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FSSC22 STB Update2

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					                         Report to FSSC:
                               StB Update




Thomas Romig
ACI World Headquarters
                                                        Why Simplify the Business:
                                                                    IATA Point of View



Industry losses concentrated in the US but airlines are only
making modest profits elsewhere and it’s getting worse

     $bn                              Airline profits
     8.0
            8.5        3.7     Global industry profits
     6.0
     4.0
     2.0
     0.0
     -2.0
     -4.0
     -6.0
     -8.0
            Global
    -10.0   industry
    -12.0   losses            -13.0        -11.3         -7.2    -4.8    -6.0
    -14.0
            1999       2000     2001         2002         2003   2004E   2005F


                                      US   Europe        Asia
                                                      Why Simplify the Business:
                                                                    IATA Point of View



Oil prices have now risen above $50. In 2005 fuel likely to be 22% of
operating expenses

                        Oil prices and airlines' fuel bill
    $/b                                                                       % opex
  45                                                                             19

  40                                                                             18
                                                                                 17
  35
                                    Oil price, Brent spot                        16
  30                                (left scale)
                                                                                 15
  25                                                                             14
                                                                                 13
  20                                              Fuel bill
                                                                                 12
                                                  (right scale)
  15                                                                             11
  10                                                                             10
          1994   1996        1998            2000            2002        2004e
            Simplifying the Business:
                                    Five focus areas



•   ET- electronic ticketing
     •   Savings: 90% of ticketing costs = +/- $3 billion
•   CUSS - common use self service
     •   Savings: $2.5 average industry saving per check-in
•   RFID - radio frequency identification for baggage tags
     •   Savings: $100 average cost for mishandled bag
     •   Industry wide: $768 Million per year
•   Bar coded boarding passes
     •   Savings: Significant in facilities and processes
•   IATA e-freight
     •   Savings: $1.2 billion
                        E-Ticket:
               Objectives/Benefits


• Elimination of paper tickets by end 2007
  • 40% of tickets by end 2005 to be ET
  • 70% of tickets by end 2006 to be ET
  • 100% of tickets by end 2007 to be ET



• Reduces ticketing costs
  • Savings up to US$9 per ticket
  • 300 million tickets issued annually
                  E-Ticket:
               Airline Survey




 Full ET Capability            including
                                 interline
                                             Survey of IATA
                             excluding
 Full ET Capability          interline
                                             and non IATA
                                             airlines

                               plan to
 No ET capability          implement

                           including no
 No plans for ET      survey response
                                   E-Ticket:
                             Airline Survey




                                                                 75%
                       53%



10%



                                        5%
      15%                                    7%
                      22%                            13%



      IATA Airlines                               All Airlines
                            CUSS:
                Objectives/Benefits

•   Reduce airline costs and improve customer service via the
    aggressive promotion of CUSS
•   Launch CUSS at 5 additional airports by the end of 2005
•   Develop standards for a single passenger interface and
    ensure implementation


Customer:       Time-saving check-in at airport or
                other locations
Airports:       More efficient use of check-in and
                other facilities
Airlines:       Big savings in terminal facilities,
                systems and manpower
                (US$3.50/check-in)
                          CUSS:
                     Airline Survey




                                          20 airlines
 CUSS-compliant applications
                                      
                                          6% responses

                                          19 airlines
 Non-compliant applications
                                      

                                          7% responses

    Planning CUSS development             20 airlines

                                      

    & implementation                      8% responses

                                          57 airlines
 No plans for CUSS
                                      

                                          22% responses
                              CUSS: Forecast

                  Check-in mode - Forecast 2004 - 2008

1,400,000,000
                 Desk (65%)

1,200,000,000

1,000,000,000

 800,000,000

 600,000,000
                                                                                                CUSS (30%)

                                                                                                 Desk (20%)
 400,000,000

 200,000,000
                  CUSS .05%
          -
                Y2004            Y2005           Y2006             Y2007         Y2008       Y2008 +
                  Full Desk Check-in               Airline Dedicated SS             CUSS
                  Home printed BP - No Baggage     Home printed BP - Baggage

                                                                               Source: Forrester Group
            CUSS: Costs



 Check-in costs - per passenger        US $
Counter/desk full check-in             $4.50
Airline SSCI with bag                  $2.95
CUSS with Bag Drop                     $2.66
Airline SSCI no bag                    $1.60
PAX - Baggage with home BP             $1.50
PAX - no baggage home printed BP       $0.00
                           Source: Forrester Group
                             CUSS:
                         Action Plan


• 10 airports being short-listed using a CUSS Compatibility
  Model – CCM
• 5 Airports to be selected for 2005 implementation
  (minimum)
• Local CUSS user groups
• IATA working with airports via an MoU process
                           CUSS MG:
         Management Group Update


•   CUSS technical specs – V2.0 to be released in 2006
    • Work to be done on the certification and integration issues


•   Development and approval of a “Common Graphic User
    Interface”
    • Allows airlines to develop new applications to a set standard
      interface


