innovating better together

Innovating better together

• Paymentisbothacustomerexperienceandaback-officetopicdiscussedinfinancialgroups.Fromacustomerper-spective,thechallengeistoprovidechoice,transparencyandconvenience.Withtheproliferationofnewmethodsofpaymentandrisingsecurityorfraudissues,thispaperproposesanindustryapproachtostreamlinepayments.

• Baggageisanotherareathathasbenefitedfromvariousinnovation,fromtrackingtohometaggingordelivery.However,thereisstillroomforimprovementtowardsthevisionofahasslefreeexperience.Attheageofself-drivingcars,dronesandartificialintelligence,customersexpectaseamlessend-to-endbaggageprocess,asdescribedinthispaper.

• OpenAPIsisatechnologyconceptsupportingdatasharingwithtravelpartnersinordertostreamlinethecus-tomerexperience.ThisconceptleveragespreviousStBprojectstomovefromdataownershiptodataexchange,enablingbetterinformationsharing.

Overall,StBhasnotonlycoveredthebroaderend-to-endcustomerexperience(fromshoppingforaflighttobagcol-lection),ithasalsoaddeddepthintothedigitalinfrastructuresupportingtheservicestargetedtocustomers.

Asweapproachtheendofasecondcycleofprojectdeliv-ery(thefirstonefrom2004-2010andthesecondonefrom2010-2016),nowhalf-waytoourvisionofa2020perfecttrip,weneedtofocusontheopportunitiesforimprovement,innovationandsimplificationattheindustrylevel.

Ourambitionremainstosimplifythepassenger'sjourney.

SincerethankstoallthecontributorstothisneweditionoftheStBWhitePaper.Ilookforwardtohearingyourfeed-backduringtheWorldPassengerSymposium.

TheStBThinkTankstartedin2011torethinktheStBpro-gramfollowingthecompletionin2010ofthefirstseriesofprojects:e-ticket,bar-codedboardingpasses,common-useself-servicekiosks,andthebaggageimprovementprogram.

ThefirsteditionoftheWhitePapercontainednewStBgoals:airlineproducts,customerinformation,hassle-freeexperience-andnewStBprojects,includingNewDistribu-tionCapability.The2012editionproposedavisionoftheperfecttripin2020.Thisvisionincludedelementswhichareontrack,liketransparencyofproductattributes.However,thereareotherelements,suchaselectronicvisas,whichhaveprogressedwiththeintroductionofelectronicwaivers,butareunlikelytomaterializefullyinthenearfuture.

Throughouttheyears,theStBprogramhasfocusedondeliveringprojects.Forexample,theFastTravelprojectisclosingandmovingtooperations,theNDCprogramisindeploymentphaseandistargetingcriticalmassby2018andtheONEOrderprojectissubmittingitsstandardforapproval.Inparallel,eachyear,theThinkTankexploresnewopportunities,suchasthefour2016themes:oneidentity,payment,baggageandopenAPIs.

• OneIdentityaddressesthechallengeofidentifyingpassengersinbothanonlineworldandanofflineworldaimingtoreconcilethoseidentities.Thevariousprojectsaroundthesingletokenandbiometricsshowthattheidentitychallengeisnotnew.However,oneidentitypro-posesanewapproachwiththepotentialtoreachbeyondidentitychecks.

Sincerelyyours,

EricLéopoldDirectorTransformation,FDSIATA

Foreword

Simplifying the Business (StB) Transformation in progress and explorations underway

Making the industry easier to do business with for both customers and partners.

A road map to prepare for tomorrow’s passengerFive goals towards sustainable profits and better service

IATA presents the New Simplifying the Business (StB) Program

Tomorrow’s passenger journey will be simple, from travel shopping to airport security

Simplifying the Business Leading transformation for customer-centric air travel

2011

2013

2015

2012

2014

Simplifying the Business Innovating better together to benefit the future passenger

Eachyear,theStBThinkTankwritesaWhitePaperthatencapsulatestheideasandworkcompletedthroughouttheyear.

TheStBThinkTankgrowseachyear,fosteringasharedinterestforinnovationinourindustry.ItconsistsofasubsetofStBSteeringGroupairlines,airports,variousaviationpartners/bodiesandtechnologyproviders.Together,theteambrainstormsideasandthoughtsthatwillbenefitallstakeholdersacrosstheindustry.ItisimportanttohaveasmanystakeholdersintheThinkTankaspossiblefromacrosstheindustry,sinceeveryperspectivematters.Moreover,theideasdiscussedarecomplexandusuallytouchvariouspointsacrosstheindustry,thereforeneedingthecollabora-tiveworkfromallstakeholdersacrossthevaluechain.

Duringtheyear,theideasareworkedon,andwherepos-sible,aproofofconceptisdevelopedformoremeaningfulconversationattheannualWorldPassengerSymposium.

WhiletheinitialThinkTankmeetingcollectshundredsofpotentialideasfromthisdiversegroup,onlyafewcompletelydisruptiveideasorinnovationstoimproveexistingprocessesareselected.Also,toensureabroaderoutlook,“themes”wereselectedinsteadofsingleideas.

Thisyear,fourthemeswereselected:baggage,openAPI,paymentsandoneidentity(thatwaselaboratedfromthe2015idea).

Thefocusremainsoncollaborationandthiswillbeevidentthroughoutthedocument,especiallyintheintroductionoftheideas.

Executive Summary

Overview of the content

Section 1 Executive SummaryIntroducestheoverallStBprogram,visionandmethodology

Section 2 StB OverviewDescribestheStBgoalsandroadmap

Section 3 Current ProjectsProvidesthecurrentstatusofStBprojects

Section 4 Update on 2015 ThemeProvidesanupdateonthe2015theme

Section 5 2016 New IdeasIntroducesthefournewideas

Section 6 ConclusionOutlinesthenextstepsandconclusion

TheWhitePaperwillbewidelydiscussedattheOctober2016IATAWorldPassengerSymposium(WPS)wheretheideaswillbearticulatedanddebated.

AnnualStBWhitePaperscanbefoundatwww.iata.org/stb

The Program

TheSimplifyingtheBusiness(StB)programhasbeenimprovingthepassengerexperienceforoveradecade.Itistheonlyprogramthatlooksattheentireend-to-endpassengerexperience.Togetherwithstakeholdersfromacrossthevaluechain,StBbuildsinnovativesolutionstotransformthecustomerjourney.

Benefits

TheStBprogrambenefitsareforallinvolvedstakeholdersincludingpassengers,airlines,airports,travelagents,groundhandlersandsystemproviders.

Goals

StBiscomprisedofthree comprehensive goals.

TheAirlineProductstransformationalprojectsincludetheNewDistributionCapability(NDC)andONEOrder.

TheReal-TimeInteractiontransformationalprojectsincludeTravelCommunicationsandCustomerContactInformation.

TheSeamless&HassleFreetransformationalprojectsinclude2015ideasOneIdentityandPassengerProcessOptimizationatAirportsaswellasSmartSecurity,BaggageXMLandFastTravel.SecurityAccessandEgresswassuc-cessfullyclosedandmovedtooperationsin2015.

