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simplifying the businessRegional StB
TrainingCairo, March 19th
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The story so far
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A call to action

• More than anything else, the air transport
  industry needs change! Over US35 billion in
  losses since 2001 makes this more than clear.
• We are challenging ourselves as an industry to
  find cost savings in our industry's complex
  processes, at the same time enhancing convenience
  for the consumer.

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IATA taking the lead

• IATA working with Members launched research into
  business process improvements to reduce costs and
  improve customer service.
• Key driver is low cost competition from Low
  Cost Carriers in many regions.
• Identified 50 opportunities, and recommended 5
  to Board of Governors.

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IATAs Board decision Five focus areas

• ET- electronic ticketing
• CUSS - common use self service
• RFID - radio frequency identification for baggage
  tags
• Bar coded boarding passes
• Cargo paperless environment

Adopted and approved by IATA Board of Governors
and AGM in June 2004 and enhanced in Dec 2004.
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The benefits

• ET- electronic ticketing
• Savings 90 of ticketing costs /- 3
  billion
• CUSS - common use self service
• Savings 3.7 to 0.16 per passenger
• RFID - radio frequency identification for baggage
  tags Savings 100 average cost for mishandled
  bag
• Bar coded boarding passes
• Savings Significant in facilities and
  processes
• Cargo paperless environment
• Savings 1.7 billion

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e-ticketing objectives

• Elimination of paper tickets by end 2007
• 40 of tickets by end 2005 to be ET
• 70 of tickets by end 2006 to be ET
• 100 of tickets by end 2007 to be ET
• Develop strategy and target date for elimination
  of all other paper from the passenger process
• Establish a common standard to enable exchange of
  e-tickets between major alliances
• Explore the development of plug and play
  interline e-ticketing solution

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CUSS objectives

• Reduce airline costs and improve customer service
  via the aggressive promotion of CUSS
• Launch CUSS at 5 additional airports by the end
  of 2005
• Develop standards for a single interface and
  ensure implementation

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RFID objectives

• Reduce airline costs and improve customer service
  by promoting the use of RFID technology to
  improve baggage management processes
• Initiate 5 airport trials by the end of 2005
• Ensure single standard is adopted by end of 2005

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Bar codes objectives

• Reduce airline costs and facilitate new
  technologies for self-service and home/office
  issuance by promoting the use of bar coded
  boarding documents
• Improve customer service
• Provide a viable alternative to magnetic stripe
  technology in anticipation of the elimination of
  ATB2
• Develop and adopt a single industry standard
• Promote wide-scale implementation

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CPE objectives

• Eliminate the need to produce and transport paper
  documents for air cargo shipments by moving to an
  industry-wide, all-electronic environment
• Target implementation by end 2007, full
  adoption by end 2010

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a win-win

• Customer simplified travel
• Airline simplified business processes and
  cost savings

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Where we are now
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IATA on the line
Perception is reality Jack Welch, CEO, GE

• And our customers perception?

Its been 8 months since the launch of StB, and
we have seen nothing from IATA Airline
representative at recent industry meeting
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IATA on the line

• The Vision is powerful
• The strategy has been successfully developed
• It is time for action on a wide scale!
• Giovannis response
• A new StB team
• A new approach leveraging on our regional /
  Country representatives

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Our challenge is to

• Deliver the largest programme in IATAs history
• in the shortest time
• Manage the huge and many complexities
• in the simplest way
• Lead an industry change management revolution
• not just a technology implementation

"Changing airline culture is like trying to
perform an engine change in-flight," Rod
Eddington, CEO, BA.
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Our commitment

• Deliver the Simplifying the Business programme
  for our customers, for IATA, and for the world
• Find and use the best people in the industry
• Deliver valuable and visible results, fast!
• Have people who deliver
• Are you ready for this challenge?

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The plan for success
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Our strategy

• Developed over the last month
• Covers all our stakeholders
• Airlines
• GDSs
• Airports
• Alliances
• System and Service Providers
• Documents our approach and plans
• StB delivery Global direction, local action

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Our approach to deliver StB

• Structured, organised, and consistent
• Drive action based on validated market
  intelligence
• Apply continued learning and improvement
• Engage and mobilise all stakeholders
• Deliver targeted support and action
• Focus on delivering results, with speed

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Our approach to working with customers

• Dedicated global team with a command centre,
  regional and local representatives, and subject
  matter experts
• Adapt the global approach to the local
  environment
• Mobilise support locally, regionally, and
  globally
• Deliver assistance according to needs
• Advise on industry issues, standards, and
  solutions
• Actively communicate and share knowledge

Many airlines, many teams, all working together
for the same industry goal. All together,
Simplifying the Business.
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Our team,roles and responsibilities
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Roles and responsibilities for delivery

• Providing strategic direction
• The IATA Board defines strategic direction and
  goals
• The Director General acting as a Commander in
  Chief setting the direction and ensuring
  alignment
• The IDFS SVP defining the overall StB strategy.
• The StB Airline Steering Group established by the
  IATA Board of Governors advising and guiding
  IATA Management on the implementation of the
  Simplification Strategy (Singapore Airlines,
  Delta Air Lines, Air France, Air Canada, JAL,
  Northwest Airlines, British Airways, American
  Airlines, TAP Air Portugal, KLM, , Lufthansa,
  United Airlines).

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Roles and responsibilities for delivery

• Providing guidance, methodology, tools,
  actionplans, and support
• The Command Centre (6 FTEs) defines operational
  strategies, action plans and ensures successful
  implementation.
• The Project Management Group (12 FTEs)
  responsible for developing and implementing
  action plans.
• Assigned IATA subject matter experts (6 FTEs)
  responsible for developing standards and for
  bringing support

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Roles and responsibilities for delivery

• Providing local action
• RCT Chairmen, Regional Directors and Country
  representatives accountable for interfacing with
  our members and acting as our key implementation
  platform.        
• Regional coordinators (14 FTEs) acting as the
  primary interface between members, countries, the
  region, and the programme.

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Focus on your role Make it happen!

• Ensure implementation of StB objectives
• Act as preliminary interface with local players
  providing 1st and 2nd level support
• Provide maximum market proximity (language, time
  zone, culture, market knowledge)
• Educate our external stakeholders in StB
• Gather market intelligence
• Conduct facilitation/lobbying efforts to support
  the regional StB coordinators, experts, project
  managers, and the programme team

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Our team, our coalition, our army!
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Enablers of success
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Live the programme values

• Take responsibility
• Learn and be proactive
• Deliver results quickly
• Provide quality
• Embrace teamwork
• Be a role model
• Represent IATA as a leader

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Communication is at the core
What is not communicated does not exist, and
what does not exist cannot be communicated
Someone, famous

• Plan, act, communicate
• Every piece of information could be valuable
• All communication should be two-way

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Use the tools and support
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Harness the power of information

• Use the IATA intelligence tools
• Reports
• Analysis
• Best practices
• Expertise
• Gather and share market intelligence and learning
• Use facts and figures as your weapons

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Time for action
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Your job, today

• To participate and express your views
• To know your facts on StB
• To own everything we cover as if it was yours
• To fully understand your role, the support
  available, your targets, and the timelines
• To demonstrate your commitment, leadership and
  professionalism

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Your job, after today

• During April to hold in-depth face to face
  meetings with all your assigned airlines
• By the end of April to provide structured, and
  detailed market intelligence feedback on your
  meetings
• During May to provide input on local solutions
  to be put forward at the AGM
• 1st of June to launch the next assault

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The industry has decided on a direction and we
will make this happen

• Giovanni Bisignani, DG CEO of IATA

Lets make it happen!