Maximizing Yields by Lowering the Cost of

PaymentPaymentAPG WorldConnect

Monaco25 October 2012

K. David Holmes, IIIVice President, Global Sales

Airline Operating Costs

7,8%

25,3%8,0%

7,3%

9,0%

2,6%

Aircraft operating costs

Employee costs

Engineering and other aircraft costs

Fuel and oil costs

2

11,8%28,2%

8,0%Fuel and oil costs

Handling, catering and other

operating costs

Landing fees and en-route charges

Property, IT and other costs

Selling costs

* based on IAG, AF, LH 2011 data ** based on A4A data combined with US DOT P1.2 filings MY 2012

Airline Industry Operating Margin

0.6%0.6%

3Source: IATA

This is why the cost of payment matters!!!matters!!!

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About UATP

• Issued as a form of payment by 18 airlines• Accepted as payment by over 260 airlines,

rail carriers and select travel agencies

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2011

Charge Volume

USD 13B

+24%

Airline-Owned

UATP vs. Other Credit Cards

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Why Do Airlines Accept UATP?

• Incremental Sales Volume

• No Joining Fees or Annual Dues

• Low Merchant Fees

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• Low Merchant Fees

• Easy Access to Alternative Forms of Payment

Why Airlines Issue UATP

• Reduce or eliminate Credit Card Fees

• Creates an incremental revenue stream

• Market Intelligence• Builds corporate

customer loyalty and market share

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• 100% web-based, hosted and supported by UATP

• Supports Data Feeds • Supports Data Feeds to ERP Systems

• Multiple Languages and Currencies

• System Evolves with UATP

1010

Supported DataStream Applications

• Standard Charge Accounts

• Prepaid Accounts• Prepaid Accounts

• Barter and/or Declining Balance

• Government Travel Management

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• Transaction Research Portal

• Web-based and supported by UATPsupported by UATP

• Airline and Corporate Customer Applications

• Standard and Custom Reports

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Why Issue UATP Now?

• New Models can be self-funding!• Industry is now focused on reducing CC

Fees– Since 2008, 12 new Shareholder/Issuers– Since 2008, 12 new Shareholder/Issuers

• Solutions are flexible, scalable, and quick-to-market

• New Product Enhancements Launching Soon

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Summary

• All airlines should be Merchants– No Fee to join, Low Merchant Fees!

• Airlines should consider the benefits of Issuing to help improve their yield per

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Issuing to help improve their yield per ticket

• UATP is eager to work with you on any payment-related issue

QuestionsQuestions

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