Webinar presentation simplified interline settlement (sis) - airline preparedness survey wave ii
-
Upload
kale-consultants-ltd -
Category
Business
-
view
922 -
download
0
Transcript of Webinar presentation simplified interline settlement (sis) - airline preparedness survey wave ii
Simplified Interline Settlement
Airline Preparedness Survey –Wave 2
© 2
01
1 K
ale
Co
nsu
lta
nts
Overview – Kale Consultants
25 years of experience in technology & outsourcing
Exclusive focused on Airline vertical
Offer best-in-class products and services across:
• Financial Management, Revenue Accounting, Revenue Recovery & Audit and Decision Support Systems
(DSS) Commercial
IATA Strategic Partnership – 10 years
Trusted by the airline industry bodies:
• Simplified Interline Settlement
• Neutral Fare Proration | (Kale’s APEX® in association with ATPCO)
• Zero Octa preferred supplier for Star Alliance for Revenue Recovery & Audit services
© 2
01
1 K
ale
Co
nsu
lta
nts
Overview – Kale Consultants
Over 80 airline customers
• 15 of the top 20 airlines are our customers
Scale
• 250+ mn RA transactions processed thru REVERA®
• 100+ mn proration transactions thru APEX®
• $70+ mn in revenues recovered annually
1400+ techno-functional professionals
Global footprint – US, UK, India and New Zealand
Now part of the Accelya Group
Combined
• Over 200 airline customers
• Revenues $100+ mn
• 170+ mn tickets processed for IATA
BSP
• $180mn in revenue recovery
• 2100+ professionals
• Global footprint -
US, Mexico, South Africa, Tunisia
UK, France, Portugal, Hungary, India
and New Zealand
© 2
01
1 K
ale
Co
nsu
lta
nts
Survey
© 2
01
1 K
ale
Co
nsu
lta
nts
Objective and Methodology
Data Collection + Data Analysis
Distributed questionnaire to Airline Revenue
Accounting Heads and other high-level
executives.
Web based questionnaire
(survey window open for 4 - 6
weeks
MethodologyObjective
Survey Result
To monitor industry readiness for IATA’s Simplified Interline Settlement (SIS)
↗ Priority level for IATA’s SIS Project
↗ Clarity on required changes
↗ Approaches to become SIS Compliant
↗ Current status on readiness
↗ Estimated timelines and budget
© 2
01
1 K
ale
Co
nsu
lta
nts
Overview
↗ 3 Wave approach
↗ Wave 1 conducted in June 2010 and Wave 2 conducted in Jan 2011
↗ Wave 3 to be done in June 2011
↗ Participation
WAVE- 1, JUNE 2010
•Airline: 56
•Respondents: 71
WAVE – 2, JANUARY 2011
•Airline: 66
•Respondents: 82
WAVE – 3, JULY 2011
•Proposed
© 2
01
1 K
ale
Co
nsu
lta
nts
Airline Participant Detail – Wave 2
Annual Pax Count
Tier 1 Above 15 Million
Tier 2 Between 3 - 15 Million
Tier 3 Below 3 Million
Manager Level72%
Director Level28%
Respondents Profile
Tier 125%
Tier 227%
Tier 348%
Tier Wise
Africa + Middle East
, 8
Asia, 22
Europe, 20
North America, 9
South America, 7
Airline Participation
Full Service 86%
Low Cost 9%
Cargo Airline
5%
Airline Type
© 2
01
1 K
ale
Co
nsu
lta
nts
Level of priority to become SIS compliance
Base: Those respondents answering – unweighted
Wave 1
Wave 2
17%
9%
48%
53%
35%
38%
Low priority High priority Very high priority
↗ 91% of the respondents consider SIS compliance as high to very high priority
© 2
01
1 K
ale
Co
nsu
lta
nts
Understanding Change required for SIS
Wave 1
Wave 2
Wave 1
Wave 2
Wave 1
Wave 2
Mis
cella
neo
us
Car
goP
asse
nge
r
16%
17%
27%
26%
33%
43%
49%
58%
43%
49%
59%
49%
35%
25%
30%
26%
8%
8%
Clear Somewhat Clear Not Clear
Base: Those respondents answering – unweighted
↗ Passenger
↗ Better clarity of impact of SIS for Passenger
↗ Over 50% still not clear
↗ Cargo & Miscellaneous
↗ Requires clarity and training
© 2
01
1 K
ale
Co
nsu
lta
nts
Training requirements and dependencies
No5%
Not sure6%
To some extent
25%Yes64%
Training Need
IATA + RA Vendor
26%
Only IATA36%
RA Vendor38%
Depend for Training / Hand holding
Depend for Training
Base: Those respondents answering – unweighted
↗ There is a high need for training and hand-holding felt by airlines