Unique Methodology

ThekeyelementsofStBarebasedonitsmethodology.Thisincludesarigorousprojectselection,basedonspecificcriteria.Therearealsoprojectphases,drivenbystagegatereviews.Themethodologyisnecessarytoensureasuccess-fulStBprogram.

Project criteria

InorderforaprojecttobeundertheStBumbrella,itmustmeetoneormoreofcertaincriteriaincluding:generateindustrysavings,delivertransformationalindustrychangeandbringbenefitstoairlinesandpassengersaswellasotherstakeholders.Inaddition,eachprojectmusthaveclearobjectives/targetsandtangibledeliverable(s)/endgoal(s)todeliverconsistencyandsuccess.

Project phases

Usingprogramcycles,theprojectswithinthethreegoalsarelistedunderfivedifferentphases:conceptualization,explora-tion,development,implementationandclosure.

• Conceptualization:Illustrateandsketchtheconcept.IdentifyKPIsandreasonsfortheconcepttobeexplored.

• Exploration: AssessfeasibilityanddevelopanindustrybusinesscasebasedontheidentifiedKPIs.

• Development: Developthe“product”(e.g.,standard,recommendedpractice,implementationroadmap,etc.)

• Implementation: Implementtheproject,includingindus-trymobilizationandmarketadoption–accordingtothetargetroadmap.

• Closure:Ensurethevision/targetwasachievedandclosetheprojectasaStBproject.Theinitiativesarenowtrans-ferredtonormaloperations.

Goal 1Airline Products

Empowerairlineretailingandmerchandising

Goal 2Real Time Interaction

Providecustomerswithtrusted,accurateandreal-timeinformationfromalloperators

throughouttheirjourney

Goal 3Seamless & Hassle Free

Eliminateoroptimizeprocessesandrelatedwaittimesthroughoutthe

passengerjourney

StB Overview

BaggageOne Identity

Passenger Process Optimization at Airports

Baggage XML

Airline Products

Conceptualization

Exploration

Development

Implementation

Closure

Travel Communication

New DistributionCapability (NDC)

Customer ContactInformation

Real TimeInteraction

ONE Order

Payments

Open API

Seamless andHassle Free

Fast Travel

Smart Security

Industry mobilization and engagement

AnotheruniqueattributeishowStBmobilizestheindustrytodeliverthetargetwhenprojectsareinimplementationphase.Therearedesignatedairlinechampionsthatowntheprocesswithintheirownairline.ThemobilizationeffortalsoreliesonstrongsupportfromIATA’sBoardofGovernors(BoG)andStrategyandPolicyCommittee(SPC)–asubsetoftheBoG.Inaddition,thereareworkshops,andcampaignsthatareregularlydeliveredtotheindustryaswellascom-municationsincludingdedicatedIATAwebpagesandsocialmedia.

Governance

StB Steering Group

TheStBprogramisgovernedbytheStBSteeringGroup(SG).TheStBSGincludesupto15airlinemembersdirect-lyappointedbytheirCEOwhoadviseIATAmanagementontheStBprogramstrategyandexecution.ThegroupprovidesIATAwithguidanceandensurestheStBprojectsarerel-evantandmeettheneedsofIATAmembers.EachmemberparticipatesintheSGwithanindustrymindset,ratherthananindividualairlinemindset.Inaddition,eachmemberisre-sponsibletobrieftheirCEOontheactivitiesofStB.Finally,theStBactivitiesarereportedtwiceayeartotheIATABoGandSPC,whoreviewandguidetheStBprogram.

StB Think Tank

TheThinkTankconsistsofanannualrotatingmembershipofseveralStBSGmembersandotherpartnersfromspe-cificindustries–dependingonthetopicsdiscussed.TheThinkTankfocusesonideationandnewinitiativesthatcanpotentiallybepursuedasaStBproject.TheStBThinkTankpublishesthisannualWhitePapertostimulateconversationandshareinnovativeideasthatwillleadtoindustrytransfor-mation.

IATA World Passenger Symposium (WPS)

TheWPSgathersstakeholdersfromacrosstheindustrytofocusonthepassenger.TheWPSisimportantfortheStBprogram,sinceitisanopportunitytohighlightanddiscusstheStBprojectsaswellastheworkthathasbeendonebytheThinkTank–morespecifically,theWhitePaper.ItistheforumwhereIATAprovidestheindustryagendaandstrategyfortheyearstocomeoneverythingrelatingtopassenger.It’salsotheplacewherestandardsareadoptedanddeci-sionsaremadethroughthevariousindustrymeetingstakingplacesimultaneously.

Inaddition,aStBExecutiveSummithasbeenintroducedtothe2016WPSagendatofurtheralignStBwithinaseniormanagement,industry-wideaudience.

ProgramSnapshot

StB Overview

ThereareseveralactiveStBprojectsthatarelistedbelowinmoredetail.Eachprojectsummaryincludesastatusupdateonthedefined2016targets.Inaddition,theprojectphase(conceptualization,exploration,development,implementationandclosure)islistedundereachprojectname.Moreinformationcanbefoundonwww.iata.org/stb

Current Projects

Goal 1: Airline Products

New Distribution Capability (NDC)

Implementation

NDCisatravelindustry-supportedprogramlaunchedbyIATAforthedevelopmentandmarketadoptionofanew,XML-baseddatatransmissionstandard(NDCstandard).TheNDCstandardenhancesthecapabilityofcommunica-tionsbetweenairlinesandtravelagentsandisopentoanythirdparty,intermediary,ITproviderornon-IATAmember,toimplementanduse.

IATAcontinuestoengagetravelpartnersacrosstheindustrytoensurealignmentandcooperationwithallstakeholders.

Thetargetfor2016wastoachieveacumulativeof20NDCliveairlinedeployments–airlinesmustbecapableofexpos-inganNDCAPI,andrespondingtoanagentrequestusingthelatestNDCschemas(i.e.,:NDC15.2orNDC1.1asaminimum).ThistargetwasachievedbyJune2016.ItwasalsoagreedthatdeploymentswouldbevalidatedviathenewIATAcertificationprocess.Adedicatedcertificationsiteisnowavailableatwww.iata.org/ndcwhereallcertifiedplayersarelistedontheNDCregistry.

ONE Order

Development

ONEOrderaimstomovetheindustrytowardasingleairlinecustomerorderasopposedtoabooking(PNR)andanaccountabledocument(ticket/EMD).WhileNDCisincreasingcontrolandflexibilityontheairlinesside,ONEOrderwilldrivesubstantialsimplificationinheritedfrompaperbasedindustryprocesses.Thevisionisarticulatedaroundthreecoreprinciples:

• Customerorientedarchitecture

• Efficientbillingandreal-timesynchronizationofrelevantinfobetweenallparties

• Simplifiedairlinemerchandisingdelivery

In2016,atransitionstudywascompletedtodefinepossibleordermanagementsystemimplementationarchitecturesandanalyzeimpactacrosstheindustry.Inaddition,theONEOrderresolutionhasbeendrafted,andreadyforadoptionbyairlinemembersinOctoberattheJointPassengerServicesConference(JPSC).

Goal 2: Real time interaction

Travel Communication

Exploration

Thetravelcommunicationvisionistoprovideconsistentandaccuratetravelcommunicationtopassengers,andup-to-dateinformationthroughoutthejourney.

