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creating value for the air transport community SITA GROUP ACTIVITY REPORT 2014

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Page 1: creating value for the air transport community - Home | SITA · creating value for the air transport communitycreating value for the air transport community 2 sita | group activity

creating value for theair transport communitySITA GROUP ACTIVITY REPORT 2014

Page 2: creating value for the air transport community - Home | SITA · creating value for the air transport communitycreating value for the air transport community 2 sita | group activity

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

2 SITA | GROUP ACTIVITY REPORT 2014

AS TECHNOLOGY BRINGS MORE CHANGES TO THE PASSENGER EXPERIENCE AND INDUSTRY OPERATIONS, SITA’S FOCUS ON WORKING CLOSELY WITH AIR TRANSPORT, AND ENHANCING OUR VALUE TO THE COMMUNITY, REMAINS AS IMPORTANT AS EVER.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

3SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

SITA BOARD DIRECTORS 4

CHAIR’S STATEMENT 6

CHIEF EXECUTIVE OFFICER’S REPORT 12

COUNCIL PRESIDENT’S STATEMENT 18

SITA COUNCIL REPRESENTATIVES 26

OPERATING REVIEW 28

COMMUNICATIONS & INFRASTRUCTURE 29

AIRPORTS 34

PASSENGERS 38

GOVERNMENTS 42

SITA LAB 46

SITA GLOBAL SERVICES 50

HUMAN RESOURCES 52

CORPORATE SOCIAL RESPONSIBILITY 54

SITA ONAIR 56

CHAMP CARGOSYSTEMS 61

SITA BUREAU SERVICES 64

AVIARETO 66

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

4 SITA | GROUP ACTIVITY REPORT 2014

Hera Siu

Omar JefriPaul CobyWilliam Miller, JrChair

Matthew BillingsVice Chair

A.T. Srinivasan Tomasz Smaczny

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

5SITA | GROUP ACTIVITY REPORT 2014

Myriam Meyer

Lianne Stein Francesco ViolanteSITA CEO

Laurent Jossart Patrick Naef

THE SITA BOARD IS TASKED WITH SUPERVISING THE ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES TO ENSURE THE EFFECTIVE OPERATION OF THE GROUP.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

MEETING AIR TRANSPORT INDUSTRY NEEDS

A BRIGHTER FUTURE?The long term health of the air

transport industry is, of course, critical

to the future of SITA and its members.

But given the mix of global issues

dominating the headlines in recent

times, can we be optimistic about

the outlook?

Economic, financial and political

instability have long been part of

the background noise that we, as air

transport industry professionals, deal

with every day – and certainly there is

no letup in the geopolitical risk we face.

Nor is the global economy showing

much appetite for growth. At the start of

2015, the International Monetary Fund

(IMF) downgraded its global growth

forecast for the year from 4.0% to 3.5%.

There is a widening gap between the US

economy (forecast to grow at 3.6%) and

the economies of the Euro area, revised

downwards by the IMF to just 1.2% in

2015. Asia is also slowing.

So when we hear about a brighter

outlook for aviation in the long term

it is tempered by our knowledge of

these economic and financial realities.

However, this time around it appears

that the air transport sector is showing

uncharacteristic strength.

IATA’s report at the end of last year

forecast passenger growth of 7% for

2015, well above the 5.5% trend of the

past 20 years. This has been helped by

a doubling of city pairs and a halving

of costs over the same period. The

margin on revenues remains fragile

at 3.2%, but as IATA comments, at

least that is enough to pay the bills and

service the industry’s debts.

A BRIGHTER FUTURE?The long term health of the air

transport industry is, of course, c

to the future of SITA and its memb

But given the mix of global issues

dominating the headlines in recen

times, can we be optimistic about

the outlook?

Economic, financial and political

instability have long been part of

the background noise that we, as

transport industry professionals,

with every day – and certainly the

no letup in the geopolitical risk we

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

6 SITA | GROUP ACTIVITY REPORT 2014

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

The halving of crude oil prices in 2014

has been a great help – and they fell

another 17% in January 2015 before

starting to rally. By the time this

Report is published, we may have seen

further rallying of prices, or even a

further decline. Whatever happens, the

global aircraft fleet has been reducing

its thirst. More than half of 2014

deliveries of new aircraft replaced

existing fleet with more fuel efficient

aircraft. A further 1,700 new aircraft

will be delivered in 2015.

So there are good reasons to be

optimistic about the future of our air

transport industry as a more prosperous

and stronger community – and that

bodes well for SITA and its members.

STRONG COMMUNITY RELATIONSHIPSAgainst this market background,

SITA recorded another year of good

progress, meeting a number of critical

milestones and, by maintaining good

business performance, putting itself

on a firm footing to tackle the new and

rapidly evolving needs and aspirations

of the air transport community.

The CEO Report (on page 12) goes into

detail about SITA’s 2014 performance.

What has been abundantly clear

throughout the year has been SITA’s

continuing focus on building stronger

community relationships by fulfilling

its 66-year old remit to anticipate and

meet the needs of the industry.

Those of our predecessors who had

the foresight to create SITA recognized

the advantages that everyone in air

transport could enjoy by sharing

costs and experiences, with common

approaches and standards-based IT

and communications. They understood

the value of retaining ownership of SITA

by the industry, as the best assurance

that it would always work at the heart

of the industry for the benefit of all.

This was SITA’s raison d’être from the

outset – and it remains the case today.

SITA operates a business model

based on two co-existing parts: SITA

SC, the cooperative part focused on

shared network services for members,

provided on a not-for-profit basis; and

SITA NV, the company’s commercial

entity. Commercial success is essential

but equally important is assured

delivery against the community’s needs.

This demands deep community

relationships. One way that SITA

ensures those relationships is

through the SITA Board and Council.

Comprising over 40 air transport

industry executives, CIOs and senior

IT professionals, the directors and

representatives who sit on the SITA

Board and SITA Council are able to

make certain SITA represents the needs

of its several hundred air transport

community members across the globe.

This is unique to SITA. Central to

maintaining that uniqueness – and the

strong, dedicated community focus

that it brings – is a governance model

that must evolve continuously to foster

community relationships and best

represent member needs.

SITA’s governance is now evolving

further for these reasons. The SITA

Council was introduced at the time

of SITA’s last major restructuring, in

2011, with the provision for a further

review after three years. In 2014,

encouraged by feedback from air

transport industry members at the

highest level, a thorough and complete

review of SITA’s governance took place,

through the work of SITA’s Governance

Review Committee, which comprised

members from both the SITA Council

and SITA Board.

Within SITA’s governance structure,

the Board and Council share a core

objective: to stand for the air transport

industry and its needs, through

the representation of SITA’s broad

membership across both bodies.

Reporting at the end of calendar 2014,

the Governance Review Committee

found that SITA’s governance remains

strong overall. It also considered that

members would benefit from more

powers for the SITA Council, with

even greater industry representation

on the Board. The Board and Council

immediately approved the proposals

and the SITA Annual General Assembly

2015 will be asked to approve a number

of procedural amendments to put them

into effect.

WHAT HAS BEEN ABUNDANTLY CLEAR THROUGHOUT THE YEAR IS SITA’S FOCUS ON BUILDING STRONGER COMMUNITY RELATIONSHIPS AND ENSURING THE ORGANIZATION FULFILS ITS REMIT, SINCE ITS INCEPTION, TO MEET THE REQUIREMENTS OF THE INDUSTRY.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

7SITA | GROUP ACTIVITY REPORT 2014

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

You can read more about this in the

SITA Council President’s statement on

page 18. But let me simply underline

that through the SITA Council, the

intention is to enhance the ability

of members to have a say on SITA’s

strategic direction, and to continue

to build SITA’s relationships with the

community to meet the requirements

of our members across the world.

COMMUNITY REQUIREMENTS Playing a pivotal role in meeting those

community requirements are SITA’s

strategic initiatives and programs, as

well as its portfolio developments. The

company also continues to innovate

collaboratively with customers and

partners through community-led

pilots and trial programs, and it helps

maintain and set the standards that

enable our massively complex industry

to function, through involvement in

global and regional industry bodies.

One of the most important strategic

initiatives announced in 2014 was the

introduction of a transformational

program to deliver new levels of

global and local network services

specifically designed for the air

transport community, focusing

on its fast-emerging and future

connectivity requirements.

The program is a milestone both for

the community and as part of SITA’s

history of providing communications

that facilitate the industry’s

operations. It will drive SITA’s growth

and build on the company’s already

unrivalled footprint of over 1,200

different airports.

Based on an agreement with strategic

partner Orange Business Services,

together with five regional service

providers, the program is set to

deliver a new era of connectivity

for air transport. Supporting the

enhanced network capabilities is a

new SITA Network Services Delivery

and Operations Center, which marks

a major transformation in the

partnership model between SITA and

Orange Business Services.

At the same time, the integration of

regional operators will ensure more

expertise ‘on the ground’ due to the

long-standing relationships these

operators have with local access

providers and governments. For SITA

members in the emerging aviation

markets of Africa, the Middle East

and Latin American, SITA’s regional

partners bring particular strengths in

terms of offering airlines and airports

more value and greater capacity to

meet changing business needs.

8 SITA | GROUP ACTIVITY REPORT 2014

THE YEAR WAS SIGNIFICANT AS WE BEGAN A REVIEW OF SITA’S GOVERNANCE. THE SITA COUNCIL WAS INTRODUCED AT THE TIME OF SITA’S LAST MAJOR RESTRUCTURING, WITH THE PROMISE OF A FURTHER REVIEW AFTER THREE YEARS.

THE RECOMMENDATIONSFOR THE FUTURE WILL ENHANCE SITA’S ABILITY TO REPRESENT THE AIR TRANSPORT COMMUNITY.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

Having successfully launched this

critical program in 2014, SITA is

now on the path to becoming a

network integrator with an even

more compelling network and

communication services proposition in

the air transport marketplace.

This will satisfy the evolving connectivity

demands of airlines, airports and

other industry players resulting from

powerful trends not just for greater

bandwidth, but also for connectivity on

demand. It will give airline and airport

networks greater flexibility in resolving

rapid route changes or sudden peaks in

demand – as well as managing

seasonal variations.

A critical element of SITA’s network

proposition remains the Air Transport

Industry Cloud (ATI Cloud). With cloud

services disruptively changing the

data environment – both corporately

and for passengers – the air transport

industry will need agile and cost-

effective approaches to exploit the

cloud’s major potential. As a dedicated

community cloud platform, SITA’s ATI

Cloud infrastructure pre-connects 400

airports. SITA now has around 80-plus

customers of the ATI Cloud, and has

placed more than 20 of its own services

in its community cloud environment.

At the same time, the community is

beginning to look to the ATI Cloud

for new ways of working in specific

areas of the business, such as aircraft

operations and e-enablement, as

new technologies enter the aircraft

cabin and Software-as-a-Service

(SaaS) models make a compelling

business case.

Smaller and regional airports are also

starting to explore SITA’s ATI Cloud,

embracing ‘pay-as-you-go’ approaches

to receive the same IT capabilities as

their larger counterparts are using

today. This has been a breakthrough

for airports such as Allgäu Airport in

southern Germany, with over 4 million

passengers a year, and Sylt Airport on

the German/Danish border – which,

with around 200,000 passengers a

year, can now offer levels of service

found at international hubs.

The program builds on SITA’s

leadership and proud history of

providing the communications and

infrastructure capabilities that, for

over 65 years, have underpinned air

transport industry operations. It is

worth reflecting briefly on just how

much we as an industry depend on

SITA. Founded on the delivery of

robust, mission-critical and affordable

network services for the community,

SITA has grown to become the

industry’s leading network services

provider, uniquely covering over 200

countries and territories, as well as

95% of all international destinations.

WORKING FOR THE COMMUNITY SITA’s remit has always involved

working with, and for, the air transport

community. SITA is renowned and

respected for its high level of expertise

and its understanding about the

dynamics, needs and aspirations of its

markets. This is widely regarded as

one of the SITA’s key differentiators.

SITA’s portfolio is built on that know-

how. Much of this is obtained through

constant collaboration across the

industry, with customers, partners

and industry bodies – to determine and

satisfy requirements.

As a result, SITA is a recognized

technology leader with a strong

and broad portfolio dedicated to

air transport, providing a range of

services for communications and

infrastructure, airports, passengers,

aircraft communications, governments

and border security. No other provider

matches SITA’s breadth of IT and

communications services specifically

for air transport.

Constantly responding to community

needs requires continuous investment,

which the Board was able to maintain

through 2014. Let me give you four

examples.

9SITA | GROUP ACTIVITY REPORT 2014

80+ CUSTOMERS OF SITA’S ATI CLOUD, WHICH PRE-CONNECTS AROUND 400 AIRPORTS ACROSS THE WORLD. SITA HAS PLACED MORE THAN 20 OF ITS OWN SERVICES IN ITS COMMUNITY CLOUD ENVIRONMENT.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

SITA continues to pioneer in the area of

self-service, delivering an increasing

range of self-service solutions in step

with IATA’s Simplifying the Business

(StB), Fast Travel and Smart Security

programs. SITA and IATA’s agendas

remain aligned, as partners from

the outset in the development and

innovation of end-to-end self-service

solutions for its programs, and having

worked in close association with IATA

for more than 65 years to improve air

transport services.

The close association between the two

organizations has been strengthened

through a new Memorandum of

Understanding, signed in early

2015, which defines a framework for

continued cooperation and includes

a focus on further developments to

address community opportunities

and challenges.

My second example is aircraft tracking.

Following the disappearance of Flight

MH370 last year, ICAO and IATA set

up task forces to explore the tracking

issue. In late 2014, SITA launched

AIRCOM® FlightTracker. By utilizing

existing infrastructure and capabilities,

FlightTracker reduces the need for

major modification to the aircraft or for

installing new systems. The industry

has responded positively.

The ICAO High Level Safety Conference

in February 2015 recommended

adoption of a standard for normal

tracking that airlines can comply

with by using FANS avionics and

FlightTracker.

My third example of working for the

community concerns Air Navigation

Service Providers (ANSPs) and

the setting up of the new venture

called SITA Bureau Services (SBS).

It started in 2013, when SITA joined

with CANSO (Civil Air Navigation

Services Organisation) and Airways

(New Zealand’s ANSP) to deliver a

new aeronautical billing and revenue

management service.

The collaborative initiative will set a

new standard in billing and revenue

management across airspace, utilizing

a Flightyield application combined with

SITA’s ATI Cloud. It offers a significant

benefit to airlines in terms of billing

clarity, fewer billing disputes, and

speed of resolving disputes.

My fourth example is SITA’s

commitment to service excellence.

Air transport relies on SITA for a wide

range of mission-critical services.

Being ‘at the heart of air transport’

means that SITA must be able to

deliver, operate and support services

for the community at the highest levels

of reliability and availability. It also

means delivering to the ever-growing

list of requirements – such as the move

towards an ‘always-on’, data-driven

environment capable of delivering

real-time intelligence and analysis.

Downtime can severely impact

operations financially, operationally

and reputationally – so service

excellence is critical.

That is why SITA invests consistently

in multi-million dollar, multi-year

programs to provide global and local

capabilities. One major investment to

help improve operational performance

has now reached its concluding

milestone. SITA’s Next Generation Data

Center (NGDC) program has involved

intensive activity, with more than 100

business applications migrated to

the new environment as part of the

program’s second phase.

Migration activity continued

successfully through the year,

concluding in early 2015 with the

final three critical applications and

the subsequent closure of the two

remaining legacy data centers. A total

of 211 business applications are now

operated from SITA’s Atlanta and

London NGDCs.

The fact that efforts such as these

are producing results is evidenced by

SITA’s improved customer satisfaction

levels. Based on over 500 surveys,

the Customer First Feedback (CFF)

score ended the year at 4.10 versus

the 3.95 target. It means that 98% of

survey respondents are satisfied, very

satisfied or absolutely satisfied – a

clear message from SITA’s customers.

10 SITA | GROUP ACTIVITY REPORT 2014

SITA’S ROLE EMBRACES WORKING WITH, AND FOR, THE AIR TRANSPORT INDUSTRY. FOR YEARS, SITA HAS BEEN RENOWNED AND RESPECTED IN THE INDUSTRY FOR ITS EXPERTISE AND KNOWLEDGE. THIS IS RECOGNIZED AS ONE OF SITA’S KEY DIFFERENTIATORS.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

THANK YOULet me close by thanking the SITA Board

and SITA Council for their support and

wisdom. The following changes to the

Board took place at the 2014 Annual

General Assembly: I was appointed

Chair and Matthew Billings was

appointed Vice Chair. At the same time,

following his departure as Chair, Paul

Coby was re-appointed as a Director.

Patrick Naef and A.T. Srinivasan

were newly appointed as Directors,

with re-appointments for Omar Jefri

and Tomasz Smaczny. Christoph

Klingenberg and Luiz Eduardo Falco

both left the Board with our thanks.

Kevin Cai left the Board mid-term,

again with our thanks.

Board directors are integral to SITA’s

ability to define and establish the

company’s strategy, enabling it to meet

community needs. They provide wise

counsel as we all move to a new era

of communications, with a portfolio

created uniquely for the community,

and with a focus on service and

support for mission critical data-

intensive operations.

Of course, the responsibility for making

it happen is with SITA CEO Francesco

Violante and his Senior Leadership

Team. Supported by around 4,500

SITA staff, they have again delivered

sound results.

I would end the statement by noting

that a strong, successful SITA is

good for air transport. Working on

our industry’s behalf as well as with

partners such as IATA, SITA is helping

air transport strip out cost and is

playing a lead role in reducing and

eliminating passenger pain points.

I look forward to the coming year

with some concern about the impact

of the economic and geopolitical

challenges we all face. But I am certain

of one thing: so long as people and

goods are carried by air transport,

SITA will provide the industry’s

underpinning technology.

William MillerChair of the Board, SITA

11SITA | GROUP ACTIVITY REPORT 2014

98% OF SURVEYED SITA CUSTOMERS ARE SATISFIED, VERY SATISFIED OR ABSOLUTELY SATISFIED WITH SITA’S SERVICES.

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ENHANCING OUR VALUE TO THE COMMUNITY

12 SITA | GROUP ACTIVITY REPORT 2014

SOLID PERFORMANCE There was much to be optimistic about

in 2014. Passenger growth climbed

to 6%, ahead of the 10 year average

of 5.6%. Airline margins reached

US$20bn. Airline shares had risen in

value by 40% by year-end, and we saw

an increase of 1,315 Airbus and Boeing

aircraft in operation. Added to this, the

oil price fall promised cost reductions

for the industry.

Yet that price fall also contributed to

uncertainty as the global economy

evolved at different paces, impacting

business and customer investment

activity across SITA’s geographies.

While the US and UK saw some growth,

other economies struggled, including

the BRICs – Brazil, Russia, India and

China – with Russia creating particular

difficulties for SITA’s business.

A stagnant Eurozone failed to produce

any momentum as airlines reported

a drop in growth of international

demand, while middle eastern unrest

caused carriers to slow down their

investment programs.

Given these challenges to SITA’s

business around the world, I am

especially pleased to report that the

company performed solidly in 2014. We

made important progress in the critical

areas of growth and margin, as well

as service excellence and innovation

– in line with our business plan and

our evolution as an IT and business

solutions provider for the industry.

