International Air Transport Association
Partner Brief
Strategic Partnerships Newsletter

40th Issue • Quarter 3, 2011

IATA’s new DG and CEO

Introducing IATA’s new Director General and CEO, Tony Tyler, who assumed the role as of 1 July 2011.

Cooperation and passion is the key

I am very pleased to have this early opportunity to address IATA’s business partners and friends as I take up the post of Director General and CEO. I am passionate about aviation and proud to tell its good story as a means of rallying the industry and governments to deliver positive change.

July and August is holiday time—at least, for those of us in the Northern Hemisphere—and the sight of so many people taking advantage of the opportunities aviation offers always inspires me. The ability to explore the world, renew old family ties and friendships, or cement a crucial business relationship face-to-face is taken for granted as part of the fabric of modern life. But these benefits can only be delivered by a strong and healthy aviation industry. After three decades of experience in aviation, I know that this industry faces many challenges and that its health cannot be taken for granted. We remain in a fragile state.

For example, we expect the industry profit this year will be US$4 billion. On revenues of $600 billion, that’s a margin of 0.7%. We need to do much better. And on safety, which is always our top priority, we still have work to do.

My mission as IATA DG and CEO is to make the world a better place for airlines to do business. And we need to inspire you, our partners, to join with us to strengthen our young and growing industry, which has only just begun to deliver on its potential.

We know that cooperation works. We have seen that with our collective agreement on environmental targets—targets no other global industry has made. We are working together for carbon-neutral growth and to cut our emissions by 50% by 2050. We have turned around a debate that was becoming toxic for our industry by focusing on aviation’s amazing achievements and its incredible potential for the future.

We need to take that collective success forward into other areas, such as security, excessive taxation, and infrastructure improvements. We need greater commercial freedom to create a sustainably profitable industry, and we must focus our energies on improving the passenger experience. The whole value chain must play its part in that journey.

I am hugely optimistic about our industry. I believe we have a tremendous story to tell the world; driving progress and creating both material and spiritual wealth.

Aviation is a force for good, and I look forward to an ever-stronger relationship between IATA and its partners as, united, we deliver value, promote prosperity, and share success.

Tony Tyler CEO

Tony Tyler
IATA Director General and CEO


AUGMENTIQ: 26 Years of Schengen—The beginning of the end?

The year 2011 has borne witness to an unprecedented influx of asylum seekers and illegal immigrants arriving in Southern Europe. This is a result of continuing economic difficulties, coupled with prolonged civil unrest in a number of countries—particularly across North Africa.

Italy, Malta, France, and Spain, together with Greece, already struggling to manage the nation’s debt crisis, have been hit particularly hard and subsequently forced to adopt drastic countermeasures.

Within Europe, “the free movement of persons” is a fundamental right guaranteed by the European Union (EU) to its citizens. This has been achieved by the removal of internal border controls by the 22 EU and 3 non-EU countries, signatories to the Schengen Agreement.

However, in light of the unprecedented numbers of illegal immigrants seeking to gain entry into Europe, the very premise of the Schengen Agreement is now seriously at risk.

Despite overwhelming support from the European Parliament, Bulgaria and Romania’s accession to the Schengen border-free zone, originally scheduled for March 2011, has been indefinitely postponed by European Home Affairs Ministers. In the face of strong opposition, Denmark has temporarily reinstated internal border controls. And an intense diplomatic debate followed France’s decision to block trains arriving from Italy in an attempt to stop migrants entering the country.

Over the course of the past few weeks, numerous high-level ministerial meetings have taken place. Member states are demanding that the implementation of effective external-border controls be intensified and the concept of “smart borders” be introduced. A political agreement between the Council and the Parliament has been reached that proposes strengthening the role of the European external-borders agency, Frontex.

The final outcomes of these developments have yet to be determined. However, improvements to the management of the Schengen area are now absolutely critical to protect the fundamental principle of the free movement of persons. Arguably, this principle is one of the most important achievements of European integration.

