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ZMF AGM 2017 PowerPoint Presentation, PPT - DocSlides - 29 & 30 March 2017. Geneva, Switzerland. Welcome. Introduction and Welcome. Marco . Alvarenga. Head Airline Participation Management. IATA. Housekeeping. Toilets. Coffee . machines. Lunch options.

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ZMF AGM 2017 PowerPoint Presentation, PPT - DocSlides

    Slide1

    ZMF AGM 2017

    29 & 30 March 2017Geneva, Switzerland

    Welcome

    Slide2

    Introduction and Welcome

    Marco

    Alvarenga

    Head Airline Participation Management

    IATA

    Slide3

    Housekeeping

    Toilets

    Coffee

    machines

    Lunch options

    WIFI & laptop usage

    Dinner

    Timing

    Slide4

    New Members

    4

    ZMF AGM 2017 – Geneva

    Who’ve joined since last AGM

    Slide5

    5

    New Full Member:Abidjan – Ivory CoastHF flies with Airbus 320/319 and regional Dash8 toDestinations in West & East Africa

    Slide6

    6

    New Full Member:Lisbon – PortugalYU flies schedule with Boeing 767/777 to Bissau (Guinea-Bissau)and also Charter/Wet Lease.

    Slide7

    7

    New Full Member:Bern – SwitzerlandSX flies schedule with Dornier 328 & Saab 2000 to DestinationSwitzerland – Europe e.g BRN-MUC or BSL-LCY

    Slide8

    8

    New Full Member:Florida – U.S.AVC positioned their aircraft throughout the continentalUS for scheduled routes

    Slide9

    9

    New Full Member:Lisbon – PortugalWI flies charter & wet leased with Boeing / Airbus &ATR

    Slide10

    10

    Associate Member:Dublin – IrelandRE wet leased specialist operates scheduled servicesin Europe on behalf Aer Lingus Regional & Flybe

    Slide11

    11

    New associate Member:Hamburg – GermanyAHO flies world wide executive charter with privatejets.

    Slide12

    Members are invited for concurrences .

    12

    Slide13

    Introducing our Meeting Sponsors

    myIDTravel

    ID90T

    IBS

    Slide14

    Financial Statement

    14

    ZMF AGM 2017 – Geneva

    Slide15

    Financial Statement

    Slide16

    Financial Statement

    Slide17

    A Tribute to Thierry

    Slide18

    Voting Papers

    18

    ZMF AGM 2017 – Geneva

    Slide19

    Voting Papers

    ZED Lower baselineZED Super LowAGM Networking EventTax CollectionChargebacksTicket ValidityDefinition of NomineesYour ZMACAGM 2018

    Slide20

    Voting PaperZED Lower Baseline

    Slide21

    SituationCurrently (approved AGM16) fares are constructed using two baselines: Economy Space available LOW zone 1  Economy Positive space LOW zone 1 The evolution (increase or decrease) is calculated using the yearly figures provided by IATA:

     

     

    ACTUALS

    ACTUALS

     

    2013

    2014

    2015

    Passenger yield previous year N-1

     

    -5,5%

    -11,7%

    Jet fuel

    price

    $/

    bbl

    124,5

    114,8

    66,7

    Jet fuel price (IATA source- N-1 vs N-2)

     

    -7,8%

    -41,9%

    Fuel % expenses (IATA sources)

     

    32%

    27,5%

    Calculated % evolution

     

     

    -23,2%

    Slide22

    As from such

    c

    alculated

    % evolution

    and using those two baselines, all

    ZEDMIBA

    Fares are calculated on a yearly adjustment process

    Economy

    / Premium Economy/

    Business

    Space Available/Confirmed

     

    At the AGM 2016, following was agreed:

    “

    The lowest adult fare for space available fare type in Economy may never fall below

    15 USD

    in order to maintain a minimum revenue for the operating carrier.”

    Slide23

    ZED Space Available – Economy Class Fares

    Slide24

    ZED Space Available –

    Business

    Class Fares

    Slide25

    ZED Space Available –

    Premium Economy Class Fares

    Slide26

    Problem

     

    Looking at the

    IATA forecast values for 2016, we

    can foresee to have

    a decrease on ZEDMIBA fares for 2017.

     

    However, because

    in Nov 2016 we voted to have

    Economy Space available LOW zone

    1

    to be the

    lowest possible fare

    of

    15.00 USD

    ,

    all related Space available fares constructed from that baseline will not decrease at all. They will be identical

    to

    what we have today.

    Slide27

    3 options

    Do

    nothing

    and keep the

    15USD

    as the lowest fare possible for

    Economy Space available LOW zone 1.

     

    Set

    the lowest adult fare for

    Economy space

    available fare

    for Economy to

    13USD

    Set

    no minimum fare

    at all, like for positive space fares.

    Discussion on Pros and Cons

     

     

     

     

    Slide28

    Voting PaperZED Super Low

    Slide29

    ZED and MIBA fares: where do we come from

    29

    2011-2012:

    Workshops conducted to determine :

    What is a fair value for ZED R2 fare? what would be the minimum ZEDR2 (ZL) fare which an operating carrier would agree to be acceptable to offset its operating costs?

