Barid Update June 2018 Thomas Hedberg Aviation Industry Analyst - - PowerPoint PPT Presentation

1 NewGen ISS

Barid Update June 2018

Thomas Hedberg – Aviation Industry Analyst hedbergt@iata.org

Update

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NewGen ISS Program Components

Remittance Holding Capacity Global Default Insurance Agency Accreditation Models IATA EasyPay

$

• IATA aims to deliver a more relevant, secure and customer-centric Passenger Agency

Program through the following NewGen ISS initiatives:

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To represent, lead and serve the airline industry

IATA Transparency In Payments

Update

June 2018

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Transparency in Payments

Topics:

Recap on TIP TIP Resolution Framework What is the impact of R890? TIP Timelines

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Context for TIP

Resolutions need to evolve Changes in payment landscape New players & solutions

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Which objectives?

IATA & industry stakeholders involved Transparency & Control Efficient framework & tools

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Benefits

Transparency and control Airline consent policy management Monitor compliance New ways of remitting funds to airlines Enrolment of own cards Airline consent database

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Today

Transparency In Payments – TIP solution

Customer Payment Pass-through

• f customer’s card

Customer’s card (or other instrument)

$$$ Monies held in trust

BSP “Cash”

Tomorrow

Alternative Transfer Methods IATA EasyPay

A1

Pass-through

• f customer’s card

B2 B3

Customer Payment

A2

Agent remittance to the Airlines ($$$)

B1

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Providers enlist Product enrollment 2 steps of validation:

• Upfront validation
• Post-ticketing monitoring

Individual airline consent 1. Transparency

• 3. Transaction

validation and monitoring Airlines to follow-up with Agents

• On bilateral basis, or
• Via the Travel Agency

Commissioner 4. Infringement and consequences

• 2. Individual

Airline consent

TIP framework - 4 principles

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Alternative Transfer Method Provider

1

TIP product repository Agent Airline

Enrolls

BSP

2 Consents

TIP post- transaction monitoring Airline consent

Checks 4

Upfront validation

5 Reports 6

If infringement

Bilateral discussion 3

How does it work?

Validates / monitors

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Each Airline to define its policy based on transparency Each Agent to use new transfer methods with consent

In summary

March 2018: initial launch in limited countries End 2019: worldwide full implementation

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TIP on IATA.org

TIP’s new webpage on iata.org: www.iata.org/tip Including link to TIP APJC Video Link to TIP Reso (section “Resources”).

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Proposed new / changes to Resolutions

Resolution 812 package Amended Resolution 890 Transition Resolution 896

Effective Mar-2018 worldwide Progressive Effectiveness Mar-2018 to Dec-2019 Progressive Effectiveness Mar-2018 to Dec- 2019, (rescinded

• nce all countries

under r812) Allow TIP rollout

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Amended R890 effective worldwide 01st of March, 2018

“3.4 This Resolution gives authority to accept only a Customer Card when using the card acceptance merchant agreement of the Member/Airline to collect payment for the sale of passenger air transportation and Ancillary Services. The Agent may not accept any other card or payment method that uses the Member/Airline’ card acceptance merchant agreement, including any card issued in the name of the Agent or any Person permitted to act on behalf of the Agent, unless specifically authorised by such Member/Airline. A failure to comply with the present paragraph 3.4 will be undertaken under the sole responsibility and liability of the Agent toward the Member/Airline concerned.”

Impact of R890 on Airlines and Agents

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Impact of R890 on Airlines and Agents

Resolution 890 allow use of Agent-own cards and Alternative Transfer Methods only if permitted by the Airline will be effective 01-March 2018 worldwide. until the functionality in TIP becomes available, Airlines and Agents must manage their consent (if any) bilaterally.

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Schedule - TIP roll-out sequencing vs. NGISS Pilot Countries Core functionalities

Initial Launch - Mar 2018

PAConf vote

“Initial Launch”

Mar 2019 Mar 2018

“Full Launch”

Dec 2019

Country Roll-out Full functionalities *

Full Launch by Mar 2019

• In line with NewGen

ISS Waves

• possible flexibility

Country Roll-out

* dependent on implementation by GDS/TSP

R.2 R.3

Jun 2018 Sep 2018

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• 1. TIP product

enrollment: by ATM provider

• 2. Airline consent:

product & country (BSPlink)

• 4. Post-transaction

Monitoring: enrolled & known BINs (BSPlink)

We are here

* Capability Available – implementation depends on GDS readiness

2018

W1 W2, G1

FUNCTIONAL IMPLEMENTATI ON

• 1. Airline

consent: Agent level (BSPlink)

• 1. TIP product enrollment:

by Agent (Agent’s own card) (BSPlink)

• 2. Post-transaction monitoring:

Statistical analysis

• 3. Upfront validation – API / CAC *
• 4. FOP codes proposal* :

CCAC/CCVA (BSPlink/iBSPs/SF)

Wave 2 – G2

TIP ROLLOUT

Wave 2 – G3 Wave 3 – G1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018

Catch up NewGen

Schedule - TIP roll-out sequencing vs. NGISS

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Transparency in Payments

TIP Wave 1 Go-Lives

Market Notice of Migration to Resolution 896 (60 days) TIP Go-Live Norway 08-Feb-18 09-Apr-18 Finland 15-Feb-18 16-Apr-18 Sweden 15-Feb-18 16-Apr-18 Iceland 10-Mar-18 09-May-18 Denmark 10-Mar-18 09-May-18 Canada 17-Mar-18 16-May-18 Bermuda* 17-Mar-18 TBD Singapore 24-Mar-18 23-May-18

*BSP Bermuda Go-Live subject to confirmation based on Airline Readiness

for NewGen ISS.

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Market Notice of Migration to Resolution 896 (60 days) NGISS and TIP effective date Estonia Mon 30-04-18 Sun 01-07-18 Honduras Mon 30-04-18 Thu 16-08-18* Hungary Mon 30-04-18 Sun 01-07-18 Latvia Mon 30-04-18 Sun 01-07-18 Lithuania Mon 30-04-18 Sun 01-07-18 Panama Mon 30-04-18 Sun 01-07-18

Transparency in Payments

TIP Wave 2 (Group 1) Go-Lives

* Honduras under review Following countries to be aligned with NewGen ISS schedule

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TIP Country Waves (aligned with NewGen ISS waves) Migrations waves subject to change / Countries may be prioritized/delayed based on operation needs and readiness (subject to PSG approval)

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Current functionalities available

Define consent policy for enrolled products Alert on new Provider/products available Post-Transaction monitoring reports Consult for an Airline which product(s) it has given consent to Setup email alert to be notified of new/change to Airlines’ consent

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ATM Products currently enrolled

Country ATM Product Norway Edenred vPay Finland Sweden Denmark Iceland (None) I use a product that is not listed? Ask your provider to contact IATA to enroll its product

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To represent, lead and serve the airline industry

Thank you, Questions?