Simplifying the Business IATA e-Services

The road to 100% EMD in IATA BSP

February 2013

Table of CONTENTS
1. 2. FOREWORD ..................................................................................................................................................... 4 IMPLEMENTATION OF THE EMD STANDARD IN IATA BSP ................................................................................ 6 2.1. PRE-REQUISITES FOR IMPLEMENTATION .................................................................................................................. 6 2.2. GDS (ELECTRONIC TICKETING SYSTEM PROVIDERS) CERTIFICATION PROCESS ................................................................. 6 2.2.1. Certification Methodology .................................................................................................................... 6 2.2.2. Partner choice ....................................................................................................................................... 8 2.3. AIRLINES OWN TESTING METHODOLOGY .................................................................................................................. 9 2.3.1. Generic HOT file .................................................................................................................................... 9 2.3.2. Subsequent tests in production on airlines demand (controlled testing) ............................................. 9 2.3.3. Subsequent tests in test environment at the request of an airline ..................................................... 10 2.4. EMD IMPLEMENTATION IN IATA BSP WITH A GDS PARTNER ................................................................................... 11 2.4.1. Implementation strategy .................................................................................................................... 11 2.4.2. Deployment steps ............................................................................................................................... 11 2.4.3. Agents training and communication .................................................................................................. 11 3. TOWARDS 100% EMD IN IATA BSP, VMCO/VMPD SUNSET ............................................................................ 13 3.1. STATUS........................................................................................................................................................... 13 3.2. AIRLINES IMPACT ANALYSIS ................................................................................................................................. 14 3.3. FOLLOW-UP ON AIRLINE STATISTICS ...................................................................................................................... 15 3.3.1. vMCO/vMPD Sunset communication .................................................................................................. 16 3.4. PRACTICAL SUNSET ........................................................................................................................................... 17 3.4.1. Stock allocations ................................................................................................................................. 17 3.4.2. VMPD issuances .................................................................................................................................. 17 3.4.3. VMCO issuances .................................................................................................................................. 17 3.4.4. BSP/DPC Processing ............................................................................................................................ 18 3.5. ALTERNATIVES TO REPLACEMENT OF VMCO/VMPD BY EMD .................................................................................. 19 3.5.1. Contact airline for direct issuance ...................................................................................................... 19 3.5.2. Full sunset (de-activation of non EMD fulfilled services) .................................................................... 19 3.5.3. OD fees................................................................................................................................................ 20 3.5.4. Q surcharge (for miscellaneous fees) .................................................................................................. 20 3.5.5. DU/DV codes ....................................................................................................................................... 21 3.5.6. Issuance only ....................................................................................................................................... 21 3.5.7. GDS and IT providers temporary solutions ......................................................................................... 21 3.5.8. EMD-A for EMD-S (or vice-versa) ........................................................................................................ 22

CONTRIBUTIONS

This section acknowledges the support of the colleagues who contributed to this edition: Thibaut RUY Implementation Manager, IATA e-Services Sebastien TOURAINE Project Manager, IATA e-Services Daniel XU Assistant Manager, Implementation, IATA e-Services David McEwen Manager, IATA Airline Distribution Standards Enrique Wallace IATA Manager, BSP Operations

This document has been discussed and shared with various industry stakeholders during EMD week in January 2013 before publication