↗ Airline respondents who have vendor provided RA system depend on the
vendor for training
© 2
01
1 K
ale
Co
nsu
lta
nts
Airline Status In term of readiness for SIS
Base: Those respondents answering – unweighted
↗ Over 50% of airlines are beyond Initiation and budget finalization stage of SIS readiness
↗ MEA region based airlines are ahead of others in readiness
Overall Status
Middle East + Africa
Asia
Europe
North America
South America
46%
38%
57%
29%
43%
63%
36%
38%
32%
43%
43%
25%
7%
4%
14%
13%
11%
25%
7%
14%
14%
Initiation & budget finalization Planning & SIS compliance approach finalization Execution of the plan System & process testing
© 2
01
1 K
ale
Co
nsu
lta
nts
Approach to become SIS Compliant - Preferred Approach
23%
53%
5%
3% 16%
Develop in-house solution Expect solution current RA vendor to provide
Outsource interline billing to 3rd party vendor Purchase an off-the-shelf SIS compliant interline module
Replace current RA system with a SIS compliant RA system
Base: Those respondents answering – unweighted
↗ 53 % of the respondents across airline industry have shown dependency on RA vendor for
Implementing Technology Change
© 2
01
1 K
ale
Co
nsu
lta
nts
Approach to become SIS Compliant - Preferred Approach
Overall
Middle East + Africa
Asia
Europe
North America
South America
23%
33%
9%
44%
25%
53%
86%
47%
57%
44%
50%
5%
7%
25%
3%
7%
16%
14%
7%
35%
11%
Develop an in-house solution Expect current RA system vendor to provide solution
Outsource interline billing to 3rd party vendor Purchase an off-the-shelf SIS compliant interline module
Replace current RA system with a SIS compliant RA system
↗ More than 50 % of respondents across region have shown dependence on RA system vendor
to provide solution for SIS compliance
Base: Those respondents answering – unweighted© 2
01
1 K
ale
Co
nsu
lta
nts
Estimated time to be compliant and budget
3% 16%
37%
33%
11%
Expect system ready
Less than 3 months 3 to 6 months
6 to 9 months 9 to 12 months
More than 12 months
23%
4%
10%
4%
60%
Amount budgeted
Less than $50,000 $50,000 - $100,000
$100,000 - $250,000 $500,000 +
Can't say / Don't know
Amount Budgeted
Base: Those respondents answering – unweighted
↗ 81% airlines is expecting to take more than 6 months (Sept 2011) to be SIS compliant
↗ Majority of the surveyed airlines could not disclose the budgets allocated for SIS
compliance
© 2
01
1 K
ale
Co
nsu
lta
nts
Expected time period comparison – Wave 1 & Wave 2
3%
16%
37%33%
11%8%
15%
32%
47%
Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months More than 12 months
Wave 2 Wave 1
© 2
01
1 K
ale
Co
nsu
lta
nts
Summary
91% considered SIS compliance as a high priority
Over 50% respondents are still not clear about the required system changes
Over 60% respondents feel the need for training and hand-holding
Over 50% respondents are beyond initiation and budgeting phase
53% respondents show dependency on the RA vendor for implementing technology change
19% of airlines are confident of getting their systems SIS compliant before September 2011
© 2
01
1 K
ale
Co
nsu
lta
nts
Thank You.
For more information on the surveywrite to us at [email protected]
Looking forward to your participation in the Wave 3 survey
Confidentiality Statement:
The material contained in this presentation is proprietary information of Kale Consultants Ltd. To avoid misunderstanding or misuse, we respectfully request that you do not show, distribute, or allow use of this document without a written consent from Kale Consultants Ltd. marketing team. Kale Consultants adheres to a strict code of ethics. We honor confidentiality requests and ask others to do so as well.
Copyright 2011 Kale consultants Ltd. (All rights reserved)Kale Consultants is the trademark or registered trademark of Kale Consultants in US and in several other countries all over the world.
www.kaleconsultants.com
Transcending boundaries…