In2016,thetargetsaretodevelopaproofofconcept,adatacharterandanindustrybusinesscase.Sofar,over50usecaseswereestablished,andapilotwasconductedtodemonstratethetechnicalfeasibility.Furthermore,thepilotdemonstratedthatasingletrustedsourcecanbedefinedandthatthepassengercontactdetailswillremainwiththedeliverychannelsolutionthepassengersignedupfor.

Customer Contact Information

Implementation

Thecustomercontactinformationprojectaimstoenableair-linestointeractwiththecustomeratanytimeandanywhere.ThescopeoftheprojectwasalsotoprovideairlineswiththeabilitytoobtainthepassengercontactdetailsinthePNRbydevelopingstandardsandrecommendedpracticesforcon-tactinformationtobeabletoreachthecustomerwithanyrelevantinformationpertainingtotheirjourney(i.e.,specificinformationintheeventofdisruption).In2016,thefocuswastoensure25AirlinePassengerServiceSystems(PSS)usedbymultipleairlinesareabletoaccepttheSSRCTC.

Current Projects

Goal 3: Seamless & Hassle FreeSmart Security

Closure

SmartSecurity,ajointIATA-ACIinitiative,envisionsacontinuousjourneyfromcurbtoairside,wherepassengersproceedthroughsecuritycheckpointswithminimalincon-venience,wheresecurityresourcesareallocatedbasedonrisk,andwhereairportfacilitiescanbeoptimized.

In2016,theaimwastodeliverSmartSecurityOpportunityAssessments(SSOAs)at20airportsconfirmedin2015.ThiswasachievedinbyJuly.Inaddition,anothertargetwastogetthe20airportstoaccept45%ofrecommendationsforimplementation.

TheSmartSecurityprojectwillcloseandmovetooperationsin2017.TheteamwillcontinuejointeffortswithACItokeeppushingforimprovementsandstandards.

Baggage XML

Implementation

TheaimoftheBaggageXMLprojectistofocusonstan-dardizingthedataandtheinterfaces,byleveragingXMLtechnologyaswellasredefiningtheoverallinformationexchangearchitecture.

TheprojecthasadoptedadatamodeldrivenmethodologyleveragingtheIATAIndustryDataModeltoensurecross-domainsemanticalignmentandinteroperability.BaggageXMLwillmodernizecurrentlegacystandards.Thiswillleadtobetterbaggageperformanceandlowerairlinecosts.

In2016,theBaggageXMLWorkingGroupwillcompletetheSchemaforPADISapprovalandconductasecondpilot,asanintegrateddeployment,fedbyproductionenvironmentdataandexchangingmessagesinXML.

Fast Travel

Closure

TheFastTravel2020visionistooffer80%ofpassengerswithacompleteself-servicesuitethroughouttheirjourney,toprovidebetterconvenienceandreducequeues.Itconsistsofsixprojectsdesignedtoofferarangeofself-serviceop-tionsthatgivepassengersmorecontrolovertheirjourney:check-in,bagsready-to-go,documentscanning,flightre-booking,andself-boardingandbagrecovery.

TheIATABoardtargetfor2016istoattain40%globalFastTravelpenetration.TheFastTravelprojectwillcloseandmoveintooperationsattheendof2016.TheteamhasmadegreatprogressunderStB.Theprogramwasdevel-opedandpromotedthroughouttheindustrytosuccessfullyachievecriticalmass.AlthoughFastTravelwillnolongerbeaStBproject,theIATAteamwillcontinuetosupporttheinitiativesinoperations.

Update on 2015 theme

Theme: the Big Picture

In2015,theWhitePaperintroducedthe“BigPicture”ofStB.Theaimwastostepbackandmapourend-to-endvision,includingcurrentprojectsandnewideas.Thebigpicturewassimplifiedintofivemajorconcepts:shop,order,pay,engageandexperience.

Shop Shop:includeseverythingfromdistributiontoairlineretailingandisrepresentedbytheNDCproject.

Order Order:includeseverythingfromcomplexprocessestostandardordermanagementandiscoveredbytheONEOrderproject.

PayPay:isashiftinfocusfroma“onesizefitsall”toamorecustomer-cen-tricpaymentmethodology.IATAcontinuestolookintothisarea,andoneofthe2016ideasisonpayments.

Engage:includestheengagementwithpassengersandisrepresentedbytheTravelCommunicationsproject.

Experience:includedtheentirecustomerjourney.Itwasdescribedasthe“futureend-to-endexperience”whichinitiallybeganasapotentialproject,butthenmademoresensetobeincorporatedintotheStBoverallvision.

2015

In2016,theThinkTankhadadifferentapproach.Thefocusremainedoninnovationandcollaboration,andthe“BigPicture”from2015.Inaddition,therewasabrainstormexerciseattheverybeginningoftheyear,basedonrethinkingpainpointsintheindustry.Morespecifically,whatwouldwechangeordodifferentlyifwewerestartingtheairlinebusinesswithablankpage?Asaresultofthisbrainstormexercise,fourthemeswereselected:

IATAthenpartneredwithPlugandPlay,aStartupInnovationPlatform,basedintheSanFranciscoValley,California.PlugandPlayresearchedstartupsintheValleybasedonthefourthemes.ThesestartupspresentedtheirideastotheThinkTankduringanexhilaratingmeetingintheValley.ItwasthefirsttimetheThinkTankparticipatedinasessionfocusedonstart-upsanditprovedtobeaveryvaluableexperience.

Meetingwiththestart-upsignitednewwaysofthinkingandlookingatthethemes.ItalsoinspiredtheThinkTanktodevelopProofofConcepts(PoCs)tofurtherenhancetheWhitePaperandtheideastherein.ThePoCswillbepresent-edatthe2016WPSinDubai.Thegoalisnottodevelopasolutionatthisstage,simplytopresentthevalidityofthetheme/ideaandtoinstigatemoremeaningfuldiscussion.

2016 New Ideas

One identity

Payments

Open API

Baggage

2016

Vision

TheStB’sgoal3“SeamlessandHassleFree”travelvisionistoofferpassengersafrictionlessairportprocessallowingthepossibilitytowalkthroughtheairportwithoutbreakingstride.

Safetyandsecurityremainsthenumberonepriorityandresponsibilityforallstakeholderswithinaviation.However,theapproachtakentoachievethisisdivided,witheachstakeholdertakingstepstoensuretheirobligationsaremetwithlittleornocoordinationbetweenparties.Thisresultsinafrustratingandrepetitiveprocessforthecustomer.

ThevisionoftheOneIdentityinitiativeistocreateastreamlined,friction-freeprocessthatallowsanindividualtoasserttheiridentity,onlineorinperson,totherequiredlevel,whilemaintainingtheprivacyofpersonaldataandenablingsignificantimprovementstooperationalefficiencyandsecurity.Thisvisionwillbedeliveredthroughtruecollaborationbetweenairlines,airportsandgovernments.

Current situation

Thecombinationofincreasingpassengernumbers,limitedphysicalinfrastructure,enhancedsecurityrequirementsandlegacyprocesses,resultinmorefrictionandacomplicated,unpleasantexperienceforpassengers.