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WE MADE ADVANCES IN THE CRITICAL AREAS OF PROFITABLE GROWTH, SERVICE EXCELLENCE AND INNOVATION – IN LINE WITH OUR BUSINESS PLAN AND OUR EVOLUTION AS A TECHNOLOGY AND BUSINESS SOLUTIONS PROVIDER.

13SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

OUR GROWTH CONTINUES Sustainable and profitable growth

remains a critical part of SITA’s 2020

business plan and evolution. Our

results show steadily rising revenues.

Though impacted by market conditions,

SITA’s 2014 revenue figure grew by

4.3% to US$1,710m, including over-

recovery. This compares to figures of

4.0% (US$1,633m) in 2013, and 3.5%

(US$1,570m) in 2012. Excluding over-

recovery and other adjustments, SITA’s

2014 revenue amounted to US$1,689m,

a growth of 3.4%.

Looking closely at the 2014 results,

our commercial entity SITA NV saw a

significant 6.2% growth in revenue to

US$1,256m, as well as a 14.2% growth

in pre-tax margin. At the same time,

the SITA Cooperative was on track,

returning an over-recovery to members

equal to 1.3% of revenue. This is a good

level of performance for the year given

the prevailing business environment.

We also saw continued growth in

four of our five solution lines, the

exception being our Communication

and Infrastructure business, which

continues its transformation to

higher value-added services and new

technologies. SITA’s Airport, Passenger,

Aircraft and Government businesses all

increased revenues against 2013.

OnAir, SITA’s in-flight communications

subsidiary (now SITA OnAir), recorded

healthy growth. Its revenues rose by

52%, helped by the increasing number

of activated aircraft (430 by year end)

as well as a marked increase in the

average revenue achieved per aircraft.

An important marker for the future

was the launch of OnAir’s in-flight

services on Qatar Airways’ A380 fleet

and a similar agreement with Emirates

for its full A380 fleet. Our CHAMP

Cargosystems subsidiary in the

meantime maintained its revenue level,

helped by good performance from

existing contracts in line with recovery

in the air freight market, as well as new

contracts and renewals.

SECURE FOUNDATIONSOther results across the business

helped secure SITA’s financial

foundations as the basis for future

growth. Backed by robust cost

management, margins improved, with

pre-tax margin some 21.3% above last

year’s figure, showing a positive pattern

during recent years of 20.3% in 2013

and 16.4% in 2012 (before over recovery

and other adjustments). In addition,

SITA’s cash position remains sound,

with good cash collection performance

during the year, a free cash flow figure

of US$ 44.2m, over US$400m worth of

credit lines and minimal debt.

It is a mark of SITA’s strategy and core

strength that we continue to perform

and grow in the face of economic and

geopolitical challenges – particularly

given the susceptibility of air transport

to disruption. This performance is

important to our members, and to the

global air transport community, as it

enables us to fund capital investment

for future growth, such as the

US$140m invested during 2014.

We can also maintain expenditure on

research and development, which is set

above the industry average at around 7%

of revenues over the next three years.

It was a good year for sales too, again

especially given the market context. All

SITA Geographies exceeded their sales

targets. I believe our performance

demonstrates that SITA’s geographic

organizational structure, introduced

more than two years ago, is working.

It places more decision-making locally,

and it enables SITA staff to build strong

local relationships with customers.

We are also investing significantly in

specialists to support our customer

relationships. Our structure and

approach ensure that the focus remains

on customer requirements, which is

providing value for our customers and

the wider air transport community.

Across all Geographies, the level of

retention business was remarkably

strong, at almost 50% above budget.

It included contracts with Alitalia,

FedEx and Qantas for aircraft

communications; the New Zealand

Department of Labour for iBorders;

CUTE renewals in Bogotá, Cancún,

Lima and Rio de Janeiro; passenger

services for Biman Bangladesh

Airlines, Meridiana and Transaero

Airlines; and many more. Some of

the largest network renewals were

for Aeroflot, American Airlines,

Saudi Arabian Airlines, South African

Airways and United Airlines.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

New business proved harder to win,

due to the economic challenges faced

by customers, but we nevertheless

exceeded target. Some of the larger

new business contracts included

airport systems for Iraqi Airways,

the Civil Aviation Authority of Nepal,

and Japan’s new Kansai International

Airport; network services for Etihad

Airways; cargo services for Cathay

Pacific Airways; and a number of

Horizon passenger services contracts

– among them Jamaica Airways and

Transasia Airways. In addition, we saw

major border management contracts

during the year, including business

with the governments of Myanmar and

Sri Lanka.

SITA’S EVOLUTION Looking forward, SITA’s 2020 Vision

and Strategy is driving the company’s

continued evolution. Its investments

and initiatives are centered on

developments and innovations with

community-wide value, to meet

requirements driven by emerging

trends and technologies. Much of the

industry’s IT activity is taking place in,

and around, the airport and aircraft –

where SITA is playing a leading role.

SITA’s 2020 focuses on six areas.

First, in the area of communications,

we embarked on a transformational

program in 2014 to meet the industry’s

future connectivity demands. As these

demands increase exponentially,

we have set up a new agreement

with our partners Orange Business

Services and regional providers to

deliver connectivity using new models,

stronger country coverage, more

bandwidth and more flexibility. The

program is adding a range of new

value-added communications services

to our portfolio. (See the Chair’s

statement, page 6.)

Second, in 2014 we set about creating

a single Aircraft business. Called SITA

OnAir, and announced in early 2015, it

combines the strengths of our Aircraft

Services and OnAir businesses.

Aircraft Services brings to SITA

OnAir an impressive track record in

service quality and strong results.

It leads the market in air-to-ground

communications, including aircraft

operations, data management and

ICT operational services for nearly

400 customers. One of its latest

developments is in the critical area

of aircraft tracking, as the Chair

statement explains.

OnAir, in the meantime, has

demonstrated clear expertise in

innovation and integration, building a

significant brand presence in the cabin

connectivity market, while achieving

strong year-on-year growth.

The strengths, skills and capabilities

of each part of this new organization

position SITA OnAir uniquely in

addressing the growing requirements

of new generation aircraft. These

so-called ‘connected aircraft’ – which

generate vast amounts of data in-

flight and on the ground – present

airlines with major challenges in how

to distribute, process and use data to

improve operational performance. SITA

OnAir is the first to offer nose-to-tail

connected aircraft solutions through

a single supplier, on a vendor-neutral

basis, and regardless of fleet size,

route structure or aircraft type.

Third, we are equipping airports

with the latest communications

and IT. It includes shared, resilient

and cost-effective common IT and

communications infrastructure, through

AirportHub®, which is now present at

around 200 airports worldwide. The

initiative involves investing significantly

in AirportHub® for an additional 450

mid-sized airports, giving these

airports the same levels of connectivity

as their larger counterparts.

With airports being the touchpoint

of the industry’s ecosystem, our

airport business continues to lead

the market, providing a full range of

services from infrastructure to data

analysis, and focusing on innovations to

enhance passenger handling, process

optimization and resource management.

14 SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

SITA’S INVESTMENTS AND INITIATIVES ARE CENTERED ON DEVELOPMENTS AND INNOVATIONS WITH COMMUNITY-WIDE VALUE, TO MEET REQUIREMENTS DRIVEN BY EMERGING TRENDS AND TECHNOLOGIES.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

Advanced communications at the

airport are critical to exploiting the

explosion of data from passengers,

airport stakeholders, and new

generation aircraft. The need to mine

and analyze this data is giving rise to

SITA’s growing business intelligence

and analysis capabilities, along with

other services to capitalize on the

opportunities presented by better

communications and more readily

available data. One such service

includes SITA’s Universal Data Service,

which aggregates airport data and

provides passengers with up-to-date

notifications for day of travel services

and contextual information, depending

on their location.

The fourth area driving SITA’s

evolution is government and border

management. We are optimizing

airport and security processes with

the introduction of Automated Border

Control (ABC) kiosks and gates,

provided by SITA’s expanding and

market-leading Government business.

SITA’s self-service border control

kiosks are now available at airports

across the US, including Miami, JFK

New York, Los Angeles, Philadelphia,

San Francisco, Tampa and more.

Europe is now adopting border

automation too, one 2014 contract

being for SITA’s ABCGates at Rome

(Fiumicino) International Airport.

In addition we have seen the continued

rise of SITA’s services for Advance

Passenger Information Systems (APIS)

and Advance Passenger Processing

(APP), with growing levels of interest

in integrated systems encompassing

pre-travel authorization and

biometrics. The year saw three new

government customers, including

Sri Lanka and Myanmar, as reported,

as well as Oman. Today, some 27

governments use SITA’s border

management solutions. (See

Operating review, page 28.)

Fifth is SITA’s multi-year strategic

program to provide the air transport

community with a competitive choice

in the passenger space, by providing

airlines of all tiers with a powerful,

GDS neutral, alliance compliant, third

generation Passenger Services System

(PSS) and distribution platform. Our

rollout of the Horizon PSS portfolio,

which has over 150 airline customers,

continued during 2014.

This was boosted with the introduction

of a new ‘blended’ approach,

responding to customer requests for

new generation Horizon components

to be introduced as they become

available. Modules can be put in place

as separate components and blended

with the customer’s existing systems.

Horizon played a prominent role in Air

India’s quest to join the Star Alliance.

SITA’s PSS ensured the exacting

Star Alliance standards and airline

expectations were met, including

upgrading processes to match those of

existing Star Alliance partners. Among

several key contracts for Horizon PSS

were a renewal by Russia’s Transaero

Airlines as well as a new contract with

Taiwan’s TransAsia Airways. The year

saw a string of important Horizon PSS

cut-overs too, including those by Winair,

Fly Jamaica and Greece’s Ellinair.

Sixth, and finally, cloud-enabled

business models continue to play a

vital role in pioneering new services,

with a focus on new core industry

processes. This includes SITA Bureau

Services (SBS), our new cloud-based

venture initially for over-flight charges,

which is simplifying billing for the

benefit of airlines and Air Navigation

Service Providers. SBS will also focus

in the future on airport charges, and

it promises to be a significant and

expanding part of SITA’s business in

the years ahead.

Our subsidiary CHAMP Cargosystems,

as provider of the world’s largest cargo

management system, continues to

perform solidly. It is now also seeing

new opportunities in providing its

cargo IT platform via the ATI Cloud,

as was the case with a Cathay Pacific

Airways Cargospot contract, which

sets a template for the future. SITA’s

ATI Cloud now has over 80 customers

and is able to deliver more than 20

SITA products.

15SITA | GROUP ACTIVITY REPORT 2014

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

CUSTOMER SERVICE AND OPERATIONSUnderpinning all of these areas

is SITA’s long-term investment in

customer service and operations.

This is a key differentiator for SITA

and of major value to the air transport

community. Fulfilling our remit as

a community provider, we strive

constantly to deliver the levels of

service excellence required by a

connected and mission-critical air

transport environment.

We are unique in providing this level

of service, globally and locally, on the

back of major investments in service

excellence, in areas such as Command

Centers, Next Generation Data Centers

and Service Desks. We reached a

landmark in 2014 with the migration

of SITA’s applications portfolio to

the new data centers. As the Chair’s

statement notes, the investments we

are making are now proving their value

in enhancing operational performance,

which is vital to our customers and the

industry at large.

Of course, SITA’s people in the field are

also a differentiator in our customer

service capabilities, having built a

reputation around the world of going

the extra mile to ensure continuity and

quality of service. Today, we remain

unique in having a 2,000-strong global

service team, many of them on the

ground, dedicated solely to service

excellence within air transport.

The drive for service excellence

remains central to the Transformation

Program for SITA’s customer services

and operations (see SITA Global

Services, page 50). Program highlights

include ISO 20K certification in 2017,

driven by best practice processes, as

well as further technology investments

in areas such as outage prevention and

proactive detection.

That focus on excellence is mirrored

in SITA’s software engineering

capabilities, which also saw significant

progress in 2014 with a CMMI level

3 rating. Many governments are

beginning to expect IT providers to have

this for certification for ‘Capabilities

Maturity Model Integration’. It demands

the strictest and most in-depth

appraisal available from the CMMI

institute. With airlines also starting to

request this certification, this is a huge

milestone for SITA.

AN EYE ON THE FUTURE – INNOVATION As SITA strives to continuously

simplify and streamline the end-to-end

passenger journey, innovation plays

a critical role. Part of SITA’s value to

air transport is our collaboration with

customers and industry partners to

explore new technologies across the

journey, for the potential benefit of the

community at large.

We demonstrated our technology

leadership in a number of areas during

the year, including co-innovation with

our ecosystem of customers and

partners – such as Orange Business

Services – as well as participation in

industry research programs.

Through the SITA Lab – described

in one journal as the Google X of the

air transport industry – we remain

at the forefront of testing how new

technologies, at every step of the

journey, can enable a ‘connected

traveler experience’ for the air

transport community. For example,

research into Bluetooth low energy

beacons highlighted great potential

for the technology to trigger better

passenger experiences and efficient

passenger flow.

Based on SITA’s work with airlines and

airports across the world – including

American Airlines at Dallas Fort Worth

and San Francisco International, as

well as others at London Heathrow

Airport, Shanghai Hongqiao

International Airport, Copenhagen

Airport and Miami International Airport

– we saw the necessity for an industry

approach to beacon deployment.

To ensure consistent industry-wide

deployment, SITA introduced a

Common-Use Beacon Registry and has

been working with airports, airlines,

IATA and ACI to define standards

around beacon deployment and use.

The Lab made continued progress

collaboratively innovating with

customers in many other areas, such

as Near Field Communication (NFC),

mobile boarding passes, drones and

more. One headline-grabbing initiative

involved the SITA Lab’s exploration of

wearable technology – including smart

glasses and smart watches. A trial of

Google Glass and Sony SmartWatch

with Virgin Atlantic attracted particular

interest globally. Wearable computing

promises great potential in the areas of

operations, customer services, security

and immigration in the air transport

industry, based on ruggedized glasses

suited to industry use cases.

16 SITA | GROUP ACTIVITY REPORT 2014

PART OF SITA’S ROLE IN ADDING VALUE TO THE AIR TRANSPORT COMMUNITY IS TO WORK WITH CUSTOMERS AND INDUSTRY PARTNERS TO EXPLORE NEW TECHNOLOGIES OF POTENTIAL BENEFIT TO THE COMMUNITY.

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VALUE IN THE YEARS AHEADThrough initiatives like these, we are

seeing the early stages of a profound

change to our inter-dependent aviation

ecosystem, linking stakeholders and

assets, and providing the ability to

monitor, measure, warn and report in

real-time. This will transform practices

in areas such as the passenger

experience, airport and aircraft

operations, and aircraft e-enablement.

In this connected environment, air

travel will depend on vast amounts

of data for intelligence and analysis.

The Internet of Things will connect

everything on the ground and in the

air that can benefit from a connection.

This will combine with the growing

impact of technologies like mobile

services, cloud computing, self-

service, security and biometrics, and

wearable computing.

SITA’s strategy is addressing this

dynamic emerging market, with a

focus on the end-to-end journey and

a commitment to delivering value

for the air transport community, as

one of SITA’s corporate objectives.

For that reason, we continue to work

closely with our members and the

industry to introduce the next wave of

technologies – often through common

approaches to community issues,

based on integrated technologies and

standards that optimize airline and

airport processes and ensure inter-

dependence, anywhere in the world.

SITA is treading this path successfully,

and our intention is to deliver even

greater value in the years ahead. As

you have seen, we are well positioned

to do so. Our performance and financial

position are strong. Guided by our

business plan, we are on course to

achieve our 2015 objectives – and to

evolve as an organization capable of

realizing our 2020 vision and ambitions.

I would like to thank those who make

this possible. First, our people. The

commitment of SITA staff to this

industry and community is well

recognized across the world, through

the many acts of ‘going beyond the call

of duty’ that we hear of from customers

and colleagues. Their commitment

is also reflected in the extensive

volunteering and charitable activities

which they support under the umbrella

of our corporate social responsibility

programs. Their dedication makes a

difference and adds value across the

communities in which they work.

Finally, I would like to express my

personal thanks for the support of the

SITA Council and SITA Board during

a year that was, as always, full of

challenges. And thanks also to my

colleagues on the Senior Leadership

Team. Their total commitment to SITA’s

vision, ambition and the community

sets the template for everyone –

and ensures that SITA maintains its

leadership position in air transport.

Francesco ViolanteChief Executive Officer, SITA

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

17SITA | GROUP ACTIVITY REPORT 2014

OUR RESULTS SHOW STEADILY RISING REVENUES OVER THE YEARS, IN LINE WITH SITA’S GROWTH STRATEGY.

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

SITA | GROUP ACTIVITY REPORT 201418

AN ESSENTIAL PART OF GOVERNANCEThe SITA Council has completed its

third year as the representative body

for SITA’s 430 or so members – and I

am pleased to confirm that its role as

an essential part of the governance of

the organization has been reaffirmed

through activities during the year and

through the work of the Governance

Review Committee.

The Council was created as part of the

major restructuring of the business in

2011, in order to provide a strong voice

for SITA’s members, geographical and

industry-specific groups. It represents

members’ requirements, regional

and cultural perspectives to the SITA

Board, SITA subsidiaries, strategic

alliances, industry associations and

user groups. It is the Council’s job to

listen to members and ensure their

views are acted upon.

Being the representative body of the

SITA membership, the SITA Council

plays an all-important role that

uniquely differentiates SITA in the

industry. By representing members, it

means that SITA remains at the heart

of the air transport community, staying

in close and constant touch with its

real requirements.

Acting on behalf of SITA’s members,

Council Representatives work with the

SITA Board and the Senior Leadership

Team to identify and address

challenges that face the air transport

community. They help explore

opportunities for improvement and

change. And they ensure the sharing

of experience and knowledge of SITA’s

products and services to create a more

resilient, successful and profitable

industry.

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The Council is composed up of 34

representatives: 20 from SITA’s

top 20 customers, 10 from airline

geographical groups (such as the Latin

America and Caribbean Group) and

four from industry-specific groups

(such as the Airport Group).

The Council has three core roles:• Through its Nomination Committee,

the Council proposes: individuals

as Board directors; the President;

and the Deputy President of

the SITA Council. All of these

appointments are proposed and

approved at the SITA Annual

General Assembly in June.

• The Council’s Membership

Committee deals with SITA

membership issues – the nitty-

gritty of membership policy and

rules, admissions and expulsions.

It also oversees the Membership

Program’s work in recruiting new

members and engaging with existing

members (see ‘Welcome to our new

members in 2014’ on page 24).

• The Council then represents the

views and concerns of members

in offering expert advice and the

benefits of experience to the SITA

Board and Senior Leadership

Team. For example, the Council is

regularly consulted on the direction

of key strategies relating to core

sectors and solution lines – such

as the connected aircraft and new

distribution capabilities.

At the 2014 Annual General Assembly,

I was elected President of the Council

for 2014/15, replacing Christoph

Klingenberg, who performed an

invaluable role in helping define the

Council from its inception. Omar

Jefri, from Saudi Arabian Airlines,

was elected Deputy President,

replacing Chris Gavin. The Council

also recommended the appointment to

the SITA Board as Member Directors:

Omar Jefri, Patrick Naef, Tomasz

Smaczny and A.T. Srinivasan, as well as

Paul Coby, as an Other Director.

A YEAR OF ACTION The year’s work for the Council was

handled through committees and

member representation, as well as

by the Council’s key role on the SITA

Governance Review Committee, which

I chaired as President of the Council.