    No agreement reached

    yet

    within

    the industry

    What is a fair

    value

    for confirmed fare? ZMAC offered to outsource to a third party the assessment of market fare levels (research on all GDSs with similar fare conditions). This solution had a cost and was not retained by members.

    ZEDR2 Medium was then retained as the industry standard (used by the majority of carriers): 2012 ZMR2 levels were used as a starting point and became the central reference on which ZL and ZH is being calculated

    ZEDR1 and MIBAS1-C1 fares were “merged”: same reference whether it is leisure or duty. 2012

    levels were used as a starting

    point: R1 for Low, S1 for Medium and High levels

    2016-2017:

    Levels of fares are being questioned again by ZEDMIBA members.

    If

    the

    yearly

    fare

    adjustment

    drops

    below

    the

    minimum

    ECO

    baseline

    fare

    ,

    there

    is

    no

    movement

    Slide30

    Market prices Mileage zone 1: examples

    Current ZED fares:

    RT ZEDR2 Medium without taxes: 2*24

    =

    48 $, ZEDR2 Low: 2*15 = 30 $ RT ZEDR1 Medium without taxes: 2*62 = 124 $, ZEDR1 Low: 2*28 = 56 $Public fares within mileage zone 1: 2 weeks prior to departure (MAR’17)PAR-NCE/ Easy Jet: : Public fare: 86 $ RT fare, without airport taxes No refund, no changes, 1x luggage incl.TYO-OSA/ flyPeach: Public fare: 87 $ RT fare, without airport taxes No refund, no changes, 1x luggage incl.NYC-BOS/ Delta-Jet Blue- AA: Public fare: 108 $ RT fare, without airport taxes No refund, no changes, 1x luggage incl.

    Lower than ZEDMIBA R1 on MM

    Lower than ZEDMIBA R1 on MM

    Lower

    than

    ZEDMIBA R1

    with

    MM

    Slide31

    Market prices Mileage zone 3: examples

    Current ZED fares:

    RT ZEDR2 Medium without taxes: 2*39

    =

    78 $, ZEDR2 Low: 2*29 = 58 $ RT ZEDR1 Medium without taxes: 2*118= 236 $, ZEDR1 Low: 2*53 = 106 $Public fares within mileage zone 3: 2 weeks prior to departure, non-stop flight (MAR ’17)FRA-IST/ Pegasus Airlines : Public fare: 55 $ RT fare, without taxes No refund, no changes, 1x luggage incl.SIN-DPS/ Tiger Air: Public fare: 126 $ RT fare, without taxes No refund, no changes, 1x luggage incl.GIG-BUE/ EMIRATES: Public fare: 239 $ RT fare, without taxes No refund, no changes, 2x luggage incl.

    Lower than ZEDMIBA R2 with ML!!!

    Close to ZEDMIBA R1 with MM

    Lower

    than

    ZEDMIBA R1

    with

    MM

    Slide32

    Market prices Mileage zone 6: examples

    32

    Current ZED fares:

    RT ZEDR2 Medium without taxes: 2* 79

    =

    158 $

    , ZEDR2 Low: 2*59 = 118 $ RT ZEDR1 Medium without taxes: 2*248= 496 $, ZEDR1 Low: 2*163 = 326 $Public fares within mileage zone 6: 2 weeks prior to departure, non-stop flight (MAR ‘17)CGN-MIA/ Eurowings: Public fare: 400 $ RT fare, without airport taxesNo refund, no changes, 1x luggage incl.BKK-MEL/ Jet Stars: Public fare: 318 $ RT fare, without airport taxesNo refund, no changes, 1x luggage incl.MAD-SDQ/ Air Europa: Public fare: 647 $ RT fare, without airport taxesNo refund, possible changes, 1x luggage incl.

    Lower than ZEDMIBA R1 with ML!!!

    Lower

    than

    ZEDMIBA R1

    with

    MM

    Slide33

    What happened after our workshop in Sep 2016?

    Isabelle from Air France gathered some information

    Inhouse

    pricing

    scheme

    from

    SWISS in

    October

    Isabelle prepared an excel sheet with the actual ZED MIBA fare level compared with the SWISS inhouse fares

    Isabelle, Ingo (LX) and Axel (LH) scheduled a conference call for end of November

    We discussed the possibility of using the

    L

    X inhouse fares

    We decided to evaluate the proposal and compare it with commercial fares from some airlines

    Where

    are

    we

    now

    ?