Sinceitsinduction,theStBprogramhaslaunchedanumberofinitiativestoimprovethepassengerprocess,likeFastTravel,SmartSecurityandAutomatedBorderControl.Whiletheseinitiativeshavecertainlydeliveredgreatvalueforthepassengersandtheindustry,theirbenefitsremain

limitedwithintheirownscope.Theindustryhasnotyetmanagedtofullybreakthesesilosandneedstocollaboratetowardsasolutionthatwouldapplyhorizontallyacrossthewholeprocess.

Forinternationaltravel,theairlineindustryreliesonpass-portstoverifyanindividual’sidentity.Althoughcreatedasatraveldocumenttofacilitatebordercrossing,thepassportisusedasaproxyforidentity.Theadditionofmachinereadablezones(MRZ)1andtheintroductionofbiometricpassports2haveimproveddataaccuracyandthesecurityofpassports,however,theyhavedonenothingtoimprovethespeedandeasewithwhichpassportscanbeauthenti-catedandverified.

Toverifyanindividual’sidentity,thecurrentprocessiscomplex,asdescribedinthediagrambelow.

Thisprocessiscumbersomeforthetraveler.Theaviationindustryadapteditsprocessesandprocedurestoworkwiththepassportasanidentitydocument,eventhoughthiswasnotthemostconvenientandefficientoption.

Furthermore,insomecases,thepassenger’sidentityisleftunknownandtheyaretreatedanonymously(e.g.secu-rityscreening).Ifapassenger’sidentitycanbeconfirmedatanycustomertouchpoint,itwouldallowamoreperson-alizedcustomerexperiencetobedelivered,efficienciestobemadeandtheopportunitytogenerateenhancedancil-laryrevenue.

However,todothis,theprocesstoidentifythepassengermustbequickandeasyforthecustomer.Withthegrowingpassengernumbers,ourindustrymustfindawaytoremovethisinherentcostandcomplexitytothebusiness.

http://www.revolvy.com/main/index.php?s=Biometric%20passport

1http://www.icao.int/Security/FAL/Documents/2.API%20Guidelines%202013%20Appendix%20I%20MRZ%20Details_E.pdf2http://www.icao.int/publications/Documents/9303_p9_cons_es.pdf

New Idea #1

One Identity

Optional data recognition (OCR)

Scanning data pageScanning data page

Reading contactless chip

Checking security features

Biometric verification

Scanner Contactless ReaderCitizen Face Recognition System Border Control System

Checking data authenticity

Checking blacklists

Document valid

Case for Change

Therearevariousaspectsofthisproblemthattheproposedsolutionmustaddress:

• Usability:howdowecreateasolutionthatenhancesspeedandissimpleandintuitiveforthepassenger?

• Security:howdowecreateasolutionthatdirectlyandindirectlyimprovessecurity?

• Trust:inamultistakeholderenvironmenthowdowecreateanidentityframeworkthatistrustedbyallinvolved?

Resolvingtheaboveproblemstogetherwillgiveauniqueopportunitytodevelopasinglesecuredintegratedpas-sengerprocess,eliminatingorsimplifyingdrasticallythemultiplestepspassengershavetogothroughcurrently.Theoutcomewillbeatrueseamlessandsecureairportprocessforbothdepartureandarrival,removingconges-tionandthereforethepotentialmotivationforterroristattacksliketheindustryhasbeenfacingrecentlyatairportlandsideareas.

Theproposedsolutionissupportedbyfourconcepts:

a. Creationofanotarizeddigitalidentitytofacilitateimprovedcustomerexperience,speedandsecurity

Ratherthanrequirethetravelertopresentaphysicalpassportateachandeverytouchpoint,weproposetheuseofadigitalorvirtualtokenizedpassportonamobiledevice.Thisdigitalidentitywillbenotarizedbytheissu-ingauthority.

b. Useofbiometricstoconfirmanindividual’sidentity Inrecentyears,thecapabilityofbiometricsensorshas

improveddramaticallyandwillcontinue.Theiravailabilityoncustomermobiledevicescouldpresentanoppor-tunitytomakeuseofthesesmartdevicesinsteadofexpensive,staticairportinfrastructure.

c. Federatedprocessthatdeliversenhancedsecurity Toenhancetheidentityassertionprocessfurther,it

issuggestedtouseafederatedapproachtoprovideinformationfrompartnerstohelpassessthecustomer’sidentity.

d. Creationofatrustframeworkacrossthemultiplestakeholderstoimprovefacilitationandsecurity

Thestakeholderswithintheaviationindustrycurrentlyworkinasilo’edfashionwithlittleornocoordinationamongstinterestedparties.Alltoooftentheprocesstoidentifythecustomerisrepeatedateverytouchpoint.Thiscanbesolvedbythetrustframeworkacrossthestakeholders.

How the solution could work

Enrollment

Step1Self-serviceonlineenrollmentsuchasGOV.UKVerify(i.e.,anUKgovernmentsolutiontoprovewhoyouareon-line).Onceanindividualassertshis/heridentityonline,anaccount/profileiscreated.Theusermaygrantpermissionforcertainstakeholders(e.g.mobile/emailproviders,socialmedia,etc.)tohelpraisethelevelofidentityassertionbysharing‘signals’(i.e.,lost&stolen’statusofamobilephoneorcompromisedemailaccounts).

Step2In-personinterviewwhereidentityisprovenbeyondreasonabledoubt,thephysicalpassportischecked.

Step3Inconjunctionwithstep2,theidentityisconfirmedthentheindividual’sbiometricsarecaptured.

Step4Throughone-wayhashing–storeatoken(aswithPCIcompliance)oftheidentitytothedistributedledger(e.g.blockchain)signedbytheissuingauthority.

Step5Securelystoreacopyofthebiometricsonthecustomer’sdevice,alongwithareferencetothetokenonthedistrib-utedledger.

New Idea #1

One Identity

Verification

Step1Asapassengerapproachesanairporttouchpoint,theycanusetheirmobilephonetoasserttheiridentity.Throughwirelesstechnology(Wi-Fi,Bluetooth,NFC,etc.)theirin-formationissentfromthedevicetothetouchpointastheyarrive.UsingFIDO2technologyitcanbeassuredthatitisthesamepersonthatenrolledonthedevice.

Step2Thereferencetothedistributedledgerisretrievedandtheissuingauthority(theentitythatperformedtheinitialenroll-ment)andanyadditionalcertificates(e.g.,morethanoneauthoritymaycertify/endorsetheidentity)isconfirmedbyuseofdigitalsignatures.

Step3Sharedsignalsfromany3rdpartiesareverified–mobilephonelostandstolenstatusetc.

Step4Ifneedbetheverifyingauthoritymayverifyagainsttheirownstoreofbiometrics.FIDO2couldofferthecapabilitytoskipstep4asthiscreatesa‘hard’linkbetweenthedatastoredonthephoneandthebiometricauthenticationtoaccess.However,thisstandardisrelativelynewandasyetisnotadoptedbyallmobilephonemanufacturers.

Next steps / Proof of concept

IATA,USandCanadianauthoritiesareworkingonde-signingpotentialpilotstoprovetheoneidentityconceptsarticulatedabove.Furthermore,thepilotswouldbescopedonflightsfromUKto/fromUS,UKto/fromCanadaandCanadato/fromUS.

