Interline E-ticket Proration Agreement System

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Solution Overview

Problem

Current interline revenue sharing processes in the airline industry are inefficient, leading to delayed revenue recognition and increased administrative costs due to the complexity of calculating and agreeing on prorated values between validating and participating carriers, often resulting in lengthy disputes and inaccurate financial management.

Innovation Solution

A system and method that enables synchronous exchanges between validating and participating carriers to agree on E-ticket coupon prorated values before service usage, using industry-standard messages and proration modules to calculate and verify values, ensuring early revenue recognition and reducing disputes.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If traditional interline revenue sharing processes are used to calculate and agree on prorated values between validating and participating carriers, then carrier independence and accuracy of revenue calculation are maintained, but the process becomes lengthy, administrative costs increase, and revenue recognition is delayed

Engineering Contradiction:

Improveaccuracy of prorated value calculationVSAvoidtime for revenue recognition

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent applies preliminary action by performing proration calculations at the time of ticket issuance rather than waiting until service completion. The validating carrier calculates the prorated value when issuing the interline ticket, and this calculated value is transmitted to the participating carrier in advance, enabling early revenue recognition while maintaining calculation accuracy through the use of established proration rules and agreements.

Inventive Principle:

Principle #10Preliminary action

2Adaptability or versatility

If traditional interline revenue sharing processes are used to calculate and agree on prorated values, then carrier independence is maintained, but administrative costs and complexity increase due to lengthy disputes and verifications

Engineering Contradiction:

Improvecarrier independenceVSAvoidcomplexity of revenue sharing process

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent implements feedback by establishing a transmission and verification mechanism where the validating carrier sends the calculated prorated value to the participating carrier, who then verifies receipt and processes the revenue recognition. This feedback loop ensures carrier independence is maintained through verification while reducing administrative complexity by automating the communication and acknowledgment process, eliminating the need for lengthy manual disputes.

Inventive Principle:

Principle #23Feedback

3Reliability

If proration calculations are performed and verified after service completion, then carrier independence is maintained, but revenue recognition is delayed and financial management accuracy is reduced

Engineering Contradiction:

Improvecarrier independence in revenue calculationVSAvoidspeed of revenue recognition

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The patent performs proration calculations preliminarily at ticket issuance time rather than after service completion. The validating carrier calculates the prorated value immediately when issuing the interline ticket, transmits it to the participating carrier, and enables revenue recognition before the service is actually rendered. This preliminary action maintains reliability through verified calculations while dramatically improving productivity by enabling early revenue recognition.

Inventive Principle:

Principle #10Preliminary action

4Measurement precision

If manual verification and dispute processes are used for interline revenue sharing, then accuracy of revenue allocation is maintained, but administrative costs and processing time increase significantly

Engineering Contradiction:

Improveaccuracy of revenue allocationVSAvoidease of revenue sharing process

Core Design Contradiction:

Measurement precisionVSEase of operation

Solution Approach 1:

The patent replaces the manual mechanical verification and dispute process with an automated electronic communication system. The validating carrier's system automatically calculates the prorated value using established proration rules, transmits it electronically to the participating carrier, and receives automated verification. This substitution maintains measurement precision through consistent application of proration rules while dramatically improving ease of operation by eliminating manual intervention and reducing processing time.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS8190456B2Agreement method and system to consent to a prorated value of coupon of an interline E-ticket

Publication Date: 2012.05.29 AMADEUS SAS

AI summary

An enhanced agreement method and system to consent to a prorated value of a coupon of an E-ticket corresponding to a multi-segment transport involving at least two carriers for the transportation.The invention is based on a new system architecture, which comprises on each carrier side synchronous connections between various modules amongst which an E-ticket Server, a proration module arranged for calculating coupon prorated value, the system enabling to exchange coupon prorated values between both carriers from E-ticket issuance and before coupon usage.Further, based on E-ticket information and said exchange of coupon prorated values, the invention is arranged to launch an agreement process before or at a time of providing the transportation service.Another aspect of the invention is that information on coupon prorated value is embodied within industry standard messages that are already exchanged in current processes.