. For example, when we want to search invoice , we have to input the complete into the invoice number box. If we just input 1910, it will show no results. For most of times, we don`t exactly know how much 0 we should put at the beginning of the number to get the search results. It`s very time consuming. When search 1910, no results. When search , results come out. 12

79 Agenda Item S11 Page 2 of 2 Subject: IS-WEB, Invoice Search Criteria Submitted By: China Southern Airlines Proposed Solution: We propose, when the invoice number starts by the zero 0, IS-web could allow users not input the beginning 0 in the invoice number box. 13

80 Agenda Item S12 Page 1 of 2 Subject: Monthly Passenger Report from SIS Submitted by: Rejection Reduction Pilot Airlines The IBS OPS WG has been tasked by the IATA Financial Committee (FINCOM) to reduce the number of billing disputes within the airline industry. A smaller group within the IBSOPS airlines was created to work with IATA and identify areas where incorrect billings or rejections/correspondences can be reduced. Problem: While some airlines monitor their interline volumes, others don t have an early warning when there is a spike in incoming / outgoing volumes. Proposed Solution: A new report will be generated giving details of the rejections raised against the prime coupons billed out in comparison to the industry trend, highlighting the Top 5 Airlines (rejecting and being rejected) and giving the main reasons of rejection. This report will be generated monthly after close of P4 and ed to the SIS PAX - Interline Billing contact. This will enable an airline to monitor their billings and also compare their billings against the industry. A sample report is shown below. The final layout and its content will be decided by the IBSOPS WG. 14

81 15 Agenda Item S12 Page 2 of 2