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International Air Transport Association
The newsletter for Airline Treasuries - July 2013 Edition
In the news

3 new airlines joined IATA’s Currency Clearance Service (ICCS) in May 2013: Seaborne Airlines, Utair Ukraine Airlines and Asky Airlines Click to view full list of members

QAR: New freely convertible Currency for your ICCS Operations: As of August 1st, IATA-ICCS will be handling the QAR (Qatari Riyal) as a fully convertible currency.Click to view in full the new ICCS FX polic

 

ICCS Webinar August 15th 2013: In this online User Training Session, ICCS members will get an overview of ICCS procedures (cycles, calendars, FX policy), information on the ICCS regular and accelerated platforms and a training on the Citidirect Information & Netting Website (e.g. netting reports, current & previous cycles, inputting transactions/instructions, view transactions). It is an ideal opportunity for any new airline staff dealing with ICCS or as a refresher for existing staff. Contact Lamyaa Khattabi at khattabil@iata.org for more details.

IATA featuring new Airline Card Payment Workshops: Industry sources estimate that about 4% of airlines' revenues are now lost every year through a variety of gaps that can occur in ticket distribution, sales and payment operations. Credit card acceptance plays a large part. Up to 50% of credit card chargebacks could be successfully challenged by airlines and translate into recovered revenue.

IATA, in partnership with Sutherland Global Services, is preparing a series of Regional Workshops to provide airlines with a review of the most stringent business issues to be considered when developing payment strategies.

The goal of the Regional Workshops is to raise awareness about the opportunities and risks in the fast-growing credit card payment channels while discussing how to maximize the opportunities and limit the risks. The Workshops allow participants to learn about existing solutions for airlines to prevent credit card fraud while growing sales, regardless of the various payment methods used while maximizing customer satisfaction.

The Workshops target Directors of Revenue Accounting and Managers in Finance, e-Commerce, Marketing, Back Office and Commercial from all regions’ interested airlines.Relevant details on the Regional Workshops coming up soon – Stay tuned!

In the meantime, for questions, suggestions or comments, please contact us at revassure@iata.org or visit us at www.iata.org/revassure

Market Corner   Airline Corner

TIS (by Heidi, TIS)

TIS (Treasury Intelligence Solutions): Your First Class Upgrade For Corporate Payments

With SEPA (Single European Payment Area) around the corner, many treasurers are still unaware of the challenges but also the chances that come with the mandatory format migration, which has been set for February 2014 by the European Central Bank. With less than a year to go, many corporates have been using the pressure of being SEPA compliant to also optimize, standardize and automate processes in finance.

This perfectly fits the trend as many treasurer’s responsibilities are currently broadening, with the need to collaborate cross functionally and maintain close partnerships with the Shared Service Centers (SSCs).


TIS (Treasury Intelligence Solutions) is well aware of current challenges and has set the mark in meeting the needs of CFOs and treasurers with its new standard in corporate payments. TIS’s expert management team includes current CEO Joerg Wiemer, who formerly headed the Global Treasury at SAP and whose first-hand experience has been the driver in providing a first class Software-as-a-Service payment solution. With TIS, all mission-critical processes can be integrated into a single, multi-bank capable, audit-proof cloud platform offering complete visibility and consolidated control.  The “on-demand” solution provides the user with a comprehensive library of payment formats, bank channel communication and full integration with SAP ERP or any existing system.

With better business results through cash flow analysis , better working capital management and long term sustainable savings, TIS is a valuable option for companies looking for an answer in rapidly becoming SEPA compliant, or who are simply looking for a secure, web-based payment solution to address operational efficiency as a priority, while avoiding complex, cost intensive, IT projects. TIS is ISO 27001 and SAP certified.

For more information visit www.tis.biz  and register for one of the upcoming TIS webinars that will begin  mid July 2013.

Special announcement – IATA TREASURY DAY OCTOBER 8th (pm) – 9th, 2013:
Save the date!

The IATA Treasury Day concept is new for 2013 and replaces this year the annual IATA Treasury Conference. IATA is planning a larger Financial Conference that will be launched in September 2014.