Putting these developments into context within the aviation industry, Annex 9 to the Chicago Convention (Facilitation)—provides detailed guidance on issues such as: illegal immigration, human trafficking, deportation, inadmissible passengers, document security, and documentation control.

As the situation continues to develop, changes to current operating procedures—particularly new procedures and training programs to enhance the detection of imposters, fake, counterfeit, and stolen passports and visas—will almost certainly be required. Moreover, a deeper understanding of the associated risks and liabilities, together with the countermeasures an airline can deploy to limit exposure, will prove invaluable.

AUGMENTIQ is an independent consultancy practice providing intelligence, training, and strategic advice to organizations concerned with aviation security and border control.

Matthew Finn



Everbread Ltd.: Shopping engine enables flexible airfare distribution

Full-service airlines and low-cost carriers have been constantly improving their distribution models. While focusing on reaching an ever larger number of consumers, they are attempting to keep distribution costs at bay.

Some of the initiatives in the industry have been successful—bringing consumers to and selective promotions in social networks are good examples. Others—e-mail marketing and banner ads—have not been. At the same time, online shopping has advanced through intermediaries, pushing the total cost of distribution up.

Technology is getting cheaper and cheaper and so should distribution, innovation, and, consequently, shopping. Everbread’s vision is to reduce the transaction cost significantly—shopping recommendations should be targeted and available, as books are on Parties in the industry should not be concerned with capacity limitation and cost. Cache, stored results from previous flight searches which give outdated information, should be a thing of the past.

Everbread’s shopping engine provides a distribution model, giving airlines the freedom they need when working with travel intermediaries by unbundling the search from bookings. After searching for flights, it is possible to transfer to any booking environment, be that the host system of the airline or a select global distribution system (GDS). It facilitates a closer relationship between carriers and their content distributors by enabling transaction fulfillment in the preferred, agreed channel—via a GDS or a direct connect through a preferred third party.

To allow better control of content, Everbread works with airlines to collect availability data. It then distributes to its agency community only the inventory that the airline intends the customer to see, further fine-tuning the relationship between carriers and travel intermediaries.

Everbread focuses on delivering a flexible distribution platform, which curbs costs and supports carrier distribution strategies in an online shopping world.

Filip Filipov



Hexaware Technologies Ltd.: Ancillary revenue management made easy

The need for automation is no longer limited to passenger experience. The initiative implemented by IATA toward non-ticket services will not only lead to a paper-free environment, but also provide opportunities for improved accountability and up-selling capabilities. These changes are estimated to result in US$2–3 billion in industry savings.

Hexaware has extensive experience running offshore and on-site application development and maintenance centers for leading global carriers. This experience has lead to a new offering under the IATA Electronic Miscellaneous Document (EMD) standard: a one-stop solution for managing and automating miscellaneous order coupons.

This plug-and-play solution ensures up-selling capabilities and fulfillment through all channels to ground handlers via integrated messaging. Hexaware’s solution seamlessly integrates with technology to support business needs and allows users the flexibility to support future ancillary revenue streams. The solution can be customized per business requirements, and Hexaware ensures support, scalability, and monitoring of any revenue leakages.

The Hexaware solution provides many benefits for airlines, air travelers, and travel management companies:

  • Increased savings
  • Better tracking of ancillary revenue
  • Readiness and opportunities for future services
  • More flexibility for passengers Hexaware's innovative domain-knowledge management methodology and proven expertise provide all the essential elements required to execute turnkey and mission-critical projects.

Vaibhav Sharma


ISO Software Systeme GmbH: Billing solutions simplify IATA’s new SIS miscellaneous-billing process

Most affected by IATA’s Simplified Interline Settlement (SIS) is miscellaneous billing. Significant changes mean that airlines have to re-engineer their current processes in order to adapt to IATA’s SIS. The main challenge, besides a new file format, is to make the switch from fully paper-based to fully paperless handling. It is also a matter of applying an elaborate structure of charge categories and codes to a previously unstructured process.

