Simplifying the Business

Simplifying the Business ET Status – November 2006 Release date: December, 20th 2006 Simplifying the Business INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Contents  ET Capability  2007 Challenges  Simplifying the Business Programme Simplifying the Business 2 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability Simplifying the Business 3 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Penetration (Nov06) – 72.4% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Global United States North Asia Europe The Americas Asia Pacific Africa Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MENA CIS Targets 2005 Simplifying the Business 4 2006 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability (Nov06)  213 airlines (50%) are already ET Capable (Platinum, Green, and Yellow)  114 airlines (27%) have a planned date for their first ET (Orange)  68 airlines (16%) do not intend to implement ET (Purple)  28 airlines (7%) use another airline code to issue tickets (Brown) Simplifying the Business 5 B row n E T C a p a b ility - n u m b e r o f a ir lin e s p e r c o lo u r Nove m be r 2 0 0 6 s ta tus for a ll the a ir line s 68 28 7 129 114 77 P latinum G reen Yellow O range P urple All airlines that are IATA members or users of BSP or MITA services INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability (Nov06) – by Region E T C a p a b ility b y Re g io n - No v e m b e r 2 0 0 6 n u m b e r o f a irlin e s p e r c o lo u r - s ta tu s fo r a ll th e a irlin e s All airlines that are IATA members or users of BSP or MITA services 100% 6 80% 14 21 14 11 16 40% 19 7 20% 7 0 3 Africa 2 6 As ia P a cific 5 0 C IS E u ro p e 18 2 0 16 0 ME N A 0 N o rth As ia 7 4 3 Th e Am e rica s 1 0 US 42 4 20 11 23 12 15 25 17 9 10 1 3 23 6 0 8 6 6 60% 0% B ro w n P la tinum G re e n Ye llo w O ra ng e P urp le Simplifying the Business 6 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability* for airlines using the BSPs (Nov06) 2 36 7 E T C ap ab ility - P ro p o rtio n o f B S P ticke ts issu e d b y airlin e typ e N o ve m b e r 2006 sta tu s fo r B S P a irlin e s  Number of BSP airlinesa b ilityETu m b e r o f  linProportion of BSP tickets issued E T C a p by - n a ir e s p e r c o lo u r a ir line s E T C a p a b ility - n u m b e r o f necessarily 0 0 6 s ta tus for a ll the by airline ET Capability* o lo u Capability – not a ir lin e s p e rJcune 2 rin Nove m be r 2 0 0 6 s ta tus for BS P a ir line s BSPs * P u rp le B ro w n 30 109 121 100 6 O ra n g e 6 .8 0 % 0 .0 7 % 0 .0 3 % P la tin u m 0 .1 8 % 9 4 llo w Ye 1 7 .5 8 % 105 77 79 G re e n 7 5 .3 3 % B row n P latinum * 15reen Ytell IATA that they P urple are already issuing electronic tickets, but not through any BSP G airlines ellow O range B row n P latinum G reen Yellow O range P urple Simplifying the Business 7 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 B ro w n P la tinum G re e n Ye llo w O ra ng e P urp le ET Capability* for airlines using the BSPs (Nov06) – by Region E T C a p a b ility b y Re g io n - No v e m b e r 2 0 0 6 n u m b e r o f a irlin e s p e r c o lo u r - s ta tu s fo r a ll th e a irlin e s 100% 6 80% 14 21 14 11 16 40% 19 7 20% 7 0 3 Africa 2 6 As ia P a cific 5 0 C IS E u ro p e 18 2 0 16 0 ME N A 0 N o rth As ia 7 4 3 Th e Am e rica s 1 0 US 42 4 20 11 23 12 15 25 17 9 10 1 3 23 6 0 8 6 6 60% 0% * 15 airlines tell IATA that they are already issuing electronic tickets, but not through any BSP B ro w n P la tinum G re e n Ye llo w O ra ng e P urp le Simplifying the Business 8 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability* for airlines using the BSPs (Nov06) – by Region E T C a p a b ility b y Re g io n - No v e m b e r 2 0 0 6 P ro p o rtio n o f B S P tic k e ts is s u e d b y a irlin e ty p e 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Africa As ia P a cific C IS E u ro p e ME N A N o rth As ia Th e Am e rica s US * 15 airlines tell IATA that they are already issuing electronic tickets, but not through any BSP B ro w n P la tinum G re e n Ye llo w O ra ng e P urp le Simplifying the Business 9 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET Capability for airlines using the BSPs (Nov06)  190 ET Capable airlines in the BSP, that represent 55.39% of the BSP airlines, issue 92.26% of the BSP tickets  15 airlines, that tell IATA they are already issuing ETs but not through any BSP yet. They represent 4.37% of the BSP airlines and issue 0.84% of the BSP tickets  29.15% of BSP airlines (100 airlines) have a planned date for their first ET in BSP. Those airlines issue 6.80% of the BSP tickets  Airlines that do not intend to implement ET (Purple) represent 9.91% of the BSP airlines (34 airlines) but only 0.07% of the BSP tickets  0.58% (i.e. 2 airlines) of BSP airlines use another airline code to issue tickets (Brown). Those airlines issue 0.03% of the BSP tickets INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Simplifying