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• Where does proration fit – in the future state, or
rather in the (potentially almost endless?) interim
state, airlines implementing interline with offers
and orders will require some form of calculating
the Settlement Value. This can be likened to the
calculation of the proration amount today, only
that currently this is done in revenue accounting
based on agreements such as the Multilateral
Interline Traffic Agreement (MITA), the Multilateral
Prorate Agreements (MPA) or Special Prorate
Agreements (SPA). These basically define the
percentage of revenue each party in the
agreement will receive. However, with the
introduction of the Settlement Value concept,
airlines will need to calculate their share of the
overall revenue in advance based on the
information received in the offer request from the
retailing airline. The new agreement – the
Standard Retailer Supplier Interline Agreement
(SRSIA) is well defined, however the actual
calculation methodology for the Settlement Value
that an airline applies will most likely be a task for
revenue management in a world of dynamic and
continuous pricing.
