Airlines from the following countries participate in Air Transport Settlement System*:

*number of airlines is shown in brackets as of March 2012

The Russian Federation (53)

Austria (2)

Azerbaijan (2)

Armenia (1)

Belarus (2)

Germany (2)

Georgia (3)

Israel (2)

Italy (1)

Kazakhstan (3)

Kirgizia (3)

Moldova (1)

China (1)

Latvia (1)

UAE (1)

Tajikistan (3)

Uzbekistan (1)

Ukraine (7)

Air Transport Settlement System (ATSS)

– Combination of governing bodies and participants interacting under concepts, technologies and rules effective in the System

In operation since January 1, 1993ATSS has been implemented:

• As a result of decentralization, demonopolization and deregulation of national economy including airline industry and transfer to application of market economy instruments

• Under initiative of major carriers and agencies of Russia and CIS countries with administrative support (in 1992 and subsequent years) of Russian aviation authorities, Russian Association of Aircraft Operators and Inter-State Aviation Committee

• Within extremely short period – ONE YEAR• By analogy to ARC (USA) and BSP (IATA)

Purpose and scope

• Rendering of standardized services related to passenger transportation sold by Accredited Agencies on CCS-TCH Standard Traffic Documents, including CCS-TCH e-tickets (hereafter – “STD”) and ensuring the full and timely settlement of sold transportation with the Airlines in accordance with effective rules, standards, procedures and technologies.

Purpose and scope

• Facilitation of the procedures related to passenger transportation sales, standardization of technologies, reporting and settlement for the benefited revenue among the System participants

• Ensuring control over the funds flow from the Accredited Agencies to the Airlines

• Reduction of Airlines’ costs intended for the maintenance of their own network of passenger transportation sales

• Reduction of settlement periods between the Airlines and their contracting parties

• Notification of the Airlines about the availability and spending volume of revenue

• Reduction of revenue loss risk incidental to financial defaults of ATSS participants

World Settlement Systems in operation

ASP (Area Settlement Plan) has been operating since 1964 in the USA under control of ATA (Air Transport Association of America). Since 1984 these services are rendered by ARC (Airline Reporting Corporation);BSP (Billing and Settlement Plan) established by analogy to ASP (USA) has been implemented since 1971 under control of IATA (International Air Transport Association). ATSS (Air Transport Settlement System) has been operating under control of ACCS (Airline Control Council of Settlement) since 1993. Since 1994 these services are rendered by TCH (Transport Clearing House) established by major airlines of Russia and CIS countries as a Joint Stock Company.

LEGISLATIVE AUTHORITIES

• Conference of Settlement System Participants, convoked once in 2-3 years.

• Airline Control Council of Settlement (ACCS), composed of the Presidium and two Committees (of scheduled carriers and of accredited agencies) acts in-between Conferences.

EXECUTIVE AUTHORITY

• Transport Clearing House (TCH)

Governance

CONFERENCE OF SETTLEMENT SYSTEM PARTICIPANTS

ACCS PRESIDIUM

AIRLINE CONTROL COUNCIL OF SETTLEMENT (ACCS) 45

11

ACCS CARRIER COMMITTEE ACCS AGENCY COMMITTEE

80

TRANSPORT CLEARING HOUSEExecutive authority

Leg

isla

tive

aut

hori

ties

PRESIDIUM OF ACCS CARRIER COMMITTEE PRESIDIUM OF ACCS AGENCY COMMITTEE

20 20

*

* Number of members is circled

ATSS governance structure (approved by the 5th Conference of Settlement System Participants as of 22.04.2010)

Interaction of ATSS executive authority (TCH) with participants and other entities

TRANSPORTCLEARING

HOUSE

(TCH)