    Working

    group

    meeting

    in MIA

    prepared

    a

    voting

    paper

    Keep

    the

    fares

    simple &

    continue

    with

    actual

    fare

    scheme

    We

    defined

    a

    feasible

    ZED Super Low

    fare

    scheme

    We

    defined

    the

    possible

    new

    farebasis

    code

    e.g. YID

    ZS

    R2…

    We

    identified

    all

    necessary

    changes

    in

    the

    different ZEDMIBA

    documents

    Slide34

    Proposal for the new fare levels (I)

    Space

    available

    – Economy Class

    Slide35

    Proposal for the new fare levels (II)

    Space

    available

    – Premium Economy Class

    Slide36

    Proposal for the new fare levels (III)

    Space

    available

    – Business Class

    Slide37

    Proposal for the new fare levels (IV)

    Positive Space – Economy Class

    Slide38

    Proposal for the new fare levels (V)

    Positive Space – Premium Economy Class

    Slide39

    Proposal for the new fare levels (VI)

    Positive Space – Business Class

    Slide40

    Considerations

     Worldwide standard option for airlines who wish to agree on a lower fare levelA new product within ZEDEasy typical ZED fare structureNo complex fare schemeIn connection with the actual fare schemeEasy to add to existing agreementsA valid option, if fare adjustment rule for ZED LOW does not go below 15USD (minimum level) May not be needed by all airlinesNew fare basis myIDTravel & other tools need an updateISTA & Concurrence form need an update. Cost to Infonia and possibly myIDTravelRevenue loss – fix costs covered?If baseline is removed there a risk of not meeting the transportation costATPCO must be filedFare adjustment mechanism must be updated

    Slide41

    Action and choices now!

    Evaluate for the ZEDMIBA community if the Super Low Fare Level is necessary?

    Are

    there

    any

    open

    questions

    /

    items

    or

    concerns

    ,

    please

    ask

    now

    ?

    Always

    keep

    in

    mind

    it

    is

    not a must

    to

    use

    or

    implement

    ,

    it

    is

    only

    another

    possibility

    to

    choose

    from

    our

    ZED

    product

    range

    Please

    vote

    and

    be

    a

    part

    of

    the

    community

    to

    move

    ideas

    forward

    Slide42

    Voting PaperNetworking Event

    Slide43

    43

    Situation

    Members agree that a networking event an essential part of the AGM. Previous events have been sponsored, and if not, a vote was held to authorize the use of ZMF funds.

    At the Boulder AGM 2016, Members suggested that we incorporate a clause into the ISTA, thus removing the

    need to request authorization each time by vote.

    However, the release of funds will always to be subject to a there being a minimum balance of USD 50,000 in the ZED MIBA Forum account.

    Slide44

    44

    PROPOSAL

    The proposal is to add the following clause to ISTA Financial section 10.:

    A.10.h. The Advisory Council may access ZMF funds to organize a networking event held in conjunction with the Annual General Meeting, limited to

    USD 15,000.00

    per year and only if available (unspent) funds are not less than

    USD 50,000.00

    Slide45

    45

    VOTING question

    Do you agree to add A 10.h to ISTA

    a) Yes

    b) No

    As this is a financial issue, 67% majority is required for the vote to be approved.

    Slide46

    NEXT STEPS

    If we reach the 67% majority, ZMAC will take action and add this clause to ISTA to secure the networking events at any future AGMs.

    If we do not reach the 67% majority, no further

    steps

    will be taken and this issue will be closed.

    MANY

    THANKS FOR YOUR ATTENTION

    Slide47

    Voting PaperZPA vs. ZPU

    Slide48

    Special conditions may be bilaterally agreed between members, however it is common practice that the Travel Partner is to travel accompanied by the employee/retiree. It is clearly stated on the PTC definition beyond any doubt.Having such policy in place avoids the possibility of fraud – employees/retirees selling their ID tickets. 

    ZPAAccompanied travel partner of employee/retiree - AdultZPCAccompanied Travel partner of employee/retiree- Child ZPUPartner Unaccompanied

    Info

    available

    -

    http://www.zedmiba.org/fares-filing-list-of-ptcs

    Slide49

    Also, on the ISTA agreement, if we accept Travel Partners we only have to insert the ZED Fare Level, there’s no mention for the ZPU – then we have to assume that by default all concurrences are to be treated as ZPA or ZPC - Accompanied travel partner of employee/retiree.

    STANDBY YR2YS2CR2CS2DEADHEAD Crew Employee(ZM)(00)(ZM)(00)RetireeSpouseChild (age 0-2/Infant) Child (age 2-12/Child)Child (age 12- under 24) Child (age 24 and over) Parents Sibling Travel Partners

    Info available - http://www.zedmiba.org/ista-appendix-concurrence-form

    Eligible Persons (Agreement Section B.1) and Applicable Fare Levels (Appendix Fares)

    Fare levels shown in chart are for example purposes only. Members may bilaterally agree to any zonal or discount fare level.

    Slide50

    Problem

     

     

    Once the employee/retiree is validated on the NIET tool myidtravel,

    it is

    possible to book/issue

    tickets for

    ZPA

    to travel alone - in spite of the agreement

    having been

    correctly uploaded with the PTC

    ZPA (

    Accompanied

    )

    instead of

    ZPU (

    Unaccompanied

    )

    .

    The

    validation

    should

    be

    at the level of

    myIDTravel

    at

    the time of the booking/issuance,

    that is

    why we

    have

    different

    types

    of PTC’s.

    A provider currently offers an

    add-on

    at a cost to validate

    ZPA

    from traveling

    Unaccompanied.

    Paid add-ons

    should not be offered for

    standard matters,

    but

    only for matters requiring a customization. Here this is not the case.