1. FOREWORD
In December 2012, the IATA Board of Governors reconfirmed the deadline of 100% usage of EMD in IATA BSP by 31st of December 2013. One year ahead the deadline, IATA is supporting its Members, other BSP participant airlines and other industry stakeholders with this document to help them reach the IATA mandate. It focuses on the replacement of the vMCO/vMPD with the EMD in IATA BSPs. This signals the final stages of the removal of the legacy paper based processes which were supported by the VMCO and the VMPD, the consequence of the EMD standard implementation. This milestone will enable airlines and their GDS partners to have one unique method of reporting ancillary/miscellaneous sales and services in IATA BSP. Given the variety of stakeholders, there appears to be significant benefit in documenting various aspects of the overall processes to promote a common understanding and standardized approach to EMD implementation which is better expressed in a best practices document rather than resolution. Moreover, it is important to document some alternatives for those airlines that may not reach 100% EMD in IATA by end 2013 or have not implemented or do not wish to implement the EMD at this time. This publication is not a binding document - the formal text related to EMD is contained in the appropriate Resolutions and Recommended Practices adopted by the IATA Passenger Services Conference. Any comments, suggestions or proposals for enhancements, especially best practices, are welcome and should be directed to:

Sbastien Touraine Project Manager IATA e-services Contact: EMD@iata.org For more information on EMD please refer to: http://www.iata.org/stb/e-services

Versions Number 1

Effective date February 2013

Content EMD Implementation in BSP and vMCO/vMPD sunset guideline including alternatives

2. Implementation of the EMD standard in IATA BSP

IATA e-services team is communicating and publishing regularly the actual deployment status of EMD in IATA BSP. On the IATA e-services webpage, all project stakeholders can access monthly e-services presentations which highlight: The number of EMD live airlines (having issued EMD in IATA BSP) The number of capable airlines (having issued EMD in their direct sales channel) The number of BSP live (where EMD have been issued by travel agents) Link to the IATA e-services webpage: www.iata.org/e-services

2.1.

Pre-requisites for implementation

The airline needs to put in place an EMD server (i.e. being EMD capable) The airline and GDS partner need to be able to issue an EMD in this BSP by receiving certification from the corresponding DPC.

Before an airline can deploy EMD in a BSP with a GDS, the following pre-requisites must be met:

The following test options may be used by airlines. IATA is recommending only option 1 & 3 (see section 2.3 for more details): Option 1 Generic HOT file sample (see e-services webpage) Option 2 Subsequent testing in IATA DPC test environment (cost charged to the airline) Option 3 Controlled testing in production (free and seamless)

Recommended

Not recommended

Recommended

2.2.

GDS (Electronic Ticketing System Providers) Certification process

The GDS certification process allows IATA to guarantee the compliance of the GDS reporting file with DISH20.3 and especially to validate EMD transactions reporting. This process consists in simulating a full processing of GDS ticketing and reporting on the reporting tape (RET) and delivery of the handoff tape (HOT) to airlines revenue accounting systems.

2.2.1. Certification Methodology

Since January 2013, IATA requests each GDS to run only one validation per DPC for one airline certification partner.

Once this process has been achieved successfully, the GDS can deploy the EMD standard for its agents in any BSP reporting to the same DPC. The GDS can also deploy the EMD in any of these BSPs with any other airline without IATA requiring further testing. The actual GDS certification status is available on IATA e-services webpage and is updated regularly. At the time of publication of the guide, almost all of the major GDS have been certified in all DPC. The certification status table is available here. (http://www.iata.org/whatwedo/stb/e-services/Documents/bsp-certifications-gds.pdf)

The following table describes how the test cycle will happen: Step 1 GDS Actor Action To initiate the certification process, GDS contacts IATA EMD testing team EMDtesting@iata.org by e-mail. GDS team agrees on a test plan with airline partner and IATA validation team. GDS team requests a testing stock range (via SNAP application) and proposes a valid agent ID to be used for this test cycle. IATA team provides GDS a test stock range and grants the approval to GDS team on the test plan and for issuance of test transactions GDS team issues test transactions and sends a test RET file including these transactions to IATA DPC (advising EMDTesting@iata.org) when the file has been sent. IATA validation team is coordinating the DPC processing of GDS test RET file and DPC is forwarding the output HOT file and processing report to airline launch partner Airline partner revenue accounting team is in charge of validating the HOT file received and providing the final sign-off. IATA validation team is delivering a certificate to the GDS regarding the type of EMD and services that were validated.