With knowledge and experience accrued over the last 25 years in the airport/ground-handling billing environment, ISO is prepared to support airlines in these changing times. ISO has developed an SIS-compliant solution that meets airlines’ various requirements and is as extensive as their needs. More than 30 clients worldwide already rely on ISO’s aeronautical billing solutions.

Made in Germany, ISO’s billing solutions come in different “sizes.” The smallest solution is the IS-XML adapter, which can be interfaced with existing decentralized process modules. The largest is a sophisticated rule-based auto-pricing option that enables the highest possible automation.

ISO’s solutions easily adapt to existing processes, thereby facilitating the consolidation of all data sources.

Katharina Pfeiffer


Kewill: Meeting multinational customs challenges

Comprehensive regulatory requirements enforce the worldwide level of security through consistent supply chains and transparent risk analysis. However, for businesses, these frequently changing policies are very time-consuming and cost-intensive. Furthermore, the respective policies vary from country to country. As a leading provider of global trade and logistics software, Kewill supports customers in managing regulations in a fully electronic and time-saving way.

With more than 35 years of experience in global trade management and logistics, Kewill offers a wide range of software solutions that meet the individual needs of distributors, retailers, freight forwarders, and transport companies.

As of 1 January 2011, companies have to follow the Import Control System (ICS). This means submitting an Entry Summary Declaration (ENS) for goods transported into the European Union (EU) from a non-EU country. The EU does not offer a central ICS solution to be used by the involved parties—but Kewill does. Airports as important trading centers also have to solve several transport challenges—such as the Automated Export System (AES). It is mandatory to use the AES for the electronic export declaration.

With its comprehensive software solutions, Kewill enables customers to exchange the required data in real time with local customs authorities in multiple countries and to comply with new regulations. Kewill’s solutions are, for instance, in line with the ICS, the Excise Movement and Control System (EMCS), the Export Control System (ECS), and the New Computerized Transit System (NCTS). Further individual functionalities and customs solutions as well as logistics software complete Kewill’s portfolio.

To get an idea of the opportunities and challenges of customs requirements, customers and interested parties are cordially invited to visit Kewill’s 3rd Customs and Logistics Forum, taking place on 22 November 2011 at the Sheraton Airport Hotel in Frankfurt/Main, Germany. Top-class speakers, including delegates from the European Commission, will provide further information on the latest trends and developments.

Julia Niepelt



SITA: Cloud computing in air transport—a new dawn in operational flexibility?

Cloud computing offers the vision of infinite computing resources available on demand, with the elimination of upfront commitment from users and payment for only the computing resources used. But how can air transport benefit without compromising on its stringent security and reliability needs?

SITA has launched a community cloud tailored to meet accepted standards and practices in the air transport industry (ATI). It is a network-centric cloud based on the existing global ATI network backbone that connects 90% of international airlines to 17,000 sites and over 320 airports across the globe.

The ATI Cloud delivers value in four ways:

Agility: Access to unlimited IT resources on-demand and an extensive catalogue of industry applications allows deployment of new products and services into the marketplace in less time and with lower risk.

Consistency: A response time of no more than 100 milliseconds gives an outstanding end-user experience through any device, in any location, worldwide.

Integration: With so many sites and industry applications already pre-connected in the ATI Cloud, migration or integration with existing environments, whether legacy or a private cloud, is easy and risk-free.

Compliance: Compliance with regulatory and industry standards comes built in. Network security meets industry requirements while customers can choose the location where their data is stored.

Furthermore, the ATI Cloud will facilitate a new wave of innovation through faster development and deployment times for new products and services.

Quentin Browell



SmarttPapers: Making the paperless cabin a reality for airlines worldwide

On 31 July 2010, Singapore Airlines (SIA) launched the world’s first electronic magazine rack on its inflight entertainment system (IFE) for its three inflight magazines. This was followed by an additional 20 international magazine titles on 6 May 2011. The significance of these events? The paperless cabin is within reach.