    Since

    the majority of ZEDMIBA members

    are NIET

    carriers, and assuming that they have no intention to pay LSY an

    add-on, the provider is required

    to comply with a ZEDMIBA basic detailed on Appendix Passenger Type Codes (PTCs)

    / Ticket

    Designators.

    Slide51

     

    Currently

    “Travel Partner - any one person recognized as a travel partner by the employing airline. In the case of more than one travel partner being allowed, it should be bilaterally agreed.”

     

    Proposal

    “Travel

    Partner - any one person recognized as a travel partner by the employing airline. In the case of more than one travel partner being allowed, it should be bilaterally agreed.

    Travel Partner must be accompanied by the Employee/Retiree on all flights unless bilaterally agreed

    .”

    VotING

    QUESTION

     

    Do you agree on the proposal to change the definition?

     

    Yes

    No

    Slide52

    Voting PaperTax Collection

    Slide53

    53

    Slide54

    54

    Slide55

    55

    Slide56

    56

    Slide57

    57

    Slide58

    58

    The rules

    Slide59

    Slide60

    Voting paper proposal

    Add

    verbiage to ISTA section C.1.c. and C.2.c. clarifying that transit exempt taxes must be collected on ZED and MIBA tickets (except where an NIET agreement exists and the ticketing/transporting airline unilaterally choses to exempt them), regardless of whether an immediate connection or stopover is intended

    .

     

    Slide61

    C.1.c.

    Taxes/Fees/Charges

    C.1.c.i Applicable

    interlineable

    taxes/fees/charges must be collected and shown on the ticket.  

    This includes transit-exempt taxes, regardless of whether an immediate connection or stopover is intended.  

    C.1.c.ii Any tax, fee, or charge imposed by an airline (i.e., charges that are not remitted to a third party government or airport authority, such as YQ, YR and Q charges) must not be collected and shown on the ticket, and must not be collected from the passenger by the Transporting Airline at the time of check-in, unless bilaterally agreed specifically for industry discount tickets.  

     

     

    Slide62

    C.2.c.

    Taxes/Fees/Charges

    C.2.c.i With the exception of an administrative or ticketing handing fee, any tax, fee, or charge imposed by an airline (i.e. charges that are not remitted to a third party government or airport authority) must not be collected from the passenger by the Transporting Airline, unless bilaterally agreed specifically for industry discount travel.  

    C.2.c.ii The ticketing carrier may collect transit exempt taxes, regardless of whether an immediate connection or stopover is intended

    .

     

     

    Slide63

    Voting PaperChargebacks

    Slide64

    What is a Chargeback?

    After the booking / issuance / payment is made on the NIET provider (e.g.

    myIDTravel

    ) and after the tickets are already used, the employee/retiree states to the bank (of the CC he/she has used to pay for the tickets) that he/she does not recognize such transaction.

    The bank treats this as a Fraud and starts the Chargeback process, by the time the Transporting Carrier claims the amount of the ticket(s) in question, the bank does not allow the debit due to Chargeback.

     

    The issue at this point has to be addressed between the Employing Carrier and the Transporting Carrier. The Employing Carrier is responsible for the HR database of their own staff and their eligible nominees. It is through them that they have ID tickets with OAL.

    The Transporting Carrier has no information about these ID

    paxs

    besides the flight details, the CC used, PTC; first name/surname and employee ID number. No direct contact may be used, Transporting Carrier relies on the good will of the Employing Carrier.

    Slide65

    65

    Transporting Airline is not able to collect the amount for the ID

    tkts

    which has transported already. Multiple scenarios may happen at this stage:

    Employing Airline reaches their staff and he/she settles the amount to be paid with the Transporting Airline directly.

    ALL

    SOLVED!

     

    Employing Airline reaches their staff and he/she refuses to settle the amount due. Employing Airline settles such with the Transporting Airline.

    ALL

    SOLVED!

     

    Employing Airline reaches their staff and he/she refuses to settle the amount due. Employing Airline refuses to do such as well.

    Transporting

    Airline problem!

     

    Employing Airline can’t reach their staff (because they already left the airline or have retired). Employing Airline settles such with the Transporting Airline.

    ALL

    SOLVED!

     

    Employing Airline can’t reach their staff (because they already left the airline or have retired). Employing Airline refuses to do such as well.

    Transporting

    Airline problem

    !

    Slide66

    66

    “Authorizing Airline

    – a Member airline through which industry discount travel benefits are derived.”

    In order to avoid possible loss of revenue by the Transporting Airline, we should hold the Authorizing Airline ultimately responsible for the inadequate actions of their staff when using a NIET solution - as for the IET issuances since payment is made directly to the Employing Airline this issue never happens.

    Slide67

    Proposal

    “… C.2

    . TRANSPORTING AIRLINE TICKETING

    C.2.g. Disputes and

    Chargebacks

    In the event of a dispute

    arising in connection with tickets issued under this Agreement, it is the responsibility of the Authorizing Airline to ensure the Transporting Airline is compensated within six (6) months, or as bilaterally agreed, for transportation provided

    .

    ”

    Slide68

    Voting PaperTicket Validity

    Slide69

    why

    ?

    It is imperative that an employee who has left the employer providing travel benefit on OAL, doesn’t use the bilateral concurred travel privilege after end of employment.