Two landmark initiatives stand out

for the year under review: SITA’s

governance and the creation of a new

Air Transport Community Foundation

charitable fund. Both of them highlight

how SITA strives to provide value to the

air transport community. Given that

SITA’s corporate objectives now place

significant emphasis on ‘Community

Value’ – a principle which as Council

President I unreservedly endorse –

initiatives like these are vital.

First, governance: the Governance

Review Committee, set up jointly by

the SITA Council and SITA Board,

completed its work. The Review was

anticipated back in 2011, as part of the

new structure. It was also called for

by a number of senior airline CEOs

in May 2014. A Review Committee

was agreed by the SITA Council and

Board and advised to members at the

2014 AGA. I was asked to chair the

process and the Committee agreed to

report back by December 2014, so that

recommendations could be reviewed

and any changes needed taken to the

2015 Annual General Assembly. Those

deadlines were all met and a detailed

report has been circulated to members

in advance of the AGA.

The Review gets to the heart of the

relationship between SITA and its

members – and to the unique model

through which SITA is governed and

acts on behalf of its members and the

air transport community as a whole.

It also makes clear the centrality

of the SITA Council as a key part of

the decision-making processes at a

strategic level, not least through the

Council’s nomination and approval of

SITA Board directors.

19SITA | GROUP ACTIVITY REPORT 2014

COUNCIL REPRESENTATIVES ACT WITH THE SITA BOARD AND THE SENIOR MANAGEMENT TEAM TO IDENTIFY AND ADDRESS CHALLENGES THAT FACE THE AIR TRANSPORT COMMUNITY.

aas

did sts

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20 SITA | GROUP ACTIVITY REPORT 2014

After widespread consultation among

members, the Review Committee

concluded that the 2011 two-tier

structure for SITA is working

and should remain in place. They

agreed that it is appropriate for the

membership. They then suggested a

number of areas where refinements

could be made in the interests of

members. They included:

• Stronger powers for the Council,

to enhance the representation of

SITA’s membership.

• Some refinements to the

composition of the Board and

the way in which appointments

are made.

• Greater transparency, particularly

relating to Board nominations.

• Streamlining of the Annual General

Assembly – including the proposal

that the SITA Council President

should be the default proxy holder,

in place of the AGA Chair.

Where needed, these proposals are

being brought to the 2015 Annual

General Assembly and I hope they will

be unanimously approved. They add

extra power to the overall governance

of SITA – and to the primacy of

members within that process. They

also reaffirm the role of the SITA

Council as the best conduit for

communication between members and

SITA on key issues of governance. The

Council is there to safeguard member

interests and, with these proposed

changes in place, we will be able to do

so more effectively and transparently.

I certainly commend acceptance of the

proposals to members.

Second, the Council has played the

leading role in creating the new SITA

Air Transport Community Foundation,

to which it gave the go-ahead in

December 2014. Council discussions

about the Foundation first began in late

2013, when it was also decided to focus

initially on education and technology

in Africa. In June 2014, the Council

agreed an annual fund of US$500,000 a

year, as well as providing guidance and

oversight for the types of organizations

to be considered.

In December last year the Council

agreed Foundation recipients for 2015,

starting with the support of skills

development and helping students and

schools to gain access to technology.

It will work with established

organizations, including ComputerAid

International, Promoting Equality

in African Schools (PEAS), and the

University of the Witwatersrand.

In the first year of operation it is

expected that the program will result

in the creation of around 30 computer

labs in schools, as well as a number

of student grants. These will include

three to five-year grants for a number

of graduate and post-graduate

positions. A further project will provide

solar power to two schools. In its first

year, the Foundation hopes to improve

the educational life of more than

10,000 students.

The first computer labs will be rolled

out to schools in Uganda and Ethiopia

throughout 2015, with students in South

Africa being able to benefit from grants

from August. Ongoing investment by

the Foundation will support student

development in science, technology,

engineering and mathematics (STEM)

education, and through the post-

graduate scholarship will encourage

research and graduate flow into the air

transport industry in Africa.

THE GOVERNANCE REVIEW COMMITTEE CONCLUDED THAT SITA’S TWO-TIER STRUCTURE IS WORKING AND IS APPROPRIATE. IT RECOMMENDS RETAINING AND REFINING THE STRUCTURE TO FURTHER ENHANCE SITA’S UNIQUE ABILITY TO REPRESENT THE AIR TRANSPORT COMMUNITY.

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21SITA | GROUP ACTIVITY REPORT 2014

Half of the annual fund will be

contributed by SITA SC with a resulting

very minor reduction in over-recovery.

The balance of the fund will be

provided by SITA NV, the commercial

arm of SITA.

Management and disbursement of the

fund will be handled by the UK-based

Charities Aid Foundation (CAF), acting

on behalf of the SITA Council. The

benefits of using CAF include a fully

managed service, transferred risk at

the point of donation, due diligence

conducted on selected recipient

organizations, ease of reporting, and

a straightforward and modest fee

structure.

They have been instrumental in helping

the development of the Foundation, and

the identification and assessment of

potential organizations to support. The

SITA Council is committed to updating

the SITA Annual General Assembly

each year on the achievements and

progress of the Foundation’s work.

This is an important initiative that

reflects SITA’s involvement at a local

level from its earliest days and again

underlines how SITA can provide value

to the community – by sharing our

resource and expertise with those

who are striving to develop their own

related technology and community-

based skills. You can read more about

SITA’s Corporate Social Responsibility

work on page 54.

THE COUNCIL IS THERE TO SAFEGUARD MEMBER INTERESTS AND, WITH THE PROPOSED CHANGES IN PLACE, WE WILL BE ABLE TO DO SO MORE EFFECTIVELY AND TRANSPARENTLY.

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NEW FACES ON THE COUNCILA number of changes were made to the

SITA Council Representation during

the year.

Meenakshi Agrawal of Mumbai

International Airport, representing the

Airport Group, replaced Francis Rajan

of Bangalore International Airport.

Karamu Ford of American Airlines,

replaced Susanna Brown. Jassim Haji

of Gulf Air, representing the Middle

East & North Africa Group 1, replaced

Joshua Koshy of Qatar Airways. Anil

Sondhi of Air India replaced Shyam

Sundar Krishnamurti but was replaced

by Sunita Marwah later in the year.

Phinda Ncala of South African Airways

replaced Eugene Knoesen. Roland

Schuetz of Lufthansa replaced

Christoph Klingenberg. Nelson Tapia

of LATAM, representing the Latin

American & Caribbean Group, replaced

Vicente Tredinick of Lan Airlines.

Brant Venice of United Parcel Service

replaced Chris Gavin. Saroj Yuttatri

of Thai Airways, representing the

South Asia & India Group, replaced

Mohammad Shah Newaz of Biman

Bangladesh Airlines.

Rob Putter from Etihad Airways joined

the Council. Alexander Pleshakov,

Transaero, stepped down. Osama Anwar

Elsisi of Egyptair, representing the

Middle East and North Africa Group 2,

replaced Hassan Nour. Finally, we were

joined by Daniel Ho of Qatar Airways.

THE VALUE OF SITA MEMBERSHIP SITA and its members bring more

than 65 years’ experience to the

development and operation of the

technology systems that enable people

and goods to cross the world. It is

a formula that has stood the test of

time. By working together we get more

done, better. Membership is based

firmly on the belief that it is best to

share those things that help enhance

safety, improve service and cut costs

while not interfering with the need for

competition as the key driver

of excellence.

Members benefit from SITA’s single

focus on infrastructure, applications

and services that provide the

foundations for a stronger industry

over the long term. They share in

continuing cost reductions on network

services, and they benefit from the

reduced cost implicit in the use of

community solutions. And, whether

large or small, they can plan and

operate their services in the knowledge

that SITA offers services everywhere,

including remote and challenging

locations. Whether at the leading edge

of innovation through SITA Lab, or

through innovations at a product level,

members are also actively involved at

an early stage with ground-breaking

initiatives, many of which are literally

changing the nature of air travel.

ANY MEMBERSHIP ORGANIZATION IS ONLY AS STRONG AS ITS MEMBERS, AND ONLY LASTS WHILE ITS WORK IS RELEVANT ANDOF BENEFIT TO MEMBERS.ON THAT BASIS, SITAREMAINS STRONG.

MEMBERS BENEFIT FROM SITA’S INNOVATIVE CULTURE, AS WELL AS ITS SINGLE FOCUS ON INFRASTRUCTURE, APPLICATIONS AND SERVICES THAT PROVIDE THE FOUNDATIONS FOR A STRONGER INDUSTRY OVER THE LONG TERM.

22 SITA | GROUP ACTIVITY REPORT 2014

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Perhaps above all, members benefit

from neutrality and independence.

SITA is a geographically non-specific

organization with representation

from more than 140 countries and

territories. This provides a unique

ability to build bridges. SITA’s focus is

always on the needs of its members

and the community.

With the amendments to the

governance structure proposed at

the 2015 Annual General Assembly,

the value of SITA membership will be

further secured and enhanced.

NEW MEMBERS AND MILESTONESWe welcomed five new SITA members

in 2014: TATA SIA Airlines (India),

Hermes Aviation Ltd (Malta), Thai

Smile Airways (Thailand), and Travel

& Distribution companies Automated

Systems Co (Kuwait), and Relax Hong

Kong Aviation Technology (Hong Kong).

Once again, we also celebrated

the anniversaries of long-standing

members. A fuller list is shown on page

25, but the longest of long-standing

included: Alitalia, Egyptair, Lufthansa

and TAP (60 years); Aeromexico,

Avianca, Icelandair dba Flugleidir,

Iraqi Airways, LATAM Airlines, and

Thai Airways International (50 years):

Surinam Airways and Transportes

Aereos del Mercosur (40 years).

As was noted last year, that we have

so many long-standing members is

not only proof of their own strength

as airlines, but also provides a

strong foundation for the culture of

community that has defined SITA since

it was founded in 1949.

The most important milestone for

the year – that has been very much

the focus of my Report – was the

conclusion of the Governance Review

and the evolutionary proposals that

I have outlined. Any membership

organization is only as strong as its

members, and only lasts while its work

is relevant and of benefit to members.

On that basis, SITA remains strong,

supporting an industry that is gradually

becoming more resilient and profitable

– and that, through bodies such as the

SITA Council, has a closer link to its

members through a robust and proven

governance process.

Jappe BlaauwPresident, SITA Council

GIVEN SITA’S EMPHASIS ON ‘COMMUNITY VALUE’ – A PRINCIPLE WHICH AS COUNCIL PRESIDENT I ENDORSE UNRESERVEDLY – INITIATIVES LIKE THE GOVERNANCE REVIEW AND AIR TRANSPORT COMMUNITY FOUNDATION ARE VITAL.

23SITA | GROUP ACTIVITY REPORT 2014

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24 SITA | GROUP ACTIVITY REPORT 2014

WELCOME TO OUR NEW MEMBERS IN 2014Name Country Sector

Vistara India Airline

Automated Systems Co. Kuwait Travel & Distribution

Hermes Aviation, Ltd. Malta Airline

Thai Smile Airways Thailand Airline

Relax Hong Kong Aviation Hong Kong Travel & Distribution

Technology Limited

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25SITA | GROUP ACTIVITY REPORT 2014

MEMBER MILESTONES Member name Years

Alitalia 60

Lufthansa 60

Egyptair 60

TAP 60

Aeromexico 50

Avianca 50

Icelandair 50

Iraqi Airways 50

LATAM Airlines 50

Thai Airways International 50

Surinam Airways 40

Transportes Aéreos del

Mercosur 40

Air Contractors 30

Ariana Afghan Airlines 30

Nippon Cargo Airlines 30

Virgin Atlantic Airways 30

Abacus International Pte Ltd 25

Air Namibia 25

Airbus S.A.S. 25

Amadeus IT Group 25

Binter Canarias 25

Cayman Airways 25

DHL Worldwide Network 25

Druk-Air 25

Member name Years

European Air Transport 25

EVA Airways 25

Jet2.com 25

Lao Airlines 25

SilkAir (Singapore) 25

Transportes Aeromar 25

Vietnam Airlines 25

Windward Islands Airways Intl. 25

Aeroejecutivo 20

Aeromexpress 20

Air Caraïbes 20

Air Nostrum 20

Fiji Airways 20

BAE Systems Electronics 20

Berjaya Air 20

Borispol State Int’l Airport 20

Dniproavia 20

Expeditors International

of Washington 20

Donavia 20

Kobenhavns Lufthavne 20

MRA Systems 20

Nicaragüense de Aviación 20

Polar Air Cargo Worldwide 20

Presidential Flight 20

Member name Years

Qatar Airways 20

Safair (Proprietary) 20

TravelSky Technology 20

Beijing Aviation Ground

Services 10

Bluebird Cargo 10

Etihad Airways 10

Asiana IDT 5

BIAL 5

Columbia Jet Service 5

Istanbul Sabiha Gökçen

International Airport Investment

Development & Operation Inc 5

Jin Air Co. 5

LGS Handling 5

Mumbai International Airport 5

Olympic Air 5

Taban Airline Company 5

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITYCREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

26 SITA | GROUP ACTIVITY REPORT 2014

Matthew Billings(Virgin Atlantic Airways)

Representing the

Northern Europe Group

Jappe Blaauw

KLM

President

Phinda Ncala

South African Airways

Hugh Noel Dunleavy

Malaysia Airlines

Osama Anwar Elsisi

(Egyptair)

Representing the Middle

East & North Africa Group 2

Rob Putter

Etihad Airways

Kemeredin Bedru

(Ethiopian Airlines)

Representing the

Sub-Saharan Africa Group

Greg Gilchrist

(Sabre)

Representing the

ICT Group

Omar Jefri

Saudi Arabian Airlines

Deputy President

Luc Hennekens

Qantas Airways

Jassim Haji

(Gulf Air)

Representing the

Middle East & North

Africa Group 1

Daniel Ho

Qatar Airways

Patrick Naef

Emirates

Meenakshi Agrawal

(Mumbai International

Airport)

Representing the Airport

Group

William Miller, Jr

(United Airlines)

Representing the

North America Group

Sunita Marwah

Air India

Philip Hawker

British Airways

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27SITA | GROUP ACTIVITY REPORT 2014

Karamu Ford

American Airlines

Alessandro Loddo

Alitalia

Richard Forson

Cargolux

Jay Fredericks

Delta Air Lines

Takayuki Fujiwara

All Nippon Airways

Jean-Christophe

Lalanne

Air France

Qiang Li

(Air China)

Representing the North

Asia Pacific Group

Joseph Locandro

Cathay Pacific Airways

Saroj Yuttatri

(Thai Airways)

Representing the South

Asia & India Group

George Wang

Singapore Airlines

Laurent Jossart

(Luxair)

Representing the

Southern Europe

Group

Nelson Tapia

(LATAM Airlines)

Representing the Latin

America & Caribbean

Group

Roland Schuetz

Lufthansa

Brant Venice

United Parcel Service

Anton Eremin

(Siberia Airlines)

Representing the CIS

& Russia Group

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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operating Review

COMMUNITY SOLUTIONSSITA works with industry associations,

governments and customer groups to develop

innovative solutions to community-wide issues.

Part of SITA’s role in providing value to air transport

is to explore new technologies of potential benefit to

the entire community, and to ensure that IT systems

work together through shared infrastructure and

cost-effective use of technologies based on global

standards.

Examples of SITA’s broad range of community

solutions include: CUTE, CUSS, CUPPS,

AirportHub®, the ATI Cloud, Common-Use Beacon

Registry, Flight Tracking, eAircraft and many more.

COMMUNITY VALUECreating the most value for the air transport

community is central to SITA’s business.

Owing to SITA’s unique membership structure, the

company’s strategic direction, developments and

collaborative innovations are driven directly by the

air transport community and its requirements.

With a remit that has always involved working for

air transport, SITA tackles community issues with

common approaches and shared services, with a

focus on reducing costs, increasing efficiencies

and introducing new ways of working.

COMMUNITY RECOGNITION• IT Company of the Year, 2015, for the second time in

four years, Air Transport News.

• Best Airport IT Service Provider 2014, Emerging

Markets Airport Awards.

• Aviation IT Service Provider of the Year 2014, African

Airlines Association, for the second year running.

• Best Passenger Assistance Initiative, for Virgin

Atlantic’s Google Glass project, and Best Mobile Technology Initiative for American Airlines’

beacon deployment at Dallas Forth Worth Airport,

2014 Future Travel Experience Global.

• Smart Technology Award, The Wearables 2014, SITA

and Virgin Atlantic Airways.

• No. 1 for innovation, 2014 Australian Airports

Association’s National Airport Industry Awards:

Melbourne International Airport, using SITA’s

passenger self-service solutions.

• International IT Systems Provider of the Year in Africa, CHAMP Cargosystems, Stat Times

International.

• Awards for Excellence in Air Cargo, for the second

year running.

• 2014 Oracle Excellence Award, for Sustainability

Innovation.

• 2014 Oracle Leadership Award, for Finance, Europe,

Middle East and Africa.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

A NEW ERA The year saw a major milestone as

SITA embarked on a transformational

program to usher in a new era of

communications for the air transport

community. The program is introducing

new models, more bandwidth and

greater flexibility to address the

radically evolving connectivity

demands of airlines, airports and other

industry players.

It is a crucial building block in a

Communications & Infrastructure

(CIS) strategy centered on delivering

next generation networking for air

transport, extending SITA’s unique

communications capabilities at

airports – as the touchpoint of the

industry – and improving industry

collaboration with new community

messaging and cloud-based solutions.

Underpinning that strategy is a

constant focus on cost reductions

for the community through shared

communications platforms and

infrastructure services.

The year also saw multiple

communications and infrastructure

contracts across the globe and across

many different CIS solutions – a

testament to SITA as provider of the

’communications backbone’ of the

global air transport industry.

They included new or renewed

contracts with Air Astana, Air Canada,

Air France, Aeroflot, Copa Airlines,

El Al, Etihad, Garuda Indonesia, Gulf

Air, Hapag Lloyd, Japan Airlines,

Korean Air, LAN, Qantas, Saudia,

Spirit Airlines, Sri Lankan, Transaero,

Turkish Airlines, United Airlines, UPS,

Vietnam Airlines and Vistara.

Among other accolades in 2014,

SITA was awarded Aviation IT Service

Provider of the Year by the African

Airlines Association, for the second

year running. The award recognizes

SITA’s broad portfolio of solutions

for the air transport industry, its

collaboration with customers to

pilot emerging technologies, and

its investment in research and

development in innovative solutions

for the industry.

TRANSFORMINGOver the past few years, SITA’s

communication and infrastructure

services have been transforming

radically, with the introduction of an

increasing range of new generation,

value-added services, helping the air

transport community to move towards

a more integrated, customer-focused

and mobile environment.

Central to this transformation in 2014

was a new agreement with SITA’s global

partner Orange Business Services as

well as with leading regional providers

around the world. Underpinning the

agreement is the implementation of a

new sourcing model, the availability

of on-demand bandwidth, and access

to new value-added communications

services from Orange.

The program strengthens SITA’s

already unrivalled geographical

coverage, which gives the air transport

industry access to more than 200

countries and territories, as well as

95% of all international destinations.

It includes 13,500 air transport sites

and over 17,000 IP connections.

