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

* number of airlines is shown in brackets as of February 2015

The Russian Federation (48)

Austria (1)

Azerbaijan (1)

Armenia (1)

Belarus (1)

Greece (2)

Georgia (1)

Egypt (1)

Israel (1)

Kazakhstan (2)

Kirgizia (5)

Tajikistan (4)

Latvia (1)

Moldova (1)

UAE (3)

Turkmenistan (1)

Turkey (3)

Ukraine (4)

Germany (2)

Uzbekistan (1)

Finland (1)

South Korea (1)

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:

• 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 settlement services are rendered by ARC (Airline Reporting Corporation).BSP (Billing and Settlement Plan) established by analogy to ASP (USA) is being implemented since 1971 under control of IATA (International Air Transport Association). ATSS (Air Transport Settlement System) operates under control of ACCS (Airline Control Council of Settlement) since 1993. Since 1994 ATSS services are rendered by TCH (Transport Clearing House) established by major airlines of Russia and CIS countries as a Joint Stock Company.

A T S S T o d a y:

• 93 scheduled (including over 40% of foreign airlines)• 399 accredited agencies with over 6,000 sales locations in 24 countries worldwide• Over 30,000 ticketing agents operating about 20,000 terminals of authorized

domestic and foreign CRSs • 26 accredited Training Centers, branches inclusive• 10 accredited Practice Centers• 10 accredited CRS operators• Guaranteed timely remittance of full revenue to airlines• 99.9% of transportation issued on CCS-TCH electronic tickets • Air services sales via 233 ATSS accredited Internet points of sales (POS)• Air services sales via aviation/global distribution systems (Sirena-Travel,

Galileo/Travelport, Sabre, Amadeus)

ATSS Today(continuation)

• ATSS agencies sell hotel and other ancillary services on CCS-TCH e-documents via Computerized Distribution Systems for Ancillary Services (CDSAS), ADS «Sirena-Travel» and other integrated CRSs

• ATSS agencies reserve and sell rail transportation on CCS-TCH e-documents via System for Reservation and Sales of Passenger Rail Services and ADS «Sirena-Travel» (in cooperation with Automated Management System «Express-3» of Russian Railways, JSC ) on Internet technology platform

• Reporting can be generated in three currencies, i.e. Ruble, Dollar or Euro.• Interactive Reporting System for ATSS accredited agencies is implemented and running• Bank card system for transportation payment via the Internet on the platform of secure e-commerce

(3D-Secure) is implemented and running • System of Electronic Interchange for ATSS participants is implemented and running• Electronic document control flow among ATSS participants is implemented and running• ATSS employs issuance procedure for CCS-TCH EMD via accredited CRSs • ATSS employs issuance procedure for МСО for excess baggage, surcharge baggage and declared

value baggage• ATSS runs Information Support System for Ticket Agents (ISTOK) designed on web platform• ATSS employs ticket exchange rules via accredited CRS/GDS in accordance with streamline

international technologies

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)

ATSS Governance

ATSS Participants and TCH Partners

Participants:

• Airlines (carriers) signing Model Agreements with TCH for sales and settlement related to air services issued on CCS-TCH STDs and e-tickets

• Accredited Agencies signing Model Agreements with TCH for air transportation sales for carriers’ flights

• Transport Clearing House (ТCH)

Partners:• Russian Railways (RZD, OJSC)• "Аeroexpress“, LLC• Providers/Suppliers of ancillary services • Tour operators

CONFERENCE OF SETTLEMENT SYSTEM PARTICIPANTS

ACCS PRESIDIUM

AIRLINE CONTROL COUNCIL OF SETTLEMENT (ACCS)

15

ACCS CARRIER COMMITTEE ACCS AGENCY COMMITTEE

TRANSPORT CLEARING HOUSEExecutive authority

Leg

isla

tive

aut

hori

ties

PRESIDIUM OF ACCS CARRIER COMMITTEE PRESIDIUM OF ACCS AGENCY COMMITTEE

35 30

* Number of members is circled

ATSS Governance Structure (approved by the 6th Conference of Settlement System Participants as of 18.04.2013)

70

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

ACCS

ACCS CARRIER AND AGENCY COMMITTEES

PAYMENT ORDERS

PAYMENT FOR SERVICES FROM AIRLINE REVENUES UNDER AIRLINE INSTRUCTIONS

AGENCIES

and companies of other means of transport

Providers of ancillary services

AIRLINES

Other entities

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

MIT

TAN

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

Reporting Processing Centre (RPC)

CONTROL,RECON-CILIATION STATEMENTS

SAL

ES

RE

POR

TS

E-TICKETING CENTRE (ETC)STD FORMS AND QUOTAS ОF

ELECTRONIC TICKETS OF CCS-TCH

COMPUTERIZED RESERVATION

SYSTEMS(АDS/GDS/PSSRS/CDSAS)