RESOLUTIONS,

APPROVED

DOCUMENTS

ELABORATION OF ANALYTICAL MATERIALS, DRAFTSOF REGULATORY DOCUMENTS

ACCS PRESIDIUM

AC C S

ACCS CARRIER AND AGENCY COMMITTEES

PAYMENT ORDERS

PAYMENT FOR SERVICES FROM AIRLINE REVENUES UNDER AIRLINE INSTRUCTIONS

AGENCIES

and companies of other means of transport

AIRLINES

other undertakings

ATC FUEL

AIRPORTS

REVENUE LESS AGENCY COMMISSION AND TCH

SERVICE CHARGE

REVENUE DATA, RECONCILIATION STATEMENTS,HOT-FILES

SALES UNDER DIRECT AGREEMENTS

REVENUES, PENALTIES, DEPOSITS

REMITTANCE DATA

FILE

AUTHORIZED BANKS

ATSS HINGE ACCOUNT

RE

VE

NU

E

RE

MM

ITT

AN

CE

IN

STR

UC

TIO

NS

ORDER AND PAYMENT OF STDs

ADMINISTRATION OF AGENCY RIGHTS TO SELL SERVICES ON STDs of ACCS-TCH

RET-FILES

SECURITY

PRINTERS

STANDARD TRAFFIC DOCUMENTS

SCHEDULE AND TARIFFS CENTRE (STC)

INDUSTRY STATISTICS

Unified Centre of Settlement (UCS)

CONTROL,RECONCIL-LIATION STATEMENTS

SAL

SE

RE

POR

TS

E-TICKETING CENTRE (ETC)QUOTAS ОF AUTOMATED

AND ELECTRONIC TICKETS OF ACCS-TCH

COMPUTERIZED RESERVATION

SYSTEMS(АDS/GDS/PSSRS/ADSTS)

STATE DUMA OF THE RF FEDERAL ASSEMBLY

MINISTRY OF TRANSPORT OF RUSSIA

FEDERAL STATE STATISTICS SERVICE (ROSSTAT),MINISTRY FOR ECONOMIC DEVELOPMENT

FEDERAL AGENCY OF AIR TRANSPORT (ROSAVIATSIYA)

OTHER FEDERAL EXECUTIVE AGENCIES

INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO)

INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)

ATSS TRAINING AND PRACTICE

CENTERS

General services of ATSS executive authority -TCH

• Development, updating and implementation of ATSS fundamental concepts, normative/technological and organizational/legal documents and training programs

• Accreditation of passenger sales Agencies and their sales locations, Internet points of sale and self-service kiosk (SSK) points of sale

• Elaboration of STD Forms outlays, approvable by ACCS; ensuring their registration with an authorized state agency; arrangement and holding of tenders among printers of CCS- TCH STD forms

• Ordering, secure custody, distribution, record and control over the availability and usage of CCS-TCH STD stock, allocation and control over the usage of CCS-TCH e-ticket quotas, investigation of STD losses, notification of carriers, airports and Accredited Agencies (hereinafter – «Agencies») about lost CCS-TCH STD forms

• Creation of unified legal environment intended for interaction among ATSS participants by means of model agreements stipulating mutual obligations of the parties, whose format and contents shall be approved by the ACCS

• Arrangements for Agency transportation sales issued on STD, including sales via the accredited Internet points of sale, credit cards sales, web-money sales, etc.

• Administering of Agencies’ and their sales locations’ rights related to transportation sales issued on STDs

• Collection, input and processing of Agency reports with STD audit coupons, cancelled/refunded tickets; generating and secure custody of documentary archive of Agency reports

• Collection, input and processing of agency sales reports including those generated under agency interactive reporting system

General services of ATSS executive authority (TCH)(continuation)

• Collection of the revenue; settlements with the Airlines; adjustment of indebtedness with Airlines for carriages sold against military traffic documents

• Support for ATSS participants for getting on-line access to the required information of TCH Information System as well as for message transmission facilities, exchange files and documents, including those with electronic signature

• Continuous control over Agencies’ operations incidental to passenger transportation sales issued on STDs and revenue settlement with Airlines; carrying out the audits of Agencies and their sales locations

• Reviewing and settling the claims raised by the ATSS participants • Accreditation of Computerized Reservation Systems (CRS) operators and certification of