A strong focus on standardizing

communications at regional airports

will lead to an increased presence

at airports and will deliver network

services in response to demand from

hybrid and low-cost carriers.

Network service performance

will be further enhanced through

a new industry-dedicated SITA

Network Services Delivery and

Operations Center, integrated into

SITA’s Command Center and with

responsibility for all SITA network

services delivery and operations.

Setting up the new center marks

a major transformation in the

partnership model between SITA

and Orange Business Services.

INTEGRATORSThe integration of regional third-party

operators will offer SITA customers

access to the best suppliers in every

corner of the globe, able to provide

the best value, competitiveness,

service and capacity. It will ensure

more expertise on the ground due to

the long-standing relationships these

operators have with local access

providers and governments.

29SITA | GROUP ACTIVITY REPORT 2014

VALUE FOR THE AIR TRANSPORT COMMUNITY

A NEW ERA The year saw a major milestone as

SITA embarked on a transformational

program to usher in a new era of

communications for the air transport

community. The program is introducing

new models, more bandwidth and

greater flexibility to address the

radically evolving connectivity

demands of airlines, airports and other

industry players.

It is a crucial building block in a

Communications & Infrastructure

(CIS) strategy centered on delivering

next generation networking for air

transport, extending SITA’s unique

communications capabilities at

airports – as the touchpoint of the

industry – and improving industry

collaboration with new community

messaging and cloud-based solutions.

Underpinning that strategy is a

constant focus on cost reductions

for the community through shared

communications platforms and

infrastructure services.

The year also saw multiple

communications and infrastructure

contracts across the globe and across

many different CIS solutions – a

testament to SITA as provider of the

’communications backbone’ of the

global air transport industry.

They included new or renewed

contracts with Air Astana, Air Canada,

Air France, Aeroflot, Copa Airlines,

El Al, Etihad, Garuda Indonesia, Gulf

Air, Hapag Lloyd, Japan Airlines,

Korean Air, LAN, Qantas, Saudia,

Spirit Airlines, Sri Lankan, Transaero,

Turkish Airlines, United Airlines, UPS,

Vietnam Airlines and Vistara.

Among other accolades in 2014,

SITA was awarded Aviation IT Service

Provider of the Year by the African

Airlines Association, for the second

year running. The award recognizes

SITA’s broad portfolio of solutions

for the air transport industry, its

collaboration with customers to

pilot emerging technologies, and

its investment in research and

development in innovative solutions

for the industry.

TRANSFORMINGOver the past few years, SITA’s

communication and infrastructure

services have been transforming

radically, with the introduction of an

increasing range of new generation,

value-added services, helping the air

transport community to move towards

a more integrated, customer-focused

and mobile environment.

Central to this transformation in 2014

was a new agreement with SITA’s global

partner Orange Business Services as

well as with leading regional providers

around the world. Underpinning the

agreement is the implementation of a

new sourcing model, the availability

of on-demand bandwidth, and access

to new value-added communications

services from Orange.

The program strengthens SITA’s

already unrivalled geographical

coverage, which gives the air transport

industry access to more than 200

countries and territories, as well as

95% of all international destinations.

It includes 13,500 air transport sites

and over 17,000 IP connections.

A strong focus on standardizing

communications at regional airports

will lead to an increased presence

at airports and will deliver network

services in response to demand from

hybrid and low-cost carriers.

Network service performance

will be further enhanced through

a new industry-dedicated SITA

Network Services Delivery and

Operations Center, integrated into

SITA’s Command Center and with

responsibility for all SITA network

services delivery and operations.

Setting up the new center marks

a major transformation in the

partnership model between SITA

and Orange Business Services.

INTEGRATORSThe integration of regional third-party

operators will offer SITA customers

access to the best suppliers in every

corner of the globe, able to provide

the best value, competitiveness,

service and capacity. It will ensure

more expertise on the ground due to

the long-standing relationships these

operators have with local access

providers and governments.

29SITA | GROUP ACTIVITY REPORT 2014

CREATING VALVALVALVALVA UUU

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

The move sees SITA evolving from

a network reseller to an integrator

of network services from multiple

providers. Agreements signed so far

include Hong Kong-based PCCW, CMC

in South Africa and UAE-based Etisalat.

For the rapidly emerging aviation

markets of Africa, the Middle East

and Latin American, SITA’s regional

partners bring particular strengths in

terms of offering airlines and airports

more value and greater capacity to

meet changing business needs.

ON DEMAND Catering for the new era of

communications, the agreement will

result not just in greater bandwidth,

but also connectivity on demand.

Airline and airport networks will

need greater flexibility too, so that

communication services can support

fast route changes and sudden peaks in

demand, along with seasonal variations

as a result of holiday services.

Already, with the 2014 launch of a

new Seasonal Bandwidth service,

SITA is enabling airlines to order

network services for short periods

during the year in airports where

SITA’s AirportHub® or AirportConnect

Net are present. This marks a major

step forward in providing on-demand

network services to airlines.

MORE VALUE-ADDEDAs part of the agreement, SITA will

offer the air transport community

the 60-strong portfolio of Orange

Business Services’ Value-added

Communication Services.

The services are vital in addressing

fast-emerging air transport industry

trends and technologies. They address:

• The mushrooming of aircraft-

ground connectivity needs with the

advent of new generation aircraft

and aircraft management practices.

• The need to cover 80% of

connections at airports by 2020,

from 60% today, as a result of

increased technology-based activity

in airports.

• A doubling of the number of

international destinations by 2030,

with 500 new airports and a 40%

capacity growth in existing airports.

• And moves towards an industry-

wide extranet in response to the

need for increased collaboration.

AIRPORT COMMUNICATIONSAs airports demand more technology

to cope with soaring passenger

numbers, IT is becoming increasingly

prevalent at every step of the journey.

Powerful connectivity solutions across

the world’s airports remain high on

SITA’s agenda.

“ To enhance passenger service and ensure we remain competitive, we need to transform the way IT delivers services. This new agreement will ensure IT and business alignment, while integrating new innovations and reducing our costs.” Phinda Ncala, CIO, South African Airways

30 SITA | GROUP ACTIVITY REPORT 2014

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Such solutions deliver continued

improvements to the passenger

experience, airport and aircraft

operations, and aircraft e-enablement.

Equally, they underpin the introduction

of key technologies at the airport, such

as mobile services, cloud computing,

business intelligence and analytics.

At the heart of SITA’s airport

communications services are

AirportHub® and AirportHub® Wireless

– providing a shared infrastructure

platform and offering pre-connected,

mission-critical connectivity at

airports, supporting the front-office

(passenger processing) and back-office

(aircraft, maintenance, crew rostering).

In a major program to equip airports

and their tenants with leading

connectivity, the expansion of SITA’s

AirportHub® coverage continues to

be a top priority with a new ambitious

‘APH 700’ initiative launched in late

2014 to move swiftly beyond original

deployment targets. The plan is to

increase AirportHub® coverage from

around 200 airports today to 700 by

mid-2017 – covering 80% of all airlines’

international destinations, including

network, hybrid and low cost carriers.

Passenger numbers will rise at a

higher rate than physical capacity over

the next 10 years. Existing airports

must upgrade infrastructure to

increase efficiency and throughput by

better exploiting business intelligence

and automation. The year saw growing

interest in SITA’s Airport Master

System Integration (MSI) capabilities

to transform infrastructure and

networks. Combining SITA’s airport

and communications expertise, MSI

covers both airport infrastructure

and networks, supported through a

partnership with Cisco in 110 countries.

(See Airports, page 34.)

ENHANCED SERVICEWith the air transport industry

increasingly embracing new generation

communications, particularly in the

areas of mobility and cloud, major

challenges are arising in managing the

performance of business applications.

There is an industry need to focus

more on business process and less

on IT infrastructure, as well as the

desire to reduce the number of vendors

needing to be managed.

The year saw the continued evolution

of SITA’s unique capabilities in

providing an end-to-end service

management layer on top of its

portfolio. The portfolio now comprises

a growing range of communications

and infrastructure management

services for airports and airlines,

including Service Management,

Application Performance Management,

Telecommunications expense

management, Project Management

and Consulting, and Infrastructure

Management, such as third party

vendor management and out-tasking.

Garuda Indonesia was one customer in

2014 to select SITA to fully manage its

international network infrastructure

and standardize IT operations,

including its domestic IT infrastructure.

MOBILITY LEADERSHIP With the fast embrace of mobility in

air transport, SITA’s Wireless and

Mobility capabilities combine industry

knowledge with application experience

and end-to-end mobility expertise.

Global delivery and support is provided

for a range of rugged hardware

solutions, including Motorola and Apple

devices; a variety of 2G, 3G and Wi-Fi

solutions that enable seamless global

connectivity; mobilized application

integration for business processes;

and close integration with SITA’s Air

Transport Industry (ATI) Cloud.

In addition, SITA is increasingly

collaborating across its solution lines

to bundle products and services in the

area of mobile solutions. In 2014, that

included work on Baggage Tracing on

CrewTablet, BagManager with Managed

3G Wireless, Electronic Flight Bags

(EFBs) with Mobile Services and a

mobile payment solution.

Progress continued during the year

in delivering mobility capabilities for

new generation ‘connected aircraft’

which will lead to ubiquitous wireless

broadband for connecting aircraft

at the airport (see pages 34 and 56).

This capability is vital as airlines roll

out applications and systems such

as EFBs, cabin crew tablets, Flight

Operations Quality Assurance (FOQA)

and In-Flight Entertainment (IFE)

options.

31SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

“ SITA is providing a one-stop shop that meets all our IT needs. With SITA managing our IT infrastructure, we are reducing costs, simplifying IT solutions and future-proofing our network. We are now able to provide high quality network solutions to all our offices around the world.” Judi Rifajantoro, Director Strategy, Business Development & Risk Management

(2014), Garuda Indonesia

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Demand among airlines for CrewTablet

remains high, with SITA’s mobility

team deploying multiple customer

projects worldwide. Originally targeted

at flight crews, CrewTablet’s benefits

and opportunities are being extended

to ground activities. New customers

during the year included Aeroflot, the

first airline in the Commonwealth

of Independent States to digitize its

crew and enhance in-flight service to

passengers in this way.

In another development, SITA chose

a number of industry conferences to

showcase a promising new innovation

for mobile-enabled connected

travelers. Called Media Kiosk, it allows

passengers to download movies,

music or magazines on their tablets or

phones in a few seconds while waiting

to board an aircraft. Media Kiosk is

now trialing with several airports.

CLOUD MOMENTUMLike mobility, cloud computing is driving

transformation in the air transport

industry. SITA’s own ATI Cloud is proving

its ability to bring about new and

more cost-effective ways of working

in a virtual and mobile workplace – as

well as new ways of distributing and

consuming applications.

By enabling flexible approaches, the ATI

Cloud is allowing companies to ‘try and

buy’ and ‘pay-as-you-go’, scaling up

or down according to business cycles.

It means services can be introduced

rapidly. For example, running in the ATI

Cloud, SITA AIRCOM® Server – which

links aircraft to existing airline systems

– can be implemented as a Software-

as-a-Service model in days.

More than 20 SITA applications have

now moved to the ATI Cloud, making

them available as-a-service, together

with more than 100 virtual data centers

(almost doubling since 2013), created

to provide infrastructure-as-a-service

capabilities for new generation aircraft.

Community value lies at the heart

of the ATI Cloud. It is evolving into

an option for specific sections of

the community – such as airport

operations, passenger processing or

aircraft operations and e-enablement.

It is providing the same capabilities

for small and regional airports, as are

available for their larger counterparts,

through SITA’s AirportConnect Open

for Regional Airports.

This is as important to mobile

travelers as it is to airlines and airport

operators. It opens new opportunities

not only for small and regional airports

but also for a plethora of new routes.

Through AirportConnect Net and

AirportHub®, the ATI Cloud is currently

pre-connected to over 400 airports.

With an increasing number of third

party applications also ATI Cloud-

enabled, more than 80 customers

are now using the ATI Cloud. Key

new contracts in 2014 included cargo

application hosting for Cathay Pacific

(with CHAMP Cargosystems),

Timatic hosting for IATA, and a cloud

co-location solution for Etihad.

COMMUNITY MESSAGINGNowhere is the value of a solution to

the air transport community reflected

better than in SITA Messaging, which

is relied on to support the industry’s

day-to-day operations. As the

levels of exchanged traffic increase

continuously, so too do the numbers

of customers. In 2014, 109 new

companies joined SITA’s messaging

user community, further underlining

this key community resource – the

single largest access point to air

transport industry partners for

collaboration worldwide.

Two new services were introduced in

the year. In addition to the Seasonal

Bandwidth offering providing on-

demand network services (see earlier),

SITA introduced its Air Traffic Control

(ATC) Messaging Service. The future-

proof service responds to the evolution

of ATC information exchange, enabling

communication with air navigation

service providers (ANSPs).

SITA Messaging and Aircraft

teams also worked with Airbus to

demonstrate the use of Type X for

ground-to-ground A350 messages for

Aircraft Health Monitoring. The proof of

concept’s success led to a first aircraft

flying using SITA Type X as an enabler

to ground-to-ground operations.

Another proof of concept by SITA’s

Messaging and Passenger teams,

along with a third party partner,

demonstrated SITA Messaging’s

capabilities as a transformation

and conversion engine, enabling

adoption of IATA’s New Distribution

Capability program.

With a focus on new community

messaging and cloud-based solutions

for the future, further transformation

is on the cards as SITA leads in

delivering the air transport’s new era

of communications.

“ We use SITA because it offers excellent service quality and global coverage. Most importantly, because SITA is owned and operated by the air transport industry, the SITA team understands and responds to our needs.”Chamindra Lenawa, Vice President IT & eBusiness, Air Astana

32 SITA | GROUP ACTIVITY REPORT 2014

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“ We’ve partnered with SITA for more than 15 years because they offer us high quality, high availability telecom coverage for all our outstations and back that up with excellent service and support.” Ahmet Bolat, Chief Investment and

Technology Officer, Turkish Airlines

“ We are delighted to renew our agreement with SITA, following a successful relationship spanning over 40 years. SITA’s support to Gulf Air’s information technology function ensures our capabilities not only meet industry standards, but exceed them in capability and efficiency.”Dr Jassim Haji, Director Information

Technology, Gulf Air

95% of all international

destinations covered by

SITA’s network. SITA

operates global WANs for

100% of the top-30 airlines

and around 25% of

domestic networks.

13,500 air transport sites

connected by SITA’s VPN

Networks.

400 airports pre-connected

by SITA’s ATI Cloud

infrastructure, as well as

17,000 air transport sites

and 15,000 commercial

aircraft.

2,400+ air transport

companies use SITA

Messaging. 100m Type B

messages sent every day.

2,000 new generation

aircraft to be in operation

within 4 years. 25% of

commercial aircraft will be

connected by 2020.

400,000 parameters to be

monitored on an Airbus

A350 and 1,400 software

parts on a Boeing 787.

>75% of airlines will have

deployed CrewTablets by

2017. Over the next 15

years, a further 500

airports will be commis-

sioned. Existing airports

will see capacity growth of

more than 40%.

110 countries covered in

a milestone agreement

between Orange Business

Services and SITA, with up

to 10 regional providers

(planned) in another 55

countries.

1 new dedicated service

center set up to support

delivery of all SITA

network services, with the

air transport community

set to benefit from SITA as

network integrator.

No.1 Provider of air

transport communication

and infrastructure

services. Unique in

providing network

services across 220

countries and territories.

WORLD’S LEADER

THE AIR TRANSPORTCOMMUNITY’SNETWORK

THIS CHANGINGWORLD OFCOMMUNICATIONS A NEW ERA

33SITA | GROUP ACTIVITY REPORT 2014

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WORLD NO.1 As the world number one airport ICT

provider, SITA is delivering day-to-day

services in more than 1,000 airports

of all sizes across all continents. That

proximity to the industry’s airports

has given SITA unrivalled knowledge

and experience in addressing the

complexities and pressures faced by

airport management.

Renowned throughout the air

transport industry, SITA’s pioneering

common-use systems are making life

simpler for passengers, streamlining

processes and reducing costs. The

company’s portfolio of intelligent

baggage handling solutions has made a

major contribution to a 61.3% reduction

in mishandled bags in the past seven

years. And SITA’s ground-breaking

developments and innovations are

opening up exciting opportunities for

airports as they evolve into the future.

Through close working and ‘on-the-

ground’ relationships with airport

customers, those developments and

innovations remain driven by real

industry requirements and a vision

shared with the industry: the pursuit

of operational efficiency, passenger

satisfaction and revenue optimization.

This includes SITA’s strategic focus on

the end-to-end passenger experience

at airports, and it embraces new

and exciting developments in areas

such as passenger flow, real-time

decision-making and collaboration,

location-aware personalized services,

and improved operations and cost

reduction.

SITA’s airport leadership was

recognized for the third time in five

years, as winner of the ‘Best Airport

IT Service Provider’ at the 2014

Emerging Markets Airport Awards.

The award cited SITA’s ‘Intelligent

Airport’ concept, which involves

tracking, managing and sharing

information among all stakeholders in

an increasingly complex, ‘always-on’

and interdependent ecosystem.

BROADEST PORTFOLIO SITA’s airport business delivers

integrated, seamless services

designed to help airports innovate,

increase their competitiveness,

accelerate their growth, and

strengthen the loyalty of their

passengers – adding value to and

supporting every part of the operation.

The portfolio is developed on SITA’s

knowledge in the areas of:

• Passenger processing

• Baggage operations

• Airport operations

• Airport Business Intelligence

MAKING IT EASY FOR PASSENGERSWith the world’s airports placing

passengers at the center of their

operations, those who invest in the

passenger experience can expect to

perform better – improving customer

satisfaction, driving efficiencies and

maximizing revenue opportunities.

Through shared technology

infrastructure SITA has enabled many

advances in the end-to-end passenger

experience. The AirportConnect Open

platform leads the market, providing

an integrated approach for airports

to Common-Use Terminal Equipment

(CUTE), Common-Use Passenger

Processing System (CUPPS) and

Common-Use Self-Service (CUSS)

kiosks – and it includes the support of

self-boarding gates and self-bag drop

passenger touchpoints.

It has been embraced globally, with

major 2014 contracts including

Asia’s busiest airport Beijing Capital

International, as well as Sharjah

International Airport, home to Air

Arabia, one of the Middle East’s

fastest growing low-cost airlines. With

ever-rising passenger numbers, the

Airports Authority of India also adopted

SITA’s integrated passenger processing

solutions in 2014, for 25 of its airports

across the country.

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TAKING BAGGAGE INTOTHE FUTUREHuge strides are being made to keep

passengers and their bags together,

in readiness for the 2018 deadline for

IATA’s new resolution 753. Harnessing

the 2.5bn baggage information

messages (BIMs) SITA manages in

BagMessage, SITA is making it possible

to track airline baggage in the same

way as parcels are tracked from door

to door through its recently launched

BagJourney, providing baggage data

as-a-service. The capability is unique

to SITA, as it relies on the baggage data

that SITA collects from airlines and

airports the world over.

Today’s suite of baggage solutions

has played a key role in reducing

mishandled baggage. It comprises

complete management systems

for use at single or multiple sites, a

global shared messaging system for

baggage distribution, and a global

tracing system for mishandled

bags. Innovations introduced in 2014

include BagJourney, complementing

the success of BagManager (BRS),

BagMessage, WorldTracer and a range

of other services.

