Simplifying the Business Five ways air transport is getting better Philippe Bruyère Program Director - StB To represent, lead and serve the airline industry Welcome everyone. My name is Philippe Bruyère, Program Director of Simplifying the Business and Global Head of Passenger You ve heard the bad news this morning. The industry crisis continues. At our June AGM in Kuala Lumpur our host, Idriss Jala, said, never waste a good crisis. I m pleased to now share with you how IATA, through five StB initiatives, is using this crisis as an opportunity to make life better for passengers and save the industry money at the same time 1
The vision of StB To improve service To save money for the industry The vision of Simplifying the Business is two fold: 1. Improve passenger and cargo service 2. Save the industry money These two elements govern everything we do. Our portfolio of projects has to meet BOTH of these criteria, otherwise they are not part of the Simplifying the Business program. That s the secret of our success to date, and our potential for the future - what we do is about winwin opportunities for both the industry and its customers. It is not about dreaming up grandiose ideas. It s about real, tangible improvements that make a difference 2
Improvement #1: paperless travel Get your boarding pass on a mobile phone No need to print out a boarding pass Access to security checkpoints Avoid lines How? Through BCBP 100% BCBP in 2010 Improvement #1: paperless travel How many of you carry a printer on business trips? It s not always convenient to try and print out a boarding pass when you re travelling Now, through our Bar Coded Boarding Pass project, IATA has enabled mobile phone boarding pass - removing the need to print out boarding passes As a result, you can now fly with a blackberry, iphone, or just a regular mobile phone - skipping the line and saving time By the end of next year, the project is targeting 100% bar coded boarding pass - eliminating magnetic stripe boarding passes and inconvenience. Current capability is at 82% - an increase 44% a year ago 3
BCBP: have phone, will travel Airlines offering electronic boarding passes: Mobile phone boarding passes have proven extremely popular with airlines and passengers alike 23 carriers are now issuing IATA standard mobile boarding passes, and two carriers - Continental and Lufthansa - have already passed the one million mark But BCBP isn t just for check-in. It enables a whole range of services - like lounge access, access to fast track security, and more That s why IATA is working with airports on the security acceptance of mobile BCBP around the world. In the US, the TSA accepts IATA standard mobile BCBPs at a growing number of airports across the country 4
Improvement #2: more self-service options Putting passengers in control Solutions being developed across the passenger experience From flight re-booking to bag reclaim Improvement #2: more self-service options Self-service is what people want. According to the 2009 IATA Corporate Air Travel Survey (CATS), more than half of passengers worldwide want more self-service options And by self-service we don t mean a kiosk. That s where we began the conversation two years ago. We mean new web-based services. Self-boarding infrastructure. More things you can do at home instead of in an airport line. And that s what the Fast Travel programme is providing So passengers will have more control over their journey and will be able to move through the airport faster 5
video I d now like to show a brief video illustrating our Fast Travel projects, so you can see for yourself the benefit of self-service The first project, bags ready-to-go, allows passengers to deliver their bags tagged and ready for acceptance, speeding up the check-in process for those passengers travelling with baggage. 22 airlines are currently live. At London Heathrow, Air Canada has implemented bags ready-to-go on a common-use kiosk. And you can see bags are being registered in the system at the bag drop SAS in Stockholm is using biometrics to reconcile passengers with bags at the bag drop. The biometrics are recorded temporarily in a database. These passengers also use their finger to selfboard In Amsterdam, KLM has implemented bags ready-to-go with a new tag concept making it much easier for passengers to apply It is so new that you can see the surprise of the passengers face when the gates closes and takes the bags away. The second project, document scanning, allows passengers to scan their travel documents at kiosks for transmission to government agencies. 117 airports currently offer this capability The third project, flight re-booking, allows passengers to obtain a new boarding pass for cancelled or delayed flights at a self-service channel, avoiding long lines, like here at Amsterdam Schiphol airport 15 airlines, including Luftansa, Air France and Korean airlines, offer self-boarding, the fourth project, which provides an automated boarding process for passengers, like in a train or metro station, reducing boarding lines Finally, 16 airlines have implemented bag recovery, which allows passengers to report a missing bag through a self-service channel instead of waiting in line 6
