International Air Transport Association
Partner Brief
Strategic Partnerships Newsletter

28th Issue • Quarter 1, 2009
Automatic Identification Standards (AIS)
Defining AIS
Aviation relies on capturing information. Automatic Identification Standards (AIS) is the industry term for any area in which something is identified automatically, such as a supermarket check-out scanner. Automatic Identification and Data Capture (AIDC) refers to the methods of capturing information. For instance, Radio Frequency Identification (RFID) uses RFID tags to eliminate the need for manual scans, reducing costs and improving efficiency.

AIS emerged from the need to identify bags automatically. Every year, US$3.8 billion is lost through baggage mishandling. For instance, when Heathrow’s Terminal 5 opened earlier this year, some 23,205 bags needed to be identified manually, at great cost. Even during normal operations, airports handling 50,000 bags daily often have to process 7,500 of these by hand due to handling errors. These bags need to be set aside, identified individually and then re-injected into the system, thus requiring more time and space to process.

From RFID to BIP
If the bar code or message is not read, the link with the information about the bag’s journey cannot be made. This is where RFID comes in. However, though a great identification tool, RFID only solves about 20% of the problem. The BIP initiative was introduced to solve the remaining 80%.

With a version now available online on the IATA Baggage Working Group website, the BIP Toolkit offers 59 solutions for airports. It has now been tested in application at nine airports in 2008 and, once refined, the toolkit will be issued as an IATA publication.

So far, the industry response has been very enthusiastic. A recent campaign has shown that 97% of airlines are in favour of the programme and 91% are ready to start working with the programme today.

Goals for AIS in 2009
One of the goals for BIP is to save US$1.9 billion annually by recommending solutions that would, when implemented, deliver a 50% reduction in mishandling. To achieve this, IATA will build an expert team to assist the industry in promoting best practices for collecting baggage information. Long-term goals for AIS include expansion into Bar-Coded Boarding Passes (BCBP), cargo, catering and staff, which will be possible as AIS moves into these areas. Indeed, participants in the AIS group already attend the RFID oversight committee, which examines all forms of RFID use in aviation.

AIS and Strategic Partners
The reason the AIS/BIP areas are of increasing interest to our Strategic Partners is because of their huge growth potential. In addition, Strategic Partners who join the AIS/BIP areas are in a position to set procedures and standards and implement solutions. The AIS/BIP areas could be especially valuable for RFID players in the air transport industry.

For more information, please contact the Strategic Partnerships team at partnership@iata.org, or visit the BIP home page at http://www.iata.org/stbsupportportal/bip.htm.

 
 
 
Simple, secure and effective revenue recovery
AvGroup
The original AvGroup Company, AvMan (Aviation Management Services), was formed in 1988 as a full service airline and aviation industry consulting company targeting the Latin American Market. Now, 21 years later, the AvGroup companies provide the global airline industry with B2B services and expertise, information and intelligence solutions and B2C relationship management in four unique and diversified divisions for the commercial aviation business.

Using a team approach, AvGroup’s AvMan division targets the current needs of the industry by assisting clients to think and act strategically and to manage change effectively. In today’s economic environment, where control of expenses and revenues are vital, AvGroup has focused on the IATA inward first and second billing processes for its airline clients.

The AvGroup Interline Billing Recovery service (IBR) identifies and recovers revenue lost by interline partners to overbilling through IATA’s inward billings. The process finds and recovers revenue that by error or oversight has been left unidentified. The fully integrated web-based application, combined with input from interline revenue experts, functions as an extension of the airline client’s revenue accounting department.

This service is either performed as a complete outsourcing of the airlines’ Interline Inward Billings or under a second revision to recover overbillings from airline interline partners, with no upfront cost to airline clients.

AvGroup is proud to be an IATA Strategic Partner and lend its expertise to industry solutions.

L.E.K. Consulting

Sandro Francini
sandro@avman.com

www.avgroupinc.com

 
 
 
Driving aviation industry growth through non-ticket product offerings
L.E.K. Consulting
In the past year, carriers have been faced with greatly fluctuating oil prices and a rapidly worsening economy. To mitigate these challenges, nearly every carrier has taken the defensive steps of reducing capacity and trimming expenses, but industry-leading carriers have adopted a more innovative approach: By embracing non-ticket “ancillary revenue” streams, conceptualised by industry thought-leader L.E.K. Consulting, leading carriers have realised a significant gain to their bottom line.