New Idea #1

One Identity

Vision

Thevisionistoenhancethepassengerexperiencebyen-ablingpaymentsanywhere(omni-payment)aswellasreduc-ingthecomplexityonthemerchantside.

Theobjectiveistomakepaymentprocessingsimple,con-sistentandsecurefortheentireairtransportindustry,whilstreducingthecostofpaymentprocessingandrelatedfraudacrosstheentireindustry.

Currently,IATAcoversanumberofinitiativeswiththeintentionofsolving“ThePaymentRiddle”:offerconvenient,cheapandsecurepayments.

Todaymanyfrictionpointsremainduringthepassengerjour-ney,particularlyonthedayoftravel,attheairportandin-flightwherepaymentsoptionsarelimited.Therefore,StBwantstoenable passenger omni-payments, with an industry fast time to market and cost effective solution.

Current situation

CurrentpaymentprocessesintheAirTransportIndustry(ATI)areextremelydiversefromapassengerperspectivebygeographicregionoftheworld.Thereisconsiderableglobalvariationinpreferredformsofpayment,bankingservices,paymentacceptanceandshoppingmethods.Thisismakingpaymentsprocessingincreasinglydifficultandairlinescannotcopewiththeexpectationsofalltravelersworldwide.

Correspondinglythepaymentandsettlementprocessandservicelevelforairlinesalsovariesconsiderablybyregionandchannel.Someregionsprefercashorinstallmentpayments,whileothersareoverwhelminglydrivenbycreditcard.Directdistributionmodelsappeartoprovidesomemoreinstantsettlementforairlines,howeverindirectandinterlinesettlementistooslowforthemodernworld,oftentakingbe-tween7and60daysforanairlinetoreceivepayment.

Overall,paymentreliesoncomplexlegacyprocessesthataremostlyasynchronousandbasedonrigidformatsacrossnumerousentities.Integratinganewmethodofpaymentischallengedbyexistingworkflow,infrastructureandintegrationacrossindependentplayersinthesupplychain,e.g.,issuingbanks,cardassociations,acquirersandprocessors.

Furthermore,toaddanotherlayerofcomplexity,thereisaheterogeneousandmultifacetedregulatoryframework.Mixedandcomplexlawsgoverningcompliance,bankcardregula-toryissues,regionalsurcharges,dataprotectionorprivacy,complicateevenmorethepaymentsenvironment.

Linkedtothesecomplexitiesisahighacceptancecost.Indeed,acceptingandprocessingpaymentshasbecomeincreasinglymoreexpensiveduetotherisingcostsofatransaction:AirlinespaymorethanUS$8Bannuallytoprocesspayments1.Thismakespaymentcoststhemostsignificantpartofanairline’sdistributioncost.Highmerchantfees,manualhandling,fraud-relatedcosts(preventingfraud,coveringfraudloses,falsepositives,etc.)andchargebacksadduptoahighbusinesscost.Infact,manypaymentrelatedcostsarestillpoorlyunderstoodsincetheytendtooccurindifferentpartsoftheairline.Moreover,delaysinpaymenttransfersrepresentasignificantcost(i.e.,travelerpaymentlatency,interlinesettlementprocesses).

New Idea #2

Payments

1Source:PhocusWright-Payment Unsettled: Cost, Opportunity and Disruption in Travel’s Complex Payment Landscape

Case for change

Asairlinesincreasinglybecomeretailers,andreceivingpay-mentgrowsincomplexity,solvingthepaymentprocessingcomponentwillbeakeysuccessfactor.

Theindustrywouldneedasolutionthat:

• Supportsmultiplepaymentmethodsthroughoutthepassengerjourney

• Standardizespaymentprocess

• Standardizesinterfacesforterminals/platforms

• Enablesfastintegrationofnewandalternativeformsofpayment

• Enablespaywithfrequent-flyermilesand/orotherloyaltypoints(exploratory)

ThisservicewilladdressdirectsalesandIATAwouldactasapaymentgatewayrouter,providingthefollowingtoairlines:

• Front-end integration:APIs/SDKsorredirecttoIATApaymentplatformwebsite;tointegratewithanyairlineplatform(e.g.,website,apps,etc.)duringtheentirepas-sengerjourney,fromshoppingtocheck-intoin-flight.

• Payment authorization and processing:IATAwouldmanageallthepaymentsauthorizationandconnectair-

lineswithanypaymentprovider.Theexactlistofproviderwillbedefinedandtheairlineswillbeenabledtoactivatedifferentoptionsindifferentmarketsandvirtuallyforeachorder.Additionally,wewouldalsoliketoexploretheinte-grationoffrequentflyermilespayments,butthiswouldcomeatalaterstage.

• Reporting:IATAwillprovidealltheneededelementstotheairlinesforinternalreconciliation.

• Settlement:IATAwillhelpprocessthepaymentsandmoneywillbereceiveddirectlybyairlines.InthecasesthatisnotpossibleorifitwouldmakesensetouseIATAasmerchantofrecords,oncethemoneyisreceivedbyIATA,moneywillberemittedbacktotheairlineswithexist-ingsettlementsolutionssuchasBillingandSettlementPlan(BSP),IATAClearingHouse(ICH)orIATACurrencyClearingServices(ICCS).

• Enhanced risk management:havingafulltimeteamman-agingtherelationshipwiththepaymentplatforms,IATAwillensurecompliancewithexistingrules(e.g.,PCIDSS)andimplementstateoftheartfraudpreventionmeasures,managingpotentialfraudsorchargebacksonbehalfoftheairlines.

• Additional services:IATAwillalsoprovideservicessuchasDynamicCurrencyConversion.

New Idea #2

Payments

CARD SCHEMES MOBILE PAYMENTS WALLETS CRYPTOCURRENCIES FREQUENT FLYER MILES (EXPLORATORY)

PASSENGER JOURNEY

Shop

Websites / AppsAirlines

IATA

Payment Providers

IATA

DCS IFE

Virtual check-in

Airport check-in In-flight

BSPICHICCS

Next steps

TodemonstratehowwecouldintegrateanalternativeformofpaymentandhowthepaymentprocesscouldbeexternalizedintoIATAinatransparentwayforthepassenger,weareput-tingtogetheramock-upin2016.

New Idea #2

Payments

Benefits for Passenger Benefits for Airlines

• Pay as you want, where you want(evenmoreifnon-airlinesareincluded:e.g.,airports)

• Reducefrictioninpaymentstoput passenger in controlto“payastheywant,whenandwheretheywant”

• Empowercertaintypesofcustomers(e.g.,CorporateTravelDepartments)

• Enable additionalsubscriptionservices(e.g.,annualfees,installments,etc.)

• More control:enableairlinestobeincontroloftheirpay-mentsstrategypermarket/country,perchannel,performofpayment,perconditions(e.g.,installments,surcharge,etc.)

