FinAC News is a communication tool created to keep members of the Industry Financial Advisory Council (FinAC) and their Working Groups up to date with the latest news and achievements, and for them to keep an eye on the status of the actions agreed during the various meetings.
This is a private page, dedicated to FinAC and FinAC Working Groups members. Please do not share the link to this page beyond this group of people.
FinAC News is live!
Welcome to FinAC News, a brand new communication tool created to keep members of the Industry Financial Advisory Council (FinAC) and their Working Groups up to date with the latest news and achievements, and for them to keep an eye on the status of the actions agreed during the various meetings.
The page will be updated on a regular basis, so please add it to your favourites and go back to it any time you want!
And if you have any suggestions on how we can improve it or what kind of information you want to see in it, please let us know by clicking on the "Contact us" button on the top right hand side of this page.
Distribution Risk Community Bulletin
The first Bulletin of the IATA Distribution Risk Community was distributed to its members on 7 November 2019.
You can access the IATA Distribution Risk Community Bulletin here.
Industry Webinar - IFRS 16 Key Implementation Issues
IATA is launching a series of webcasts to help the airline finance community navigate in the variety and complexity of the topics int the areas of Finance and Distribution. Industry Accounting, Payment and SIS features are just some of the topics that will be addressed. Delivered by IATA and IATA Finance (FinAC) Working Groups members, the webinars are informative sessions from the industry to the industry and are open to anyone interested. Don't hesitate to sign up and spread the word with your airline contacts!
The upcoming webinar(s):
Key implementation issues related to the new accounting standard on leases: International Financial Reporting Standards 16 (IFRS 16) will be explained and illustrated.
Target audience for this session are finance or operational professionals that has a need to understand the implications of the new accounting standard on leases.
Objectives of the webcast:
• How to account for major maintenance on lease
• Auto-renewal leases
• Interaction of lease terms and lease improvements useful lives
• Treatment of Valued Added Tax in a lease agreement
Webcast Date: 13 November 2019
Time: 09:00 to 10:00 am CET OR 15:00 to 16:00
The Webinar will be delivered by two members of the Industry Accounting Working Group, namely Sean Penning (CX - for the AM session) and John Vierdag (KLM - for the PM session).
You may download the IATA Industry Accounting Working Group Guidance IFRS 16, Leases prior to the session.
Future of Financial Services Forum
Last 24 September, the Financial Services Development Working Group
, also known as FinDev, organized the Future of Financial Services Forum to engage with the wider airline financial community that were present at the WFS. The Forum, which was attended by about 30 airline representatives, presented FinDev’s role, its areas of activities, and its main achievements over the last five years. Comprised of 12 airline members, FinDev acts as an advisor to the Industry Financial Advisory Council (FinAC) on matters related to the strategy of the industry financial services and settlement systems, as well as on standards supporting airlines’ financial processes.
The Forum gave an overview of FinDev’s main achievements since the group’s creation in 2014. This includes the back-office simplification project, ONE Order
, and the Cargo Billing Solution project to name a few. All of these have been achieved in consultation with other working groups of industry financial experts (Payment Methods Working Group
, ISS Risk Management Working Group and Industry Taxation Working Group
In addition, the group also did a spotlight on two new technologies which they believe will be beneficial to the airline financial services namely Blockhain, and AI for Risk Management. FinDev believes that Blockchain has the potential to disrupt the current airline financial processes to move to a digital environment that is safer, faster and frictionless.
FinDev also believes that Data Science and Machine Learning have great potential to solve business problems in different areas of our industry. A practical use case was presented where IATA’s Data Science in Aviation Team created a machine learning model to label every BSP card transaction within a country on whether it is an agent or a customer card (Transparency in Payments).
FinDev has been putting a lot effort in communicating with the airline financial community this year to promote and raise awareness on its initiatives and activities . For 2019, the group also conducted webinars on Complex Taxes, Settlement with Orders, and VAT for Ancillaries. Overall, the event has been a success and the group got very encouraging feedback. In fact, some airlines have even raised their interest in joining FinDev.
The First Industry-Owned Travel Tech Accelerator
Accelerate@IATA is the first industry-owned start-up Accelerator. Its objective is to accelerate the adoption of IATA initiatives and to stimulate new entrants in the industry. IATA will facilitate and run the Accelerator, and airline members and value chain partners will join as members of Accelerate@IATA.
The initial focus of Accelerate @ IATA will be air retail, stimulating new entrants to adopt IATA standards in the areas of: Aggregation, Dynamic Offers, Order Management, and Airline Profile.
Accelerate@IATA will accelerate approximately twenty (20) to thirty (30) start-ups per year in three batches, each comprising up to ten start-ups, and having its own acceleration theme. Each acceleration batch will last three months, and have a dynamic curriculum based around IATA expertise, mentorship, and business coaching so that the start-ups can adapt their solution based on industry requirements. The expected outcome of each batch is to establish sustainable solutions from new entrants in the industry and enabling airlines to implement faster industry initiatives.
How does the Accelerator work?
The Accelerator enables a close collaboration with corporate partners (composed of airlines, industry partners and technology companies) and start-ups.
During a 12-month period, the Accelerator will operate up to 3 batches for a period of 2 months each, hosted at the IATA Executive office in Geneva.
Every batch will be divided into four phases:
1. PHASE 1 Start-up sourcing phase, closing with Selection Day
30 start-ups are sourced globally to come and present their solution during Selection Day. A maximum of 10 of them are selected to enter the acceleration program
2. PHASE 2 Acceleration process
3-month program, with one focus week per month where the start-ups receive industry knowledge and expertise from IATA, and coaching and mentorship from IATA, member airlines, and value chain partners
3. PHASE 3 Closing event to present solutions: Demo Day
Event where the accelerated start-ups present their adjusted solutions and pilot or implementation plans with corporate partners.
4. PHASE 4 Pilot phase with airline partners
Airlines and value chain partners willing to participate in the Accelerator program will contribute by paying a fee. The level of this financial contribution depends on their level of involvement. There are two levels of involvement possible for corporate partners: Anchor partners and Ecosystem partners. (See visual about the Accelerator operating structure)
In short, the Accelerator Committee, composed by IATA and Anchor partners, sets the technology and business focus for each of the acceleration batch. They are active decision makers during the entire program through the start-ups' selection process, acceleration involvement, outcome and pilots.
At its January 2020 meeting, the FinAC Steering Group will discuss potential topics to be accelerated in the area of airline finance.
News on the HIPO front!
IATA has launched a new Airline Finance Professionals community on LinkedIn. You are invited to join: bit.ly/iata-community
A space to share insights, discuss industry challenges and learn about best practices for airline financial management. It aims to support airlines in their journey to becoming high performing organizations (HIPO).
2 new courses are now available:
Those of you participating in WFS will be able to learn more at the HIPO booth in the WFS exhibition area!
FinAC SG/ WGs Joint Meeting Follow-Up
On 19 June 2019, the Chairs and Secretaries of the FinAC Working Groups met in Madrid for their yearly gathering. As always, the meeting was lively, with a very high engagement from all participants.
A series of actions were agreed at the meeting. The status of such actions is available here (pdf).
Pay Cargo – Contact Details
During the last meeting of the Financial Committee (FC/120) in April in Singapore, the PayCargo solution, in partnership with IATA, was presented. The solution facilitates the payment of cargo import terminal charges such as documentation, warehousing and other ancillary charges related to the cargo handling at destination.
For any additional information about the PayCargo/IATA Solution, please contact Lionel Van der Walt, CEO at PayCargo.