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Highlights from the 196th IATA Board of Governors

The 196th IATA Board of Governors meeting took place in Geneva 7 December 2012. Following is a summary of the main items addressed by the Board:

Managing your money

The Board noted the strong success of IATA Settlement Systems, which process over US$ 300 billion per year, with 99.98% of BSP funds and 99.99% of CASS funds settled on time. To improve the overall quality, security and integrity of the global ISS system, the ISS is being further strengthened to include:

  • One standard operating process for operations performed at 5 regional hubs
  • One management structure with clear segregation of duties
  • One set of IT systems, with acceleration of automation of R&S process

In addition to managing funds safely, IATA focuses on achieving ISS cost reduction with a goal to reduce the BSP Unit Total Fee by 27% in 2017 versus 2010. As part of that effort, IATA concluded a new 8-year contract for the provision of data processing services provided by Accelya, with overall cost savings of 45% p.a. over the previous contract.

The Board noted IATA’s action to modernize BSP and CASS Agency Programs in light of industry developments, such as new forms of agent payment and support for the New Distribution Capability (NDC) program.

New Distribution Strategy – NDC

The Board is very supportive of the New Distribution Capability (NDC) strategy. It asked IATA to push forward in developing standards that will allow airlines to manage and control directly their full product content, including ancillaries, and tailor it to their customers’ needs through all distribution channels.

Pilots will be launched in 2013 to validate the standards.

Carbon Neutral Growth

The Board reaffirmed its view that carbon-neutral growth from 2020 represents the best and lowest-cost outcome for the industry. It underscored the importance of maintaining a united industry position and urged IATA and its Climate Change Task Force to continue its work to develop a methodology to share the responsibility for growth post 2020.

The Board asked IATA to report back no later than end of March 2013 so that proposals can be shared across the IATA membership before the AGM.

The Board will present a resolution to the AGM in Cape Town with a common position for the industry to use for the 38th ICAO Assembly in October 2013.

IATA’s supervising activities

The IATA budget for 2013 and the Internal Audit plan were approved, as well as the IATA Financial Plan 2013-15, a 3-year outlook setting out initiatives and projects while providing a framework for IATA’s financial performance.

The Board indicated its satisfaction with IATA’s performance in 2012 against the Industry Priorities approved in December 2011. The Board further approved a set of priorities for the IATA management team for 2013. The priorities emphasize the importance of IATA’s advocacy role, with a focus on harmonizing customer protection approaches, to steer governments away from burdensome regulations.

Dealing with the longer term, an IATA strategy review over the next several years has been completed by the Director General. Through this process theIATA Mission and Vision were refreshed.

 

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