GDS

IATA

GDS

IATA/DPC

Airline launch partner

IATA

2.2.2. Partner choice

The GDS and airlines can choose to be partners to run a certification process regarding a DPC based on different criteria: Commercial and business advantage to be ready in this region for the airline Airline readiness and knowledge about EMD can be a criterion for the GDS to request the airline to be the launch partner. The same airline can be used in different regions even if these regions are not relevant to the airline.

2.3.

Airlines own testing methodology

Airlines may have the need to validate their revenue accounting, especially if they were not collaborating with a GDS as certification partner.

2.3.1. Generic HOT file

A generic HOT file sample is available on the IATA e-services website. The airlines revenue accounting team can modify this file in order to adapt it to its own airline requirements and use it as a potential validation tool for their revenue accounting system.

2.3.2. Subsequent tests in production on airlines demand (controlled testing)

In the scope of IATA e-services project, airlines and GDS are deploying the IATA EMD standard in all IATA BSPs. IATA is mandating each GDS to run only one validation cycle per DPC (since January 2013) with one airline partner. IATA is not requiring GDS to run validations with each airline in each BSP. This controlled testing procedure is available for EMD subsequent tests when a GDS is already EMD certified in the corresponding DPC and deployed with at least one carrier in the same DPC. This procedure is proposed to GDSs when an airline needs to make end-to-end validations prior to deploying EMD in production. This ensures that IATA already supports EMD at the DPC level and is live in production. IATA will expect to be notified by GDSs at least two weeks in advance of such a testing request. GDSs will be using a live travel agent and live EMD BSP stock, and therefore, all that IATA needs to know are the ticket details once the GDS agent issues the transactions, and on what RET file they will be forwarded to the DPC. This way, IATA will be able to advise the DPC the details, and also will be able to keep close monitoring of the transactions from BSP operations. The following should be taken into consideration when testing in production environments: GDS needs to make sure that ALL the test transactions submitted in the live environment, are cancelled or refunded through the same channel and within the same reporting period (preferred option is to do this on the following day to the test). This will ensure that no financial impact is caused to the GDS testing agent. In order to correctly observe the above rule, GDS needs to avoid issuing tests during the last days of a reporting or billing period. Please verify the billing period time frame with IATA BSP operation Hub managers.

Example: In the case of BSP Spain, do not issue tests with DAIS of 7, 15, 23 or 30/31 of the month, as that could jeopardize all attempts to cancel/refund the transactions within the same period.

The list of Hub operations managers to be contacted prior to launching a testing campaign in a live environment is shown below: IATA Region Asia pacific Europe Middle East Africa The Americas North Asia Regional Hub Singapore Madrid Amman Miami Beijing Contact Names Valentina Oh YOO Byung Koo Enrique Wallace Ibrahim Bsaiso Mouhammed Al-muhaisen SMOJE Tamara Veronica Ibarra KANG Hyok Chol e-mails ohv@iata.org yoobk@iata.org wallacee@iata.org bsaisoi@iata.org almuhaisem@iata.org smojet@iata.org ibarrav@iata.org hyokcholk@iata.org

2.3.3. Subsequent tests in test environment at the request of an airline

An airline can request to run a subsequent test in IATA BSP/ DPC test environment even if the GDS is already certified. This request can be triggered by the airline for a number of different reasons, for example validation of its own revenue accounting system. In this case, IATA BSP validation team and BSP need to dedicate resources and systems on demand. As a result this activity is subject to a charge to the requesting airline. The testing process in this case will follow the standard IATA BSP testing cycle. The airline will need to contact its GDS who will need to contact emdtesting@iata.org .

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2.4.