According to FIPP, the worldwide magazine media association, airlines can save US$440,000 a year for every 11.5 kilograms of paper weight eliminated from the aircraft (1.15 tons saves $44 million). Given that a plane normally carries more than 1 ton of print publications, going paperless translates into millions in savings.

SIA remains the most awarded airline in the world in 2010 and is now an industry leader in reducing the amount of paper in cabins. With this move to the paperless cabin, onboard print magazines, newspapers, books, and meal menus become digital and super compressed. Exact replicas of these prints can be read directly on the IFE video panel in the highest resolution.

The airline launched this paperless cabin initiative in partnership with SmarttPapers. The SmarttPapers application grew out of extensive research on fuel saving and cabin management, as well as market trends.

The solution uses patented file-compression technology to compress and transform magazine and newspaper content into a digital format for integration into the IFE. A page in a PDF file is usually 3 to 20 megabytes in size. However, when that page is transformed and compressed with SmarttPapers, it is reduced to 100 to 200 kilobytes.

This compression is a paradigm shift. The whole process uses powerful custom-made technology that behaves like a supercomputer to execute the transformation and compression process. Transformation also means contents can be easily searched.

Without any additional hardware required, the existing IFE is optimized for long-term value for the airline and its passengers. And the benefits extend beyond the cabin. Publishers can immediately widen their readership base to millions of airline passengers in a very short time.

Doris Chin
Winston Wei



Simplifying the Business

With a proven methodology in place, the Simplifying the Business (StB) program has come far since 2004. Now it is a matter of building on the success of the program and the completed projects. At the June 2011 Board meeting, IATA proposed to identify new opportunities for addressing current and future industry needs.

The StB Think Tank was established in 2010 to play a key role in the renewal of the program. This advisory group includes airline and non-airline representatives and meets regularly to discuss the latest trends, challenges, possible solutions, and opportunities. The group will consider new potential StB projects in the second half of 2011.

The current projects are still moving forward. IATA’s new project, Checkpoint of the Future (CoF), was showcased in Singapore at the 2011 Annual General Meeting (AGM) held this past June. Participants had the opportunity to walk through the different CoF screenings and experience the future of air travel.

For the Fast Travel Program, SAS became the first airline to offer all five Fast Travel projects at a single airport—Copenhagen Airport—which earned them the Fast Travel gold award at the AGM in Singapore.

For e-services, the Board decided to redefine the scope of the project. IATA e-services cover all airlines currently selling or planning to sell electronic miscellaneous documents (EMDs) via global distribution systems (GDSs) and settle via the IATA Billing and Settlement Plan (BSP). Based on this approach, IATA will run a campaign this summer to review airlines currently included in the scope. The results will be shared at the Board meeting in December 2011.

The targets agreed on by the Board are to have six live GDSs and 40 EMD-capable airlines in 2011. The target of industry capability is set for the end of 2012 and 100% EMD usage in BSPs by the end of 2013.

Furthermore, airline CEOs at the AGM endorsed the e-freight project targets. They also agreed to increase their individual airline performance and work with industry stakeholders toward faster adoption. Some significant roadblocks remain, including regulatory and customs issues, and the industry’s technological readiness to adopt paperless business processes across the entire supply chain.

Airlines, forwarders, shippers, and ground handlers need to collaborate and receive full support from regulatory and customs authorities for the 100% e-freight vision to be realized.

Stay up-to-date by visiting Simplifying the Business.


IATA Conferences and Events

IATA conferences, exhibitions, and industry meetings provide outstanding networking opportunities in addition to an association with the IATA brand, a world-class global endorsement. These events cover areas as diverse as pricing, ground handling, legal issues, fuel, and security, among others, which benefit airlines, airports, travel and cargo professionals, as well as service providers, and governments.