One of many examples, baggage

reconciliation technology has been

introduced at Turkey’s newest

domestic terminal at Izmir Adnan

Menderes Airport. In the meantime,

Melbourne Airport became one of the

first in the world to introduce CUSS

bag drops – enabling passengers to

process their own bags in an average

of only 30 seconds. The airport was

number one for innovation at the 2014

Australian Airports Association’s

National Airport Industry Awards.

It won the SITA Innovation Award in

recognition of its new and innovative

passenger self-service initiatives,

including the latest new generation

SITA S4 CUSS kiosks (AirportConnect

S4 Kiosk) and the increasingly popular

self-service bag drop (Self BagDrop).

LEADING AIRPORT OPERATIONSTo serve the ‘connected passenger’,

transformation is high on airport

agendas, with IT and communications

regarded as critical to smoothing

passenger flow, achieving efficiencies

in airport operations, and future-

proofing airports against rising

passenger numbers and emerging

trends. Just as might be demanded

by a small city, operating an airport

demands the timely allocation of

workforces and assets and the ability

to make the right decisions in order to

keep things moving.

For a growing number of locations,

SITA’s next generation Airport

Management Solution (AMS) is now

delivering collaboration and proactive

control over all operations – from

service level agreements to passenger

communications, generating billing

charges to real-time tracking of

mobile resources. It also makes real-

time information available for use by

airlines, customs and immigration

authorities, as well as ground handlers.

Currently in use at 84 airports in 31

countries, SITA’s AMS was selected

by a number of new users in 2014,

including AA2000 in Argentina where

the AMS multi-airport solution is

helping the management of eight of its

largest airports such as Buenos Aires

(Ezeiza and Aeroparque), Cordoba

and Mendoza.

AIRPORT BUSINESS INTELLIGENCEJust as AMS is a crucial component

of SITA’s Intelligent Airport vision,

so too is Business Intelligence (BI).

All airlines are planning to make

investments in this area through to

2017, as are nine out of 10 airports,

according to SITA’s IT Trends Surveys.

BI remained a major focus in 2014,

as an area of continuous development

and innovation for SITA. The evolving

BI portfolio provides market leading

capabilities, with meaningful and

relevant intelligence and analytics on

easy-to-read dashboards that allow

rapid drill down into reports so that

problems can be dealt with smartly.

For example, in Warsaw, SITA is

providing a set of BI reports and

ad hoc reporting capability, involving

AirportConnect common-use platform

usage, as well as passenger movement

and baggage monitoring.

35SITA | GROUP ACTIVITY REPORT 2014

“ With passenger numbers expected to reach 450 million by 2020, we need to ensure we are operating as efficiently as possible. SITA’s baggage systems, common-use technology, and self-service check in kiosks are flexible, convenient and will help establish a firm foundation for future growth.” Sudhir Raheja, Acting Chairman (October 2014), Airports Authority of India

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Real-time and accurate intelligence

relies on quality data. But as SITA’s

IT Trends Surveys show, data at the

airport tends to be fragmented and

exist in silos, with consolidation proving

complex and time-consuming. To

optimize operations and intelligence,

SITA’s solutions provide stakeholders

throughout the airport with easy access

to information from multiple disparate

sources, such as airport operational

databases (AODB), passenger tracking

and baggage systems.

One key community initiative during

the year centered on providing quality

data for keeping passengers informed

and delivering a consistent experience

at every airport. Called SITA Day of

Travel Services, it aggregates airport

data and provides passengers with

up-to-date notifications for services

on the day of travel, along with

contextual location information. The

new community service is the de facto

global source for airport data.

Obtaining intelligence about passenger

flows is a primary goal for airports.

During 2014, SITA continued its

pioneering work in the area, laying

the groundwork for the new era of

BI and analytics with passenger

flow monitoring capabilities. These

offer insights into the movement of

passengers, staff and assets – as well

as queues and security checkpoints.

The result is rich data on passenger

flow, with displays of contextual

location-specific information that can

be provided to airport managers on

tablets and smartphones.

At the same time, working in

conjunction with the SITA Lab and

customers, 2014 was a year of testing

the market with a range of proximity

and wearable technologies as a means

of enhancing passenger movement and

processing. Projects included Miami

International Airport becoming the first

in the world with a complete and open

deployment of beacons, and a beacon

trial with American Airlines at Dallas

Fort Worth.

Earlier in the year, in collaboration

with Air France and Orange, SITA

trialed a self-service boarding solution

at Toulouse Airport using Near Field

Communication (NFC), as well as

undertaking an NFC trial at Schiphol

Airport. (See page 46, SITA Lab.)

SHOWING THE WAY As we move towards 2020, the

passenger experience will differ

significantly in three areas. First, there

will be a step-change in passenger

processing through customer

touchpoints. This will be enabled

by extensive self-service for all

processes and dynamic flexibility in the

assignment of self-service facilities

to airlines and airline groups to match

passenger flows.

Second, the use of biometrics and

the exchange of information within

and between government agencies

will support increased use of self-

service and electronic collection of

information. And third, the provision

of context-aware information to

passengers opting-in through their

smart devices, and supported by

extensive free airport Wi-Fi, will

include guidance information through

airline and airport cooperation.

This will require new and innovative

approaches, particularly in the design

and development of terminals and

airports. In this area, in 2014, SITA

evolved its Airport MSI (Master System

Integration) capabilities to provide the

required level of resources, through

the production, design, supply,

delivery, and integration of passenger

terminal IT and telecoms technology.

Azerbaijan’s state-owned airline and

airport operator Azerbaijan HAVA

Yollari – AZAL tasked SITA with

providing technology integration and

consulting for a new terminal at the

Baku Heydar Aliyev International

Airport. The aim was to make world

class IT services for passenger

processing and airport operations an

integral part of the infrastructure when

the terminal was completed in 2014.

New and innovative ways of working

are also reflected in SITA’s approach

to regional and small airports. The

2014 introduction of SITA’s Common-

Use in the Cloud brings a competitive

bundled cloud solution that includes all

required hardware, software, network

connectivity and remote support.

36 SITA | GROUP ACTIVITY REPORT 2014

“ SITA’s common-use has been a huge success for us and the airlines at the airport. We look forward to this continuing over the next five years.” Tony Smith, General Manager, Sharjah Aviation Services

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It was premiered by two German

airports: Allgäu Airport in southern

Bavaria and Sylt Airport, close to the

border with Denmark. Later in 2014,

Brisbane West Wellcamp Airport

signed up for AirportConnect Open’s

cloud-hosted CUTE system – again,

providing the same technology used

by the largest airports but with

the flexibility and cost structure

appropriate to a new regional airport.

More than 10 airports have now signed

up for SITA’s common-use cloud

approach – which supports Desk (CUTE/

CUPPS), Kiosks (CUSS), as well as all

other self-service touchpoints.

SITA is also building strength for the

future of the community in other ways,

among them the sponsorship of the

Airport Management Professional

Accreditation Programme, as well

as a scholarship program to help

talented young civil aviation students

in China with research on science and

technology related to the air

transport industry.

As airports change radically,

technology is enabling them to

better manage sometimes massive

ecosystems employing thousands of

staff and hosting hundreds of individual

businesses. As this change happens,

SITA continues to lead the way, working

with the air transport community as its

number one airport ICT provider.

37SITA | GROUP ACTIVITY REPORT 2014

With SITA AirportResource Manager “we now have a powerful, real-time planning tool which gives us the intelligence to make sure we have the right people, in the right place, at the right time, in a constantly changing environment.” Salman Saleh Al-Mahmeed, Acting CEO (September 2014), Bahrain Airport Services

LEADING THE WORLD

No.1 airport ICT provider. SITA delivers services in

1,000+ airports of all sizes across all continents,

including passenger processing, baggage and

operational management.

MAKING LIFE SIMPLER FOR PASSENGERS

1.3bn+ passengers checked in using SITA AirportConnect Open.

5,500 kiosks at 400+ airports provide 25% faster check-in, saving

US$2.50 per passenger with a 36% reduction in wait time.

60 passengers an hour can be processed by SITA Self BagDrop

compared to 24 at a normal counter.

50% less time needed with self-service boarding gates to board a

240-seat airliner. 800 self-boarding lanes managed by SITA in Europe.

BOOSTING AIRPORT OPERATIONS

150 airports use SITA Airport Management Solutions (AMS) for collaboration

and decision-making with real-time information.

20+ airports pioneering in new areas through SITA’s Business Intelligence,

with Passenger Flow Monitoring countering the fact that an extra 10 minutes

in security reduces average retail spend by 30%.

50 airports in the US use SITA AirportVision to provide lively

and accurate visual and audible information to passengers.

KEEPING BAGGAGE ON TRACK

2,800+ locations use WorldTracer – the world’s top baggage tracing network.

WorldTracer Kiosk saves up to 40 minutes in reporting lost baggage.

160 ground handlers use WorldTracer.

140+ airports use SITA’s BagManager. BagMessage processes 2.5bn+

baggage information messages a year, linking 500 airlines to 200+ airports.

BagJourney saves US$0.11 per passenger.

4040

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WELCOME TO THE NEW GENERATION In a world first and after the largest

software development program in

SITA’s history, the launch of Horizon

Passenger Services System (PSS)

delivers to airlines a new generation

approach which is unique in today’s

passenger market.

Through 2014 SITA’s Horizon continued

to prove its value in the air transport

community as a disruptive and

competitive choice for airlines of

all tiers. Providing a powerful, GDS

neutral, alliance compliant, third

generation PSS and distribution

platform, Horizon’s portfolio is today

used by more than 150 airlines to

process in excess of 137 million

passengers a year.

Horizon remains a cornerstone in

SITA’s passenger services business,

which embraces passenger

management, reservations,

e-commerce, fares, ancillary services

and more. It is a business seeing

increasing numbers as it boarded

some 137.5 million passengers and

checked in 167 million in 2014, a

growth over the previous year of

2.4% and 2.8% respectively.

The business sits in the vanguard

of one of the market’s most far

reaching evolutions in recent years:

disintermediation. Where airline

and passenger relationships were

once intermediated by third-party

distribution systems, airlines now

want more control, using best of breed

solutions to own passenger data and

relationships.

Equally, passengers want more control

over their own travel arrangements,

with growing numbers booking travel

requirements through airline websites

– and 68% of airlines selling tickets

direct to travelers through mobile

apps, according to SITA surveys.

Horizon enables this direct relationship,

giving neutral, modular and unbiased

access to every available channel and

supporting the airlines’ strategically

vital priorities for customer centricity,

ancillary revenues, merchandising,

new distribution capabilities and

business intelligence.

HORIZON SUCCESSDesigned on new generation principles,

Horizon’s success continued during the

year. It includes a powerful new ‘true

source’ model for critical PSS data and

enhanced reusable services for end-to-

end business processes. It is evolving

new look and feel touchpoints across

the full passenger journey, based on

architecture that delivers flexibility,

scalability and high performance.

Horizon’s infrastructure is built on

a flexible platform of core systems,

required for every airline through the

complete passenger management

process – including reservations,

ticketing, inventory management,

check-in and departure control.

The approach is proving increasingly

successful with customers. Horizon

contracts during the year included

Netherlands Antilles-based Winair

and Fly Jamaica, as well as a renewed

contract with one of Russia’s largest

carriers – Transaero, and a seven-

year agreement with Greek start up

airline Ellinair, hard on the heels of its

transformation from a charter airline

to full service carrier.

Ellinair’s cutover to SITA’s core PSS

suite included Reservations, Airfare,

Ticketing, and Departure Control.

In the meantime, a contract with

Taiwanese airline TransAsia Airways

demonstrated the value of Horizon to

low-cost carriers and hybrids. With

strong GDS distribution, TransAsia

adopted the full PSS suite, including

Chinese character support and

the ability to meet hybrid airline

requirements, including integration

with third-party vendors.

Another 2014 highlight was Horizon’s

key role in enabling Air India to meet

Star Alliance’s entry requirements –

making it the first Indian carrier to join

a global airline alliance.

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EVOLUTIONIt was a significant year as SITA

reshaped its Horizon portfolio

development strategy to enable a

blended adoption approach. This

allows customers to take advantage of

Horizon’s next generation functionality

as it becomes available, mixing it with

existing PSS services.

Introducing a swathe of new releases

to customers – such as Weight &

Balance, Customer Affinity and

Customer Journey – SITA met all

Horizon program objectives during the

year. Major new functionality added to

Horizon foundations included:

• Customer Profile, which enables

airlines to gain insights into

passenger experiences and provide

appropriate services, together

with increased automation and

enhanced revenue opportunities.

• Business Intelligence, which

provides improved insights into

commercial and operational

performance, available via desktop,

tablet or mobile and able to use

SITA Reservations Data feeds as

well as customer-defined feeds.

• Horizon Service Fees, which helps

increase revenues and provide a

seamless service by enabling the

core air fare to be separated from

other flight-related services, such

as lounge access. Meridiana Fly

was the first customer to go live

with the new service.

• Value-based AutomatedRe-Accommodation, which results

in improved customer service,

customer retention and improved

productivity.

SITA achieved another landmark with

the granting of a patent for Horizon

Inventory’s design approach. The

ultra-scalable system can handle

unprecedented traffic volumes from

online shopping tools, providing real-

time availability for each request.

Another 10 patent applications are

being progressed.

SITA is now bringing to market

additional capabilities in inventory

management, departure control and

merchandising, while continuing to roll

out to existing customers established

next generation solutions, such as

Weight & Balance.

“ SITA’s cutting-edge technology was instrumental in making Star Alliance membership possible. Our strategic partnership with SITA will go a long way in helping us become a strong global player.” Rohit Nandan, Chairman and Managing Director, Air India

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40

MOBILE TRAVELIt was another important year for

mobile travel in SITA, with the upgrade

of iTravel® for airline and ground

handler customers. It now allows

airlines to implement passenger

booking and check-in apps for Apple

and Android phones and a web app for

use on other mobile devices.

iTravel® gives travelers quick and

secure access to shopping, booking,

check-in, flight and airline information,

and loyalty functionality. It provides

valuable business intelligence on

customer behavior and value to the

airline, giving airlines opportunities to

connect with passengers and increase

ancillary revenues. Based on a SITA

Application Programming Interface

(API), SITA handles updates and

compliance, such as ensuring boarding

passes are IATA and TSA compliant.

INNOVATIVE FARES More advances came with Horizon’s

fares management product, Airfare

Insight, which enables strategic pricing,

competitive monitoring and pricing

responses to competitor activity.

Successful implementation of Airfare

Insight at Philippine Airlines late

in 2014 marked the seventh major

international airline in Asia to introduce

SITA’s innovative fares management

capability. It means that almost 40% of

all passengers within Asia are carried

by airlines now using fares managed by

Airfare Insight.

Other airlines in the region include

Cathay Pacific, Singapore Airlines,

Garuda and Emirates. Talks in 2014

led to Qantas being announced in

early 2015 as the launch customer

for Airfare Insight’s new Tax Module.

Outside of Asia, Airfare Insight

customers include British Airways and

Virgin Atlantic.

LOOKING AHEAD Looking ahead, customers will

continue to steer the evolution of SITA’s

passenger services portfolio, to make

sure it provides the best value to the air

transport community. A prime example,

SITA’s Horizon Working Group provides

in-depth customer feedback ranging

from concept to final product. Active

sub-working groups explore specific

areas, such as Horizon Inventory and

Schedules, which met in 2014.

SITA continues to work with the

community as an active contributor

to IATA’s New Distribution Capability

(NDC) initiative, including integrating

the program into the Horizon portfolio.

IATA’s NDC will enable the travel

industry to transform the way air

products are retailed.

With SITA’s passenger services

delivering significant value to airlines

and ground handlers worldwide,

SITA remains in the driving seat of

this transformation – well positioned

to meet the community’s passenger

services needs for the next generation.

“ As our customers increasingly use mobile phones, tablets and other devices, we need to be flexible so we can deploy our services via any channel and adapt to changing market needs. Horizon will provide this flexibility.” Ioannis Mouzenidis, CEO, Ellinair

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8thHorizon Working

Group meeting took

place in 2014, with

40 participants,

14 airlines, and 3

ground handlers.

30Expert participants in

the DCS and Weight &

Balance sub-group on

Inventory and Schedules.

16 workshops and

reviews with individual

customers.

COMMUNITY ENGAGEMENT

156ME-tickets issued,

3m bookings via

e-Commerce (2014).

40%Of all passengers

within Asia are carried

by airlines now using

fares managed by

SITA’s Airfare Insight.

POPULAR PASSENGER SERVICES

No.1SITA’s Horizon is the world’s first

third generation Passenger

Services System.

WORLD FIRST

137.5MPassengers boarded

(2.4% growth vs 2013).

167MPassengers checked-in

(2.8% growth vs 2013).

150+Airlines use SITA’s

passenger solutions.

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LEADING FROM THE FRONT SITA continues to lead the world in

providing safe and secure border

intelligence, ensuring enhanced

security and passenger facilitation

for governments, airlines and

airports in all corners of the globe.

That leadership builds on years of

experience and expertise in delivering

effective and cost-efficient border

control technology, based on the

knowledge accumulated since

introducing the first electronic visa

system in 1996 for Australia’s 2000

Sydney Olympic Games.

Today – be it for risk assessment,

risk traveler targeting, pre-travel

authorization, identity assurance or

more – SITA’s border intelligence

solutions have been embraced by 27

countries: not only for major sporting

events and occasions that drive huge

peaks in passenger traffic, but also to

ensure optimum national security and

smooth facilitation all year round. Added

to that, more than 100 airlines now

use or are connected to SITA’s border

management solutions, with SITA’s

Government business handling more

than 300 million passengers a year.

Consolidating this industry leadership

during 2014, SITA’s Government

business built on its spectacular

growth record with another year

of impressive expansion backed by

significant new contracts and delivery

successes in all regions.

New contracts during the year included

a comprehensive set of border services

for the governments of Myanmar and

Sri Lanka.

Throughout the year, work also took

place on another major customer

deployment of border systems for

the Government of Oman, with an

announcement following in early 2015.

With expatriates making up almost

half of the country’s population, all

requiring visas, and with an investment

program targeting 12 million visitors to

the country by 2020, Oman’s iBorders

solution includes risk assessment of

traveler data from airlines and cruise

companies, pre-travel authorization,

immigration checkpoint controls,

an e-Visa solution and a centralized

Visitor Information System.

BALANCE AND HARMONY Any border management solution must

strike a delicate balance between

security, ease of use and convenience

for passengers and budget constraints.

Another factor is the rapid growth of

demand in air travel – over the next

18 years, passenger numbers are

expected to grow from 2.9bn in 2012 to

6.7bn in 2032, with the passenger fleet

doubling from 16,094 to 33,651 aircraft.

In this environment, mitigating risk

while ensuring delivery, reliability,

value for money and adaptability are of

paramount importance. So too is the

task of identifying high-risk travelers

at the same time as speeding up

processing for the low-risk majority. To

smooth the process, SITA continues to

play a community role in harmonizing

the needs of governments with those of

the air transport community through a

transparent and neutral process.

The role involves close collaboration

with industry specialists and

governments, facilitating cross-

communication and cooperation among

industry players. It also demands

active engagement in industry and

standard setting bodies and their

working groups, such as IATA and AEA.