Working closely with a range of IATA carriers over the years, L.E.K. has been developing ancillary revenue initiatives, an innovative and increasingly popular approach to revenue streams. For example, in 2008 L.E.K. partnered with a US legacy carrier to identify opportunities for “unbundling,” a unique strategy that focuses on providing a standard base service while offering passengers a range of pay-for-enhancement options with clear market prices. The unbundling strategy provides valuable optional services to passengers willing to pay, while simultaneously making the base service more affordable to more price-sensitive segments. Ultimately, value is created for both carrier and clientele. L.E.K.’s advice, supporting analysis, and implementation assistance were crucial in upgrading the client’s legacy-based model of revenue management to a modern revenue model that continues to treat passengers as consumers, rather than just as customers.

As a result of this collaborative partnership, the client implemented an industry-changing initiative to begin charging baggage service fees—a bold first step towards the introduction of a rich portfolio of pay-for-enhancement options and services offered to passengers. Following the client’s lead, most US carriers have implemented similar fees, resulting in an accretive revenue stream of more than $1 billion for the industry overall.

In addition to baggage fees, carriers around the world are sitting on a wealth of ancillary revenue streams that remain untapped. Next generation in-flight entertainment and productivity offerings, airport services, and flight-customisation opportunities are only a few of the ways that tomorrow’s leading carriers will drive high-margin revenue streams while providing a better-tailored travel experience.

L.E.K. Consulting

John Thomas
j.thomas@lek.com

Dan McKone
d.mckone@lek.com

www.lek.com

 
 
 
Rapid solutions through co-operative partnerships
Lomma GmbH
With global air traffic on the rise, the demand for modern equipment is growing. Lomma GmbH, based in Saxony, Germany, constructs and produces innovative ground support equipment for the aviation sector.

From baggage carts to container dollies and passenger stairs, the equipment is developed in close co-operation with Lomma customers and produced by Lomma GmbH itself, adhering to a high standard of quality. As a result, the company has established its reputation as a reliable developer and manufacturer of ground support equipment.

Lomma’s newest offering was developed in partnership with the ground handling agents and security organisations at Nuremberg Airport. To be released in January 2009, the lockable, safe, robust and easy-to-use baggage cart, optimised for serial production, complies with the tighter security regulations regarding checked luggage. Once the luggage is checked, the new baggage cart, with its specially designed locking mechanism, can be safely stored and transported without risk of unauthorised access to the contents.  

Lomma GmbH became an IATA Strategic Partner in September 2008.

L.E.K. Consulting

Frank Schleicher
Frank.schleicher@lomma.de

www.lomma.de/en/

 
 
 
Efficient approach to increased credit card security
Lufthansa Systems
In June 2008, the airline industry reached the target set by IATA’s Simplifying the Business (StB) initiative and moved to 100% electronic ticketing. Due to the increased use of credit cards, security regulations have become an even more important issue for the airline industry. Whether a card is used to book a flight, at the self-service check-in or for mileage credit in a customer loyalty program, its security must be safeguarded at all times. To address this concern, Lufthansa Systems introduced a new approach for the improvement of credit card payment security at the recent IATA Air Transport IT Summit in Las Vegas.

The increasing abuse of credit card data has prompted major credit card companies to introduce the Payment Card Industry Data Security Standard (PCI DSS) for the processing of credit card data. Failure to comply with these rules can result in heavy monetary fines or even exclusion from credit card transactions. The regulation catalogue of the PCI Security Standards Council contains around 380 detailed requirements, which must be followed when using card data. Since these requirements apply to all payment, data transfer and data storage processes, making a company PCI-compliant requires a considerable investment of time, effort and money.

Lufthansa Systems joined the international PCI Security Standards Council in order to help promote the security of these credit card transactions. With its innovative approach, the IT company facilitates easily implemented PCI DSS compliance. This new solution has been certified by the independent auditing company SRC to comply with VISA’s latest Payment Applications Best Practices (PABP) standard.