EMD implementation in IATA BSP with a GDS partner

2.4.1. Implementation strategy

Please refer to the next section (3.2 Airlines impact analysis) for the deployment strategy on the airlines major markets. IATA can help airlines to analyze their vMCO/vMPD sales per BSP by sending a comprehensive report of these sales. Each airline will need to define its strategy depending on its own commercial priorities as to what type of EMD and which services it will deploy. Airlines need to ensure they analyze closely the type of service fees that were covered by the vMCO and the vMPD sales done by travel agents in each IATA BSP.

2.4.2. Deployment steps

Assumption: The GDS has been certified in the relevant DPC/Region combination Step 1 Actor GDS Action Stock range request If the IATA EMD standard document has not yet been deployed in the targeted BSP, the GDS needs to request an EMD stock range for this BSP via the IATA SNAP application. 2 IATA Stock range request validation IATA SNAP administrator validates the stock range request by ensuring that the targeted BSP is part of a certified DPC/Region combination. 3 GDS GDS allow either some or all travel agents in the BSP to issue EMD starting from the agreed launch date

2.4.3. Agents training and communication

Training Airlines need to provide the necessary training materials and explanation about the services to be sold via EMD, for example: Type of EMD to be used Reason for issuance Reason for issuance sub-code Types of services to be sold and other instructions Each GDS takes the responsibility of training their agent customers regarding the new capability of issuing EMD instead of vMCO and vMPD documents. 11

Communication Airlines need to notify travel agents about the change to EMD and vMCO sunset. The following information needs to be provided to travel agents: What type of service requires EMD usage? High level explanation of EMD If applicable, a date when EMD can be used, a date when EMD should be used, a date when EMD must be used Possible alternatives (can co-exist with EMD) during a temporary transition phase during the implementation period Consequences of not complying with airline requirement (ADM, etc)

Airlines may choose to follow the below approach to communicate how the deployment will happen: Step 1: Travel agents are allowed to use the EMD to sell services on behalf of the airline Step 2: Travel agents are encouraged to use the EMD Step 3: Travel agents are obliged to issue EMD to charge services sold on behalf of the airline, with the risk of ADM if not complying

See example of an airline generic bulletin in Appendix A.

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3. Towards 100% EMD in IATA BSP, vMCO/vMPD sunset

3.1. Status

In 2011, travel agents were issuing a total of 5 million vMCO/vMPD in IATA BSPs. This needs to be compared to approximately 450 million tickets. The share is about 50% vMCO and 50% vMPD. The 2.5 million vMCO are mainly issued by the GDS Amadeus in Europe; more than 80% of them are issued in 5 BSPs: Germany, United Kingdom, France, Italy, Netherlands, Spain, and Italy. Approximately 80% of the vMCO documents are issued on behalf of just 13 airlines. The 2.5 million vMPD are issued by travel agents using IATA BSP interface (BSPLink). These documents are widely spread around the world through various BSPs with large volumes in South America, India, Gulf/MENA, Italy and Australia. The Largest volumes of vMPD are issued on behalf of just 11 airlines.

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3.2.

Airlines impact analysis

In order to define its sunset strategy, each airline needs to take into account different aspects. By analyzing the volumes of vMCO/vMPD and how they are sold. Here is a non-exhaustive list of aspects to analyze: How many vMCO/vMPD were issued on behalf of the airline by travel agents? What are the BSPs where agents have issued vMCO on behalf of my airline? (This means what is the share and what is the ranking of each of these BSPs in terms of issued vMCO) What are the BSPs where agents have issued vMPD on behalf of my airline? (This means what is the share and what is the ranking of each of these BSPs in terms of issued vMPD) What is the ranking of agents issuing both documents on behalf of my airline? What type of fees and services are charged with VMCO and VMPD by travel agents? Example of airline XX (2011 figures): Total Number of vMCO/vMPD vMCO share vMPD share BSP presence for vMCO/vMPD Home market total vMPD number Home market total vMCO number Number of markets with more than 100 vMCO/vMPD How many agents covering 80% of vMCO/vMPD issuances in home market 20,447 5% 95% 23 18,739 (92% of total) 0 5 22

Conclusions: As we can see in the above table, airline XX needs to replace only vMPD documents. Airline XX needs to focus on the replacement of vMPD documents in its home market, representing 92% of the total number of documents that need to be replaced. A total of 22 agents covering 80% of miscellaneous documents issued on behalf of airline XX. This can allow the airline to directly contact these agents ensuring they have a good understanding of the change. It may be helpful to perform this analysis by splitting it into two tables with one covering the vMCO and a second covering the vMPD.