    It sends all the wrong signals, having someone on holiday on OAL ZED tickets,

    theoretically

    almost 3 months after termination of employment.

    how?

    As soon as

    end-date

    is known to employer, this

    end-date

    should be reflected in HR/ticket issuance system. It is the responsibility of the employing carrier to adhere to

    this

    or make effort s to recover outstanding unused tickets

    Slide70

    what’s required?additional wording to ISTA.C.2.d. Validity C.2.d.i The travel authorization or ticket validity shall be no more than three (3) months from the date of issue, unless bilaterally agreed.It is the responsibility of the employing carrier to ensure that any tickets held by employees that have been terminated, or who have resigned, are not valid after the last date of employment.

    70

    Slide71

    Voting PaperDefinition of Nominees

    Slide72

    72

    Definition of Parents

    Do we want to

    create a definition for “Parents” as we did for “Spouse” and “Travel Partner”

    e.g.

    Spouse

    – any one person recognized as a spouse by the employing airline.

    Slide73

    73

    Proposal

    DEFINITION

    Parents

    – any person recognized as a parent by the employing airline

    .

    The

    Employee/Retiree can have only two parents eligible for

    travel at one time.

    Slide74

    74

    Proposal

    DEFINITION

    Sibling of Employee / Retiree

    – any person recognized as a sibling by the employing airline.

    Slide75

    Voting Paper ZMAC Election

    Slide76

    76

    The ZMAC members below were elected last year and will remain until AGM 2018

    Sylvia

    Ibach (AB)

    Teresa Miller (F9)

    Peter Nielsen (SK)

    Luanne Stetson

    (

    AS)

    Slide77

    Four positions are vacant for the coming yearMembers were invited to stand as a candidate

    77

    Slide78

    78

    Four members put themselves forward

    Afonso

    Crawford (

    TP)

    Karmen Jese (JP)

    Ingo

    Jeske

    (LX)

    Julie Williams (BA)

     

    Slide79

    So in the absence of any other candidates these four will take their places on the Council for two years. No requirement to vote.

    79

    Slide80

    80

    As a Council, we have voted between ourselves to select

    our Chairperson.

    This

    will be:

    Julie Williams (BA)

    Slide81

    81

    Our future Council

    There

    are plenty of you out there who

    would

    make very good Council Members and we want to encourage you to consider standing in future.

    A challenge for us is how to persuade you to join us.

     

    Slide82

    82

    Qualifying Criteria:

    Open minded

    Bring new ideas

    Basic ZED MIBA knowledge

    Staff travel experience preferred

    Committed to the cause

    Team player

    Airline/Supervisor support/approval

     

    Slide83

    83

    Your commitment

    as a Council Member:

    AGM

    2 x

    Workshops

    per year

    1 x ZMAC meeting per year

    The above does mean arriving/departing earlier/later

    Monthly conference calls

     

    Slide84

    84

    We are interested to find out what else might

    hinder

    applications.

    Time or lack of it to dedicate to ZMF?

    Fear of speaking at AGMs/Working Groups?

    Unable to gain authorisation to travel to anything other than AGM?

    Slide85

    85

    What ideas do you have that we can implement in order to encourage members to take this step and be instrumental in shaping the organisation’s future?

    Slide86

    Voting Paper AGM 2018

    Slide87

    - PROPOSAL FOR AGM 2018 -

    Slide88

    Why Croatia

    ?

    Because it is:

    ExcitingBeautifulRomanticCulturalRelaxing ... and yet so close … Between 1 and 3 hours flight from all major European gateways

    Slide89

    Map of Croatia

    At the crossroads of cultures and civilizations, Croatia is a mixture of Mediterranean and Central Europe – reflected in diversified customs, rich national costumes, excellent cuisine and exquisite wines.

    A “green” destination enabling visitors to experience the values rare in modern world – ecologically clean environment, green forests and crystal clean sea and fresh waters.

    A safe corner of the world where one can enjoy an unspoiled destination and vintage hospitality!

    Slide90

    Why

    Dubrovnik?

     

    “If you want to see heaven on Earth, come to Dubrovnik!”George Bernard Shaw

    Slide91

    Introducing Dubrovnik

    The over a thousand year old history of Dubrovnik is visible in every part of this city

    , s

    ince 1979 the town has been under UNSECO protection.“The Pearl of the Adriatic” has captivated and seduced kings and artists for centuries with its immaculate medieval architecture.One of the most attractive and best-known cities in the MediterraneanThe city is a living museum and a live stage, and has an ideal connection between its historical past and the modern day.

    Slide92

    Grand Villa Argentina

    Hotel rate of €

    130 for double room/single use and €150double room/double use, breakfast included

    No up-front deposit requiredAll conference facilities and standard equipment includedCroatia Airlines will sponsor coffee breaks and one lunchComplimentary wireless internet in all guestrooms and conference facilitiesAgreed areas for vendorsSame price is guaranteed during entire week (15-22APR)

    Slide93

    Few more pics

    Slide94

    Hope to see you in Dubrovnik, 18/19APR2018!!!