L.E.K. Consulting

Sandra Hammer
publicrelations@lhsystems.com

www.lhsystems.com

 
 
 
Working on combined ground handling and security services with SITA and IATA
Swissport
Operating in over 40 countries, Swissport is a globally recognised ground services provider.

Combining ground handling and security services means simpler structures and processes, and synergic benefits. In addition to the resulting decrease in costs for airlines, travellers enjoy shorter waits and Swissport’s employees gain a more varied work profile.

Ground handling and security services can be combined in any number of ways, depending on specific local requirements and infrastructural possibilities. For a US carrier, for instance, Swissport can provide check-in staff fully trained in both passenger handling and security procedures. These personnel can not only check the traveller in; they can also perform the requisite security profiling using specially developed technology. 

For a hub carrier with common check-in for all its flights, an arrangement can be adopted where check-in is conducted as usual; however, the process of recording Advance Passenger Information System (APIS) and APISplus data for travellers to the US (with a document check, too, if desired) is performed at some point in the check-in queuing area, possibly using Swissport’s own technology. This enables check-in agents to focus on their core competence, accelerating individual processes. It also prevents US travellers “blocking up” check-in at certain times, where they are delayed while the required APIS data is obtained.

Swissport and Checkport’s know-how and experience are also being supplemented more and more by technologies developed in-house. At the same time, Swissport is working in partnership with SITA and IATA to introduce automated checks for entry regulations, to extend these to passengers using self-service check-in and overall to reduce the risk of non-compliance fines.

L.E.K. Consulting

Louis Seliner
louis.seliner@swissport.com

www.swissport.com

 
 
 
Simplifying the Business (StB)
IATA Board reaffirms commitment to StB, sets aggressive targets
At its December 2008 meeting, the IATA Board of Governors mandated an increase in Simplifying the Business (StB) activities that has the potential to save the industry up to US$14 billion every year.

“Our mission—to change the way the air transport industry operates by lowering costs and improving service—is now more relevant than ever,” said Philippe Bruyère, StB Programme Director. “We are very pleased that the board has given StB a clear mandate to deliver the change the industry needs during this crisis.”

2008: All targets exceeded
The programme surpassed all 2008 board targets:

Project Target Status as of December 31
e-Ticketing (ET) 100% ET on June 1 Complete
Bar-Coded Boarding
Passes (BCBP)
200 capable airlines 204 capable airlines
Common Use
Self-Service (CUSS)
130 capable airports 135 capable airports
Fast Travel 12 pilots 16 pilots
Baggage Improvement Programme (BIP) Launch at 6 airlines
and 6 airports
Launched at 9 airlines
and 9 airports
IATA e-freight 14 live locations 18 live locations

The programme’s success is due to the global network of StB champions in airlines and airports, industry experts, IATA staff and the StB Preferred Partners programme. “Companies who supply the products and services necessary to drive industry change are critical to StB’s success,” adds Philippe Bruyère. “On behalf of the StB global team, I would like to sincerely thank all our Preferred Partners and I look forward to continuing our relationship in 2009.”

This year offers even more business opportunities for StB Preferred Partners. These challenging targets mean exposure to an increasing number of industry decision-makers. As with any powerful partnership, with this opportunity also comes a joint responsibility: to shape future industry standards and support the industry’s efforts to meet IATA Board targets.

2009 priorities
Current usage of Bar-Coded Boarding Passes (BCBP) stands at 40%. The target for the end of 2009 is 60%, on the way to IATA’s 100% mandate for 2010. IATA will mobilise more than two hundred airlines operating at more than 1800 airports in order to achieve this target. BCBP will save the industry up to US$1.5 billion every year.
The Baggage Improvement Programme (BIP) is now providing baggage solutions to the industry, which when implemented will cut mishandling in half by 2012. This will save up to US$1.9 billion every year. BIP will be delivered at the top two hundred airports that feature in 85% of all passenger mishandling claims. The BIP team will directly engage 20 airports in 2009, analysing baggage issues and recommending solutions.
The revised IATA e-freight business case demonstrates annual savings to the air cargo industry of up to US$4.9 billion. IATA’s 2009 e-freight targets will expand the e-freight product and adoption. Targets include:
  Five more locations, 14 more airports to become e-freight live
  Three more documents to be replaced by electronic messaging standards, bringing the total to 16
  Increased participation of the air cargo supply chain at existing locations through the use of the IATA e-freight Handbook
The StB vision for Common Use Self-Service (CUSS) has been delivered. Kiosks now have a 40% market penetration in the US and Europe, and 30% worldwide. StB believes that CUSS is now mature, delivering US$1 billion in annual savings to the industry. While StB will continue to support CUSS implementation where it makes business sense for airlines, there will be no further CUSS targets. CUSS Preferred Partners are now part of the Fast Travel Preferred Partners programme.
Four Fast Travel projects will move forward: bags ready-to-go, document scanning, self-boarding and bag recovery. These four projects can save the industry up to US$1.6 billion each year. Implementation targets for each of the four projects have been set:
  Bags ready-to-go: 10 airlines capable, two in a shared environment
  Document scanning: 75 CUSS sites offering self-scanning capability
  Self-boarding: 10 airlines capable, one with automated ID checks required by international travel
  Bag recovery: 10 airlines capable, two in a shared environment