Note: IATA e-services team is ready to support airlines with the assessment. Please contact Thibaut RUY (ruyt@iata.org).

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3.3.

Follow-up on airline statistics

Once airlines will have implemented the EMD in IATA BSP, IATA is allowing airlines to follow the evolution of their EMD deployment penetration through the EMD Matchmaker tool. With EMD matchmaker, airlines can display their own volumes of EMD issued versus vMCO and vMPD. See an example in Appendix B.

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3.3.1. vMCO/vMPD Sunset communication

Airlines Airlines must engage with travel agents to guide them on how to charge for their fees. If an airline replaces vMCO/vMPD documents by EMD, it should notify agents about the need to issue EMD. If an airline decides to replace vMCO/vMPD by using an alternative solution for all or part of its fees, it should notify travel agents, explaining what is expected from them (a communication template can be proposed to airlines requesting it, if you would like this template please contact ruyt@iata.org). Airlines may use BSPlink to upload their policies and instructions. In addition airlines may wish to upload these instructions into the Direct Reference pages of each GDS. Direct mailings or emails to agents are also a suggested.

IATA BSP BSPLink home page will be updated to show dedicated messages to the different actors involved in the vMCO/vMPD sunset. Airlines and travel agents will be updated with important information about the sunset date and detailed schedule by IATA. BSP Newsletter: information about the sunset date will be communicated in the BSP newsletter. IATA dedicated travel agent communication will be sent to travel agents members of IATA BSP to reinforce the sunset date message. IATA engages with the travel agent community during multiple industry trade shows in order to spread information about the vMCO/vMPD sunset deadline. GDS GDS will engage with travel agents about the sunset of vMCO and vMPD transactions in IATA BSP. Airlines should expect GDS central teams and/or local teams to get in touch with travel agents via their usual communication channels where vMCO is deployed and to advise of the removal of vMCO. IATA e-services team The IATA e-services team will continue to communicate with the different stakeholders as follows: In February 2013, a letter informing airlines about the 2013 EMD deadline will be sent to the CEO of each airline issuing vMCO or vMPD Engaging travel agencies Engaging and educating local IATA and operation teams (BSP managers, country managers etc) Engaging airlines with a campaign to assess airlines readiness and compile industry information

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3.4.

Practical sunset

3.4.1. Stock allocations

Neutral stock ranges for ET, vMCO, vMPD or EMD (i.e. document serial number) are requested by GDS via IATA SNAP application (BSP by BSP). These requests are validated and controlled by IATA Snap administrator. A progressive sunset strategy of the stock allocation will be put in place. Step 1 as of 1st of January 2013 VMCO/vMPD stock allocation CONTROL: IATA is monitoring closely any request where vMCO/vMPD are newly introduced in a BSP Step 2 as of 1st of June 2013 - PROGRESSIVE SWITCH-OFF No more vMCO/vMPD stock allocation for BSPs having NO vMCO/vMPD Step 3 as of 1st September 2013 - PROGRESSIVE SWITCH-OFF No more vMCO/vMPD stock allocation for BSPs having LIMITED number of vMCO/vMPD (to be defined by and in agreement with the market) Step 4 as of 1st of November 2013 Any requests for vMCO/vMPD stock will be challenged Step 5 As of 1 January 2014 no more vMPD/vMCO must be issued. On 12th of January 2014: The technical switch-off of the vMCO/vMPD on 12th January 2014 will take place, thereby prohibiting no further issuances of the vMCO/vMPD.