    Slide95

    AGM 2018

    Panama City

    Slide96

    Semantic Changes

    96

    ZMF AGM 2017 – Geneva

    Slide97

    Semantic Changes

    Reference to SLA

    Associates Membership

    ID50S1 & IDZHR1, IDMHS1

    Get input from Julie?

    Slide98

    Coffee Break

    98

    ZMF AGM 2017 – Geneva

    Slide99

    Vendors Sessions

    99

    ZMF AGM 2017 – Geneva

    Slide100

    myIDTravel

    100

    ZMF AGM 2017 – Geneva

    Slide101

    ID90T

    101

    ZMF AGM 2017 – Geneva

    Slide102

    IBS

    102

    ZMF AGM 2017 – Geneva

    Slide103

    ZMF and IATA

    103

    ZMF AGM 2017 – Geneva

    Slide104

    ZMF and IATA

    ISTA Agreement

    Slide105

    “Complex Taxes” project

    105

    ZMF AGM 2017 – Geneva

    Carlos Alanis, IATA

    Manager Ticket Tax Box

    Slide106

    Milestones

    MilestonesPlanned datesBusiness case approval31 December 2015Kick-off in GVA26 January 2016Recruitment project resources29 January 2016Workshop in GVA25-26 February 2016Validation of diagnostic and proposed actions31 March 2016Implementation new TTBS templates completedJune 2016Validation of report and plan for follow-up29 July 2016Report at World Financial Symposium30 September 2016Report to FinDev and agree on next steps16-17 November 2016Project final closure30 December 2016

    Complex TFCs Project

    Slide107

    1Q2017

    Handover

    Continuation of actions by diverse subject matter expert players

    Beyond the 75 cases

    1Q16

    2Q16

    3Q16

    4Q16

    Project initiation and business case

    Workshop and analysis of the 75TFCs

    Draft new TTBS forms

    Corrective Actions

    Formalize conclusions and report to FINDEV

    Follow-up on open actions and handover to operations

    4Q2015

    Identify system solutions

    Diagnostic +Recommendations

    Advocacy actions

    Identification + Objectives

    Report and Feedback

    Conclusions and project closing

    Identify workarounds

    Update of TTBS content

    Timeline

    Phases

    Deliverables

    Implement new TTBS forms

    Complex TFCs Project

    Slide108

    Project success criteria

    Closure on the 75 TFCs open items signed off by the FinDev Delivery of improved TTBS templates signed off by the FinDevDetermination of benefitsSee the objectives being achievedIdentification, Simplification, Standardization, Advocacy, Framework and Quantification

    Complex TFCs Project

    Slide109

    Benefit quantification

    Extrapolation for the 75 Complex TFCs in scope based on data extracted from the ICH. Annualized amounts of potential savings based on extracted interline rejections:Analysis ADMs related to TFCs 25.000 ADMs, total $1.35M value estimated per yearMain reasons: incorrect calculations, taxes not collected, taxes under wrong tax code

    Complex TFCs Project

    Slide110

    Issues/solutions categorization

    Complex TFCs Project

    Slide111

    Process Improvement

    Slide112

    Process improvement

    New TTBS forms created and implemented, now operationalNew Tax Fee or ChargeAmendment to existing Tax Fee or ChargeAddress root causes of uncertainties and errors in the codingIntelligence incorporated into the forms to Guide the users through clear definitions of concepts such as exemptionsProvide pre-set drop-down lists to avoid incorrect data or format being capturedAssociated implementation guide and webinar training for filing carriers deliveredPost go-live improvements already delivered as part of the continuous improvement process

    Complex TFCs Project

    Slide113

    Advocacy related cases

    Slide114

    TFC Advocacy actions results

    Authorities have changed the provision of the law:Côte d’Ivoire (TFC: HZ)Cook Islands (TFC: QE)Egypt (TFC: EG)Singapore (TFC: OP)South Sudan (TFC: SS)Norway (TFC: NO) is in the hands of the national carrier and currently undergoing their own advocacy work. IATA will assist if/when necessary.USA (TFC: AY and XF) and Canada (TFC: CA) originally assessed as requiring advocacy, shifted solution to status quo after careful analysis of the case.Ireland (TFC: IE) originally assessed as requiring advocacy, shifted to technical solution following the discussion with the FinDev sponsors (workaround solution deemed more suitable).IATA taxation group will continue to work on the open issues as part of their operational duties (HF Ukraine, YB Algeria, BD Bangladesh and AM Armenia).