Automated Ticketing Systems with the Settlement System • Accreditation of training centres; arrangements for the training of aviation enterprises’ staff to

be engaged in the Settlement System • Providing the information interchange among the systems of settlement, reservation and sale,

schedule and tariffs as well as among the participants and users of these systems • Updating of Settlement System technologies in order to implement electronic interactive

systems of Settlement System participants • Notification of the ATSS participants about ongoing developments of the System through mass

media and ATSS Website

Key services of TCH as ATSS executive authority for industry (the Russian Federation)

• Rendering of computerized system services for generating, coordination, adjustment and publishing of airline schedules, charges/fees/tariffs for aircraft ground handling, codification of objects, registration and publishing of fare information related to scheduled services

• Rendering of computerized system services for the collection and processing of statistics and financial reporting of airlines and airports; development and submission of analytical materials with respect to industrial statistics

• Analysis and coordination of computerized reservation systems updating• Elaboration of industry regulatory documents drafts

Participants

Participants:

• Airlines (carriers) concluded Passenger Services Sales and Settlement model agreements with TCH

• Accredited Agencies concluded model agreements with TCH on passenger sales issued on STDs and revenue settlement

• Transport Clearing House (ТCH)

Partners:• Russian Railways (RZD, OJSC)• "Аeroexpress“,LLC• "АBC“, LLC• Vendors/Ancillary services providers • Tour operators

LEGEND

АDS/GDS – AIR (GLOBAL) DISTRIBUTION SYSTEMS

PSSRS – PASSENGER SALES SYSTEM FOR RAIL SERVICES

ADSTS – AUTOMATED DISTRIBUTION SYSTEM FOR TOUR SERVICES "SPUTNIK"

Scheme of contractual relations within ATSS

TRANSPORT CLEARING HOUSE (TCH)

AGENCIES-ATSS PARTICIPANTS

DIRECT AGREEMENTSby Airline’s discretion

ACCREDITED WITH ATSSАDS/GDS/PSSRS/ADSTS

PARTNERS (PROVIDERS, ETC.)

ACCREDITED AGENCIES

Standard requirements to Airline joining the System

The Airline:• Files application for joining the settlement System• Signs Airline Sales and Settlement model agreement with TCH for

sales on STDs of ACCS-TCH• Ensures access to its inventory in CRS via ADS/GDS accredited with

ATSS• Pays out TCH services in compliance with price-list approved by ACCS Note:– The Airline must be registered as a carrier in compliance with legislation of the

country of registration and have got valid operator’s certificate – New entrant airline–participant of ATSS pays one-time joining fee – Obtains a code assigned by TCH Schedule and Tariffs Center (STC) (for airlines

having no IATA code)– Downloads its schedules and fares in STC (for Russian airlines)

Airline application form for joining the Settlement System

TCH mail address:59, build. 1 Bolshaya Grouzinskaya str., Moscow, 123056, Russia

To: President of Transport Clearing House, JSCAirline name: ____________________Address, phone, fax, SITA: _________Flights operated by the Airline: _________Types of aircraft used by the Airline: _________Airline codes (ICAO, IATA, Settlement account): _________Name of the Reservation System where the Airline’s inventory should be loaded: _________

Hereby the Airline expressly agrees to adhere to the Rules effective in the Settlement System and agrees to sign Sales and Settlement Agreement for passenger sales on STDs of ACCS-TCH with TCH.

On behalf of the Airline__________________________

Title__________________________ _

Signature Seal

Standard requirements to Agency joining the Settlement System

Passenger Sales Agency:• Files the set of application documents necessary for accreditation• Delegates its experts to TCH for participation in appraisal procedure of submitted

documents • Delegates its experts to Agency Accreditation Panel meeting upon formal invitation

thereto In case of Positive decision of Agency Accreditation Panel:

• Concludes Model Agreement and the Agreement on TCH Information System Subscriber Service with TCH