3.4.2. VMPD issuances

vMPD transactions are currently issued via IATA BSPlink portal. IATA BSP team will be in charge of preventing the issuance of vMPD transactions through BSPLink starting from the 12th of January 2014 mid-day (CET Time). This means that few transactions might be issued on the 13th of January 2014 (depending on the time zone). After this date vMPD transactions through BSPlink will no longer be supported.

3.4.3. VMCO issuances

The sunset date of vMCO and vMPD is still mandated for the end of the year 2013. Technically speaking, GDS are requested to prevent agents to issue vMCO in IATA BSP after the 12th of January 2014. After this date, issuance of vMCO documents through GDS will no longer be possible.

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3.4.4. BSP/DPC Processing

IATA BSP settlement team and each DPC will implement an automated process in DPC software preventing the processing of vMCO and vMPD with an issuing date greater than or equal to the 13th of January 2014 (accepting transactions with an issuing date on 13th of January 2014). Billing of the last remaining transactions is subject to the billing period calendar and it might happen that some transactions issued before the sunset date are billed few weeks after it. Even though the issuance of vMCO/vMPD transactions is stopped, agents and airlines will still be authorized to display in BSPLink the issued transactions and take action on them during a period of 13 months.

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3.5.

Alternatives to replacement of vMCO/vMPD by EMD

A number of alternative methods to replace vMCO and vMPD may be considered for those airlines that have not implemented the EMD or have not yet implemented in all of the BSPs they participate in. Although these methods cannot be sanctioned nor endorsed by IATA, these methods are presented here to allow carriers to consider alternatives where they face an issue with the end of 2013 deadline.

3.5.1. Contact airline for direct issuance

A temporary alternative can be for agents to directly contact the airline (by phone or any other means) to request for the issuance of the service fee directly by the airline as if it was a direct sale. Advantages: Simple solution to sunset vMCO/vMPD Solution adapted to small volumes (total or by market) Better control Continue to sell services and collect revenue Group deposit can be handled Quick money flow Travel agents hand over customer responsibility to airlines Drawbacks: Cost impact to set-up a call center or workload increase (airline). Airline can face an large number of requests if the vMCO/vMPD volumes are important in the concerned market Customer servicing time increase, service degradation (travel agents) No streamlined process and possibly high workload increase (travel agents) Loss of incentives (travel agents) Might not be feasible in automated exchanges (travel agents)

3.5.2. Full sunset (de-activation of non EMD fulfilled services)

Another possible solution is to temporarily suspend the collection and issuance of service fees via travel agencies for the type of services that have not yet been replaced by EMD. Advantages: Simple solution to sunset vMCO/vMPD Solution adapted to small volumes Drawbacks: Possible loss of revenue for both airlines and travel agents Customer service degradation (potentially need to buy service at the airport or through second channel) Solution not adapted to change fees, financial risk No streamlined process and possibly high workload increase (travel agents) 19

Loss of incentives (travel agents)

3.5.3. OD fees
OD fees are officially designated fees related to the collection of Penalty Fees. OD fees are supposed to be collected off ticket using the Validating Carrier Fee approach. This means it is part of the exchange/reissue transaction but NOT forming any part of the electronic ticket that is shipped in interlines messages. It is not to be used in the tax/fee/charge box. Carrier Fee data is meant to be present in the ET record but not in the e-ticket itself. It should come in under the ticket and is not meant to be transmitted in interline messages. Advantages: Allow to sunset vMCO/vMPD for reservation change fees Solution adapted to any volumes Drawbacks: This solution does not cover all type of service fees charged by travel agents on behalf of the airlines (Limited to penalty fees) Less revenue accounting integration Solution not supported by all GDS