Improvement #3: reduced baggage mishandling Mishandling fell by 20% since last year BIP is part of that effort 25 airport visits; over 90% of mishandling ID d TAM: 50% reduction at Sao Paulo In 2010: more airports, less mishandling Improvement #3: Reduced baggage mishandling Baggage mishandling fell by 20% this year. That s good news for the industry and for passengers. But that doesn t mean we don t have a problem Nobody likes losing a bag. In fact, it s the second most important factor for passengers when travelling, after on-time performance And baggage mishandling cost the industry US$3.3 billion in 2008 But our Baggage Improvement Program is making a difference. It s a free consulting service provided by IATA baggage experts to airlines and airports This year BIP visited 25 airports, and together with a lead airline, identified solutions that addressed 90% of the mishandling TAM has reduced mishandling by 50% at Sao Paulo after implementing BIP solutions. They are now big supporters of the program Next year, the focus is to reach even more airports in order to achieve the goal of providing solutions that, when implemented, will cut mishandling in half by 2012 7
Improvement #3: reduced baggage mishandling What the industry can do: Put together a hot bag team to deal with urgent baggage from inbound flights What passengers can do: Put a copy of their itinerary inside the bag Transfers account for the biggest portion of mishandling, often times due to short connections A BIP solution that addresses this is for airlines and airports to put together what we call hot bag teams - teams that meet arriving aircraft and make sure that bags with tight connections get handled first In a small number of cases - about 0.025% of the total some bags are not reunited with their owner. One of the reasons is because the tag gets separated from the bag To guard against this possibility, the #1 thing passengers can do is put a copy of their itinerary INSIDE the bag making sure that their bags can always be traced back to them 8
Improvement #4: paper-free air cargo Cuts transit time by an average of 24 hours 35,000 consignments per month (17% month-onmonth increase) Improvement #4: paper-free air cargo IATA e-freight s mission is to take the paper out of air cargo and replace it with cheaper, more accurate and more reliable electronic messaging - saving the entire supply chain up to US$4.9 billion a year Why are we doing this? E-freight will cut shipment times by an average of 24 hours It provides greater accuracy as people don t have to copy information from one form to another, resulting in mistakes The use of e-freight around the world is rapidly expanding and now stands at 35,000 consignments per month, representing a 17% month-on-month increase. A consignment on average contains 4 air freight shipments 9
IATA e-freight LIVE In 2010: 44 locations and 76 airports - 80% of volume 24 locations are now e-freight live, including nine of the top 10 countries by international cargo volumes. The remaining one, China, is expected to go-live next year By the end of 2010, 44 locations and 76 airports - representing over 80% of international air cargo volume - will be e-freight capable. Today locations and airports representing 64% of volumes are e-freight capable; last year that number was only 53%, demonstrating the rising usage of paper-free air cargo 10
Improvement #5: easier access to more services Introducing EMD: a brand new project EMD will remove the rest of the paper What that means for the customer: More services; makes travel smoother Available through agents and airlines When 100%? Capability by end 2012; usage by end 2013 Improvement #5: easier access to more services I m pleased to announce that the IATA Board of Governors, at its December 4 meeting, has approved a new addition to the StB family - a project called Electronic Miscellaneous Documents (EMD) Paper documents - like excess baggage tickets, tour orders, prepaid ticket advices - still stand in the way of a smooth, seamless experience for passengers. And airline proprietary electronic versions of these documents don t provide the flexibility interline passengers need EMD will create a paperless environment according to a global standard What does that mean for the passenger? More services. StB has always concentrated on giving customers more options - allowing choice, convenience and control. By creating a paperless environment, EMD enables a whole range of optional services - from fast track security to wifi access to a limo home EMD enables these services to be offered across journeys, even those that involve multiple airlines, making life simpler for passengers travelling on alliance or interline partners Easier access to services. EMD will mean that both airlines and travel agents can sell these services quickly and easily Just as electronic tickets made changes easier, EMD will make changes to these services easier too We re targeting 100% industry capability by the end of 2012, and 100% usage of EMDs in IATA distribution systems by the end of 2013 11
Can the industry afford it? StB is an annual opportunity of US$16.9 billion for the industry We ve talked about improvements. But this is an industry in crisis. Can we afford these five projects? The industry answer is we can t afford standing still. That s why this year - as budgets were cut, plane orders delayed, routes eliminated, StB still met all its 2009 targets. BCBP, Fast Travel, BIP, IATA e-freight and EMD generates an opportunity for the industry of US$16.9 billion every year once implemented - through both savings and increased revenue. BCBP: US$1 billion Fast Travel: US$1.6 billion BIP: US$1.9 IATA e-freight: US$4.9 EMD: US$2.9 Our mission - to change the way the air transport industry operates by lowering costs and improving service - is now more relevant than ever And we are intensifying efforts to accelerate and deliver the change the industry needs. 12
To learn more: www.iata.org/stb To keep up to date on Simplifying the Business initiatives, visit our website: www.iata.org/stb. I m happy to take any questions you have 13
Simplifying the Business Five ways air transport is getting better Philippe Bruyère Program Director - StB To represent, lead and serve the airline industry 14