RAPID EVOLUTIONSITA’s iBorders® portfolio is constantly

evolving to ensure the balance of

enhanced security and passenger

facilitation for the world’s governments

and air transport industry. Today, it

provides a complete set of capabilities

to transform border security and

facilitate travel through information,

intelligence, optimized interaction with

travelers and comprehensive insight

to enhance every aspect of a country’s

border operations.

A major 2013-15 portfolio development

program has seen the rapid

introduction of nine new products:

eight during 2014 and the ninth

(iBorders® BorderPerformance) in

2015. The new capabilities introduced

in 2014 include iBorders® EntryExit

for the manual processing of travelers

at the air, sea and land border; along

with iBorders® RiskManagement

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for risk assessment and iBorders®

IdentityAssurance to verify and

manage identities.

At the same time, SITA is seeing major

interest in self-service at the border,

owing to the industry-wide drive for

the use of new technology to reduce

costs while enhancing the end-to-end

passenger journey.

On the back of a strong year for its

Automated Border Control (ABC) and

Automated Passport Control (APC)

solutions, SITA anticipates further

expansion of its self-service border

gates and kiosks customer base.

SITA’s iBorders® BorderAutomation

ABCGates and ABCKiosks speed

up border crossings for travelers

presenting biometric travel documents,

freeing up skilled resources to focus

on higher-risk passengers.

APC is the US-specific directive to

introduce automated passport control

kiosks, which has seen SITA’s self-

service border solutions embraced by

many of the country’s airports.

By the end of 2014, 280 Automated

Passport Control Kiosks had been

installed in 10 airports, delivering up to

a four-fold improvement in throughput.

Across the board, customer response

has been positive.

At Miami International Airport success

with the kiosks is bringing further

usage. Automated Passport Control

Kiosks also went live during 2014 at

JetBlue’s new international arrivals

hall extension in Terminal 5 at JFK

International Airport.

Countries operating visa waiver

programs with the US have been

attracted by the ease of use of the

kiosks – including Abu Dhabi Airports,

where Etihad Airways noted the

popularity among travelers of arriving

in the US as domestic passengers.

Meanwhile, a number of customers

signed up for SITA’s iBorders®

BorderAutomation ABCGates – which

have been delivering 97%-plus success

rates in an average biometric match

time of 2.6 seconds. The gates have

been installed in Rome’s Fiumicino

International Airport, handling

more than 3,000 passengers a day.

In addition, airports in Kingston

and Montego Bay in Jamaica

became the first to use iBorders®

BorderAutomation ABCKiosks, with

throughput expected to increase by

some 60%.

“ Working with CBP and SITA we have put together the AUTOMATED passport control program using the kiosks in Orlando. It has been a resounding success and we have seen significant improvements in being able to process our passengers through the federal inspection station.” John Vinelli, Manager of IT Projects, Greater Orlando Aviation Authority

43SITA | GROUP ACTIVITY REPORT 2014

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ADVANCESSITA’s iBorders® portfolio is

seeing further expansion in 2015

with the introduction of advanced

search and analytics, mobile alert

management, integration with Interpol,

mobile passport control, a border

performance dashboard on the flow of

travelers and a dedicated government

contact center.

At the same time, further advances in

SITA’s automation solutions will make

border control increasingly smarter,

quicker and more cost-effective by

allowing low-risk passengers to

process themselves, giving ever-

stretched security resources the time

to focus on high-risk cases.

It includes continued innovation with

the next phase of the APC program,

with SITA as pilot vendor for the

introduction of facial recognition

and matching testing at Orlando

International Airport. This is a

precursor to the development and

implementation of Phase 4 APC, which

will support all remaining visitors

with visas using Automated Passport

Control kiosks.

Initiatives will include investment in

entry level border management to

meet smaller nations’ requirements,

and the integration of identity

management solutions into SITA’s

airport self-service applications.

One focus area is increased security

around transfer/transit passengers and

acquisition of a photo-based biometric

of all passengers boarding a plane.

Another is electronic landing cards

– indeed any form of declaration to

governments such as visa-on-arrival.

This is an attractive proposition for

passengers, airlines and security staff

alike. Landing card data is handled

manually on arrival, yet completing

cards electronically in flight would

make information available for pre-

arrival risk assessment, which also

permits greater use of self-service

without compromising security.

Further preparatory work is being

pursued with pilot schemes expected

in the near future.

LOOKING AHEADOver the next three years, SITA’s

border security strategy will enable

increasingly intelligent and automated

border management operations. This

includes a continuous focus on risk

assessment, risk traveler targeting and

identity assurance – as well as simpler

government border management and

operations, along with a better traveler

experience with integrated biometric

and biographic data.

The focus will maintain SITA’s

leadership in border management,

where, for around 20 years, SITA

has delivered an innovative portfolio

to balance the requirements of

governments with those of the air

transport community.

44 SITA | GROUP ACTIVITY REPORT 2014

“ SITA has delivered an impressive product and equally impressive results to Miami International Airport with their Automated Passport Control Kiosks. APC technology has been key in helping us to move more passengers more smoothly through America’s second-busiest port of entry.” Emilio T. González, Director, Miami-Dade Aviation Department

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45SITA | GROUP ACTIVITY REPORT 2014

“ With SITA we had the confidence to offer this self-service to all passengers, and not just those who enrol in a trusted traveler program.”Jennifer McDonald, CEO, Passport, Immigration and Citizenship Agency, Jamaica (using

SITA’s new Automated Border Control Kiosks)

MAKING THE WORLD A SAFER PLACE60%of G20 members use

SITA iBorders®.

100+airlines connected to SITA

iBorders® to supply traveler data

to border agencies globally.

300m+passengers handled every year by

iBorders®.

192mtravelers a year are processed by

governments using iBorders®

Intelligence.

500m+traveler data records processed

each year using iBorders®

Information.

2000Sydney Olympic Games began

SITA’s journey as the border

management partner with host

countries for major sporting and

other events, including Olympics

2004, 2008, 2014 and FIFA World

Cup 2010 and 2014.

TIME FOR SMARTERBORDERS45-90seconds, the time it takes

Automated Passport Control

Kiosks at Miami International

Airport to process a passenger.

3,000 passengers a day cleared in

Rome by SITA ABCGates using

facial recognition and passports.

1:5One border officer can manage

5 iBorders BorderAutomation

ABCKiosks from an immigration

counter.

92%of eligible travelers successfully

processed in fewer than 10

seconds with no operator

intervention using SITA

biometric gates.

40%reduction in wait times possible

for users of SITA Automated

Passport Control Kiosks.

WORLD’S PIONEERING LEADERNo.1 Provider of border security

applications and service, and

the world’s pioneering leader of

border intelligence solutions.

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COLLABORATIVE INNOVATION FOR AIR TRANSPORTAs the company’s strategic technology

research arm, SITA Lab stimulates

innovation with and for the air

transport industry, helping to bring

emerging technologies into SITA’s

portfolio. Described in the media as the

‘Google X of the air transport industry’,

SITA Lab innovates collaboratively

with airlines, airports and technology

specialists around the world.

The Lab had another outstanding year,

with a range of innovations moving

from first idea through incubation and

trial to full portfolio adoption.

Its achievements were recognized at

the 2014 Future Travel Experience

Global in Las Vegas when two

collaborative Lab projects were among

nine to win awards: the Best Passenger

Assistance Initiative for Virgin

Atlantic’s Google Glass project; and the

Best Mobile Technology Initiative for

American Airlines’ beacon deployment

at Dallas Forth Worth Airport.

Another accolade came for Virgin’s

Glass initiative at the leading

conference for wearable technology,

The Wearables 2014, accompanied by

extensive global publicity.

END-TO-END JOURNEYThroughout 2014, the SITA Lab’s

innovations with customers and

partners took place across the entire

journey, aligning with SITA’s focus

on transforming the full end-to-end

passenger experience, exploiting

connectivity every step of the way.

The focus takes in new and emerging

technologies right from travel research

and booking, through to arrivals and

departures. It embraces mobility and

rising proximity capabilities at the

airport as they promise to provide

increasing data, intelligence and

passenger flow capabilities, and as they

form an integral part of the nascent

Internet of Things, where people,

assets, equipment and anything else

that can benefit from a connection will

have one.

MOBILE MOVESWithin this increasingly connected

environment, the SITA Lab continued

development work on Application

Programming Interfaces (APIs) to

enable the air transport industry

to transform the travel experience,

through its www.developer.aero

website. They included SITA’s

new BagJourney API for baggage

tracking, along with use of SITA’s

Mobile Boarding Pass API on Sony

SmartWatch.

Among the initiatives were joint

developments, with SITA’s Passenger

business, of the iTravel® API, iTravel®

Mobile and web applications. iTravel®

enables airlines to engage directly with

passengers, while empowering them

to take control across the journey,

tackling key steps along the way.

Work in 2014 included a new full

HTML-5 version of the iTravel® web

application, enabling a near-native

experience without the need to

download an application.

WEARABLES SMOOTHTHE WAYSetting out on the journey remained

an area of focus, following the success

of Virgin Atlantic’s wearables pilot

project – where passengers arriving

at London Heathrow Airport were

greeted by concierges informed of

their travel details by Google Glass and

Sony SmartWatch technology. Further

piloting continued with Copenhagen

Airport to deploy Glass for customer

service staff, with results proving their

value in enhancing traveler satisfaction.

Meanwhile, the SITA Lab continued

to work on passport scanning

with devices from Vuzix, which are

ruggedized versions of Google Glass

with better optics. The Lab also

continues to explore optical character

recognition for passport machine

readable zones using a tablet or phone

camera, which will remove the need for

dedicated passport readers.

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BEACONS AT THE AIRPORTAt the airport, SITA Lab has stayed

at the forefront of emerging location

tools, adding another technology to the

location armory with Bluetooth Low

Energy (BLE) devices called beacons,

which emit a signal over a radius of

2-75 meters.

Location tools lay the groundwork for

exploiting data and transforming it

into intelligence to be used across the

airport, impacting passenger flow and

communication. That can include data

generated by any devices connected to

sensors, and using data to control and

optimize the use of those devices.

In air transport, the potential

is huge. As evidenced in 2014,

beacon technology promises more

personalized communications to

passengers. Combined with an app it

can trigger context-relevant messages

or actions on a smartphone at specific

locations – such as a welcome

message and flight status update

as the passenger enters an airport

lounge, or the automatic presentation

of a mobile boarding pass on a

passenger’s phone screen when they

reach a control point.

Pioneering SITA Lab beacon trials

in 2014 are helping to point the way

forward. They involved several airlines

and airports, including American

Airlines at Dallas Fort Worth Airport,

as well as Copenhagen and Heathrow

Airports. A major beacon deployment

across Miami International Airport was

implemented too, in addition to proof

of concept deployments at Geneva and

Singapore Airports.

It became evident during the year

that beacon deployment needed to be

consistent and controlled, which led to

launching the SITA Beacon Registry – a

single point of contact for common-use

beacons around the world. It offers a

cost-effective shared infrastructure

and avoids multiple airlines installing

separate beacons at shared gates. SITA

is proposing the model whereby the air

transport community via IATA and ACI

takes over governance.

By the end of Q1 2015, 22 airports and

airlines had deployed beacons using

the SITA common-use approach and

another dozen airlines and airports

were in discussion to join the initiative.

“ Beacons provide a fantastic opportunity to improve the passenger experience, but to do so they must be consistently deployed at all airports. Using SITA’s Registry will enable us to provide the same great user experience to our passengers using our app in airports not just in North America, but across our global route network.” Phil Easter, Director of Mobile Apps, American Airlines

47SITA | GROUP ACTIVITY REPORT 2014

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BOARDING WITH NFC In another advance at the airport,

the SITA Lab led the community in

exploring the potential of Near Field

Communication (NFC). Together

with Orange Business Services,

as well as SITA’s own Airports and

Communications & Infrastructure

teams, the Lab completed a number

of trials and initiatives, building on

several years of NFC experience.

A six-month trial ended in December

2014 at Toulouse-Blagnac Airport, in

partnership with Air France KLM, to

offer NFC boarding passes. Altogether

32 gates were equipped with NFC

readers and previously invited AF/

KLM Gold and Platinum passengers

were able to board with a fully IATA-

compliant NFC boarding pass.

The SITA Lab also demonstrated how

the NFC boarding pass can be deployed

in a new approach promoted by Google

(HCE: Host Card Emulation). This

enables the NFC boarding pass to be

stored in phone software, removing

dependency on mobile operators or

mobile handset manufacturers.

As predicted by SITA CTO Jim Peters

in 2013, Apple has now included NFC

technology in its mobiles, the iPhone

6 and 6+. SITA has submitted its

proposed air transport industry NFC

standard to Apple, for consideration

if and when Apple opens NFC to

transport/ticketing use cases.

Meanwhile, SITA is working with

Access-IS and DESKO to certify their

NFC readers on the CUPPS platform.

TABLETS IN TRAVELThe use of tablets across the journey

is advancing rapidly. CrewTablet was

fully transitioned out of the Lab into the

SITA portfolio (see page 31). SITA Lab

continued to support the product via the

development of a payment module and

integration of IFE controls. Then, after

successful trials with ground handlers

in Europe and Asia, WorldTracer on

Tablet was moved to SITA’s portfolio for

commercial launch in 2015.

SITA Lab has also been working with

SATS, TigerAir and at Singapore Changi

Airport to explore a common-use

tablet check-in for agents, with lessons

learned from the trial feeding into the

product roadmap.

FUTURE INNOVATIONSITA Lab will continue to pioneer

innovations and drive ‘co-ideation’

– working collaboratively with air

transport’s ecosystem of customers,

technology partners, SITA solution

lines and other players.

Projects now underway include

wearable technology for biometric

authentication (to encompass trialing a

single travel token based on wearable

biometrics), smart glasses and smart

watches for ground staff, the feasibility

of an autonomous robot for airport

operations, and an autonomous

drone project.

As always, the focus stays sharply on

areas where new technologies address

community needs for better process

efficiencies and service differentiation.

“ Feedback from our passengers and service team has been overwhelmingly positive. We found Google Glass very easy to use and more user-friendly than other devices such as tablets. Our managers are not focusing on a screen and can engage better with our passengers.” Marie-Louise Lotz, Director of Customer Care, Copenhagen Airport

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1st in the world to provide

complete and open

deployment of beacons

was Miami International

Airport.

1st For Best Passenger

Assistance Initiative (Virgin

Atlantic Google Glass

project) and Best Mobile

Technology Initiative

(American Airlines’ beacon

deployment). Virgin’s

project also won an award

at The Wearables 2014. 1st in the world to use Google

Glass to help concierges

welcome customers was

Virgin Atlantic.12airports deployed common-

use beacons and used SITA’s

Beacon Registry by end 2014.

The registry defines standard

data sets and beacon types to

be positioned at airport gates,

retail areas and checkpoints.

220airports and 500 airlines use

BagMessage, whose 2.5bn data

messages about baggage

location are now available via

the API for BagJourney, so that

developers can start building

innovative applications with

baggage location data built in.

92%of passengers would like

notifications to their mobiles

in the event of disruption, as

enabled by SITA’s APIs.

Working with beacons,

airports can give passengers

queuing time, flight status,

gate number, time to gate

and more.

6months was the period for a

trial of NFC boarding passes

at Toulouse-Blagnac Airport,

in partnership with Air France

KLM. In the US, NFC was

tested with a major US airline

and US mobile operator for

lounge entry.

10(approx) Application

Programming Interfaces

(APIs) available through SITA

Lab's www.developer.aero

website, including SITA’s new

BagJourney API for baggage

tracking, along with use of

SITA’s Mobile Boarding Pass

API on Sony SmartWatch.

51,260mobile boarding passes

issued in one day for 8

airlines using SITA’s

Boarding Pass API on

www.developer.aero

(peak volume in 2014).

49SITA | GROUP ACTIVITY REPORT 2014

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50 SITA | GROUP ACTIVITY REPORT 2014

THE COMMUNITY’SSERVICE ASSETWith the air transport industry’s

increasing dependence on an always-

connected ecosystem, availability

and reliability have never been so

critical, making information and

communications infrastructure more

strategic than ever. Through continuous

investment and a commitment to the

principle of ‘service excellence every

time’, SITA Global Services (SGS) is

proving to be a unique community

asset, differentiating SITA in the air

transport industry.

Today, as a unified global customer

service organization, SGS supports

2,800 customers around the clock,

fielding more than 2,000 dedicated

aviation IT specialists and engineers

located in about 140 countries.

Providing secure, managed multi-

vendor services across the entire SITA

portfolio and beyond, it is evolving as a

world class managed service business

with an unrivalled focus on airports,

where air transport players interact.

EXCELLENCEIn 2014, SGS continued to improve

service quality and availability on the

back of multi-million dollar investments

over recent years in Command Centers,

Next Generation Data Centers and

Service Desks. These investments

have given SITA the ability to provide

high levels of availability to keep the air

transport community up and running.

The 2014 results speak for themselves,

evidenced by a drop in major incidents

of 33% over the year, a drop in major

incident hours of 38%, and achievement

of service availability targets for all 23

SITA core applications supported.

The aim is to place SITA in ’pace-setter’

and high performer categories for

measures of operational performance

and customer satisfaction, productivity

and value for money, and services

growth. In 2014, SITA recorded the best

ever customer satisfaction score of

4.10, with 98.4% of customers satisfied

with SITA services, and a Net Promoter

Score of 59%. This maintains SITA’s

position firmly in the top quartile among

IT service organizations globally.

WORLD CLASSThe successful piloting in 2014 of a

breakthrough world class Airport

Support Model will enable SITA to offer

increased value to customers through

support and service management of

more of their IT infrastructure.

This includes deployment of IT to

improve availability, performance and

recovery, with better industrialized

processes for system administration,

remote support capabilities, mobile

system access for field engineers,

and service desk first call resolution.

Roll-out to airport customers included

the introduction of Airport Service

Managers at 18 airports by the end of

2014 as the single customer-facing

owner of SITA services.

The Airport Service Managers carry

operational responsibility for all SITA

products and services within the

airport, removing any fragmented

support arrangements that may evolve

over time between parties. SITA field

engineers have access to SITA tools via a

smartphone app, enabling them to open,

update and resolve issues remotely.

With the major components of the

Airport Support Model in place, roll-

out is continuing at more airports,

transforming services and combining

local presence with global capability.

TRANSFORMATIONBuilding on the success of the new

Airport Support Model, SITA’s Network

Support Model began to transition

during 2014 to a multi-vendor telecoms

solution for network customers.

Support models for SITA’s Government

and Passenger portfolios are following.

The service model evolution

constitutes a far reaching

Transformation Program in customer

service. This is driving investment

in a strategy that measures activity

against five dimensions: customer

experience, operational excellence,

elevated efficiency, service expansion

and capability enhancement.

In addition to transforming service

capabilities, the program will increase

customer value through a broader

range of managed services that

constitute an evolving Service Catalog.

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51SITA | GROUP ACTIVITY REPORT 2014

Highlights from the program include

certification of SITA’s Best Practice

Processes; more community value

through an expanded service portfolio;

and the increasing use of analytics to

drive more efficiencies.

Also high on the agenda is people

development under the framework

of an ‘SGS Academy’, as well as

investment in technology in areas

such as outage prevention, proactive

detection, remote fix and leveraging

knowledge management.