• Provides financial guarantees as stipulated for the agency• Files application for obtaining STD forms and e-tickets quotas of ACCS-TCH

pursuant to the technology set forth in "Manual for Ordering, Distribution, Record and Control over the use of STD forms and ACCS-TCH E-Ticket Quotas" and obtains STD forms and E-ticket quotas

• Obtains Agency Accreditation Certificate, TCH validators, access to the CRS/GDS/PSSRS/ADSTS accredited with ATSS

• Implements the rights to sell air services issued on ACCS-TCH STDs in accordance with accreditation rules and Modal Agreement

Certificate of accreditation – a pass to air transportation market in ATSS

Validator of accredited sales location

SALES LOCATION COUNTRY CODE

SALES LOCATION CODE

PESRONAL NUMBER OF SALES OPERATORSALES LOCATION CITY

AGENCY NAME

FIVE-CHARACTER AGENCY CODE

AUTOMATED

SALES LOCATION COUNTRY CODE

SALES LOCATION CITYSALES LOCATION CODE

FIVE-CHARACTER AGENCY CODE

AGENCY NAME

MANUAL

The map of accredited agencies and sales locations

CCS-TCH e-ticket (itinerary/receipt) on A4 paper

Itinerary data

Mandatory notices

COMPUTER GENERATED NUMBERTICKET NUMBER : 000 6150012345 1

AUDIT COUPON OF MANUAL TICKET FORM WITH TWO FLIGHT СOUPONS

AUDIT COUPON OF AUTOMATED TICKET FORM WITH FOUR FLIGHT COUPONS

STD forms of ACCS-TCH

Audit coupon of miscellaneous charges order (МСО)

ACCS-TCH e-ticket (OPTAT form)

AirlineET Servers

(ETSs)

Departure control systems(DCSs) ET

Database

TCHE-Ticketing

Center

…

…

…

Check-in

Boarding

ET Issuance

internet

ADS/GDSsAirport

AirlineReservation

Systems

26

Check-in desks

Technological scheme of E-ticketing and tracking of passenger transportation in ATSS

ADS/GDS – AVIATION/GLOBAL DISTRIBUTION SYSTEM

Electronic multipurpose document, EMD(passenger receipt) on A4 paper

Itinerary data

Mandatory notices

COMPUTER GENERATED NUMBEREMD NUMBER : 000 619000001 2

EMD on MCO form

E-ticket (MCO) for sales of passenger rail services

Booking number

Booking number

COMPUTER GENERATED NUMBERMCO NUMBER : 97A 6196000004 5

Booking information

IATA code 61 for STDs of CCS-TCH

Source of Sale Type of Form No. of Coupons

Airline Code 1 2 3

Form Code 4 5 6

Serial Number

7 8 9 10 11 12 13

No. of Digits in Serial No.

Method of Check Digit Calculation

Agencies

(CCS-TCH*)2

Passenger Ticket and Baggage Check

2 Coupon - - - 610 - - - - - - - 7 Various

Agencies

(CCS-TCH*)2

Passenger Ticket and Baggage Check

2 Coupon - - - 611 - - - - - - - 7 Various

Agencies

(CCS-TCH*)2

Passenger Ticket and Baggage Check

4 Coupon - - - 612 - - - - - - - 7 Various

Agencies

(CCS-TCH*)1,2

Passenger Ticket and Baggage Check/Electronic Ticket

4 Coupon - - - 613 - - - - - - - 7 Various

Agencies

(CCS-TCH*)1,2

Passenger Ticket and Baggage Check/Electronic Ticket

4 Coupon - - - 614 - - - - - - - 7 Various

Agencies

(CCS-TCH*)1,2

Passenger Ticket and Baggage Check/Electronic Ticket

4 Coupon - - - 615 - - - - - - - 7 Various

Agencies

(CCS-TCH*)1,2

Passenger Ticket and Baggage Check/Electronic Ticket

4 Coupon - - - 616 - - - - - - - 7 Various

Agencies

(CCS-TCH*)2

Passenger Ticket and Baggage Check

2 Coupon - - - 617 - - - - - - - 7 Various

Agencies

(CCS-TCH*)2

Passenger Ticket and Baggage Check

2 Coupon - - - 618 - - - - - - - 7 Various

Agencies

(CCS-TCH*)1,2

Miscellaneous Charges Order/Electronic Miscellaneous Charges Order

1 Coupon - - - 619 - - - - - - - 7 Various

* CCS-TCH – Control Council of Settlement – Transport Clearing House 1 Computer generated ticket serial number. All other Passenger Traffic Documents have a preprinted ticket serial number. 2 Standard neutral ticket. Airline name and code are not preprinted.