Featured events

45th Revenue Accounting Meeting
13–15 September 2011 — Miami, US
The annual Revenue Accounting Meeting is the venue where decisions are made regarding the rules and procedures published in the Revenue Accounting Manual. With Simplified Interline Settlement (SIS) and the migration to electronic billing starting this September, this edition is not to be missed.

AVSEC World 2011
4–6 October 2011 — Amsterdam, Netherlands
With the theme “Securing the Future,” IATA’s premier annual aviation security and facilitation conference will celebrate its 20th edition. AVSEC World gathers global leaders and senior decision makers to discuss strategies and solution-seeking opportunities for the Aviation industry. Amsterdam is hosting the event for the first time.

World Passenger Symposium 2011
10–14 October 2011 — Singapore
The first ever IATA World Passenger Symposium will explore the theme “Preparing for Tomorrow’s Passenger.” Our goal is to achieve sustainable profitability and simplify the customer experience.

6th IATA Clearing House (ICH) User Group Meeting
18–20 October 2011 — Madrid, Spain
This year, with the implementation of the long-planned move toward Simplified Interline Settlement (SIS), attendance to this event is particularly crucial. Passenger and miscellaneous billings are going electronic in September 2011, followed by cargo and UATP billings in April 2012. This event will prepare for the transition to the new process.

IATA Treasury Conference
18–20 October 2011 — Singapore
The IATA Treasury Conference is a unique event dedicated to treasury and cash management in the air transport industry. This industry-specific event is an ideal forum for cross-fertilization of ideas, best-practice discussions, professional development topics, and close interaction with selectively invited exhibitors.

7th IATA Maintenance Cost Conference (MCC)
19–21 October 2011 — Singapore
The Maintenance Cost Conference is MCTF’s annual event for airlines, original equipment manufacturers (OEMs), and maintenance, repair, and overhaul (MRO) companies. It allows them to discuss the latest trends of aircraft maintenance and share best practices of maintenance cost management. This year’s conference will focus on maintenance costs as they relate to aircraft leasing and the maintenance supply chain.

IATA Cargo and Mail Supply Chain Security Forum
25–26 October 2011 — Geneva, Switzerland
The air cargo and mail industry has an excellent track record of supply-chain security. However, in the wake of incidents in October 2010, regulators and industry are seeking ways to strengthen security even further.

IATA Global Aviation Human Capital Summit
2–4 November 2011 — Singapore
The air transport industry is flying through turbulent times, increasing the difficulty meeting people requirements specific to commercial aviation. IATA’s first annual Global Aviation Human Capital Summit provides a unique forum to discuss challenges, explore synergies, and identify solutions.

Aviation Fuel Forum
15–17 November 2011 — Paris, France
The IATA Aviation Fuel Forum is the premier industry meeting for the world’s aviation-fuel community. The Forum is a unique platform allowing airline representatives, fuel suppliers, and Strategic Partners to discuss industry priorities and agree on actions that enhance efficiency and productivity.

129th Slot Conference
17–19 November 2011 — Singapore
With nearly 1000 delegates from over 200 airlines and representatives of over 60 schedules-facilitated or fully coordinated airports, this semi-annual meeting is IATA’s largest event. The goal of this “working” conference is for airlines and airports to obtain the slots that will give them the best possible schedule to offer their customers.

Watch for upcoming events!

World Cargo Symposium
13–15 March 2012
Kuala Lumpur, Malaysia

Wings of Change V11
28–30 March 2012
Santiago, Chile

Visit IATA Events regularly for an updated list of all upcoming events.

Michael Huntington
Manager, IATA Conferences and Events
Tel: +1 450 715 1313


New Strategic Partners

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

We are happy to introduce the following new Strategic Partners.
Access the company websites directly by clicking on their logos.

Adani Aerofuels
AOptix ACG
Charles River citi
Conoil Gael
IAI Puma Energy
Seabury SmarttPapers
Terkom Universal Weather

For a complete list of Strategic Partners, and to learn more about what they offer, please visit our online directory

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