CONTINUOUS IMPROVEMENTLooking ahead, improvements will

be continuous. The completed data

centers are now under the remit of

SGS to provide single accountability

for end-to-end service delivery and

quality. This aligns with SITA’s end-to-

end passenger experience strategy.

Combined with the creation of an

Availability Practice, it will enable

further improvements in service

availability, performance and recovery,

each of which is a critical component of

operational service quality.

The strategic initiatives include

introducing the concept of Customer

Effort, to better understand the service

experienced by customers, backed by

measures for key service interactions.

This will make it easier and simpler to

use SITA services, building further on

the core purpose of delivering service

excellence that adds value to the air

transport community.

UNIQUE VALUE TO THE COMMUNITY

1 global service organization

focused on air travel’s ‘always-on’

environment, providing global scale

and local service.

2,000+ aviation IT specialists

and field engineers available in 140

countries, speaking 60 languages,

supporting 2,800 customers, and

100% dedicated to the air transport

community 24/7.

SCALE OF OPERATION

2 Command Centers.

4 Next Generation Data Centers.

211 applications and 3,400

servers handled by the Atlanta and

London data centers.

35,000 workstations and 2,000

kiosks supported at 360 CUTE

airports. 2bn baggage portfolio

messages and 500m transactions

supported annually.

A WORLD CLASS SERVICE MODEL

18 Airport Service Managers

appointed and rising.

500 field engineers using mobile

service management technology.

135+ airports moved to a new

24/7 support model.

STRIVING FORSERVICE EXCELLENCE

98.4% customer satisfaction.

59% Net Promoter Score.

69% of major incidents detected by

command centers before they impact

customer services.

76% of incidents resolved in less

than 2 hours.

50% reduction in downtime by data

centers. 80% reduction of downtime

hours in the last 3 years.

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THINKING GLOBALLYAND LOCALLY As a global business, SITA employs

around 4,500 people in more than

135 countries and nearly 370

sites worldwide, representing 140

nationalities and speaking over 60

languages.

This geographical spread, combined

with on-the-ground skills and

expertise, means that SITA’s people

think both globally and locally – an

invaluable asset for the world’s air

transport industry.

CUSTOMER FACINGAs an organization with mission-

critical responsibilities for most of the

world’s airlines and airports, nearly

half of SITA’s people are in customer-

facing roles. A further third are directly

involved in the design, development

and deployment of solutions and

services for their customers.

BEST PEOPLE SITA’s people plan is focused on

attracting and retaining the best talent,

developing leadership and professional

skills at all levels in the organization,

and putting into place performance and

reward practices that motivate people

to be at their best for customers.

ATTRACTING TALENTIn the fast moving air transport and IT

industries, the right talent is crucial.

SITA continues to build workforce

planning capabilities to anticipate the

future skill requirements to achieve

its strategy.

In 2014 SITA’s HR team launched a

major initiative to build a best-in-

class talent acquisition function able

to attract, source and retain the best

talent in the market.

Of all the roles filled across SITA

during the year a third were taken by

existing employees. This commitment

to career progression is central to

SITA’s employer brand, providing

a compelling proposition in an

increasingly competitive marketplace.

LEADERSHIP AND DEVELOPMENTIn addition to acquiring new skills,

SITA continues to build the skills

of its existing workforce. This is a

fundamental part of SITA’s strategy and

business plan. It involves accelerating

and broadening leadership, technical

and functional development of people

at all levels in the organization.

In 2014, management and leadership

development were enhanced, with

a third of all managers and leaders

taking part in one of the development

programs. SITA’s HR team also

implemented more robust talent and

succession management practices.

Continued investment took place in

the development of technical and

functional skills aligned with business

drivers. Examples include Sales

Excellence, the SITA Global Services

Academy, SQACE (software quality

assurance), Product and Project

Management, certification programs,

and centers of expertise.

52 SITA | GROUP ACTIVITY REPORT 2014

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PERFORMANCE AND REWARD Results from SITA’s 2014 annual

employee survey show a positive trend

with engagement figures improving

year on year. Leaders and managers

have put in place actions to address

feedback. Encouragingly the survey

results show significant gains on

external benchmarks.

Throughout the year, HR partnered

with leaders and managers to

improve performance management

practices. Along with more robust

objective setting, the HR team

delivered a comprehensive program

of performance and reward manager

education.

Topics included effective performance

conversations, understanding

objectives, assessing overall

performance, effective reward

decisions, and communicating about

reward. Over 70% of managers took

part in these sessions.

SITA has a pay-for-performance

culture that differentiates employee

rewards relative to overall individual

performance. Over the past year

SITA has made significant investment

in employee reward, reflecting

a commitment to competitive

remuneration in markets where the

company operates.

53SITA | GROUP ACTIVITY REPORT 2014

4,500People employed by SITA in more than 135 countries and nearly 370 sites worldwide.

140 nationalities

represented, with

SITA staff speaking

over 60 languages.

>40% of SITA's staff work

in customer service

and support (SITA

Global Services).

46% of staff in Service Management 17% Technical Development

8% Project Management

7% Customer Solutions

32% of staff based in the Americas

14% Asia Pacific

36% Europe

18% Middle East, India and Africa

Nearly half of SITA’s staff are in customer-facing roles.

A third of SITA’s staff are directly involved in the design, development and deployment of solutions and services for customers.

>800Roles were filled

across SITA during

the year.

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54 SITA | GROUP ACTIVITY REPORT 2014

CSR IN ACTIONSITA continued its commitment to

corporate social responsibility (CSR)

throughout the year with actions in the

three core areas of its CSR strategy:

integrating CSR into the business,

managing SITA’s environmental impact,

and providing value to its communities.

ENVIRONMENTAL IMPACTA key focus was ISO 14001 adoption

(Environmental Management Systems)

across major sites. Environmental

management encompasses policy,

planning, implementation and

operations, checking, and management

review and commitment.

The culmination of an 18 month

program, ISO 14001 was implemented

in the five largest employee sites, with

three locations certified in 2014 and

two in early 2015. In addition, SITA’s

Rome office renewed its certified

status. This means that 45% of

employees are now based in locations

where this certification has been

successfully implemented.

TRACKINGThe overall environmental impacts of

the organization have been tracked

over a number of years, and data is

available for 77% of the office-based

employee population.

A decline in both energy intensity and

emissions intensity ratios has now

been seen since 2011. While decreases

in scope 2 emissions have been

reported, an increase of 8.6% in scope

3 emissions has been noted. This is as

a result of business travel, and reflects

the nature of SITA’s operations in the

air transport industry.

As a global business supporting

customers in around 200 countries,

the use of air travel is necessary. SITA

does, however, encourage the use of

technologies such as videoconferencing

through dedicated facilities, or via the

desktop. Usage has remained strong.

CSR IN THE BUSINESS As well as adoption of the ISO 14001

standard, 2014 saw the renewal of

SITA’s commitment to the United

Nations Global Compact (UNGC)

framework by the company’s CEO,

Francesco Violante. The 10 principles

of the UNGC continue to help the

business assess its operations and

define future strategy in the areas of

anti-corruption, labor, human rights

and the environment.

In addition, SITA signed the UNGC Call

to Action on Anti-corruption: 93% of the

workforce required to undergo anti-

corruption and training have completed

it, with the remainder scheduled in

early 2015.

SITA issued its first corporate

environment policy in September,

outlining the expectations of the

business on its employees. This joins a

number of corporate level policies that

address areas related to CSR.

PROCUREMENT A training course on responsive

procurement and the UNGC principles

was developed and released onto the

company’s e-learning platform, and

made mandatory for all procurement

employees. Year-end saw a 100%

completion rate, with a number of other

employees also participating.

Work was also undertaken in

identifying countries with a high level

of risk, and a supplier self-certification

program initiated. A target of 20

companies to self-certify was set

for the year, and by December, 33

companies had successfully been

through the process.

In October the company was pleased

to receive an Oracle Excellence Award

for Sustainability Innovation for the

implementation of SITA’s Strategic

Finance System. As well as recognizing

SITA’s overall commitment to

environmental management, the award

acknowledged the environmental

benefits of the finance system through

server reduction and digital invoicing.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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55SITA | GROUP ACTIVITY REPORT 2014

VALUE FOR COMMUNITIESMany of SITA’s employees took the

opportunity to use their paid Value

in Volunteer Action (VIVA) day during

2014, undertaking a diverse range of

activities to support ventures in their

local communities.

Help was given to a variety of charities

tackling poverty and homelessness,

supporting children, families and the

elderly, and environmental projects.

In addition, employees raised funds

across the globe to provide essential

items to charities in need.

SITA’s focus on supporting education

continued with programs in

Letterkenny, Ireland, that saw children

and students benefit from visits and

internships with the local office.

In May, SITA established a new

scholarship at the Civil Aviation

University of China to help talented

young civil aviation students to focus

their study and research on science

and technology related to the air

transport industry.

In South Africa, the company

implemented its third computer lab for

students, this time at Zitikeni secondary

school. In addition, nine students

graduated from SITA’s Another Level

initiative in 2014 – a program that runs

each year to support young people from

disadvantaged backgrounds through

technical training and workplace

experience to gain IT skills.

A NEW FOUNDATIONIn 2014, the SITA Council ratified a new

initiative called the SITA Air Transport

Community Foundation. Governed by

the Council, and jointly funded by SITA

and its members, the Foundation will

work with selected charities to deliver

educational programs and technology.

The initial focus is in Africa with

the provision of computer suites at

schools in Ethiopia and Uganda, and

educational grants at a university

in South Africa. In its first year the

Foundation hopes to improve the

educational life of more than 10,000

students and facilitate training for

around 100 teachers.

The investment by the Foundation

will support student development in

science, technology, engineering and

mathematics (STEM) education.

SUPPORTING THE AIR TRANSPORT COMMUNITYA number of SITA’s products and

solutions contribute to efficiencies

in areas such as fuel consumption

and paper use. For example, SITA’s

Weight & Balance tool can ensure

optimal loading and fuel consumption,

while FMS Wind Uplink adjusts flight

plans according to changing wind

and weather conditions, enabling the

aircraft to use fuel effectively.

The reductions in fuel use mean fewer

emissions, and that can help airlines

with their own sustainability goals.

Likewise, the use of tablets in the

cockpit and the cabin reduces the

amount of paper required for charts,

documents and passenger information.

Each year, SITA’s customer satisfaction

is measured in a number of areas,

including CSR. The percentage of

customers who believe that SITA is a

corporately and socially responsible

organization reached a high in 2014,

with 93% in agreement.

Further information can be found in

SITA’s CSR Report.

“ Thanks to SITA’s Value In Volunteer Action (VIVA) we get to contribute to great causes and meet great people.”Karima Bertin, SITA Paris

12.1% REDUCTION IN SCOPE 2 EMISSIONS INTENSITY SINCE 2011 (TONNES CO2E/SQM)

9.6% REDUCTION IN ENERGY INTENSITY SINCE 2011 (KWH/SQM)

297VOLUNTEER DAYSTAKEN IN 2014

93%OF SITA’S CUSTOMERS BELIEVE SITA IS A CORPORATELY AND SOCIALLY RESPONSIBLE BUSINESS

45%OF SITA EMPLOYEES ARE BASED IN OFFICES CERTIFIED TO ISO 14001

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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CONNECTIVITY FOR PASSENGERS AND AIRCRAFT In a market leading move, OnAir and

SITA embarked on a milestone initiative

to develop operational solutions for the

connected aircraft. It culminated, at the

beginning of 2015, with the formation

of a new business organization – SITA

OnAir. The new organization combines

OnAir’s leadership and expertise in

passenger in-flight solutions with

SITA’s Aircraft business, which

leads the world in air-to-ground

communications (AIRCOM®).

With the air transport community

needing to make the right decisions

on aircraft connectivity, the new

business offers a ‘nose-to-tail’ value

proposition to help airlines, air framers,

manufacturers and equipment suppliers

make one of the most important

industry transformations in decades.

ONAIR: LEADERSOnAir went from strength to strength

in 2014, with its in-flight connectivity

services for passengers being used

by more airlines than those of any

other provider, and a growing number

of successes around the world

underlining the company’s clear

market leadership.

Looking at OnAir’s passenger business

during 2014, the signs for the future

are positive, as mobile phones and

Wi-Fi are proving to be as popular

during flights as they are in everyday

life. In 2014, 13 million passengers

used OnAir’s in-flight mobile phone

service – double the previous year’s

figure; and 37% of passengers flying

OnAir-equipped aircraft connected to

the in-flight network.

By the end of 2014, 22 airlines provided

OnAir connectivity, with the business

now responsible for more than half of

the in-flight passenger connectivity

market. Most of these airlines offer

both mobile phone and Wi-Fi services,

reflecting how – whether at home,

in the office or on the move – people

operate in a connected ‘always-on’

world where flying is no exception.

The third dimension is wireless in-

flight entertainment (W-IFE). OnAir

launched OnAir Play, its W-IFE offer

in September. It delivers a highly

personalized experience, direct to

passengers’ own devices, filled with

rich multimedia content through an

intuitive interface that can be fully

branded by the airline. In addition,

live content, such as breaking news or

sports updates, can be streamed from

the ground to the cabin.

PASSENGER SUCCESS The key indicator of the quality and

popularity of OnAir’s passenger

communications is that several

airlines extended their connectivity

across entire fleets and on a variety of

aircraft. Highlights in the year include

OnAir services on 25 of Iberia’s A330s

and A340s flying transatlantic routes,

as well as Philippine Airlines’ decision

to extend its services and offer

OnAir’s full in-flight entertainment

and communications (IFEC) package

of mobile phone, Wi-Fi services and

wireless IFE on all long-range aircraft.

In addition, Qatar Airways’ new A350

fleet saw the installation of OnAir’s full

in-flight connectivity suite as a linefit,

while in early 2015 Saudia became the

first airline to provide passengers with

a dedicated mobile phone app for free

in-flight Wi-Fi. Passengers simply scan

their ticket’s bar code for free access.

COVERAGE, AVAILABILITY Coverage and availability are two key

drivers for OnAir’s success. OnAir had

developed an unrivalled regulatory

footprint by the end of 2014 – with

authorizations from over 100 countries

– combined with the largest network

of roaming agreements with more

than 375 mobile network operators. It

means that consistent connectivity is

available throughout the world, which

is paramount for any airline flying

international routes.

OnAir has an extensive STC

(supplemental type certificate) catalog

with more than 33 certificates as well,

covering every current commercial

aircraft as well as a number of

business jets. It makes retrofitting

OnAir products straightforward. OnAir

is also available as linefit on most

aircraft types.

56 SITA | GROUP ACTIVITY REPORT 2014

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57SITA | GROUP ACTIVITY REPORT 2014

“ Our partnership with SITA OnAir is a great step forward for the Danube FSB (Functional Airspace Block) and moves us closer to the Single European Sky. We look forward to benefiting from the efficiencies and safety enhancements data link will bring.”Ion-Aurel Stanciu, Director General, ROMATSA

THE CONNECTED AIRCRAFTPassenger connectivity is now only part

of the story. The launch of SITA OnAir

at the start of 2015 – the culmination

of months of work – presents airlines

with the opportunity to realize the full

potential of connected aircraft.

The hugely sophisticated equipment on

board new generation aircraft makes it

possible to connect for aircraft health

monitoring, IT aircraft operations,

and digital maintenance, on top of the

passenger connectivity we see today.

The Boeing 787, for instance, has

around 1,500 software parts and

an A350 has 400,000 data points for

aircraft health monitoring. These new

aircraft are forcing airlines to make

sense of how to exploit their potential

for connectivity. Airlines are beginning

to understand that connectivity can be

used not only to enhance the passenger

experience, but also to automate

workflow management, accelerate

turnaround time and reduce cost.

THE COMMUNITY IS EMBRACINGIN-FLIGHT CONNECTIVITY

13mPassengers used OnAir’s in-flight mobile phone service in 2014 – double the previous year’s figure.

13mpassengers used OnAir’s in-flight mobile phone service in 2014 – double the previous year’s figure

400+SITA OnAir is the leading provider of in-cabin connectivity for passengers serving over 400 airline customers.

37% Of passengers flying OnAir-equipped aircraft connected to the in-flight network, with 14,000+ aircraft in operation.

22Airlines provided OnAir connectivity by the end of 2014.

100+ Countries covered by OnAir’s unrivalled regulatory footprint by the end of 2014, covering 90% ofthe globe.

375 The biggest network of roaming agreements with mobile network operators covering more than 2.6bn GSM subscribers.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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SITA OnAir brings together industry

leadership and expertise across a

range of areas: ground and in-flight

connectivity, cockpit data services

and air traffic management solutions,

aircraft communications and

infrastructure solutions (see ‘AIRCOM®

Expertise’), as well as application

development for both passengers and

crew. The core of the new business

organization is OnAir’s expertise

in supplying in-flight connectivity

and SITA’s knowledge of airline

communications and IT.

SITA OnAir is unique in being the

only provider with the full range

of expertise needed to deliver the

nose-to-tail capabilities necessary to

make the connected aircraft a reality

for the air transport community, in a

consistent and neutral way.

With a full portfolio incorporating

connectivity for passengers, cabin crew,

cockpit crew, aircraft health monitoring,

flight operations and air traffic control –

SITA OnAir is already creating solutions

that will exploit connected aircraft,

transforming the passenger and crew

experience, while improving airlines’

operational efficiency.

58 SITA | GROUP ACTIVITY REPORT 2014

Air China is set to save around around US$8 million a year in fuel costs, thanks to payload and live weather update technology from SITA OnAir. “I’m proud to say that Air China is the first airline to use this technology in China as part of our continuous innovation efforts.” Lu Yun-Guo, Senior Manager of Operation Technology, Air China

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

THE RISE OF THE CONNECTED AIRCRAFT

2,000 aircraft will be new generation aircraft within four years.

1-3 SITA’s connected aircraft services support class 1-3 platforms and all airframe types.

73% airlines plan to offer onboard connectivity by end 2017: 68% mobile browsing, 53% W-IFE, 52% mobile phone services. 75% plan to deploy cabin crew tablets. (SITA's IT Trends Surveys.)

1,500software parts in a Boeing 787 and 400,000 parameters in an A350 for aircraft health monitoring.

3,000+devices equipped with CrewTablet and deployed by 10 airlines.

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59SITA | GROUP ACTIVITY REPORT 2014

AIRCOM® EXPERTISENow an integral part of SITA OnAir,

SITA’s AIRCOM® service brings to the

new business expertise and leadership

in providing the aviation community’s

standard air-ground communications

to support airline operations and air

traffic control. The service achieved

another year of growth as revenues

rose 6% above the previous year’s

record figures.

SITA remains the air transport

community’s aircraft communications

provider of choice, delivering aviation

industry standard mission-critical

services to stakeholders in the

community, including aircraft, airlines,

national air traffic service (ATS)

providers and governments.

The year saw critical activity in

leading the industry’s efforts to

provide airlines with improved

means of tracking their aircraft in

a more proactive way, following the

disappearance of Malaysia Airlines

Flight MH370.

AIRCOM® ACARSAIRCOM® customer airlines connect

their ACARS cockpit data link systems

via AIRCOM® to their operations centers,

air traffic control and manufacturers

of the aircraft and aircraft systems

that provide performance monitoring

services. All these uses contributed to a

continued increase in traffic volumes via

the AIRCOM® ACARS Datalink service.

