CNS LAUNCHES E-BILLING SYSTEM FOR AIRLINES

CNS LAUNCHES E-BILLING SYSTEM FOR AIRLINES    Cargo Network Services Inc. implemented a new Web-based automated billing system for airlines Wednesday.
   The new system will eventually replace the monthly paper-based Cargo Accounts Settlement System (CASS) for billing and collecting payments from freight forwarders.
   CNS, a member services company working on behalf of the International Air Transport Association, collects invoices from airlines twice monthly, and sends forwarders a consolidated bill that can be paid by a single check. CNS then disburses payments to each airline.
   CNS will spend the next six to nine months educating the more than 70 airlines and 1,300 freight forwarders who use CASS that they will have more control over their funds and get faster payment with a debit system, said Howard Chaloner, CNS director of operations and financial services. By specifying a specific payment date companies can better predict their cash flow.
   'We understand there is a psychological change that has to be made' to get people to give up paper invoices and stop writing checks, Chaloner told American Shipper at the CNS conference in Miami.
   The benefits of e-billing include faster transactions and revenue collection, reduced labor costs and documentation requirements, an interactive dispute resolution process and an automated process for completing an air waybill, said Norberto Spangaro, managing director for Citibank's e-Business division, at the conference. Citibank developed the automated CASS system.
   Some surveys show airlines could save $15 to $17 per invoice through e-billing, Chaloner said. The system is also designed to get parties to resolve a billing dispute early in the process. It creates discipline for freight forwarders to enter quality data and explanations so that an airline can quickly research and review a disputed charge, he said.
   'Our goal is to resolve disputes before the due date of the invoice,' Chaloner said.
      Airlines pay a pro-rated fee to CNS for CASS based on the volume of invoices they run through the system.