Arlington, VA, December 7, 2007 – Meeting for its semi-annual review of ARC operations, ARC’s Board of Directors congratulated the company on a singularly productive year that saw the introduction of several products and services that benefited ARC’s several stakeholder communities. Among such developments were a number of data-related products including the launch this week of ARC Itinerary Detail – Global Data that leverages ARC’s closer cooperation with the International Air Transport Association (IATA) and lends a truly global perspective to the best data source available to the industry. Carriers and agents alike have benefited from enormous strides in data security as ARC became the first major processor in the travel industry to attain full PCI compliance in late 2004 and maintain such compliance through successful annual audits. Data communications for all stakeholders have been enhanced through a staged introduction of highly secure portal access to ARC products and services.

The agent community has also gained access to numerous new revenue producing products through ARC MarketPlace, including the recently introduced ARC Travel Card – a prepaid card featuring PayPass® contactless payment functionality, launched in partnership with MasterCard. The last remaining paper-based process between carriers and agents has been addressed with ARC Memo Manager and ARC Payment Direct, while over 97% of all tickets are now processed as e-tickets. Not surprisingly, during this same period, the net number of carrier participants in ARC rose by more than twenty. ARC now links ARC-accredited agents and CTDs with 170 carrier participants and provides them with the global reach that is demanded in today’s travel industry.

The Board further approved an increase to the annual administrative fees paid by ARC accredited travel agents and corporate travel departments along with the elimination of several miscellaneous fees and training fees. The annual administrative fee, which had remained largely unchanged since 1985, was proposed by management to go up to $395 for independent and home office locations in 2008. The branch location fees would increase from $145 to $150.

ARC management has cited the need to more aggressively address the volume shift away from the travel agent distribution channel in favor of channels that link the consumer directly to the supplier. ARC firmly maintains that the travel agency distribution channel provides a value-added distribution solution that complements carrier-direct channels. However, the agent distribution system must not only be an attractive channel for the consumer, but must also be a cost-competitive alternative for the supplier. “Our carrier participants understand that a technologically sophisticated agent distribution and settlement system that is competitively priced, is indeed an attractive alternative that is likely to not only stem the channel shift away from agents but may turn the tide back in favor of ARC and ARC-accredited agents and CTDs,” explained David Collins, ARC’s President and Chief Executive Officer.

While endorsing the net increase in fees proposed by management, the Board noted that its action was limited solely to 2008 and that it was taking no action with respect to future fees. The Board also indicated that it would be responsive to any proposal for alternative 2008 allocations or collection processes. It was noted that no alternative proposals for the administrative fee were presented by the agent community to date, aside from suggesting no change whatsoever, and this was not viewed as a reasonable alternative. It was hoped that future collaborative processes will meet with more workable results. Along with the need to enhance the agency channel from the carrier perspective, the Board noted that the significant enhancements in ARC’s operations had brought vast benefits to the agency community, and that agency support for these is important to continue that customer-focused perspective. Finally, the Board noted that the new fee proposal was fair and reasonable to all customer groups.

About ARC
ARC is the premier provider of financial settlement solutions and data and analytical services for the travel industry. Airlines, travel agencies, corporate travel departments, railroads, and other travel suppliers process more than $77 billion annually through ARC’s world-class settlement system, making it the financial backbone of travel distribution. ARC COMPASS®, the leading, trusted source for travel transaction information, powers data and analytical tools that help ARC customers make confident business decisions. ARC is an airline-owned company that builds on values of integrity, teamwork, innovation, cost-effectiveness, and excellence. For more information, please visit http://www.arccorp.com.