As market leader in the provision

of global ACARS cockpit data link

services, SITA OnAir’s service is used

by in excess of 11,000 air transport

sector aircraft and another 4,000

corporate and government aircraft.

Customers of the AIRCOM® ACARS

Datalink service exchange more

than three million messages a day.

Overall, VHF communication in 2014

grew by more than 11%, while ACARS

communication via satellite rose by

18% and communication via the newer

Iridium service grew 76%.

The Airbus A350 was the latest

aircraft type to start using ACARS

both for traditional exchanges and

for sending messages via the new

industry standard Medium Independent

Aircraft Messaging (MIAM). The A350

joins the ACARS-equipped Boeing 787

in using ACARS for more elaborate

performance monitoring systems than

previous generation aircraft.

ACARS communications is now being

moved from VHF to mobile data links

while in flight, uncoupling them from

the traditional VHF link that is primarily

used for air traffic control.

AIRCOM® SERVERA new AIRCOM® Server Flight Monitor

display, showing aircraft positions

using multiple data sources overlaid

on Google Maps, was ready for release

in mid-2014, although its introduction

was postponed due to the industry’s

pressing requirement for an AIRCOM®

FlightTracker module.

The development of FlightTracker

became a critical initiative responding

to community needs. It is programmed

to know how long to wait for position

reports from each aircraft and in

the absence of expected data send

requests to the aircraft, either to the

FANS ATC system on equipped aircraft

or to the Flight Management System.

Any airline using FlightTracker can

configure triggers to generate alerts

when position data is missing or not

as expected. The FlightTracker system

logic is being enhanced to identify

movements that follow instructions

from Air Traffic Control.

Announced in 2015, Malaysia Airlines

will be the first carrier to implement

AIRCOM® FlightTracker. As part of SITA

OnAir’s commitment to delivering value

to air transport community, during an

emergency it will provide FlightTracker

position reporting free of charge to

SITA members.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

tht e

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

60 SITA | GROUP ACTIVITY REPORT 2014

AIR TRAFFIC MANAGEMENTAs western European air navigation

service providers (ANSPs) complied

with the European Union (EU) Single

Sky mandate to implement ICAO

ATN standard Controller Pilot Data

Link systems, ATN communications

overloaded the VHF data link service

causing the EU in January 2014 to push

back the deadlines by five years.

Meanwhile, Eurocontrol has proposed

a series of centralized services,

including VHF data link, for which

a single regional implementation is

preferable to each ANSP implementing

nationally. In response ANSPs that

have deployed VHF stations acquired

from SITA are planning to integrate

them into a regional VHF network

providing a centralized service.

Following a 2013 agreement with

Harris Corp, the US Federal Aviation

Authority’s (FAA) selected provider

of VHF data link services, SITA in

2014 delivered VHF ground stations

and an ACARS processor, enabling

Harris to start deploying a network

that will support the FAA and SITA in

providing aircraft operations services

to AIRCOM® customers.

The FAA is implementing Departure

Clearance in the top 50 US airports

from 2016 and as the FAA deploys

its systems, Harris will expand the

new network to replace the SITA VHF

AIRCOM® network in the US.

AIRCOM RADIO ACCESSSITA has tested ACARS use of the

Inmarsat Swift Broadband service and

as customers equip their aircraft with

the latest version of SBB avionics that

emulate the Inmarsat ‘classic’ service

interface to ACARS avionics, they will

get the new higher capacity link, as

part of the AIRCOM ACARS service.

AIRCOM VHF networks at the end of

2014 reached more than 1,500 radios

including 1,250 owned by SITA and 300

sold by SITA to partners. To meet the

requirements of the concession from

the Brazilian Air Navigation Service

Provider DECEA, SITA expanded the

number of VHF stations in Brazil to 48,

including 39 providing VDL service.

LEADING AIRCOM SERVICES

15,500aircraft using SITA OnAir’s aircraft communications services.

1,542 VHF ground stations in 2014, rising from 1,150 in 2008.

3m+messages exchanged every day by customers of SITA’s AIRCOM®

ACARS Datalink service.

11,000+air transport sector aircraft and another 4,000 corporate and government aircraft use SITA OnAir’s ACARS cockpit data link services, making SITA market leader.

15% growth in satellite communication using Inmarsat and Iridium in 2014.

18%growth in ACARS communication via satellite and 76% in the newer Iridium service.

1,500radios on AIRCOM® VHF networks at the end of 2014, including 1,250 owned by SITA and 300 sold by SITA to partners.

11%growth in VHF communication in 2014.

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CONNECTED THINKING FOR THE AIR CARGO COMMUNITY As the air cargo market began

to experience its first moderate

cyclical upturn for five years, CHAMP

Cargosystems recorded another strong

year of market gains and innovation.

Today, with over 450 staff, CHAMP

combines the world’s biggest cargo

community with connectivity all along

the supply chain.

As the industry’s logical choice for air

cargo IT, CHAMP remains the leader

in its field, a strong industry voice, and

an active participant in the air cargo

community on IT issues bridging the

gaps between ideas, aspirations and

practical implementation.

In building the world’s largest cargo

community, CHAMP has now become a

byword for reliable connectivity across

the globe, connecting more than 200

air cargo carriers, general sales

agents and handlers, as well as over

3,000 freight forwarders and around

40 customs authorities.

CHAMP’s portfolio spans cargo

management systems, including the

proven Cargospot application suite,

messaging and integration services

through its Community Integration

Platform and a comprehensive suite of

eCargo solutions.

CHAMP’s leadership was recognized

in early 2015 on receiving the

‘International IT Systems Provider of

the Year in Africa’ award for the second

year running, as part of the Stat Times

International Awards for Excellence

in Air Cargo.

TIER ONE ADVANCESThe year saw two major achievements.

First, CHAMP succeeded in the Tier

1 airline market with two successful

Cargospot projects for Cathay Pacific

and Japan Airlines (JAL) Cargo,

consolidating its leadership in core

systems for cargo across all tiers.

The Cargospot cargo management

suite provides complete end-to-

end control over commercial,

operational and revenue accounting

processes. Core cargo systems

for carriers, handlers and agents

are complemented by applications

for business intelligence, ULD

management and optimized load

planning for freighter operations.

JAL Cargo commenced live domestic

operations on Cargospot in 2014

as the first phase of its technology

transformation program onto the

Cargospot platform. Later in the year,

CHAMP announced that Cathay Pacific

had selected Cargospot to provide its

new IT platform following a successful

six-month design phase.

The changeover to the latest cloud-

based technology, using SITA’s ATI

Cloud (see page 32), is replacing

Cathay Pacific’s legacy Unisys-based

mainframe system.

61SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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62 SITA | GROUP ACTIVITY REPORT 2014

COMMUNITY PHILOSOPHYSecond, CHAMP continued to invest

significantly during 2014 – not just

for the benefit of its existing eCargo

community, but also to embrace

more and more logistics supply chain

participants, moving them away from

paper-based commerce to its new

generation industry collaboration

platform and the largest community of

users in the world.

That effort includes the integration and

digitization of freight forwarders, as

CHAMP’s eCargo community expands.

The company’s community philosophy

is to deliver value on the back of the

size of its community, through shared

cost of ownership and economies of

scale for the benefit of all. Milestones

in the year came in the areas of

forwarding, customs and a new

community information portal.

FORWARDERS WELCOMEIn its drive to connect the global cargo

community, during 2014 CHAMP

created a new subsidiary, CHAMP

Forwarding Systems, to address the

small and medium size forwarder

community. The new subsidiary

business offers CHAMP’s proven

Logitude software-as-a-service

platform, fully integrated with its

Traxon CargoHUB messaging service.

As a major strategic move, the cloud-

based approach makes it simple and

cost-effective for forwarders to join

the eCargo community, benefitting

quickly from full multi-modal shipment

management functionality and

electronic connectivity to airlines.

NO CUSTOMS BURDENCHAMP continues to play a leading

role in customs too. It is an area where

a huge burden has been placed on

cargo carrying airlines, with customs

authorities demanding tighter control

and advance cargo information about

the import and export of freight

transiting their borders.

CHAMP’s Traxon Global Customs has

resolved the issue, as a one-stop,

global solution for advance customs

information that greatly reduces

declaration errors and delays in

shipment clearance. 

It means cargo airlines can exchange

information electronically with

customs authorities regardless

of format, communications

protocols and processing rules. The

system recognizes existing air cargo

information exchange standards such

as IATA CargoIMP, making the interface

to customs easy and immediately

available without the need to invest in

new technologies.

By year-end more than 80 airlines,

ground handlers and forwarders were

deploying the solution for electronic

filing with customs authorities in over

40 countries – in compliance with the

EU-ICS (Import Control System) and

other national customs requirements.

CHAMP has also implemented the latest

US advance declaration requirements

in Traxon Global Customs. Late in the

year, SITA launched a Customs Gateway

solution with Argentina Customs

who mandated advanced customs

information. As part of the engagement,

CHAMP developed and deployed

the platform to power the solution,

delivering one of the first IATA Cargo-

XML enabled communities in the world.

COMMUNITY PORTALEarly in 2014, CHAMP launched the

CargoUpdate community information

portal, which provides a means for the

cargo community to exchange news

and operational information. The portal

is fully optimized for smartphones

and tablets and integrates additional

value-added eCargo services, such as

Track&Trace and ebooking.

DRIVING SEAT Last year, CHAMP celebrated 10

successful years of commercial

operation. In that time, the cargo

community has changed almost

beyond imagination. CHAMP has

remained constantly in the driving seat,

introducing technology breakthroughs

and connected thinking to the perennial

challenges of moving freight from one

place to another.

“ Achieving the first milestone was a truly big challenge for us as it was an unprecedented case for JAL to replace a core business legacy system with software-as-a-service. The use of Cargospot Service will maximize our cost-efficiency in IT innovation.” Tsuyoshi Yamamura, Executive Officer for Cargo and Mail, Japan Airlines

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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63SITA | GROUP ACTIVITY REPORT 2014

“ The new technology will support continued growth of our airline and help to meet the expanding expectations of our cargo customers. The changeover to the new technology will ensure that Cathay Pacific Cargo continues to improve customer service levels, efficiency and productivity.” James Woodrow, Director Cargo,

Cathay Pacific

“ We were looking for a system that would support our goal of performing centralized and optimized load planning, to ensure safety and also to reduce fuel consumption across our freighter fleet. We are confident that CHAMP’s Weight & Balance will help us achieve this aim.” Younus Habib, IT Director, Saudia

“ We expect this next generation of CHAMP to deliver substantial advantages in terms of enhanced efficiency and increased functionality. This platform is clearly a good fit for Cargolux’s other internal and external IT systems currently in place.” Henrik Ambak, International Vice

President, Cargolux Airlines

THE WORLD’S BIGGEST CARGO COMMUNITY

450+CHAMP professionals

focused on air cargo IT.

10Successful years of commercial operation for CHAMP in 2014.

5,000+Man-years of investment.

15,000+USERS

20mshipments a year

300mmessages a year

1,500+stations in

100+countries around the world.

200Air cargo carriers, general sales

agents and handlers, 3,000+ freight

forwarders and around 40 customs

authorities – as part of the world’s

biggest cargo community with

connectivity all along the supply chain.

80+Airlines, ground handlers and forwarders by

year-end deploying CHAMP’s customs solution

for electronic filing with customs authorities in

40+ countries – in compliance with the EU-ICS

(Import Control System) and other national

customs requirements.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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COLLABORATING FOR COMMUNITY VALUESITA Bureau Service (SBS) is a prime

example of SITA’s commitment to

creating business ventures to explore

and invest in new areas that will provide

value to the air transport community.

Still in its start-up phase, SBS

has been working closely with the

community to develop a solution

that meets a pressing community-

wide need, improving the financial

flows between Air Navigation Service

Providers (ANSPs), airports and

airlines for aeronautical charges.

As a newly formed business already

generating revenue, SBS is expected to

contribute to growth in the years ahead

through its Flightyield solution.

Throughout 2014, the business

witnessed increasing levels of interest

from potential customers around the

world – particularly in Asia Pacific,

Middle East and Africa. It culminated

with the signing of the first contract

in early 2015, as the SBS business

continues to gather pace and to

work with partners to develop

new approaches.

BIG CHALLENGESThe task of managing bills and charges

of ANSPs can present big challenges.

As a collaborative initiative, SBS was

formed mid-way through 2013 to help

set a new industry standard in airspace

billing and revenue management

services, aiming to leverage efficient

and agile cloud and data analytics

technology, using SITA’s ATI Cloud.

SBS partners with CANSO (Civil Air

Navigation Services Organisation)

and Airways New Zealand, the ANSP

of New Zealand. The company was

founded in response to a request

by CANSO members for a purpose-

built aeronautical billing and revenue

management service to simplify

processes and to address long-standing

and significant hidden costs that have

impacted the industry globally.

Those hidden costs result from an

inability to apply flexible ANSP policies

and pricing models, processing of

incomplete data, entry errors, invoice

delays and more.

NEW WAY FORWARDIn early 2014, SBS launched Flightyield

as the only fully outsourced and

managed air transport industry billing

and revenue management service

capable of addressing ANSP and

airline concerns.

At its simplest, Flightyield enables

ANSPs to optimize charges and

put a stop to the growing costs of

managing revenue that result from

current processes and systems. It

supports next generation airspace

yield management, as well as invoice

processing, managing enquiries,

and accepting payments from

ANSP customers.

As an automated service using the

latest cloud technology, Flightyield

can deliver significant increases in

revenue accuracy, especially in cases

of ANSPs operating mainly manual

data management systems, benefiting

both ANSPs and airlines.

In December 2014, the solution was

given SSAE16 Type 1 certification,

an important step in the continuing

enhancement of the financial security

credentials of the service.

Launch customer Airways New Zealand

saw the first two phases of a three-

phase plan implemented during 2014,

with the final phase due to be completed

over the second quarter of 2015.

The capabilities and resources of SBS

have the potential to be extended to

include airport billing and collection.

Aimed at airport operational

management, it would provide the

same efficiencies to the handling

of charges such as landing fees,

departure taxes, towing, bridges and

building charges.

As it evolves, SBS will continue to

integrate IT and financial services

to provide business processing

and management, meeting the

community’s requirement for services

that address long-held and widespread

concerns about aeronautical charges

and billing.

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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“Flightyield has the capability to transform aviation billing, collection and revenue management and will lead to reduced costs and increased efficiency.” Jeff Poole, Director General, CANSO (Civil Air Navigation Services Organisation)

A quality service from

civil air navigation services organisation

FLIGHTYIELD: A LONG-NEEDED SOLUTIONFlightyield delivers a long-needed industry standard in billing and collection. It takes data directly from multiple

sources without manipulation, and validates it automatically with invoices generated. It enables a customer billing

policy and provides advice on global standards, as well as timely invoicing thanks to managing data at source.

Flightyield does more than fix billing inaccuracies and incompleteness; it gives the industry aeronautical charges

management capabilities that it never previously had access to. Adding value through increased accuracy and

decreased processing time for invoicing, payments and cash flow are simplified and improved, leading to better

overall industry financial flows.

From an ANSP perspective, it provides the ability to fine tune charges to help recover costs and investments – and

optimize the use of existing infrastructure for stronger re-investment, modernization and innovation cases. Charging

can be more granular, transparent and efficient, while allowing for new methods such as performance-based pricing.

DOZENSOf potential customers in discussion with SBS with multiple contracts expected in 2015.

US$40m Expected revenue by the end 2017.

1,000+Monthly page views on flightyield.aero website.

12%-35%Weight of ATM related revenue vs total airport revenue.

GROWING INDUSTRY INTEREST

MEETING A COMMUNITY NEED

90%-100%Weight of ATM related revenue vs total ANSP revenue.

“Inefficiencies in billing customer and revenue management can cost ANSPs around 6% of their revenue.”

Source: Revenue Management – A commercialnecessity, CANSO Airspace, Q1 2014

€20bnWorldwide charges estimation.

€6bn Addressable charges estimation(excluding Eurocontrol and US domestic).

6%

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

65SITA | GROUP ACTIVITY REPORT 2014

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AVIARETO: A SUCCESSFUL COMMUNITY INITIATIVESupervised by the International Civil Aviation Authority (ICAO), Aviareto is

the joint venture between SITA and the Irish Government to establish and

operate the International Registry of aircraft equipment, as required by the

Convention and Aircraft Protocol.

As an International Registry of Mobile Assets, the company was set up

in 2001 by international treaty. It is an initiative for the benefit of the air

transport community, to provide a global registry to safeguard lending rights.

According to 2014 figures, in excess of US$500 billion of assets are now

managed through Aviareto’s processes. Registrations have been made

on over 125,000 aircraft, engines and helicopters using its International

Registry.

The ground-breaking Aviareto community initiative has been quietly

changing the face of air transport asset finance since its inception.

The Registry is the official and legal record for financial interests in aircraft

including mortgages and leases, as aircraft move between airlines, banks,

leasing companies, and others.

For more information, go to:

www.aviareto.aero or www.internationalregistry.aero.

SITA | GROUP ACTIVITY REPORT 201466

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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SITA AT A GLANCE

The air transport industry is the most dynamic and exciting community on earth – and SITA is its heart.

Our vision is to be the chosen technology partner of the industry, a

position we will attain through flawless customer service and a unique

portfolio of IT and communications solutions that covers the industry’s

every need 24/7.

We are the innovators of the industry. Our experts and developers

keep it fuelled with a constant stream of ground-breaking products

and solutions. We are the ones who see the potential in the latest

technology and put it to work.

Our customers include airlines, airports, GDSs and governments.

We work with around 430 air transport industry members and 2,800

customers in over 200 countries and territories.

We are open, energetic and committed. We work in collaboration with

our partners and customers to ensure we are always delivering the

most effective, most efficient solutions.

We own and operate the world’s most extensive communications

network. It’s the vital asset that keeps the global air transport industry

connected.

We are 100% owned by the air transport industry – a unique status that

enables us to understand and respond to its needs better than anyone.

Our annual IT surveys for airlines, airports and passenger self-service

are industry-renowned and the only ones of their kind.

We sponsor .aero, the top-level internet domain reserved exclusively

for aviation.

In 2014, we had consolidated revenues of US$1.7 billion.

For further information, please visit www.sita.aero

Follow us on www.sita.aero/socialhub

67SITA | GROUP ACTIVITY REPORT 2014

CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

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CREATING VALUE FOR THE AIR TRANSPORT COMMUNITY

Registered Offi ce

SITA SC2 avenue des Olympiades1140 BrusselsBelgiumTel: +32 (0)2 745 0510Fax: +32 (0)2 745 0517

Geographic Offi ces

Americas

3100 Cumberland BoulevardSuite 200Atlanta, GA 30339USATel: +1 770 850 4500

Asia Pacifi c

11 Loyang WaySingapore 508723Republic of SingaporeTel: +65 6545 3711

Europe

26 Chemin de JoinvilleB.P. 31, 1216 CointrinGenevaSwitzerlandTel: +41 22 747 6111

Middle East, India & Africa

BachouraKhandak El-GhamikDaoud Ammoun StreetSITA BuildingP.O. BOX 11-6524Riad El-Solh 1107 2220BeirutLebanonTel: +961 1637 300

www.sita.aero

© SITA 2015

All trademarks acknowledged. Specifications subject to change without prior notice. This literature provides outline

information only and (unless specifically agreed to the contrary by SITA in writing) is not part of any order or contract.

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