    Complex TFCs Project

    Slide115

    Technical related cases

    Slide116

    Technical solution identification

    Methodology: IATA has analyzed the Fare life cycle to identify where the data elements are missing

    Complex TFCs Project

    Most of the data elements do not exist at ET Record level

    Therefore, the SOLUTION: Technical solution to introduce the data elements at ET Record level

    Slide117

    Technical diagnosis summary

    Percentage taxesIdentification of the correct fare for applicability of fare and surchargesMissing coupon and ticket dataDate of birthArrival/departure timesCabin classTax definition not clearDefine next possible connectionDefine infants (with or without seats)ExemptionsAlign to industry standards (e.g. infants under 5, children under 15)Separate ticketsMap correct tax applications to separate tickets

    Complex TFCs Project

    Slide118

    37 Technical cases

    Complex TFCs Project

    Date of birth = 7 cases

    Antigua, Barbados, UK (2), Greece, Mauritius and Venezuela

    Complex Seasonality = 1 case

    Ireland

    Cabin Class = 1 case

    Pakistan

    Eligible passenger exemption = 2 cases

    Turkmenistan

    Nationality or citizenship/residency = 15 cases

    Anguilla, Belize (3), Colombia (2), Maldives (2), Mexico, Nepal, Panama (2), Philippines, Seychelles and Argentina

    Tax on final destination = 2 cases

    India and Congo

    Terminal information = 8 cases

    Bulgaria (2), Hungary (2), Israel, Russian Fed., Serbia and Singapore

    Unticketed points = 1 case

    Singapore

    Slide119

    Technical solution next steps

    Standards - EnhancementAdd new data elements into the sales reporting capabilitiesStandards - ImplementationPricing to Ticketing Host/GDSTicketing Systems Host/GDSGDS Implementation of Sales Reporting StandardsRevenue Accounting SystemsProject closure 12-2016 and handoverIATA Airline Distribution and Standards: follow-up on BDISG adopting the standards set for the data elements.follow-up on where the new data elements should be added in the DISH, and on the implementation of the new release.

    Complex TFCs Project

    Slide120

    75 Complex TFCs project handover

    Complex TFCs Project

    To be updated (underway)

    ROOT CAUSESOLUTIONENGAGEMENT4Q154Q164Q174Q184Q19Missing data elementsAddition to DISHBDISG/PSC 2017 adoption of DISH 23 2018 and 2019373737370Unclear/complicated regulationAdvocacyLocal airline/IATA/government reps105 400Percentage tax calculation not clearStandard calculation approach agreedLocal airline/IATA/government reps/FINDEV sponsors70000Ambiguity with actionAnalysis and clarification bulletin as applicableLocal airline/IATA/government reps/FINDEV sponsors85000Ambiguity no action determinedNo action, status quo. Determined current process workingLocal airline/IATA/government reps/FINDEV sponsors/ATPCO137000755341370

    forecast

    Slide121

    Implemented a virtuous cycle with all players

    AchievementsAdvocacy processes embedded in TTBS procedures.Better filing discipline and intelligent forms with clear guidelinesCategorized exemptions based on what pricing is capable of Clarifications on tax applicability removing ambiguities wherever possibleSystem implementation requiredNeed to increase the quality of the data in the workflowFocus on automation wherever possible.

    Complex TFCs Project

    Conclusions

    Slide122

    Thank you!

    Slide123

    Break for Lunch

    123

    ZMF AGM 2017 – Geneva

    Slide124

    Break-out session 1

    124

    ZMF AGM 2017 – Geneva

    Slide125

    Break-out session 1

    Fares and Taxes (ZED Super low) Room GenevaChargebacks & Ticket Validity Room BâleISTA Familiarization Room Lausanne

    Slide126

    Break-out session 2

    Fares and Taxes (ZED Super low) Room GenevaChargebacks & Ticket Validity Room BâleISTA Familiarization Room Lausanne

    Slide127

    Break-out session 3

    Fares and Taxes (ZED Super low) Room GenevaChargebacks & Ticket Validity Room BâleISTA Familiarization Room Lausanne

    Slide128

    Summary of Break-out sessions

    &

    Voting Papers discussion

    Slide129

    Announce for Dinner

    129

    ZMF AGM 2017 – Geneva

    Slide130

    Time for 1:1 ‘s

    Slide131

    ZMF AGM 2017

    29 & 30 March 2017Geneva, Switzerland

    Welcome back

    Slide132

    Summary and key points of Day 1

    132

    ZMF AGM 2017 – Geneva

    Slide133

    “NDC” project

    133

    ZMF AGM 2017 – Geneva

    Cécile Rousseau, IATA

    Manager Channel Distribution

    Slide134

    See separate presentation file

    Slide135

    “ONE order” project

    135

    ZMF AGM 2017 – Geneva

    Ionut

    Badea

    , IATA

    Manager ONE Order

    Engagement and Strategy

    Slide136

    See separate presentation file

    Slide137

    “Cost of Payment” project

    137

    ZMF AGM 2017 – Geneva

    Pascal Burg, Edgar Dunn & Co

    Member of the project team

    Slide138

    Cost of Payments

    

    Industry Transformation

    March 2017

    Slide139

    Due to technology evolution, new payment methods (such as eWallets, VANs) are quickly emerging, some supported by GDSs. These new payment methods are usually coming with higher costs per transaction.

    As

    of today, airlines are not able to identify, discriminate or decide on payment methods acceptance, even though airlines are by default absorbing their

    cost.

    IATA

    is planning new industry-wide initiatives involving Airlines, Travel Agents and GDSs, whose objective is to provide each airline with

    transparency

    , detection and

    consent

    regarding payment methods acceptance.