3.5.4. Q surcharge (for miscellaneous fees)

Airlines may allow travel agents to use Q surcharges to indicate the collection of a fee other than stopover and/or transfer charge. This type of surcharge method is described in PSC Resolution Manual 32 in resolution 722 (section 3.16.7). When a surcharge (other than stopover and/or transfer charge) is applicable to a specific segment, imprint Q followed by the amount immediately after the segment to which it applies. Example: NYC_LH_FRA_Q15.00AZ_ROM The above example also applies when LON is a surcharged un-ticketed point between NYC and FR Advantages: Can be used to identify an amount that is to be considered an addition to the fare Q surcharge is not limited to penalty fees Drawbacks: The industry is not designed to collect reservation change fees this way because it gets bundled into the total fare. It might be mixed up with other fees. It will get bundled into the fare with an additional collection amount. Means revenue accounting will have to do work to identify them Possible loss of revenue for both airlines and travel agents (manual process, risk of ADM) Possible lack of information (can be unavailable in fare calculation if too long)

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 Depending on the placement there is the potential it is misunderstood and billed in an interline journey to the wrong party No automation as they are not filed in the surcharge category with the fare filing vendor Requires manual approach to completing the ticketing entries with potential for error.

3.5.5. DU/DV codes

These codes are officially designated not to be assigned for industry use. A carrier might use them, although IATA could never sanction the use of the tax/fee/charge box to be used for anything other than bona fide TFCs (Tax fee charges). Advantages: Allow to sunset vMCO/vMPD for reservation change fees Solution adapted to any volumes Drawbacks: Difficulty to identify Less revenue accounting integration Solution not supported by all GDS

3.5.6. Issuance only

Depending on the availability in terms of technology, airlines might be forced to allow only the issuance of EMD for charging passengers for through Travel Agencies but would ask passengers to come to them directly for exchanges and refunds. Advantages: Can help to sunset vMCO/vMPD by speeding up EMD implementation Drawbacks: Customer service degradation

3.5.7. GDS and IT providers temporary solutions

GDSs may be able to propose proprietary temporary solutions that would allow agents to issue documents to support the fees. An airline may wish to contact the GDS directly in order to get more information about the following possible solutions:
Amadeus Electronic Miscellaneous Document (EMD) Direct

Amadeus EMD Direct is a solution to complement the current Amadeus Electronic Ticketing Direct solution. It allows travel agencies to issue EMD directly on an airline stock, with direct reporting of the sales to the airline.

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Amadeus Penalty on Ticket

This option is available for Amadeus Ticket Changer users. It enables the collection of the penalty fee directly on the ticket, without issuing an MCO or an EMD. Various methods exist for this collection, all guaranteeing that the fee will not be refundable in case of a subsequent reissue.
Sabre direct portal Airlines need to contact Sabre to get more information about this solution.

Other system providers may be evaluating solutions. Carriers should contact them directly for any further information.

3.5.8. EMD-A for EMD-S (or vice-versa)

Although a particular type of EMD may be prescribed for a given business need (e.g. EMD-A for excess baggage) Airlines may consider using use an alternative EMD type as an interim solution until such time as the system provider is able to deploy the correct EMD type for that purpose. Example: An airline might choose to implement EMD-S to charge all services in case of baggage this would not be a perfect solution, but could help temporary to continue selling this type of services through travel agents. An airline might choose to implement EMD-A to charge all its services even in case of services that do not need to be lifted specifically at the same time than flight tickets coupons.