• Cheaper deployments:reducecapitalexpenditureaswellasdevelopmentcost(e.g.,integratinganalternativeformofpaymentcouldtakeupto1yearperairline)

• Reduced complexity:streamlinedifferentpaymentmeth-odsforagency/directsalesthroughusingasinglesystemconnectiontoaccessallpaymentprocessors

• Visibility:monitorallpaymentrelatedfeesinonesingleplace

• Centralization and reconciliation: onesingleplacetogetallinfo(includinginterlining)

• Enhanced fraud prevention:linkstoIndustryFraudpreventionproject

• Regulatory compliance:supportschemerulessuchasPaymentCardIndustryDataSecurityStandard(PCIDSS)3.1

• Faster time to market:fastertechnicalimplementationofadditionalformsofpayment

• Market reach:reducemissedopportunities

• Frequent-flyer miles:facilitateusageofFFMacrosstheindustryandmakethemmoreliquid(exploratory)

The benefits

New Idea #3

Baggage

Vision

Theexistingbaggageinfrastructureisatfullcapacityandnolongersufficientforfuturepassengervolumesandcustomerexpectations.

Thecurrentprocesstakesabagfrompoint“A”topoint“B”inaconsistentandstandardisedway.Forthepassenger,themostimportantelementisnotthattheirbagisinthehold,butthattheirbagarrivesatthepredeterminedplaceandtime,asagreed.

Ourvisionistore-inventthebaggageprocessbyprovidingreal-timetrackingandtracing,androbustidentification.Wecanthenchangethemodeltoaskourselves:whereshouldwecollectfrom,howdowemovethebaggageandwhenshouldthisbedone,relativetothepassenger'sjourney.

Current situation

Currently,thebaggageseparation(dropandpick-uppro-cessattheairport)isoneofthemoststressfulcomponentsofthepassenger’sjourney.Theindustryhasnotmateriallymodifiedtheprocessnortakenadvantageofnewtechnologytoofferabetterservicetothepassenger,(apartfromim-provingthebag“lost”rateovertime).Moreover,theindustryisnotnecessarilydoingabadjobdealingwiththedailycom-plexityofbaggagehandling,butitislackingintransparency.Thereisnoproductdifferentiation,andweofferfundamen-tallythesameservicetoeverypassenger,whethertheyare

No problem, I will take hand luggageBusiness Man, overnight trip

Couple, weekend away I need it with me, I will take it in the hold

Just make sure it's at the hotel by next ThursdayBusiness Man, 5 day trip

So much stuff, someone take it 2 weeks before meFamily, 2 week vacation

travellingindividuallyorasafamilyoriftheyaretravellingforashortbusinesstriporalongerleisureholiday.Belowisasampleofdifferentscenarioswherepassengershavediffer-entneeds.

Everycustomerneedstophysicallytaketheirbag(s)backfromtheirgroundtransport,tothecheck-indeskandsubmittheluggage,(i.e.,selfcheck-inorviaadesk).

Thereisnovisibilityoncethebaghasbeendroppedfromthatpointonuntilthearrival,whenthereisa“free-for-all”scrummageonthecollectionofbaggage,wherebyanybodycanwalkawaywithanybag,withlimitedornocontrol.Ifthebagdoesnotarrive,thenthereislittletransparencyintheprocess.Furthermore,passengers,andofteneventhestaffinthearrivalstation,havenoideawhereitis,whetheritisstillafewminutesawayorontheothersideoftheworldonamissedconnection.

Consumersnowaremuchmoredemandinginregardtoproducttransparencyandbeinginformedifthereisaprob-lem.IATAResolution753,tocomeintoeffectonJune2018,requiresthatairlinesareabletoreportthedeliveryandac-quisitionofbagswhenthecustomerforthebagchangesatthreespecificpoints,arrivals,transfersandloading.Thiswillenableidentificationatkeystagesofthejourney.However,thereisnorequirementtodirectlycommunicatedtothecustomer.

Asaresult,thereisverylittletrustintheprocess,leadingtravellerstogenerallydotheirbesttoavoidtheprocessandbringcarry-onbaggage,whichisthencreatinganewlogisti-calproblem.

The plan to transformation

1. Robust identification

Thereneedstobearobustmechanismtoidentifythefullbaggageidentification,whichismadeupofthreecompo-nents,bag,passenger,andjourney.TheXMLschema,asapprovedbytheIATAPassengerandAirportDataInterchangeStandards(PADIS)willenableairlinestostarttransitioningtothisXMLin2017.Thiswillensurethereissupportingdatabehindthetendigitbagtagnumber.How-ever,weshouldtakethisfurtherandensureallnewbaggageproducedastheabilitytoelectronicallyholdtheIDofthebag,passengerandjourney.IATAshouldincorporatethestandardsrequiredtoenableeachmanufacturertorecordID.

2. Streamline regulation

Regulationshouldbereviewedtoensurethatitkeepsupwithtechnologyandremainsrelevantandappropriate.Forexample,electronicbagtagsdonotgenerallytransmitwhilstabaggagetrackerdoestransmit.AspercurrentregulationofFAAAdvisoryCircular91.21-1c,thebaggagetrackersmusthavetwoseparatemechanismstoautomati-callyturnoffduringflight.Currentlythereisnowaytoverifythatthecommerciallyavailablebaggagetrackingdevicescomplywiththisrequirement.

3. Security

Processesandregulationneedtobereviewedifweweretochangetheprocesstoofferaluggageservicedindependenttothepassenger.

New Idea #3

Baggage

4. Mindset change – transparency

Asanindustry,weneedtoproactivelyshareinformationwithourcustomer.Therefore,weneedtobuildinreal-timeupdatestoourcustomerssothattheyknowthestatusofthebaggage.Thiswillcontinuallybuildtrustintothesystem.Airlinescannotcontinuetooperateonamodelwheretheydecideifandwhentheytellthepassengerthestatusoftheluggage.

5. Embrace independent solutions

ThereareaquitearangeofproductsnowintheluggagesectorwhichisusingvariationsoftheIOTtechnology,(eithervia3Gcards,Bluetooth,orLoRa).Currently,thesedevicesareoutsideoftheaviationecosystem.

Embracetheindependentsupplierswhoareprovidingtrackingproducts.Asanindustry,weneedamechanismforthemtobepartoftheecosystem,sothattheycansharetheirdatawiththeairlines,sothatairlinesareasinformedasthecustomer.

6. Robotics

Eventhoughtherecurrentlyisalargedegreeofautomationinthebaggageprocess,weneedtoidentifywhatrolestheroboticstechnologyplayinthefuture.

7. Drones/Autonomous Driving Vehicles

Itisquitepossiblethatdronesorautonomousdrivingvehi-clesmaybecomeakeytechnologyinthebaggageprocess.Thiswillbecomemoreimportantifwestarttochangethepickuppointtobesomewhereotherthantheairport,andifairlinesutiliseoffsitefacilities.Theindustrymuststartlookingattheusecasesfordronesinbaggage,andstarttodevelopanyspecificregulationrelatedtothis.

Case for Change

Thefuturestateismadeupofthreebusinessmodelcomponents,thatwhenre-designed,providetheopportunitytorevolutionizethebaggageindustry.Thisnewbusinessmodelcouldenablepassengerstotaketheirluggagedoor-to-dooraheadoftime,optimizingthebestpossibleroute,improvingcustomersatisfactionandminimizingcost.

Change WHAT the “A” and the “B” are

Airlinesarecurrentlymovingbaggagefrom“A”to“B”,where“A”and“B”arealwayscurrentlyairports.Airlinesneedtoevolvethismodeltochangewhatthe“A”and“B”canbe.Forexample,thesedropoffandpickuppointscouldbeanythingfromahouse,hotel,office,toanunmanned“smart”depotnexttothelocalnewspapershop.

