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Webinar presentation simplified interline settlement (sis) - airline preparedness survey wave ii

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  • 1. Simplified Interline SettlementAirline Preparedness Survey –Wave 2 © 2011 Kale Consultants
  • 2. 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© 2011 Kale Consultants
  • 3. Overview – Kale Consultants Over 80 airline customers Combined • 15 of the top 20 airlines are our customers • Over 200 airline customers Scale • Revenues $100+ mn • 250+ mn RA transactions processed thru REVERA® • 170+ mn tickets processed for IATA • 100+ mn proration transactions thru APEX® BSP • $70+ mn in revenues recovered annually • $180mn in revenue recovery 1400+ techno-functional professionals • 2100+ professionals Global footprint – US, UK, India and New Zealand • Global footprint - US, Mexico, South Africa, Tunisia UK, France, Portugal, Hungary, India and New Zealand Now part of the Accelya Group© 2011 Kale Consultants
  • 4. © 2011 Kale Consultants Survey
  • 5. Objective and Methodology Objective Methodology To monitor industry readiness for IATA’s Simplified Distributed questionnaire to Web based Interline Settlement (SIS) Airline Revenue questionnaire Accounting Heads (survey window open for 4 - 6 ↗ Priority level for IATA’s SIS Project and other high-level weeks executives. ↗ Clarity on required changes ↗ Approaches to become SIS Compliant Data Collection + Data Analysis ↗ Current status on readiness ↗ Estimated timelines and budget Survey Result© 2011 Kale Consultants
  • 6. 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 WAVE – 2, JANUARY 2011 WAVE – 3, JULY 2011 • Airline: 56 • Airline: 66 • Proposed • Respondents: 71 • Respondents: 82© 2011 Kale Consultants
  • 7. Airline Participant Detail – Wave 2 Africa + South Middle East ,8 Director Tier 1 North America, 7 Level Tier 3 25% America, 9 28% 48% Asia, 22 Manager Europe, 20 Level Tier 2 72% 27% Airline Participation Respondents Profile Tier Wise Cargo Low Cost Airline 9% Annual Pax Count 5% Tier 1 Above 15 Million Tier 2 Between 3 - 15 Million Full Service Tier 3 Below 3 Million 86%© 2011 Kale Consultants Airline Type
  • 8. Level of priority to become SIS compliance 9% 53% 38% Wave 2 17% 48% 35% Wave 1 Low priority High priority Very high priority ↗ 91% of the respondents consider SIS compliance as high to very high priority© 2011 Kale Consultants Base: Those respondents answering – unweighted
  • 9. Understanding Change required for SIS Wave 2 43% 49% 8% ↗ Passenger Passenger Wave 1 33% 59% 8% ↗ Better clarity of impact of SIS for Passenger Wave 2 26% 49% 26% ↗ Over 50% still not clear Cargo Wave 1 27% 43% 30% ↗ Cargo & Miscellaneous 17% 58% 25% ↗ Requires clarity and training Miscellaneous Wave 2 Wave 1 16% 49% 35%© 2011 Kale Consultants Clear Somewhat Clear Not Clear Base: Those respondents answering – unweighted
  • 10. Training requirements and dependencies No Not sure IATA + RA 5% 6% RA Vendor Vendor To some 38% 26% extent Yes 25% Depend for Training 64% Only IATA 36% Training Need Depend for Training / Hand holding ↗ There is a high need for training and hand-holding felt by airlines ↗ Airline respondents who have vendor provided RA system depend on the© 2011 Kale Consultants vendor for training Base: Those respondents answering – unweighted
  • 11. Airline Status In term of readiness for SIS South America 63% 25% 13% North America 43% 43% 14% Europe 29% 43% 14% 14% Asia 57% 32% 4% 7% Middle East + Africa 38% 38% 25% Overall Status 46% 36% 7% 11% Initiation & budget finalization Planning & SIS compliance approach finalization Execution of the plan System & process testing ↗ Over 50% of airlines are beyond Initiation and budget finalization stage of SIS readiness ↗ MEA region based airlines are ahead of others in readiness© 2011 Kale Consultants Base: Those respondents answering – unweighted
  • 12. Approach to become SIS Compliant - Preferred Approach 3% 16% 23% 5% 53% 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 ↗ 53 % of the respondents across airline industry have shown dependency on RA vendor for Implementing Technology Change© 2011 Kale Consultants Base: Those respondents answering – unweighted
  • 13. Approach to become SIS Compliant - Preferred Approach South America 25% 50% 25% North America 44% 44% 11% Europe 9% 57% 35% Asia 33% 47% 7% 7% 7% Middle East + Africa 86% 14% Overall 23% 53% 5% 3% 16% 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© 2011 Kale Consultants to provide solution for SIS compliance Base: Those respondents answering – unweighted
  • 14. Estimated time to be compliant and budget 23% 11% 3% 16% 4% 33% Amount Budgeted 37% 60% 10% 4% Less than 3 months 3 to 6 months Less than $50,000 $50,000 - $100,000 6 to 9 months 9 to 12 months $100,000 - $250,000 $500,000 + More than 12 months Cant say / Dont know Expect system ready Amount budgeted ↗ 81% airlines is expecting to take more than 6 months (Sept 2011) to be SIS compliant© 2011 Kale Consultants ↗ Majority of the surveyed airlines could not disclose the budgets allocated for SIS compliance Base: Those respondents answering – unweighted
  • 15. Expected time period comparison – Wave 1 & Wave 2 47% Wave 2 Wave 1 37% 33% 32% 16% 15% 11% 8% 3% Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months More than 12 months© 2011 Kale Consultants
  • 16. 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© 2011 Kale Consultants
  • 17. Thank You.Looking forward to your participation in theWave 3 surveyFor more information on the surveywrite to us at research@kaleconsultants.comConfidentiality 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 confidentialityrequests 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.
  • 18. Transcending boundaries… www.kaleconsultants.com