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Appendix A Sample of an airline information bulletin

Information Bulletin
DEPLOYMENT OF EMD IN BSP COUNTRY NAME FOR XXX AIRLINES
Date Effective Date 28 February 2013 To GDS Travel Agents BSP Switzerland

Background Payment of certain services related to the flight must be made through the issuance of an EMD MCO (Virtual Miscellaneous Charge Order): printing on A4 paper. It is currently used to collect the penalty imposed on companies reissue / revalidation of airline tickets. EMD (Electronic Miscellaneous Document): is an electronic document that has a certain number of coupons where each of the services for which it has been issued appears. Currently used for payment of services such as seats and meals on board. As part of the IATA e-Services initiative, from January 2014, travel agents may not issue MCO documents. The MCO will be replaced by EMD thus avoiding issuing paper documents. What is changing? As of February 28, XXX Airlines will implement the EMD in reissues / revalidation performed manually or automatically. The penalty for reissuing tickets can be collected in two ways: 1. Q surcharge method: The penalty for reissue shall be made by a Q surcharge in the ticket surcharge. If after the reissue of the ticket a refundable balance is due to the passenger, it needs to be done directly by the airline. The travel agency will be responsible for performing the reissue and the airline will be responsible to make the refund.

2. Issuance of an EMD: The change penalty will be charged to the passenger by issuing an EMD document.

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If after the reissue of the ticket a refundable balance is due to the passenger, it needs to be done with the issuance of an EMD document. The airline will not penalize the travel agency to use a different method to the reissue. Important note: The airline only accepts the EMD as a document for reissue. In the event that the travel agency issues a VMCO, the airline will send an ADM. What is EMD? The EMD (Electronic Miscellaneous document) is an electronic document, an industry standard, designed to facilitate the sale of travel related services, such as pre-booked seats, excess baggage, lounge, parking reservation or deposit group penalties reissues... The EMD may contain one or more coupons (maximum 16) although in the case of XXX Airlines and in the first phase will be mono-coupon. There are two types EMD: EMD-A "Associated" (used with a ticket) This type of EMD concerning payment for services is associated to a ticket, and therefore the two documents are linked and connected at coupon level. The state of both documents coupons is synchronized: if you use a ticket coupon, the related EMD-A coupon state changes. EMD-S "Standalone" (not associated with a ticket) An EMD-S can be issued at any time, before, after or concurrently with the ticket as it is not associated with it. The EMD-S coupons status changes either directly after issuance (consumed at issuance) or due to an airline process. Not being associated to a ticket, the EMD-S carries no information about the ticket itself, although this can be added manually in the field ICW if necessary.

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Appendix B EMD Matchmaker reporting

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Glossary
TERM
BSP

DEFINITION
Billing and Settlement Plan BSPlink is the global interface for travel agents and airlines to access the IATA Billing and Settlement Plan (BSP). Data Processing Centre Electronic Miscellaneous Document Associated Electronic Miscellaneous Document Stand-alone Electronic Ticket Global Distribution Systems

DESCRIPTION
BSP handles the reporting and remitting procedures between IATA accredited travel agencies and airlines www.bsplink.iata.org Regional data centres handling BSP processing An EMD that is lifted with the associated ET An EMD that is not to be lifted with an ET, May be used independently of an ET. (e.g. group deposit, refundable balance. Electronic Ticket Computer system that provides the travel agent with reservations and ticketing facilities as well as back office functions Data feed delivered by the DPC to an airline detailing travel agency sales transactions via the GDS Where the EMD coupon is to be used/lifted by an operating carrier other than the Validating Carrier

BSPLink DPC EMD-A EMD-S ET GDS

HOT

Hand-off Tape

Interline

vMCO

Virtual Miscellaneous Charge Order

A paperless version of the automated coupon by coupon MCO with no value coupon Data file detailing all travel agency transactions submitted by the GDS to the DPC for processing A single character code that defines the reason for issuance of an EMD A three character code that qualifies the Reason for Issuance Code IATA initiative to reduce costs for airlines and improve service to passengers Computer system that provides reservations and ticketing facilities as well as back office functions

RET RFIC RFISC StB System Provider

Reporting Tape Reason for Issuance Code Reason for Issuance Sub-code Simplifying the Business

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Validating Carrier

Carrier acting as controlling entity for the EMD or ET identified with a unique airline accounting code preceding the ET and EMD document number. Carrier receiving final Display request between different operating/marketing airlines systems. and ground handlers.

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