PASSENGER REJECTION REDUCTION INITIATIVE KIRK PEREIRA. 24 th April 2018
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1 PASSENGER REJECTION REDUCTION INITIATIVE KIRK PEREIRA 24 th April 2018
2 WHAT IS THIS PROJECT ABOUT? Well we are not going into that again this year! Nearly everyone in this room knows about the project and the benefits. However I have another question? 2
3 DO YOU HAVE AN INTERNAL TARGET IN YOUR AIRLINE TO REDUCE REJECTIONS? How do you monitor your rejection volumes? Are there any best practices that you would like to share? 3
4 OUR PROGRESS SO FAR 4 ACH PAX RM REDUCTION
5 GLOBAL NON-SAMPLING ANALYSIS ( ) Rejection Memo Count USD Amount (Millions) 14,000,000 2, ,500,000 13,000,000 12,500,000 12,000,000 13,040,530 12,519,731 12,475,682 2, , , , , , ,500, ,000, The total rejection memo count decreased by 4% in 2017, in comparison to The total rejection memo USD value decreased by 26% in 2017, in comparison to
6 ACH NON-SAMPLING ANALYSIS ( ) Rejection Memo Count USD Amount (Millions) 1,000,000 $ $ , ,811 $80.00 $ , , , ,967 $60.00 $50.00 $40.00 $30.00 $48.20 $31.80 $ ,000 $20.00 $ $ The total rejection memo count decreased by 39% in 2017, in comparison to The total rejection memo USD value decreased by 49% in 2017, in comparison to
7 GLOBAL REJECTION MEMO COUNT ,400,000 1,230,249 1,200,000 1,143,910 1,051,142 1,141,295 1,000, , , ,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7
8 ACH TOTAL REJECTION MEMO COUNT , ,000 54,216 50,000 46,734 40,000 37,637 30,000 31,764 20,000 10,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7
9 ACH NON-SAMPLING PRIME BILLING COUNT ( ) 900, , , , , , , , , , , , In 2018, the total prime billings count has increased by 16% in comparison to
10 ACH - AVERAGE REJECTIONS SPLIT BY STAGE ( ) STAGE 3 In comparison to the base year 2015: STAGE 2 STAGE 1 Stage 1 Stage 2 Stage ,778 10,324 2, ,116 7,977 2, ,465 10,955 2, ,630 13,623 2,648 Stage 1 counts have decreased by 40% Stage 2 counts have decreased by 24% Stage 3 counts have decreased by 1% 10
11 MEASURING PROGRESS - ACH Rejection Rate = Sum of Rejection Memos of Past 12 months Sum of Prime Billings of Past 12 months 100% % change Mar Mar-2018 vs 2015 Rejection Rate 11.20% 7.03% 5.77% 5.82% -48% By March 2018 there was a 48% decrease in comparison to the base year
12 ACH STAGE 1 ANALYSIS ESTIMATED PERCENTAGE OF REJECTED PRIME BILLINGS 10.00% 9.00% 8.00% Approximately 4.04% of the prime billings in 2017 were rejected, a significant decrease in comparison to 8.10% of rejected prime billings in % 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 4.56% 4.04% 4.09% Estimated % of rejected prime billings = Sum of Stage 1 RMs of past 12 months Sum of Prime Billings of past 12 months 100% 12
13 STAGE 1 ANALYSIS - ACH VS GLOBAL 10.00% Global ACH 8.10% 8.00% 7.21% 6.21% 6.00% 5.71% 5.61% 4.00% 4.56% 4.04% 4.09% 2.00% 0.00% 13
14 ACH STAGE 2 ANALYSIS ESTIMATED PERCENTAGE OF REJECTED 1ST STAGE RMS Approximately 31.88% of the Stage 1 rejections in in the past year were rejected back 2 nd stage. (Stage 2)/(Stage 1) 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 31.96% 43.02% 31.76% 31.88% Sum of Stage 2 RMs of past 12 months Estimated % of rejected Stage 1 RMs = 100% Sum of Stage 1 RMs of past 12 months 14
15 ACH STAGE 3 ANALYSIS ESTIMATED PERCENTAGE OF REJECTED 2 ND STAGE RMS Approximately 32.78% of the 2 nd stage rejections in the past year were rejected back 3 rd stage % 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 19.44% 10.00% 5.00% 0.00% 25.60% (Stage 3)/(Stage 2) 35.37% 32.78% Estimated % of rejected Stage 2 RMs = Sum of Stage 3 RMs of past 12 months Sum of Stage 2 RMs of past 12 months 100% 15
16 ACH REJECTION REASONS Top 5 rejection reason codes sorted as per stage 1 Reason Code* Reason Description Stage 1 Count Stage 1 % Stage 2 Count Stage 2 % Stage 3 Count Stage 3 % Total 1B Fare Reclaim 180,437 60% 75,635 79% 24,744 73% 280,816 1G Tax Reclaim 74,519 25% 9,423 10% 2,997 9% 86,939 1A Fare/Tax/ISC 20,507 7% 2,982 3% 1,267 4% 24,756 1C ISC Reclaim 17,879 6% 6,738 7% 4,496 13% 29,113 2B Duplicate Billing 3,183 1% 246 0% 108 0% 3,537 16
17 MANY UNANSWERED QUESTIONS Fare Rejections: SPA Coding? Tax rejections: Tax rule interpretations / coding? Involuntary Reroutes We needed more information 17
18 PILOT CARRIERS Work closely with 7 airlines in order to: Identify the reasons of rejection Estimate the global cost of rejection Best practices 18
19 WHO ARE THE AIRLINES ASSISTING US? 19
20 PILOT CARRIERS Deliverables: Identify rejection reasons Best practices Estimate global cost of rejections Contribute to the target of 32% reduction by
21 PILOT CARRIERS - 1 YEAR TIMELINE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Commitment from Pilots 2018 Individual Reports Monthly Individual Calls Apr. Group Call May Face-to- Face Jun. Group Call Sep. Industry Mtgs Oct Group Call Dec Group Call PHASE 1: Prepare agenda papers for IBSOPS GM in Sep PHASE 2: Prepare a Best Practices document for interline billings PHASE 3: Identify improvements/reduction in correspondence process 21
22 IN CONCLUSION We are halfway there The road forward will only get tougher Its only by working together that we will succeed Contact us at 22
23 QUESTIONS? 23 ACH PAX RM REDUCTION
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