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

• Arrangement and administration of sales:

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

• Accreditation of passenger sales agencies, sales locations and internet points of sale

• Accreditation of agents selling railway transportation and ancillary services• 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 common legal field 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 ACCS

General Services of ATSS Executive Authority (TCH)(continuation)

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

• Arrangements for sales of railway transportation and ancillary services issued on CCS-TCH STDs

• Administering of Agencies’ and their sales locations’ rights related to sales of passenger air transportation, railway transportation and ancillary services issued on CCS-TCH 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 of revenue; settlements with Airlines and providers of ancillary services; debt settlement with Airlines for carriages sold against military traffic documents

• Continuous control over Agencies’ passenger transportation sales issued on STDs and revenue settlement with Airlines; audit arrangement for Agencies and their sales locations

General Services of ATSS Executive Authority (TCH)(continuation)

• Accreditation of Computerized Reservation Systems (CRS) operators and certification of Automated Ticketing Systems within the Settlement System

• Accreditation of Computerized Distribution Systems for Ancillary Services (CDSAS) operators within the Settlement System

• Accreditation of training centres; training of aviation enterprises’ staff to be engaged in the Settlement System

• Drafting of project solutions and standards (norms & regulations) to upgrade and develop production process in the Settlement System

General Services of ATSS Executive Authority (TCH)(continuation)

• Information support services:

• Information support services for prompt access of ATSS participants to essential data, message transmission, exchange files/documents handling, including documents signed with EDS

• Support for information exchange for the systems of settlement, reservation & sale, schedule & tariff as well as for participants and operators of these systems

• Updating ATSS participants about day-to-day ATSS activities in mass media and via ATSS website

• Upgrading of ATSS e-system technologies for interactive interchange among ATSS participants

• System of Interactive Interchange (SII) is designated for:- Claims management;- Submission of e-applications, etc.

Milestones of TCH – ATSS Executive Body for Industry Benefit (Russian Federation)

• Services of computerized systems designated for development, coordination, updating and publication of aircraft timetable, charges & fees for aircraft ground handling, object codifying, registration and display of fare data associated with scheduled air transportation.

• Services of computerized collection and processing of airline and airport statistical/financial reporting, development and delivering of analytical records associated with industry statistics.

• Evaluation and coordination of activities essential to upgrade national computerized systems for transportation reservation.

• Involvement in drafts of industry regulatory and legal documents.

LEGEND

АDS/GDS – AVIATION (GLOBAL) DISTRIBUTION SYSTEMS

PSSRS – PASSENGER SALES SYSTEM FOR RAIL SERVICES

CDSAS – COMPUTERIZED DISTRIBUTION SYSTEM FOR ANCILLARY SERVICES

Scheme of ATSS Contractual Relations

TRANSPORT CLEARING HOUSE (TCH)

ATSS PARTICIPATING

AIRLINES

DIRECT AGREEMENTSat Airline’s choice

АDS/GDS/PSSRS/CDSASACCREDITED WITH ATSS

PARTNERS (PROVIDERS, ETC.)

ACCREDITED AGENCIES

Standard requirements to Airline joining the System

The Airline:• Files application for joining the Settlement System• Signs model agreement with TCH on sales and settlement related to

air services issued on CCS-TCH STDs and e-tickets • Ensures access to its inventory in CRS via ADS/GDS accredited with

ATSS• Pays for 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 and license to operate scheduled flights

– New entrant airline–participant of ATSS pays a fee for System development – Obtains a code assigned by TCH Schedule and Tariffs Centre (STC) (for airlines

without IATA code)– Uploads 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, PJSCAirline name: ____________________Address, phone, fax, SITA: _________Flights operated by the Airline: _________Types of aircraft used by the Airline: _________Airline codes (ICAO/IATA designators, Accounting Code, STC Code): _________Name of the Reservation System where the Airline intends to hold its inventory: _________

Hereby the Airline agrees with the Rules effective in the Settlement System with intention to sign with TCH Agreement on Sales and Settlement Related to Air Services Issued on CCS-TCH STDs and E-Tickets.

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 of Agency, its Sales Locations and

Internet Points of Sale• Delegates its experts to TCH for participation in appraisal procedure of submitted documents and

amends them in accordance to recommendations • 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• Signs Agreement with CRS on access to airline seat inventory• Files application for defining new technological addresses of terminals (TAT) in CRS and application

for ticketing agents registration • Files application for obtaining CCS-TCH STD forms and e-tickets quotas pursuant to the technology

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

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

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

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

Validator of accredited sales location(Roman font)

SALES LOCATION COUNTRY CODE

SALES LOCATION CODE

ID NUMBER OF TICKETING AGENTSALES 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

19MOV TCHSUPER-AVIAMOSCOW RU92307305 0001

19MOV TCH

SUPER-AVIA

MOSCOW RU

92-3 0730 5

The map of accredited agencies and sales locations

AirlineET Servers

(ETSs)

