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Aeronautical Charges Exchange Working Group (ACXWG) Speaker Giorgio Camilleri Manager Product management

Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

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Page 1: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Aeronautical Charges Exchange Working Group

(ACXWG)

Speaker Giorgio Camilleri

Manager Product management

Page 2: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

The overall picture

ACXWG NEW

MESSAGE

Airlines

Airport

authority,

CAA, ANSP

Billing calculation

Airlines

Entry

point Exit

point

Airport Charges (e.g. PSC, Parking)

Distance Distance

DCS

Reservation

RA

Reconciliation and

approval

IS-XML

2 Mobilization Workshop Financial Exchange

Page 3: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Background

Increased number of taxes, charges and fees

Increased complexity in the amount and diversity of data required for

charge calculation

More basic data needed Passenger data (e.g. number of passengers, infants, children)

Flight data (e.g. flight date, time of arrival, time of departure)

Aircraft data (e.g. MTOW, aircraft type)

3 Mobilization Workshop Financial Exchange

Page 4: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Today’s problem Often accurate charge calculation needs Airport AND Airline data

This often means that Airports need to receive data from Airlines

Type B messages (LDM – PTM – SLS – MVT) are used, BUT Not by all airlines

Not in the same format

Can be costly

Passenger exemptions remain an issue

This can result in tedious and cumbersome calculation and

reconciliation

Inconsistent worldwide approach for transmission of data elements

Handling of disputes represents a significant cost for the industry

4 Mobilization Workshop Financial Exchange

Page 5: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Some industry figures (estimate)

Industry charges (airport & ATC) estimated at around USD 92B/year (source: IATA Economic Briefing Infrastructure costs March 2013)

IATA E&F invoiced USD 3.6B/2013 – 3.9% of overall industry charges

IATA E&F handled USD 100M/2013 in disputed charges – over 3% of

total invoiced amount

5 Mobilization Workshop Financial Exchange

Page 6: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Cost of disputes

Total disputed industry charges estimated at close to USD1 Billion/year (assumption: around 1% of total industry charges)

6 Mobilization Workshop Financial Exchange

Page 7: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

ACXWG PADIS Messaging week – September 2013

Information on the creation of the ACXWG

Formation of the Aeronautical Charges Exchange Working Group (ACXWG)

PSC/35 - presentation of a second paper

First meeting of ACXWG on 20 & 21 March 2014

Report to PADIS group on March 25th on the progress of the ACXWG

Follow up conference calls held on 8th April and 14th May 2014

We continue to progress on the BRD

Next conference call to be scheduled in June for first review of BRD by

PADIS

7 Mobilization Workshop Financial Exchange

Page 8: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Terms of Reference (ToRs)

The ACXWG will focus first on Passenger related charges

The ACXWG is open to all IATA and A4A members as well as Airport

Authorities and IATA Strategic Suppliers

Define the requirements for a standard message to transmit and report

billing data elements for calculation of billing data of aeronautical

charges (PSCs, PFCs, terminal charges, etc.);

Define a Business Requirements Document (BRD) with both functional

and non-functional requirements to facilitate development of a

corresponding XML and/or EDIFACT message by PADIS;

8 Mobilization Workshop Financial Exchange

Page 9: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

ACXWG Message

9

ACXWG NEW

MESSAGE

Airlines

Airport

authority,

CAA, ANSP

Billing calculation

Airlines

Entry

point Exit

point

Terminal navigation

charges

(e.g. Landing)

Terminal navigation

charges

(e.g. Take-off) Airport Charges (e.g. PSC, Parking,

Lighting)

Distance Distance

DCS

Reservation

RA

Reconciliation and

approval

IS-XML

Charges/Taxes (example) Flight data elements

Passenger N.of Pax (First, Business, Economy, CH, IN, ID, Transfer, Transit, DP…)

Sales Ticket number, ticket class, originating country, currency of sale, passenger fare…

The NEW ACXWG INDUSTRY STANDARD MESSAGE will contain the billing data elements required for correct PASSENGER charges calculation

Other flight/Aircraft Data

Departure/Destination airport

Flight number

Date

Others….

IATA Mobilization Workshop

Page 10: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Benefits of the new ACXWG message

Standardization and automation of data transmission for airlines

Standardized data reception for airports

Driving efficiency in calculation and reconciliation Reduce data errors and potential frauds

Reduce labor/administrative costs (e.g. in handling disputes)