Withtheevolutionofinternetpurchasesfromdominantplay-erssuchasAmazon,thereisadeliveryvehiclealreadypassingthroughmostneighbourhoodsonadailybasis.Canairlinesleverageoffthisorsimilarexistinginfrastructure?

Thismayrequirenewbusinessmodels,newpartnershipsornewservicesofferedbytheairlines.Particularcapacitiesneedtoevolvetosupportthisnewcapability.Forexample,hotelsshouldhavethecapacitytostoreluggageforseveraldayspriortoaguestarriving.Baggagedeliveryinandoutofairportscouldbedoneatatotallydifferentlocation.

Change HOW we move from “A” to “B”

Ifanairlinehastheopportunitytochangethestartingpointandtheendpointofthejourneyforbaggage,andcanchangewhentheymovethebaggage,thenthisenablesairlinestousethemostefficientmethodpossible.Thismaymeanthatwedonotneedtogoairports,whichcanfreeupvaluablespaceatairports.

Change WHEN we move from “A” to “B”

New Idea #3

Baggage

Traditionally,luggagehastravelledwiththepassenger,however,thisisquiteoftennotthedesireofthepassenger.Passengerswanttoknowthattheirluggagewillbeattheirdestinationwhenorbeforetheyarrive.Ifthismeansthatitiscollectedpriortothepassengerdeparting,thenthisbenefi-cialforboththepassengerandtheairline.Trialsatvariousairports,allowingthepassengertodropoftheirluggagethenightbeforeaflighthaveprovedverypopular.

Bychangingthe“when”,andcombinedwiththe“how”air-lineshavetheopportunitytooptimisetheroutetomovetheluggagefrom“A”to“B”.Theservicecouldbecustomiseddependinguponifitisanoutboundorreturnleg.

Next steps

Toachievethevision,weproposethenextstepstoincludethecreationofadetailedfeasibilitystudythatwilloutlinethefundamentalchangesnecessarytothecurrentbaggagepro-cesses.Thiswouldincludeadetailedassessmentofbaggagetrackingtechnologiesfortheconsumer,reviewofregulation,securityandmodellingofthenewprocesstochangepickupanddropoffpointstoimprovehowandwhenwedeliverbag-gage.

New Idea #4

Open API: Connect, Collaborate and Share

Vision

Airlinesandairportsknowthatweneedtotalktoourpas-sengersinamorepersonalizedandquickermanner.Inad-dition,passengerswanttohaveagreaterleveloftrustintheinformationwithwhichtheyconsume.However,itisnotaneasytasktopublishtrusted,accurateandtimelyinformationtopassengersonapersonalizedlevel.ApplicationProgram-mingInterfaces(API’s)maybethemechanismtosolvethisproblemacrosstheindustry.

OurvisionistoensurethatthedataexposedfromtheseindividualairlineAPIplatformsisconsistentintermsofdefi-nition,formatandwaythisdataisaccessed(orexposed).Thiswillenablemaximumbenefitfromallusersacrosstheindustry,frompassengers,airlines,airports,groundhandersandanyentitywithintheindustrywhichwantstoconsumetheinformation.

Note:Inthecontextofthispaper,“API”referstoApplicationProgrammingInterfaces,notAdvancedPassengerInforma-tion.

Current Situation

APIsarebecominganimportanttoolforbusinesstobusinessandbusinesstoconsumerbusinessestoproviderelevant,trustedandtimelyinformationandtoreachnewcustomers.APIsarecommonlyusedintoday’ssociety.Forexample,whetheritischeckingthesportsscores,traintime-tableorbuyingasportsticket,allofthisdataisprovidedbyAPIs.Theconceptofdatasharingfortheairlineindustryhasbeenanessentialcomponentoftheindustry'ssuccess.How-ever,theroleofdatasharingisnowchangingdramatically.

AirlinesandairportsareattheearlystagesofinvestingintheseAPIplatforms,andwecollectivelyneedtoencour-ageallairlinesandairportstoinvestimmediatelyintotheseplatformstoensurethattheycancontributetotheseAPIecosystemsandAPIeconomieswhichpromotesinnovation,resultinginnewbusinessmodelsandnewmethodstoincreasecustomersatisfaction.

What is an API economy?

APIsarefundamentaltomodernbusinessarchitec-ture.Moreover,theyareatechnicalmechanismtosharedatabetweensystemsinacontrolledway.Generally,theyprovidethelinkagebetweenonesystemstoanother.Thiscouldbefromoneinternalsystemtoanotherinternalsystem,orfromaninternalsystemtoanexternalsystem.

Increasingly,API’salsoprovideafoundationforanewtypeofbusiness,whichGartnercallsthe“APIeconomy”,whichisdefinedas“Asetofbusinessmodelsandchannels—basedonsecureaccessoffunctionalityandexchangeofdatatoanecosystemofdevelopersandtheusersoftheappconstructstheybuild—throughanAPI,eitherwithinacompanyorontheInternetwithbusinesspartnersandcustomers"3

SomekeyexamplesofAPIswhicharenowcommonplaceineverydaylifeinclude:

• Expediaopeneduptheirtravelbookingservicestopart-nersthroughanAPItolaunchtheExpediaAffiliateNet-work,buildinganewrevenuestreamthatnowcontributes$2Binannualrevenue1

• Salesforce(a$55Bcloudcomputingcompany)releasedAPIstoenablepartnerstoextendthecapabilitiesoftheirplatformandnowgenerateshalfoftheirannualrevenuethroughthoseAPIs2

1https://www.mulesoft.com/ty/wp/secrets-great-api

2https://www.mulesoft.com/ty/wp/secrets-great-api

3Gartner,The API Economy: Turning Your Business Into a Platform (or Your Platform Into a Business) Published:19February2016ID:G00280448

Case for Change

WithintheairlinesectorweseethefollowingbenefitswheninvestingintheseAPIplatforms:

1. Passenger communications

Consumerfacingappswillnowhaveatrustedsourceofinformation.Thiswillresultinthenumberofconsumerfac-ingappstogrowconsiderably.Thisisverygoodnewsforthepassengerssinceitwillenablethemtohaveaccurateinformation.Oncethedataistrusted,thenconsumerswillcontinuetoreturnandusetheapplications.

Airlinesholdawealthofinformationandcanprovidealargebenefittotheconsumersofthisdata.Belowistheresultsfromthe2016IATApassengersurvey.Wecanseethatthereisahighdemandforpassengerinformation,rangingfrom85%ofrespondentsrequestingflightstatus,60%forbaggagestatus,and58%forwaitingtimesatsecurity/bordercontrol.

2. Reduce usage of unauthorized data

Byexposingthisdata,wehopetoreducetheunauthorizedusageofoperationaldata.Typically,travelrelatedcompanies“steal”airlinesdatabyatechniquecalled“screenscraping”whereprogramssystematicallycopydatafromawebsite.

New Idea #4

Open API: Connect, Collaborate and Share

3. Used to build mobile solutions

APIsenablemobilesolutionstobedevelopedquicklyandplugintothecorporatedatasourcesinalowcostway.

