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AIRLINE CITY PAIR PROGRAM FY2006 SUMMARY Jerry W. Ellis

AIRLINE CITY PAIR PROGRAM FY2006 SUMMARY Jerry W. Ellis. FY06 Highlights. Industry Changes Fare Structures/Pricing Government Representative Fuel Surcharges Bankruptcies and mergers of Airline Carriers Continental’s Non Participation Domestic Code Shares Groups GTRs Unused Tickets.

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AIRLINE CITY PAIR PROGRAM FY2006 SUMMARY Jerry W. Ellis

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  1. AIRLINE CITY PAIRPROGRAMFY2006 SUMMARYJerry W. Ellis

  2. FY06 Highlights • Industry Changes • Fare Structures/Pricing • Government Representative • Fuel Surcharges • Bankruptcies and mergers of Airline Carriers • Continental’s Non Participation • Domestic Code Shares • Groups • GTRs • Unused Tickets

  3. Continental Airlines • Continental elected not to participate in the FY06 cycle. • Awarded 129 markets in FY05 • 53 of the 129 awarded in FY06 • Continental’s main hubs are: • Newark, NJ (EWR), • Houston, TX (HOU), • Cleveland, OH (CLE), • Guam (GUM)

  4. Domestic Code Shares • Code share partners are also competitors within this program. • Business agreement does not support obligating partner’s seat inventory. • We get all of contract carrier’s own service. • We do get offered code-share service (domestic and international)

  5. Groups • Moved to commercial practice • Groups of 10 or more are non-mandatory • May still use contract fares if offered by carrier. • May negotiate with any carrier for best rates and/or service. • Group reservations must be made through that carrier’s group (or government) desk. • Group bookings are subject to carrier’s group policies.

  6. GTRs • All carriers are moving to automated processes. • GTR’s involve a manual process. • Costly to both the government and industry. • For domestic air travel GTRs may be used only under special circumstances and for travel related expenses. • We encourage all, wherever possible, to obtain a SmartPay charge card one for their employees and a separate one for contractors

  7. FY 2006 STATISTICS • 13 Carriers • 6,066 Markets solicited/4,720 Markets awarded • Average YCA/_CA differential - $100 (up from $87 last year) • 95% Nonstop service awarded where offered; • 67% Average discount off the walk-up fare • $2.8 Billion in savings

  8. Outstanding Bargains... City Pair Government Commercial YCA/_CA HNL/SAN (N) $240/ $195 $857 (Honolulu/San Diego) ORD/SEA (N) $174/ $149 $1,293 (Chicago/Seattle) IAD/LAX (N) $177/ $147 $1,335 (Washington/Los Angeles) ATL/FRA (N) $365/ __ $2,422 (Atlanta/Frankfurt) WAS/LON (N) $372/ $290 $1,678 (Washington/London) NYC/PAR (N) $299/ $148 $1,751 (New York/Paris)

  9. What should I do with unused tickets? • Turn in as soon as possible • Cost savings to the Government • Cost savings to the taxpayer When to refund a ticket: • Ticket purchased never used or only partially used • Traveler MUST initiate the refund process

  10. Outlook for FY07 • GSA Multiple Award Schedule • Travel Services Solutions (TSS) • FEDFARES pilot program • Air Charter Services

  11. The City Pair Program-The Best Value in the Air GSA leverages Govt.’s market share for negotiated discounts • Fully refundable • No purchase or stay restrictions • No airline change/cancel penalties • Dual Fares (YCA, _ CA) • Plan ahead & save $$

  12. For more information... Eddie Murphy Contracting Officer, Acting Branch Chief 703.605.2919 Eddie.murphy@gsa.gov Jerry W. Ellis Ergene Lee Contract Specialist Contracting Officer 703.605-2928 703.605-2917 jerry.ellis@gsa.gov Gene.lee@gsa.gov Linda L. Smith Contracting Officer 703.605-2915 lindal.smith@gsa.gov www.gsa.gov/citypairs/

  13. Questions?

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