XML-standard associated benefits

Airlines can Opt-in or Opt-out

10 Mobilization Workshop Financial Exchange

Page 11: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

Example: transfer pax at LHR Arr Flight

NoArr STO

Arr IATA

LocArr Term Paxs

Dep

Flight NoDep STO

Dep IATA

Loc

Dep

Term

BA971 06/10/2013 06:55 HAJ 1 3 AA39 06/10/2013 12:15 MIA 3

BA389 06/10/2013 07:00 BRU 5 1 AA39 06/10/2013 12:15 MIA 3

BA1321 06/10/2013 07:30 NCL 5 1 AA39 06/10/2013 12:15 MIA 3

BA963 06/10/2013 07:55 HAM 5 6 AA39 06/10/2013 12:15 MIA 3

BA981 06/10/2013 08:05 TXL 5 2 AA39 06/10/2013 12:15 MIA 3

BA723 06/10/2013 08:15 GVA 5 3 AA39 06/10/2013 12:15 MIA 3

BA901 06/10/2013 08:15 FRA 5 10 AA39 06/10/2013 12:15 MIA 3

IB3170 06/10/2013 08:20 MAD 5 1 AA39 06/10/2013 12:15 MIA 3

BA947 06/10/2013 08:25 MUC 5 4 AA39 06/10/2013 12:15 MIA 3

BA811 06/10/2013 08:30 CPH 5 1 AA39 06/10/2013 12:15 MIA 3

BA341 06/10/2013 08:35 NCE 5 8 AA39 06/10/2013 12:15 MIA 3

BA477 06/10/2013 08:35 BCN 5 3 AA39 06/10/2013 12:15 MIA 3

BA365 06/10/2013 08:50 LYS 1 2 AA39 06/10/2013 12:15 MIA 3

BA561 06/10/2013 08:55 LIN 5 2 AA39 06/10/2013 12:15 MIA 3

BA795 06/10/2013 09:05 HEL 3 4 AA39 06/10/2013 12:15 MIA 3

BA699 06/10/2013 09:05 VIE 3 12 AA39 06/10/2013 12:15 MIA 3

AY831 06/10/2013 09:10 HEL 3 15 AA39 06/10/2013 12:15 MIA 3

BA1491 06/10/2013 09:15 GLA 5 5 AA39 06/10/2013 12:15 MIA 3

BA761 06/10/2013 09:15 OSL 5 5 AA39 06/10/2013 12:15 MIA 3

BA581 06/10/2013 09:15 MXP 5 7 AA39 06/10/2013 12:15 MIA 3

BA377 06/10/2013 09:25 TLS 5 3 AA39 06/10/2013 12:15 MIA 3

BA543 06/10/2013 09:25 BLQ 5 5 AA39 06/10/2013 12:15 MIA 3

BA1387 06/10/2013 09:35 MAN 5 1 AA39 06/10/2013 12:15 MIA 3

BA853 06/10/2013 09:35 PRG 3 3 AA39 06/10/2013 12:15 MIA 3

LO281 06/10/2013 09:35 WAW 1 1 AA39 06/10/2013 12:15 MIA 3

BA551 06/10/2013 09:55 FCO 5 8 AA39 06/10/2013 12:15 MIA 3

BA1319 06/10/2013 10:00 ABZ 5 4 AA39 06/10/2013 12:15 MIA 3

BA1373 06/10/2013 10:05 MAN 5 3 AA39 06/10/2013 12:15 MIA 3

BA865 06/10/2013 10:05 BUD 3 1 AA39 06/10/2013 12:15 MIA 3

TK1979 06/10/2013 10:05 IST 3 1 AA39 06/10/2013 12:15 MIA 3

BA631 06/10/2013 10:10 ATH 5 2 AA39 06/10/2013 12:15 MIA 3

EI156 06/10/2013 10:15 DUB 1 2 AA39 06/10/2013 12:15 MIA 3

BA741 06/10/2013 10:25 GVA 5 5 AA39 06/10/2013 12:15 MIA 3

VY7874 06/10/2013 10:30 PMI 3 1 AA39 06/10/2013 12:15 MIA 3

BA1439 06/10/2013 10:35 EDI 5 8 AA39 06/10/2013 12:15 MIA 3

BA429 06/10/2013 10:45 AMS 5 4 AA39 06/10/2013 12:15 MIA 3

BA499 06/10/2013 10:50 LIS 3 2 AA39 06/10/2013 12:15 MIA 3

BA547 06/10/2013 17:00 FCO 5 1 AA39 07/10/2013 12:15 MIA 3

BA198 06/10/2013 18:15 BOM 5 1 AA39 07/10/2013 12:15 MIA 3

AZ210 06/10/2013 23:05 FCO 4 1 AA39 07/10/2013 12:15 MIA 3

11 Mobilization Workshop Financial Exchange

Page 12: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

We hear your voice

Do you see value in IATA setting this new standard?

What is your current process for sending data (passenger,

exemptions…) to authorities for TFC calculation?

Do you have the same process for all your destinations?

Would you consider the implementation of the new standard?

12 Mobilization Workshop Financial Exchange

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13 Mobilization Workshop Financial Exchange

Page 14: Aeronautical Charges Exchange Working Group (ACXWG) · billing data elements for calculation of billing data of aeronautical ... Dep STO Dep IATA Loc Dep Term BA971 06/10/2013 06:55

14 Mobilization Workshop Financial Exchange