    Slide140

    1. Direct Sales

    BSP Card

    BSP “Cash”

    2. Indirect Sales: pass-through card sales

    Customer’s card:

    pass-through

    Customer’s card:

    payment

    Bank transfer from the

    agent’s bank account to

    the airline’s bank account

    $$$

    Moneys heldin trust

    Bank transfer or any otherform of paymentused by the customer

    3. Indirect Sales

    BSP original design

    Slide141

    1. Direct Sales

    BSP Card

    BSP “Cash”

    2. Indirect Sales: pass-through card sales

    Customer’s card:

    pass-through

    Customer’s card:

    payment

    Bank transfer from the

    agent’s bank account to

    the airline’s bank account

    $$$

    Moneys heldin trust

    Bank transfer or any otherform of paymentused by the customer

    3. Indirect Sales

    BSP

    evolution

    Agent’s

    card or VAN

    BSP Card remittances

    Slide142

    Sources: CC: Phocus Wright March 25th,2013 + BSP and ARC sale figures. Van: VAN provider, public information. eWallet: Global eWallet provider public information *calculated on an average $400 ticket with TA monthly sale of above 100K.. BSP Cash: IATA internal information. IATA EasyPay: RFP average outcome in process

    Current Market Situation – Average fee per transaction benchmark

    Customer

    Payment

    Agent

    Remittance

    Airlines consent effective

    Slide143

    Sources: CC: Phocus Wright March 25th,2013 + BSP and ARC sale figures. Van: VAN provider, public information. eWallet: Global eWallet provider public information *calculated on an average $400 ticket with TA monthly sale of above 100K.. BSP Cash: IATA internal information. IATA EasyPay: RFP average outcome in process

    Current Market Situation – Average fee per transaction benchmark

    Cash flow speed

    2-3 days

    2

    -30 days

    2-30 days

    18.9 days

    2-30 days

    “Credit risk”

    -

    -

    -

    0.025%

    unknown

    Agent “payment” recourse risk

    -

    yes

    -

    -

    yes

    Value proposition to Airlines

    Slide144

    1. Direct Sales

    BSP Card

    BSP “Cash”

    2. Indirect Sales: Pass-through card sales

    $$$

    Funds held

    in trust

    3. Indirect Sales

    Agent’s or Wholesale card

    Preliminary scenario analysis – Current merchant fees costs for the airline industry

    33%

    66%

    Indirect sales

    card merchant fees (ARC)

    $1.8

    bn

    Total current industry costs of card merchant fees

    $6.5

    bn

    Direct sales

    card merchant fees

    $2.9

    bn

    $1.8

    bn

    Indirect sales

    BSP card merchant fees

    Slide145

    Thank you!

    Slide146

    What is SIS again?

    146

    ZMF AGM 2017 – Geneva

    Momchil

    Momchilov

    , Manager Invoicing & Collection

    Adrian Dulaj, Manager Invoicing and Metrics

    Slide147

    Simplified Invoicing and Settlement

    Introduction and highlights

    Slide148

    What is SIS?

    SIS is the industry platform that facilitates the electronic invoicing and settlement process by streamlining key processes, unifying invoicing standards, and reducing paper wastes, ultimately fostering a simpler and more efficient environment for airlines and aviation business partners –such as ground handlers, maintenance companies, and manufacturers – to engage in business.

    Key FeaturesOne e-invoicing standardOptional automatic settlement in ICH/ACHBilling/billed data automatically available for reconciliationDigital Signature and legal compliance servicesAvailability of audi​t trail for record-keeping

    SIS – Introduction and Highlights

    148

    Slide149

    Who is using SIS?

    In 2016 SIS had over 600 airlines and suppliers sending and receiving invoices. In addition to these paying customers, more than 1,400 companies have registered to receive invoices through SIS from IATA or other business partners.Including the IATA offices and E&F Airports, SIS had a total of 2,144 participants at the end of 2016.

    In Billing Year 2016 SIS processed 1,500,936 invoices (interline and suppliers) valued at approx. USD 66 Billion. 83% of invoices were submitted by airlines and 17% by suppliers (including IATA). 90% of all invoices are settled though the Clearing House (ICH and ACH).

    SIS – Introduction and Highlights

    149

    Slide150

    SIS – How to download your ZMIBA invoice? (Presenting…)

    SIS – Introduction and Highlights

    150

    Slide151

    Coffee Break

    151

    ZMF AGM 2017 – Geneva

    Slide152

    Break-out session 2

    Survey / Newsletter Room GenevaWebsite Room Bâle1:1 Room Lausanne

    Slide153

    Voting Begins

    153

    ZMF AGM 2017 – Geneva

    Slide154

    Break-out session 1

    Survey / Newsletter Room GenevaWebsite Room Bâle1:1 Room Lausanne

    Slide155

    Break-out session 1

    Survey / Newsletter Room GenevaWebsite Room Bâle1:1 Room Lausanne

    Slide156

    Break for lunch

    156

    ZMF AGM 2017 – Geneva

    Slide157

    Membership FeesandProposed budget 2017-2018

    157

    ZMF AGM 2017 – Geneva

    Slide158

    AOB

    158

    ZMF AGM 2017 – Geneva

    Slide159

    Next Meetings

    159

    ZMF AGM 2017 – Geneva

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