Departure control systems(DCSs) ET

Database

TCHE-Ticketing

Centre

…

…

…

Check-in

Boarding

ET Issuance

Internet

ADS/GDS*Airport

AirlineReservation

Systems

26

Check-in desks

Technological Flow Chart of E-ticketing and tracking of passenger transportation in ATSS

*ADS/GDS – AVIATION/GLOBAL DISTRIBUTION SYSTEM

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

Travel data

Mandatory notices

COMPUTER GENERATED NUMBERTICKET NUMBER: 000 6155012346

Electronic Multipurpose Document (EMD)(Passenger Receipt) on A4 paper

Travel data

Mandatory notices

COMPUTER GENERATED NUMBEREMD NUMBER : 000 618000002

IATA code 61 for CCS-TCH STDs

Electronic Ticket for Railway Transportation

Audit coupon

Boarding Coupon

HOW TCH SETTLES WITH ATSS CARRIERS

TRANSPORTATION

SETTLEMENT WITHEACH CARRIER

NOTIFICATION OFEACH CARRIER

(MULTILATERAL AGREEMENT WITH OPEN FARES)

INTERLINE

ACCOUNTING WITH RESPONSIBLE CARRIER

NOTIFICATION OF RESPONSIBLE CARRIER

ACCOUNTING CODE OF

M2 AGREEMENT

ACCOUNTING CODE OF RESPONSIBLE CARRIER

ACCOUNTING CODE OF

M1 AGREEMENT

SETTLEMENT WITHEACH CARRIER

NOTIFICATION OFEACH CARRIER

(MULTILATERAL AGREEMENT WITH CLOSED FARES)

М1 М2

Various ATSS Settlement Agreements for Sold Transportation

INTERLINE• When transportation is operated by several airlines under interline agreement, accounting

code of ATSS participating airline (responsible carrier) should be shown at the time of transportation issuance. The rule to choose responsible carrier for transportation issuance is determined in the airline interline agreement, or alternatively (where the interline agreement lacks such rule), accounting code of the first ATSS-member airline in the travel itinerary should be shown. Sold transportation is settled with the responsible carrier.

М1 AGREEMENT• Transportation operated by several ATSS-member airlines under М1 Multilateral

Agreement (multilateral interline - "Open fare") is issued only at fares applied for relative travel segment. TCH settles sold transportation with each airline participating in the transportation.

М2 AGREEMENT• Transportation operated by several ATSS-member airlines under М2 Multilateral

Agreement (multilateral interline - "Closed fare") is issued only at through fare applied for several segments. TCH settles sold transportation with each airline participating in transportation on the basis of carrier’s share in fare.

Several interlining carriers. TCH settles with responsible 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 ВВOMSK(OMS) MOSCOW

(DME)

BERLIN(SXF)

Carriage

Issuance of CCS-TCH E-ticket under М2 ET Pattern

Ticket number with CC carrier accounting code

Single PNR number

Carriage by CC Airline

Agreement code/code of automated transferCode of special through fare to build transfer services via hub

Value of single through fare applied for transfer route

Reflection of single through fare

Notification

TICKET NUMBER: 222 6155012371

BOOKING REF: 123456/1Н

TOUR CODE: 01C

ЕЕDМE

THROUGH FARE FOR ROUTE VOZFRA WITH TICKETS 1116155012370/2226155012371

VOZ BB MOW AA FRA400.00

ТАРИФ: EUR0.00

Ticket number with ВВ carrier accounting code

Single PNR number

Carriage by BB

Agreement code/code of automated transfer connection  Code of special through fare to build transfer services via hub

Zero value for second ticket (value of single fare reflected on first ticket)

Reflection of single through fare

Notification

Issuance of CCS-TCH E-ticket under М2 ET Pattern

TICKET NUMBER: 111 6155012370

BOOKING REF: 123456/1Н

TOUR CODE: 01C

ЕЕDМE

THROUGH FARE FOR ROUTE VOZFRA WITH TICKETS 1116155012370/2226155012371

VOZ BB MOW CC FRA400.00

Fare: EUR300.00

ATSS enhancement

• E-ticketing technology development in ATSS• Extended payment options for transportation via the Internet, self-service

kiosks (cash machines) and other e-sales facilities, e-money inclusive• SII development within ATSS• Secure sales facilitation• Upgrading of e-ticketing regulatory and technological platform enabling

passenger air transportation sales via GDSs• Development of ancillary services sales within ATSS (hotel, airport and

transfer services, et al), expanded service portfolio and engagement of new providers

• ATSS development in the field of interaction with carriers, accredited agencies and other entities; elaboration, updating, standardization and implementation of new regulatory and technological documents, training courses and ATSS standards

Thank you for attention!

Welcome to join ATSS!