the Business 10 ET indicators  Colour Platinum Green Yellow Orange Red Purple  Definition 100% ET Interline ET and ET ET Plan for ET including date for 1st ET in BSP No plan for ET yet No intention for ET Brown Uses another airline code to issue tickets INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Simplifying the Business 11 2007 Challenges Simplifying the Business 12 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Solving the remaining ET obstacles  7% of the surveyed airlines reported concerns about their capability to issue ET for external reasons and 23% mentioned difficulties with Ground Handlers  IATA has reviewed these and does not believe any to be serious issues that will prevent ET use except for Russian airlines  Only 7 airlines already issue 100% of their BSP tickets as ET. The other ET Capable airlines mentioned 1 main reason for not issuing 100% ET yet:  Lack of Interline ET agreements Simplifying the Business 13 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Achieving the 2007 deadline D o y o u e x p e c t to re a c h 1 0 0 % E T in B S P s by end of 2007?  164 airlines participating in BSPs said they will reach 100% ET by end of 2007  123 airlines expect to finish the year at <100% ET:  41% of them expect to reach as close to 100% as they consider necessary No 43% Ye s 57%  Collectively airlines forecast reaching 97.4% before the end of 2007 Simplifying the Business 14 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Providing ET Services to Airlines W h ic h o f th e fo llo w in g E T s e rv ic e s o ffe re d b y IA T A c o u ld h e lp y o u in c re a s e y o u r E T p e n e tra tio n b y e n d o f 2 0 0 7 ? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 62% 60% 56% 49% 26% T he reports pos ted on the extranet pages T he IE T Matc hm aker s ervic e T he G B R G enerator T he E T B uddy S ys tem New IE T w orks hops Simplifying the Business 15 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Simplifying the Business Programme Simplifying the Business 16 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Five focus areas  ET- electronic ticketing  100% by end 2007  BCBP - bar coded boarding passes  100% capability by end 2008 and 100% usage by end 2010  IATA e-freight  100% by end 2010 where viable  CUSS - common use self service  RFID - radio frequency identification for aviation Adopted and approved by IATA Board of Governors in June 2004 and enhanced in June 2006. Simplifying the Business 17 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 Savings of $6.5 billion a year!  ET- electronic ticketing      Reduction of 90% of ticketing costs, $3 billion per year $3.5 in average per home check-in, $0.5 billion per year Reduction of document processing costs, $1.2 billion per year $2.5 in average per check-in, $1 billion per year Reduction of mishandled baggage rate, $0.8 billion per year  BCBP – bar-coded boarding passes  IATA e-freight  CUSS - common use self service  RFID - radio frequency identification for aviation Simplifying the Business 18 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 StB targets for 2006  Electronic ticketing  ET Penetration: 70% by end 2006  BCBP  Total of 25 airlines  IATA e-freight  Gain commitment from 5 countries for 2007 pilot  CUSS  15 more airports  RFID  Support trials, confirm the business case Simplifying the Business 19 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 ET – e-ticketing  Objectives of the IATA ET project  From January 1st 2008, IATA will stop:  Distributing neutral paper tickets  IATA’s StB mandate  IATA should lead the industry to move to 100% ET in the IATA’s BSPs  Consequently, these changes will directly impact:  Airlines participating in BSPs  Airlines participating in MITA  Scope of the ET project  IATA’s role should be to support all airlines who participate in the industry financial and distribution systems and processes that are supported by IATA. Simplifying the Business 20 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 StB – Supporting the cause  IATA delivers support through various channels  One of the key support delivery elements is “Campaigns” Simplifying the Business 22 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 StB Campaign approach Why have Campaigns?  to make progress in a structured, organised way  to have measurable objectives and targets that are clearly communicated Two types of Campaign:  Horizontal:  advancing the programme on a Global basis  Vertical:  cluster targets with particular needs  Our way of translating strategy into action  A way of focusing effort on areas with the aim of achieving specific and measurable results Simplifying the Business 23 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006 For more information, go to the StB Support Portal  To launch the portal, go to: http://www.iata.org/stbsupportportal/ Simplifying the Business 26 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2006