HOW TCH SETTLES WITH ATSS CARRIERS

TRANSPORTATION

ACCOUNTING WITHEACH CARRIER

NOTIFICATION OFEACH CARRIER

(MULTILATERAL AGREEMENT WITH OPEN FARES)

INTERLINE

ACCOUNTING WITH ISSUING CARRIER

NOTIFICATION OF ISSUING CARRIER

ACCOUNTING CODE OF

M2 AGREEMENT

AIRLINE ACCOUNTING CODE OF ISSUING

CARRIER

ACCOUNTING CODE OF

M1 AGREEMENT

ACCOUNTING WITHEACH CARRIER

NOTIFICATION OFEACH CARRIER

(MULTILATERAL AGREEMENT WITH CLOSED FARES)

М1 М2

Types of ATSS agreements on settlement for sold carriages

INTERLINE• Any interline agreement between Airlines in terms of АТА/IATA; accounting is based on three-

digit code of Issuing airline which in its turn independently settles with other airlines participating in transportation pursuant to procedures established by IATA

М1 AGREEMENT• Multilateral agreement between TCH and Carriers with open fares. Carriage under

this Agreement (99A code) shall be issued at fares established by airlines for each segment. CRS shall provide automated generation of connections and multiple transfer connections. TCH settles with each carrier participating in Agreement.

М2 AGREEMENT• Multilateral agreement between TCH, Carriers and hub Airport with closed fares. It is

needless for Carriers to enter into interline agreements among themselves. Carriage under M2 Agreement (01C accounting code) is issued at through fare for city pair without indication of each segment fare. CRS shall provide automated generation of connections and multiple transfers. Participating carriers shall establish through fares in pairs for flights with connection point at hub airport. Hub airport shall arrange connection of Carriers’ flights participating in M2, and clearance of passengers and baggage through transit area. TCH settles with each carrier participating in Agreement, depending on the Carrier’s share of through fare.

Several interlining carriers. TCH settles with issuing carrier under its accounting code

АА ВВ

"АА" Airline Accounting Code

MOSCOW(DME) BERLIN

(SXF)

ST.PETERSBURG(LED)

Carriage

Several carriers participating in М1 agreement(accounting code 99А).

TCH settles with each carrier

АА ВВ

Fare АА Fare ВВMOSCOW(DME) BERLIN

(SXF)

ST.PETERSBURG(LED)

Carriage

Several carriers participating in М2 agreement (accounting code 01с).TCH settles with each carrier depending on carrier share of through fare

АА

TYUMENMOSCOW

(DME) BERLIN(SXF)

Carriage

Published through fare

ВВ

Schedule of information and cash flow from agencies to carriers via TCH

A T S S t o d a y:

• 90 scheduled (including over 40% of foreign airlines)• Over 300 accredited agencies with approximately 7100 sales

locations in 30 countries worldwide• Approximately 21000 ticketing agents operating about 17000

terminals of authorized domestic and foreign CRS • 28 accredited Training Centers, branches inclusive• 6 corporate Training Centers accredited• 15 accredited vendors/operators of CRS

     

A T S S t o d a y (continuation)

• Guaranteed timely remittance of full revenue to airlines• Over 90% of transportation issued on CCS-TCH electronic/automated tickets; approximately 70

airlines and 100% of transportation sales agencies (311) participating in e-ticketing system• Air services sales via ATSS accredited Internet POS (134), including SSK points of sales (177)• Air services sales via aviation/global distribution systems (Sirena-Travel, Galileo, Sabre,

