ich update
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ICH Update. 2010 ICH User Group Nicholas Coote Clearing House Manager. Where have we come from?. The deepest recession for 20 years, possibly since the 1930s ICH volumes in 2009 were down by 20% on 2008 More in P, C and U, less in M 23 suspensions in 2009 Several major bankruptcies. 81%. - PowerPoint PPT PresentationTRANSCRIPT
KUL – 20-22 Oct 20102010 ICH UG Meeting 2
Where have we come from? The deepest recession for 20 years, possibly since the
1930s ICH volumes in 2009 were down by 20% on 2008
More in P, C and U, less in M
23 suspensions in 2009 Several major bankruptcies
KUL – 20-22 Oct 20102010 ICH UG Meeting 3
What is in store for 2010? Demand is increasing, and faster than capacity
Load factors up from around 72% to nearly 79%
72%73%74%75%76%77%78%79%80%81%
2006 2007 2008 2009 2010
% A
SK
s
300
320
340
360
380
400
420
Ave
rag
e o
ne-
way
far
e
Passengerload factor
Average one-way fare
KUL – 20-22 Oct 20102010 ICH UG Meeting 5
Profits are increasingGlobal commercial airline profitability
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
F
% r
even
ues
-20
-15
-10
-5
0
5
10
15
20
US
$ bi
llion
Net losses(right scale)
EBIT margin (left scale)
KUL – 20-22 Oct 20102010 ICH UG Meeting 6
Clouds on the horizon?
Not in the clear yet – 2011 is looking mixed Load factors seem to have passed their peak Business confidence seems to have turned
KUL – 20-22 Oct 20102010 ICH UG Meeting 7
ICH activity Throughput is increasing – up by 8% on last year
Led by UATP and Cargo
Plenty of new joiners 11 Airlines, 10 Associates and 2 Sponsored
Only 6 suspensions so far this year, with a loss ratio of just 0.0001% The remainder was covered by security deposits or by
recoveries after the event
KUL – 20-22 Oct 20102010 ICH UG Meeting 8
Changes related to the SIS project New interface to SIS to replace ICH-Web and F12 Streamlined interclearance with the ACH New reports to show sources of data (ICH Web or SIS) New Suspended Member reports Other changes
Improvements to F3 processing
NOTE: Existing ICH reports will continue to be available after SIS implementation
KUL – 20-22 Oct 20102010 ICH UG Meeting 9
Changes to service pricing in 2011 Participation structure and fees have been unchanged since
inception Need to start rethinking both in the light of SIS needs Non-IATA Airlines, Strategic Partners, Airline Subsidiaries and
Sponsored airlines Billings up to USD1m pa – USD10,000 pa Billings up to USD10m pa – USD20,000 pa
Associate Members and Sponsored non-airlines Billings up to USD1m pa – USD16,000 pa Billings up to USD10m pa – USD32,000 pa
ICH Web fees and billing over USD10m – rates are unchanged
KUL – 20-22 Oct 20102010 ICH UG Meeting 10
Changes to service pricing in 2011 New baseline pricing implemented for SIS users
Billings up to USD100,000 pa – USD1,000 No ICH-Web fees – use of ICH-Web not permitted Applies to Airline Members and Associate Members Effective from go-live, and included within the SIS Participation
Fee
KUL – 20-22 Oct 20102010 ICH UG Meeting 11
SIS Migration Surcharge Reminder
At SIS go-live, the SIS Migration surcharge comes in Published in March 2009 and also highlighted last year Applies to all ICH Web users Charge likely to apply to period October-December 2011 Rate varies according to number of invoices processed and
status of Member Published amounts will be prorated accordingly
KUL – 20-22 Oct 20102010 ICH UG Meeting 13
Changes to settlement rules in SIS Settlements will be based on invoices, not claims
No invoice = no settlement Adjustments will be based on invoices, not claims Incorrectly issued invoices; error identified before Closure:
Issue a credit invoice to correct the settlement balance Same Charge Category and Charge Code, and reference the original invoice Goes through ICH in the normal manner Maintains the link between invoice values and settlement values
Settlement value is changed by the ICH after Closure due to a Protest/Adjustment:
Issue a credit invoice as above with Settlement Method Indicator = R Signifies ‘Reversal’, and SIS will not route it to the ICH to avoid a duplicated
adjustment
KUL – 20-22 Oct 20102010 ICH UG Meeting 14
Changes to settlement rules in SIS ICH-Web blocking for migrated users
Applies once you have migrated a complete billing Category (P, U, C or M)
The migrated Member can notify the ICH of its move of that Category, and the ICH will publish this to the Membership
After 6 months, ICH-Web access will be closed to both billing and billed Members
Effectiveness date still under discussion All billings thereafter must go through SIS, in both directions
May mean manual entry through IS-Web
KUL – 20-22 Oct 20102010 ICH UG Meeting 15
Changes in the Regulations Full review by ICH Panel New edition in 2011 Review of Protest procedures Changes to
Claims entry and submission (Procedure 1) Report outputs (Procedure 2) Signatory processes (Procedure 3) Service charges and fees (Procedure 11)
New concepts, such as handling and disposal of duplicate claims
KUL – 20-22 Oct 20102010 ICH UG Meeting 17
ICH WG LA resigned from the Panel,
Now LH (Chair), UA, KL
Open for applications for membership Must be a senior financial manager from an IATA Member, in
good standing, approved by CFO CV to be submitted to Financial Committee for review
Must be able to travel to meetings (not more than twice per year)
KUL – 20-22 Oct 20102010 ICH UG Meeting 18
ICH UG Focus on SIS – this will probably be the last major industry meeting
before go-live Most of the meeting has been given over to SIS briefings SIS fundamentally changes the way you make your claims
E-invoice instead of ICH-Web/F12 Take the opportunity to talk to the SIS project team, and colleagues
from other airlines ICH staff will answer any questions on impacts on ICH processes Give us any suggestions for improvements or changes in the
services we provide
KUL – 20-22 Oct 20102010 ICH UG Meeting 19
Final note For ICH Members SIS is mandatory You don’t have to migrate immediately, or all at once
You can be part ICH-Web and part SIS
In the SIS world, your invoice is your claim Benefit: Settlement always reconciles to invoices Corollary: Failed invoice = no settlement
A huge change for all of us, including ICH itself We will do all we can to support and assist our Members during
the transition
KUL – 20-22 Oct 20102010 ICH UG Meeting 20
Thank you
Email:
ICH Website:
www.iata.org/ich