•   Proposal: development of a “new standard” using web
    based applications only
                              CUSS MG:
            Management Group Update


•   Creation of a subgroup to work on issues related to kiosks
    usage by PAX with disabilities

    • CA legislation requiring installation of special functions for
      the blind
        •   “Trace” keypads
        •   Voice prompts
    • Costs will be mainly for Airlines through modifications to
      applications – voice prompts


•   ACI, IATA, ATA, to hold a meeting with the action group
    for the blind
                            CUSS MG:
    Common Use Passenger Processing (CUPPS)




Mission:
  “To establish a comprehensive standard for
  common systems, allowing seamless deployment
  and maintenance of applications and use of
  peripheral devices across a variety of providers’
  platforms while developing best practice
  guidelines”
                            CUSS MG:
    Common Use Passenger Processing (CUPPS)


Why CUPPS?
• RP1797 is out of date
• New lower cost business models and technology provide
  opportunities to reduce cost and improve passenger service
• A standard infrastructure interface enables improved
  industry efficiency and effectiveness

Foundational Principles
• A single CUPPS Application will run on all CUPPS platforms
• CUPPS facilitates rather than mandates business processes
• CUPPS platform will have minimum, defined functionality
• CUPPS must be affordable
• CUPPS must be serviceable
                                  CUSS MG:
        Common Use Passenger Processing (CUPPS)




CUPPS Scope:
 Designed for the eTicket and post ATB environment
 CUPPS model includes

    •   Full Self Service (CUSS)
    •   Agent assisted Self Service
    •   Full agent processing for one airline
    •   Full agent processing for multiple airlines (single Q multiple
        airlines)
   CUPPS facilitates IATA’s SPT “right to fly” and “boarding
    control and security” processes
   CUPPS supports more then just airline processing
    applications
                    2D Bar Codes:
                Objectives/Benefits

•   Self-service and home/office driving this for boarding pass
    production
•   Improve customer service
•   Viable alternative to magnetic strip technology
•   Develop and adopt a single industry standard
•   Promote wide-scale implementation

Customer:       Boarding pass from home, in the
                office or via your mobile phone
Airports:       Simplification of gate equipment
Airlines:       Big savings, facilitates self service
                (CUSS) and is easy to implement
Agents:         Significantly reduced costs for
                printers etc
                     2D Bar Codes:
              Current Status/Actions

    Numbers



•   Develop promotional and educational materials
•   Promote bar code upon agreed industry standards
•   Ensure CUSS and other passenger service applications are
    bar code compliant
•   Develop cost/benefit model
•   Transition between ATB and bar code
•   Facilitate interline acceptance
•   Solve travel agency automation issues
                            RFID:
               Objectives/Benefits


•   Reduce airline costs and improve customer service by
    promoting the use of RFID technology
•   Initiate 5 airport trials by the end of 2005
•   Ensure single standard is adopted by end of 2005

Customer:       Reduce mishandling of bags
Airports:       Faster and potentially cheaper baggage
                management systems
Airlines:       Fewer mishandlings, lower costs, enhanced
                security, and greater visibility and accountability
                in the baggage handling process
                                RFID:
                           Action Plan


•   Identify “target airports” with emphasis on networks for
    outbound, transfer, and inbound
•   Initiate 5 airport trials by the end of 2005
•   Develop full system costing model, not just for the baggage
    tag
•   Develop standard methodology for testing
•   Develop a single industry RFID standard by end 2005
•   Design RFID management processes
    i.e. license plate and related messaging
•   Mobilise local stakeholders – raise awareness
•   Coordinate stakeholders – airlines, airports and ground handling
    companies
•   Deliver cost/benefit model by mid 2005
                  Paperless Cargo:
                 Objectives/Benefits

•   Eliminate the need to produce and transport paper
    documents for air cargo shipments by moving to an industry-
    wide, all-electronic environment
•   Target – implementation by end 2007, full adoption by end
    2010


Shipper:        Expedite movement / improve quality
Forwarder:      Process efficiency
Airline:        Improve competitiveness of air freight
Customs:        Faster security screening & clearance
                  Paperless Cargo:
                 Objectives/Benefits

•   Form Industry Action Group representing all industry
    stakeholders
•   Harmonise current industry data and communication
    standards
•   Facilitate move to single XML standard
•   Lobby for adoption of relevant legal protocols (Montreal
    Protocol 4, Montreal Convention 99)
•   Lobby for harmonised Customs procedures (Kyoto 99)
•   Promote International Treaty on
    E-Signatures
•   Develop industry infrastructure to facilitate exchange,
    storage, and pro-active management of electronic data
           Simplifying the Business:
                          Next Steps


•   “Airport Workshops” – worldwide airline, airport ground
    handlers workshops on StB technologies
•   Implementation guides for CUSS, 2D Barcodes and RFID
•   Development of standards for technologies – RFID, CUSS
    and 2D Barcodes
•   Ensure that additional airports sign MoUs for all technologies

				
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posted:8/25/2012
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