Nick Horne Commercial Manager South LATAM British Airways O Que Producirá 2007?

1. Nick Horne Commercial Manager South LATAM British Airways O Que Producirá 2007?

2. 11 years with British Airways Before South America, in UK Sales, responsible for all corporate deals Worked extensively in Commercial area and also in Airports About me

3. Another year of significant challenges All costs will continue to challenge Economic indicators are mixed Regulation / Political Competitive marketplace remains strong Partnerships with key corporate customers All mean the focus on the customer will remain key What will 2007 produce?

4. Fuel costs are rising again Airlines will continue to take on other external costs Costs of doing business are increasing Airline specific cost issues Costs challenges

5. World economies appear stable, but there are underlying threats US sub-prime lending market UK house prices Dollar weakness New economies in Asia Economies drive a huge part of airline profitability and we cannot control them! Economic indicators

6. Major changes continue in 2007!! EU/US open skies South America in chaos Acquisition / merger activity rife Regulation / Political

7. Product investment New entrants New partnerships New niches Existing carriers growth Adjustment to life without RG Competitive marketplace

8. The corporate travel market is key to airlines This relationship is well established in most markets, but still developing in South America Issues that arise here Commissions Lack of transparency in the tripartite relationship Lack of data integrity Difficulty in total travel coverage Global deals / multi-carrier deals Partnerships with corporates

9. Ensure all customers are profitable Match capacity very closely to profitable demand Capitalise on new business models to simplify customer interactions ‘Turn over all the stones’ So, what do airlines need to do?