Amadeus)• Interactive reporting system for accredited agencies• ATSS agencies performing sales of airport, hospitality and other ancillary (tourist) services via

CRTS “SPutnik“ on EMD stock • ATSS agencies performing reservation and sales of rail services on the basis of Internet

technologies and with the use of Electronic MCO (in cooperation with “Russian Railways“ and Automated Control System “Express-3“) – PSSRS project

• ATSS agencies performing Internet reservation and sales of scheduled bus services on EMD• Issuance and settlement performed in three currencies: Rubles, US Dollars and Euro• Implementation of system for service payment by bank cards via Internet by virtue of secure e-

commerce technologies (3D Secure)• Implementation of electronic data interchange system for ATSS participants

ATSS enhancement

• Large-scale ATSS commercial operation of automated and e-ticketing technologies for passenger services by virtue of national computerized reservation systems and foreign GDSs

• Large-scale commercial operation of passengers services Internet sales technologies, self-service kiosks (cash machines) and other e-sales facilities within ATSS

• Expansion of functionalities of Agency Interactive Reporting System

• Enhancement of electronic interactive data interchange among ATSS participants, including interactive ATSS participants’ control over carriages/services sales

• Development of procedure for handling debit/credit memo between ATSS Airlines and Agencies in accordance with international settlement technologies

• Updating of normative and technological framework of E-ticketing system to enable passenger sales via GDS

ATSS enhancement (continuation)

• Implementation of ATSS ticket exchange rules via accredited CRS/GDS consistent with international technologies, updating of normative and technological regulations for ticketing on CCS-TCH STDs and agency reporting for exchanged tickets

• Implementation of ATSS procedure for issuance of CCS-TCH EMD via accredited CRS

• Development of web-money payment system for carriages/services in ATSS

• Development of Sales System for products of major world companies providing car rental, hospitality, and other tourism services incidental to air carriages

• Elaboration, enhancement, standardization and implementation of new normative and technological documents, training programs and standards for ATSS and other associated systems

• Development of tools for minimization of financial risks incidental to involuntary refunds in case of mass flight cancellations

ATSS development

• Development and implementation of sales system for combined and intermodal (air-rail, air-bus) passenger services

Functioning chart of air, rail and intermodal services, and ancillary services selling in ATSS

АГЕНТСТВО

АГЕНТСТВО

АГЕНТСТВО

АГЕНТСТВО

АГЕНТСТВО

АГЕНТСТВО

AGENCY

…

AGENCY

…

AGENCY

…

Vendors &Service Providers

Distribution Systems ATSS Accredited Agency Network

Airlines

Russian Railways

Ancillary ServicesBusiness/VIP lounges

Fast TrackTaxi (including to/from airport)

Parking reservationCar rental

Hotel accommodationCommuter rail services

Car servicesWater transport services

Entertainments(cinema, theatre, shows)

Training and proficiency enhancementConferences and forums

ExcursionsRestaurants

Parks and attractions

ADS/GDS

PSSRS

ADSTS "SPutnik"

TCH ETC

UNIVERSAL SALES TERMINAL FOR

INTERMODAL AND OTHER SERVICES

console

console

console

Chart of bus services selling in ATSS

BUS STATION

AWSInventory control

Inventory control terminal

Bus station database server

AWSBus station

ticketing office

Service record terminal

TCH network of accredited agencies. Over 7000 points of sales

EMD registration

Ticketing of EMDfor bus transportation

Bus ticket

Quota Control

Bus station ticketing offices

Ticketing of EMDfor bus transportation

Payment terminals

Electronic data interchange and interactive reporting

Systems for electronic data interchange

CRS(accreditedwith ATSS)

TCH

АвиакомпанииАвиакомпании

АвиакомпанииAirlines

Report

Airlines,Accredited agencies

ATSS System forElectronic

Data Interchange

ETC/ATCSchedule &Tariffs Centre ISStatistika

Thank you for attention!

Welcome to the ATSS!