City Pair Program TMC Forum April 10, 2013. Agenda Changes in FY14 FY14 Market Information FY14 Timeline 48 Hour Auto Cancellation Use of Commercial Fares.

City Pair Program

TMC Forum

April 10, 2013

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Agenda

• Changes in FY14• FY14 Market Information• FY14 Timeline• 48 Hour Auto Cancellation• Use of Commercial Fares• CPP Evolution

Changes in FY14

• Fuel Surcharge• Baggage Fee as an Evaluation Factor• International reservations subject to auto

cancellation• Composite fare weighting for international

markets• Eastbound flight crossing three time zones

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FY14 Market InformationItem FY13 FY14 ChangeMarkets Solicited 7,005 7,012 7Total Domestic Markets 5,561 5,402 -159Total International Markets 1,444 1,610 166Group 1 Markets 3,746 3,872 126Group 2 Markets 3,259 3,140 -119Passenger Count 7,708,459 7,503,347 -205,112

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FY14 TimelineAction Date

Group 1 Proposals Submitted End of March 2013

Group 2 Proposals Due Mid-April

Special Board Convenes Week of April 15

Negotiations May - June

Notifications of Award Mid - late July

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48 Hour Auto Cancellation

• GSA distributed Airline profile document– Usefulness of document

• Ease of Automation• Concerns with auto cancellation process

Use of Commercial Fares• CPP and Commercial Fares

– Agencies may authorize the use of a non-CPP fare– FAS is working with OGP and OMB for additional guidance

• Support of CPP Awarded Airlines– When lowest price, in a market, is equal among all airlines, the airline

awarded the city pair contract should receive the market share of the business

– Essential to ensure airlines will continue to provide discounted CPP fares

– CPP Contract and FTR/JFTR exceptions are aligned

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Use of Commercial Fares: Agency Considerations

• Managing Unused, Non-refundable Tickets– Must be managed to minimize waste of unused tickets due to expiration– Traveler Education– ETS configurations for commercial fares

• Reimbursing Changed Itineraries in Commercial Fare Model– Business processes must be established to manage cost of changing itineraries

• TMC Reporting – TMCs to provide reporting on unused, unexpired ticket credits that need to be

managed by Agency and used prior to expiration

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Questions