This year’s condensed version of the Treasury Conference offers a very time effective alternative for busy Treasury professionals while guaranteeing a content rich day covering numerous topics and delivered by a variety of experienced speakers including: IATA’s Chief Economist, a top Treasury Consulting firm, 2 of the top global banks in the world, airline speakers and more…

Program At A Glance - click for more details

The event is open to all IATA Member airlines. If you wish to register for this complementary event, please contact Lamyâa Khattabi at khattabil@iata.org

There are three preferred hotels located near the Geneva Airport and IATA offices where delegates can book their hotel reservations if needed: Hotel Starling, Hotel Movenpick and Hotel NH Geneva. Please contact us for more details.

Stay up to date on Treasury matters and bring value to your airline! Don’t miss this opportunity to get updated, network and exchange ideas on best practices with Airline treasury professionals and other Treasury experts from around the world.

Insight on ICCS
FAQs   Know your service   Tip of the month
Is there an alternative to joining the BSP network for smaller airlines to clear through ICCS?
How are the bank accounts for members identified in ICCS?
Can I receive funds on the BSP/CASS Settlement date indicated on the ICCS calendar?
 

Receive your funds where you want and when you want. Check out the requirements!

  View the users your airline has set-up for ICCS activities and their authorized activities
   
Currency coordination news
IATA ICWG Meeting July 3rd 2013: ICWG held its second meeting of 2013 by conference call on July 3rd. The work plan outline was reviewed along with the top countries of concern: Venezuela, Algeria, Sudan, Argentina and Egypt. For more details on the outcome of this meeting, please contact; khattabil@iata.org

Highlights of June/July:

Cyprus:  IATA received the final decision from the Central Bank of Cyprus in relation to its earlier request for the release of the funds blocked relating to BSP Billing period February P2 (16th-26th of February). The IATA BSP office sent a communication to all airlines concerned in this regard; please contact the BSP Cyprus directly for details. IATA will send further details on the release of funds shortly.

Egypt: The political and economic climate in Egypt is not improving and international repatriations are disturbed by the lack of foreign exchange. IATA-ICCS is still available for BSP Egypt sales for exiting users and clears the prorata amount of the total funds received from the IATA clearing bank in Egypt. Thismay lead to a partial settlement of a particular sales period total. IATAis not in a position to guarantee or estimate how long it will take to clear any outstanding EGP balances we hold in Egypt.

In this regard, we strongly encourage Members to review their local cash flow situation and related options. Although IATA is not suspending the ICCS services in Egypt for the moment, each airline Member should consider whether they have any other use for their EGP balances locally, or finding any other FX sources directly. If you conclude that stopping ICCS in Egypt would be beneficial, please contact ICCS and we will process the stop of ICCS in Egypt quickly. ICCS can be resumed at a later stage if required.

Emerging Markets Highlights*:

Ghana: The depreciating trend to the cedi, in place since early this year, appeared to take a slight turn for the worse at the end of July as it fell a net 1.0% to a new record low of 2.09 per U.S. dollar. The cedi has now dropped 8.9% since the beginning of 2013.

Egypt: Local Egyptian news media quoted the central bank governor as stating that foreign exchange reserves had surged to over US$20 billion following infusions of aid from Kuwait, Saudi Arabia and the United Arab Emirates (UAE). ). If accurate this would represent an increase of over US$5 billion from the level prevailing at the end of June (US$14.92 billion) and the highest level since November 2011. Together, the three countries have pledged to place US$6 billion in deposit at the central bank (in effect, loans), outright grants of US$3 billion and oil products of US$3 billion.

Kazakhstan: The last few weeks have seen a distinct increase in the rate of depreciation of the tenge. The 1% depreciation so far in July – to a record low of 153.33 per U.S. dollar -- compares with a monthly average of just 0.13% over the prior twelve months. On July 25th, on its website, the central bank
noted that it would continue with its current policy of smoothing “sharp fluctuations of the tenge without influencing the general trend” – in other words, it will not stand in the way of a further gradual depreciation. The central bank’s international reserves fell US$2.3 billion in June to a 42-month low of US$26.1 billion.

* source: Citi

For suggestions or comments for future editions please contact:

Lamyaa Khattabi,
Manager, Industry Cash Management Services
IATA Financial

Email: khattabil@iata.org

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