global provider of e-finance solutions, announced today that the International
Air Transport Association (IATA) has selected alterna to deliver an advanced
financial supply chain solution as the new foundation for sales payment
settlement systems it provides to the global airline industry.
IATA provides a worldwide network of airline industry distribution and
financial services, serving a community of over 400 airlines and 100,000
combined passenger and cargo agents in 145 countries. In 2000, IATA managed
global invoicing and settlements of sales proceeds in 85 currencies with a
combined value of USD 147 billion. To ensure the robustness of these systems
and value-added services to the travel industry, IATA is rolling out an
initiative to provide integrated distribution and financial services.
"The airline industry is seeking innovative ways to reduce costs, unlock
hidden liquidity and minimize working capital requirements," said Tom Murphy,
Managing Director of IATA's Industry Distribution and Financial Services.
"alterna's e-finance systems will provide IATA and the airlines an efficient
platform for improved access and ability to manage financial and settlement
information spanning multiple regions, countries and currencies. Through
alterna, we will develop a solution that is scalable and can support future
growth with the flexibility to deliver new value-added services as the
business needs of the IATA community change."
Michael Killen, Chairman, Killen & Associates, a leading market research
firm that specializes in the financial supply chain, comments: "Today more
than ever, increasing visibility and access to cash flow is paramount to
bolstering the financial health of the whole airline sector. IATA has taken a
strategic step in choosing alterna's industry leading solution to improve the
capability of its financial supply chain processes. All marketplaces can
benefit from a central platform and unified connectivity, allowing members of
the community multi-lateral data and payment flows. The potential benefits are
alterna's Internet-based solution allows a trading community of companies
and banks to exchange transactional information and services, thereby
integrating these into their financial supply chain work flows. The alterna
solution will serve the needs of both IATA and the global airline industry,
encompassing key capabilities such as cash and liquidity management,
reconciliation, payment settlement and clearing, netting, forecasting, online
reporting and monitoring.
The benefits will be improved control and security of the settlement process, greater payment information visibility and predictability, enhanced liquidity and working capital management, bank neutrality and an enhanced process that aligns well with existing business practices of IATA members.
Gonzalo Naranjo, alterna's President and CEO, said: "alterna is proud to partner with IATA to deliver a global financial supply chain solution to IATA
and its community of airlines. This initiative is ground-breaking and is in
direct support of industry priorities such as a more efficient settlement
process and improved management of working capital, liquidity and costs."