IATA Annual Review 2012

Simplified Interline Settlement
(SIS) is the biggest
change in billing and settlement
since 1947.
The newly developed SIS
web interface is an electronic
invoicing system that optimizes
interline billing and settlement
processes. In SIS, electronic
billing files submitted by members
are automatically processed
and sent to the relevant
ICH for automated settlement,
and the output files are then
created and submitted to the
partners. In this way, paper no
longer circulates among the
billing partners and, thanks
to the new billing standards,
account posting and reconciliation
can be automated.
In the first three months of its
operation in the fourth quarter
of 2011, SIS processed $1.68
billion in settlements, up to
24% of the ICH settlement
value, each week. On 8 May
2012, the second stage of SIS
was implemented, extending
SIS to cover cargo and the
Universal Air Travel Program,
thus completing the delivery of
the new service.
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IATA works with governments
to repatriate funds from
restricted markets.
According to the preliminary
2011 Remittance of Foreign
Balances (RFB) survey results,
$531 million of members’ funds
remains delayed or blocked
in 14 countries. This is an
increase of $15 million over
the 2010 year-end figure. Of
this total, $339 million is in
Venezuela, representing 64%
of the total. Some progress
was made with the Venezuela
Central Bank in 2011; average
delays were reduced to less
than five months, down from 10
months in 2009. Other markets
where airline funds are withheld
or delayed include Sudan, Iran,
Eritrea, and Algeria.
IATA helps airlines to access
funds from these restrictively
regulated markets and countries.
Based on the results of
the annual RFB, IATA works
with airlines to lobby local
governments and authorities
with a view to speeding up the
repatriation process.
$531
million
Total member funds in
$ millions blocked
in 14 countries.
Airline infrastructure charges
are reduced through the IATA
Enhancement and Financing
(E&F) Service.
The IATA E&F Service offers
ANSPs and airport authorities
the opportunity to improve
the efficiency and quality of
their user charges invoicing
and collection process. The
service helps users to strengthen
their cash flow and benefit
from economies of scale.
E&F can also help airports and
ANSPs to secure cost-effective
financing for investments in civil
aviation infrastructure.
Most of the invoices produced
by E&F can be submitted
electronically to the airlines and
settled through the IATA settlement
systems. Airlines, airports,
and ANSPs benefit from the
service through standardized
invoicing and highly secure and
efficient settlement processes.
In 2011, IATA’s E&F Service
processed more than $2.1 billion
in 48 countries.