4. Provide a new revenue stream

APIscanprovideanewrevenuestreambymonetizingthedata.However,itwouldbeprudentatthisstageoftheeco-system,soseethismonetarystreamasmoreofacostoffsetratherthananoutrightrevenuestream.

5. Promote innovation

Byprovidingthedevelopmentcommunitywithaccesstorelevantairlineinformation,airlinesarethenabletobroadentheirinnovationecosystemswhilstbecomingmoreagileandresponsive.Byopeninguptheinnovationprocess,airlineswillbeabletothenenrichtheinnovationgenepoolandalsogainvaluablescale–moreresourcesatafractionoftheprice.

FortheAPIeconomytohavemaximumbenefitsacrosstheindustry,wehavetoachievealevelofcriticalmass.Toachievethiscriticalmassquickerthereareseveralcomponentsneededasshowninthetablebelow.

DefineaCommonDataModel

BuildCommonAPIs

BuildanIndustryEcosystem

•IATA&ACIworkingondatamodeltocreatecommondefinitions

•StandardizedoutputAPI

•DesignAPIforagreatuserexperi-ence

•OptimizetheAPI

forauseCase•Provideeasy

accessviaadeveloperportal,onestepregistra-tion,sandbox,tutorials,samplecode,developercommunity

•Provideanecosystemwhichpromoteseaseofconnection

•Developcertifica-

tionprogram•Publishlists

ofrelevantAPIsviaanindustrydirectorylisting

•Moredatasources-promotemoreairlinesandairportstocreatepublicAPIs

Pillars for a successful API economy

Resultsfromthe2016IATAPassengersurvey

Industry level – Co-ordinated approach

Ourvision,fromanindustryperspective,itiscriticalthatthedataexposedfromtheseindividualairlineAPIplatformsisconsistentintermsofdefinition,formatandwaytoaccesstoensurethatusersacrosstheindustrycaneasilyconsumedatasetsfromdifferentairlines.

Next steps / Proof of concept

AirlinesaremissingopportunitiesiftheydonotleveragethepowerofopenAPIeconomy.Byleveragingthiscollab-orativebusinessmodel,airlinescanleverageoffthedevel-opmentcommunitytodriveinnovation,sharedataontheairline’stermsandexposetheirdatatoenablefastdeploy-mentofsolutionstocapitaliseonbusinessopportunities.

Asindustry,weshouldbeinvestingintheseAPIplatformsinaco-ordinatedapproachtoensurethattheconsumersoftheserichdatasetscaneasilyconsumethisinformationbyhavingaconsistentapproachtodatamodels,useraccessapproachandAPIformats.TodemonstratehowAPIscouldbeusedacrosstheindustry,threeairlinesandthreeairportswereconnectedontoacommonAPIplatform,whichexposedeparturetime,flightstatusanddeparturegateinformation.ThenextstepwastoconnecttheAmazonAlexa,ahandsfree,voiceactivatedartificialintelligencesystem.Now,apassengercanaskAlexawhattimetheyneedtoleavefortheairport,usingtrustedandreal-timedata.

New Idea #4

Open API: Connect, Collaborate and Share

Industry Example

Source:https://tfl.gov.uk/forms/12425.aspx

Withtheaboveexampleyoucanseethatbyinsertingthreelinesofcodeintoanapp,theusercanthenhaveaccesstothelevelofserviceforalltubelines.Nowimaginethatyouhadtoconnecttoeachtubelineindividually,thatwouldbebothcumbersomeandcostlyfortheconsumingentityTfLhasenabledthatyoucanhaveaccesstoalllinesviaoneconnection.

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Embed:

TheStBThinkTankwillcontinuetofocusonideationandbrainstormingnewinnovativeideastoexplorethroughouttheyearlysessions.In2016,theThinkTankaddedthedevelop-mentofProofsofConceptsinadditiontotheusualbrain-stormingandcreationoftheWhitePaper.

In2017,theThinkTankwouldlike,inadditiontoideation,tofocusonthedevelopmentofpastideasthathavenotgottractionsofar.Thiswillensurethatthegreatworkandmo-mentumarenotlost.Instead,wewillcontinuetobuildontheideasintroducedintheseWhitePapers.Wewillcontinuetoworktowardsour2012originalvisionoftheperfecttripby2020.

Sinceitsinception,theThinkTankcontinuestogroweachyear,attractingmoreinterestandwiderparticipation.Also,theformathasevolved,toamoreaggressiveandchalleng-ingscope,interactingwithdifferentindustriesandstart-upswhoofferawholenewwayoflookinganddoingthings.

TheStBThinkTankisoneofitskindandmaintainingitsrelevanceisfundamentaltothegrowthofourindustry.Wemustcontinuetoinnovateandtransformprocessesthatsimplydonotworkanymore.Indoingso,itisimportanttokeepasmanyparticipantsfromacrosstheaviationindustryaspossible.

InadditiontotheThinkTankmeetings,theteamwilllistencarefullytothethoughtsanddiscussionsatthe2016Execu-tiveSummitoftheWorldPassengerSymposium.ViewsexpressedtherewillguidetheThinkTankandprovideideasfor2017,tobesharedbyseniorexecutivesfromacrosstheindustry.

Conclusion

2016

Glenn Morgan(Co-ChairStBSteeringGroup)HeadofDigitalBusinessTransformation,InternationalAirlinesGroup

Rob Broere(Co-ChairStBSteeringGroup)VicePresidentITPSSTransition–Emirates

Airline Delegates Strategic Partners

Partnering for success

IATA wishes to thank all contributors to this paper.

Val ConneryManagerCustomerServicesInformationSystems–AirCanada

Udo JanurekDirectorProductManagementPassengerTechnology–Lufthansa

Hervé PrezetAssociateDirector,DistributionProductManagement–Amadeus

Mark HurshDirector,Transportation&Logistics–PwC

Jim PetersChiefTechnologyOfficer–SITA

Patrice AboutDirectorofGroundOperations–AirFrance,KLMMarketing

Roni SchuetzSolutionandTechnologyAdvisoryLeader,Travel&TransportationIndustry

Jean-Vincent TeulerHeadofInnovationandAccountManagementEurope

Grant GrayBusinessTransformationTeamLeader

Steve PetersonIBMGlobalTravel&TransportationLeader,InstituteforBusinessValue

Tim AtkinsonHead,AirportOperations–Inter-national

Patricia EdwardsManagingDirector,PassengerServicesAirlinesforAmerica

Antoine RostworowskiDirector,AirportCustomerExperienceandTechnology

Christoph SchneiderCo-ChairMobilityWorkingGroupandStrategyandIntegrationBoardACARE

(alsoSeniorAdvisorAirsideMasterplanningatMunichAirports)

Stuart BirrellCIO,HeathrowAirports

Airports and Supporting Organizations

Pierre CharbonneauDirector,PassengerandFacilitation

Eric LeopoldDirectorTransformation,FDS

StB Think Tank sponsors

Stephan CopartHead,Strategy,IndustryServicesTransformation

Tanya Gagliardi ProgramManager,SimplifyingtheBusiness

Tim GrosserHead,DigitalTransformation

Juan Ivan MartinHead,Innovation,FDSTransformation

StB Think Tank core team

Partnering for success

www.iata.org/StB