As a result of the 2009 implementations, IATA will identify and develop relevant standards in each of the four areas, paving the way for industry-wide adoption. StB will continue to monitor the areas of check-in and flight re-booking in 2009.

The 2009 StB workshop schedule is now available online. These workshops provide a great opportunity to network with industry decision-makers. The first half of 2009 will feature BCBP and BIP workshops. IATA e-freight workshops are also planned this year. Workshop attendance is free for all StB Preferred Partners.

For more information on Simplifying the Business, please visit the StB homepage at www.iata.org/stbsupportportal.

 
 
 

IATA Conferences and Exhibitions


IATA conferences, exhibitions and industry meetings provide outstanding networking opportunities as well as an association with the IATA brand, a world-class global endorsement. These events cover areas as diverse as pricing, ground handling, legal, fuel, etc., benefiting airlines, travel and cargo professionals as well as service providers and governments.

Featured upcoming events:
  Aviation and Environment Summit 31 Mar -1 Apr 2009
  IATA Ground Operations Symposium 2009  17-20 May 2009
  Other events

Sponsoring and exhibiting at IATA Conferences and Events provides an ideal opportunity to present your products and services to a focused and targeted audience. For more information, please contact:

Philippe Guertin
Manager, Sales
Tel.: +1 514 874 0202, ext. 3495

 
 
 
New Strategic Partners


Since 1990, IATA Strategic Partners have been contributing to IATA and the air transport industry through their involvement in Strategic Partnerships programme. 

We are happy to introduce the following new Strategic Partners. Please click on the company logos to visit the respective web sites.

Airbiz   AMAS Al-Masarat Airport Solutions   Atos Worldline
Airbiz
  AMAS Al-Masarat
Airport Solutions
  Atos Worldline
Arman Parineh Print   Avery Dennison RFID   Cognizant Technology Solutions
Arman Parineh Print
  Avery Dennison
RFID Airport Solutions
  Cognizant
Technology Solutions
CP Conseils Aéronautique   Flight Focus Pte Ltd   Gita Aviation (Changzhou) Co. Ltd.
CP Conseils Aéronautique
  Flight Focus Pte Ltd
  Gita Aviation
(Changzhou) Co. Ltd.
GlobeFuel Systems & Services GmbH   Guarantee Trust Bank Plc   HDT Hochdrucktechnik GmbH
GlobeFuel Systems & Services GmbH
  Guarantee Trust Bank Plc
  HDT Hochdrucktechnik GmbH
Hudson Capital Energy, LLC   Micro Motion Inc   Platts
Hudson Capital Energy, LLC
  Micro Motion Inc
  Platts
RM-Group A/S   Sofrigam   Vanguard ID Systems
RM-Group A/S
  Sofrigam
  Vanguard ID Systems

For a complete list of Strategic Partners, and to learn more about what they offer, please visit our online directory at www.iata.org/sp/partners.

 




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Automatic Identification Standards (AIS)
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Partners' Corner
AvGroup – Simple, secure and effective revenue recovery
L.E.K. Consulting –Driving aviation industry growth through non-ticket product offerings
Lomma GmbH – Rapid solutions through co-operative partnerships
Lufthansa Systems – Efficient approach to increased credit card security
Swissport – Working on combined ground handling and security services with SITA and IATA
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