Airline Cost ConferenceGeneva 30 August 2016

Aleks Popovich

SVP Financial and Distribution Services, IATA

1

Governance of

Industry Benchmarks

World Financial Symposium 2014

2014White Paper

2015Progress Report

Supporting Sustained Financial Health

2016HIPO Finance

World Financial Symposium 2014

1 Smarter RegulationsHarmonizing the regulatory framework making it supportive and conducive to sustainable growth

2 Value Chain OptimizationOptimizing the value chain, making it reflective of relative risks

3 InnovationEnabling innovative and competitive customer centric products

4 Efficient ProcessesEnabling Efficient, Secure and Seamless end-to-end industry processes

World Financial Symposium 2014

Financial Committee

Financial Committee Steering Group

Financial Services Development

SIS Steering Group

Interline Billing and

Settlement Operations

Stream 2Treasury & Payment

Stream 3External Charges, Cost Management &

Financial Standards

Payment Methods

Treasury

Airports

Commercial Fuel

Industry Taxation

Industry Accounting

Stream 1Financial Services & Settlement Systems

Credit Risk Management

Financial Committee Workings Groups

World Financial Symposium 2014

1 Smarter RegulationsHarmonizing the regulatory framework making it supportive and conducive to sustainable growth

2 Value Chain OptimizationOptimizing the value chain, making it reflective of relative risks

3 InnovationEnabling innovative and competitive customer centric products

4 Efficient ProcessesEnabling Efficient, Secure and Seamless end-to-end industry processes

5 High Performing Financial OrganizationEnabling movement from Transaction Processing to Value Management

With a potential 5th Pillar:-

Financial CommitteeProposed Industry Benchmarks Working Group

Role and Mandate

• Advisor relating to benchmarks directly supporting sustained airline

industry financial health.

• Benchmarks selected agreed with Financial Committee and selected to

explicitly support overall airline industry financial health, as well as the

white paper strategic pillars of Smarter Regulations, Value Chain

Optimization, Innovation, Efficient Processes, and High Performing

Finance (to be confirmed).

• A Financial Committee working group under the “External Charges,

Cost Management and Financial Standards” stream.

Financial CommitteeProposed Industry Benchmarks Working Group

Key activities

• Define industry benchmarks explicitly supporting sustained airline

industry financial health, in line with Financial Committee white paper

overall vision and strategic pillars.

• Prioritize industry benchmarks for data collection, analysis, and insight,

for agreement with the Financial Committee.

• Collect, measure and analyse data associated with agreed priority

industry benchmarks, providing insight on best practice and how

improvement can be achieved.

• Report on agreed priority industry benchmarks and insights to Financial

Committee, its working groups, wider IATA Industry Committees, and

the wider IATA member financial community.

World Financial Symposium 2014

Financial Committee

Financial Committee Steering Group

Financial Services Development

SIS Steering Group

Interline Billing and

Settlement Operations

Stream 2Treasury & Payment

Stream 3External Charges, Cost Management &

Financial Standards

Payment Methods

Treasury

Airports

Commercial Fuel

Industry Taxation

Industry Accounting

Stream 1Financial Services & Settlement Systems

Financial Committee Workings Groups

Benchmarks (*)

Credit Risk Management

(*) Subject to IATA DG and Financial Committee ratification

Financial CommitteeProposed Industry Benchmarks Working Group

Next Steps

• Financial Committee and IATA DG + CEO endorsement

Sep 2016

• Nominations from IATA member CFOs

Nov 2016

• First meetings of WG: workshop to propose benchmarks

Q1 2017

• Priorities agreed with Financial Committee

Apr 2017