Philadelphia BTA Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition

1. Philadelphia BTAStrategic Issues In Travel ManagementKevin MitchellBusiness Travel Coalition

2. Strategic Issues In Travel Management • What I Will Cover • PAX Rights Legislation • Outsourced Aircraft Maintenance • Registered Traveler

3. Strategic Issues In Travel Management PAX Rights Legislation

4. Strategic Issues In Travel Management • The Background • January 1999 • New Year’s 2006; Valentine's Day 2007 • 2007 the worst summer in history • delays, cancelations, service, comfort

5. Strategic Issues In Travel Management • Some Stats • Worst summer since 1995 • 25% flights nationwide delayed Vs. 22% in ‘06 • 50% flights into NYC area delayed • Last 3 months 32K flights canceled Vs. 16K in ‘06 • 11K corporate jets Vs. 7K in ‘00

6. Strategic Issues In Travel Management Growing Calls for Congressional Intervention

7. Strategic Issues In Travel Management • A Government, Societal and Free Market Issue FAA Modernization NIMBY No National Air Transportation Policy Security hassle Operational meltdown contingency planning Airline financial crisis and declining service Hub economics and over scheduling

8. Strategic Issues In Travel Management • Considerations • Threshold for legislation • 36 Out of 7 Million Flights 5 Hours • On the other hand it’s the whole experience • 700 million to 1 billion in 7 years • We must deal effectively with this; much at stake

9. Strategic Issues In Travel Management • The Concern • Current options inadequate • PAX legislation harmful and will waste precious time • Airlines unlikely to respond sufficiently • Digging a hole we may not be able to climb out of

10. Strategic Issues In Travel Management BTC Testimony

11. Strategic Issues In Travel Management • BTC House Testimony October 26 • The Problem • bad motivation begets bad ideas • if nothing done, 2007 just a footnote • pressure mounting in an election cycle

12. Strategic Issues In Travel Management • BTC House Testimony October 25 • The Problem • A Solution • Reverse-Sunset legislation • National Academies of Science TRB • well-vetted ideas • criteria for DOT Inspector General

13. Strategic Issues In Travel Management • BTC House Testimony October 25 • The Problem • A Solution • The Benefits • avoid punitive, ill-conceived fixes in short term • encourage all-out airline campaign • well-vetted ideas if we need them in mid term

14. Strategic Issues In Travel Management Outsourced Maintenance

15. Strategic Issues In Travel Management • Perfect Storm - Summary • 9/11 • airline race to the bottom on costs • FAA sleeping on the Job

16. Strategic Issues In Travel Management • 9/11 • All attention on security • Airlines, press, government

17. Strategic Issues In Travel Management • Race to the Bottom • New security costs, LCCs, SARS, war, • bankruptcies, jet fuel… • 147,000 jobs lost • Thousands of years of maintenance experience • gone • Maintenance outsourced overseas…

18. FAA Asleep • Airlines as customers, partners • Reliance on ATOS • FAA staffing down as challenges grow • System created in a different era • 60 days notice - China Strategic Issues In Travel Management

19. Strategic Issues In Travel Management • House • More inspectors • If same system, still have a problem

20. Senate • Go after systemic problems • Redefine FAA role - again • Require airlines to pay • Mandate outsourcing in U.S. • Reciprocal agreements; without notification • Consider a national air transportation policy Strategic Issues In Travel Management

21. Strategic Issues In Travel Management Registered Traveler

22. Strategic Issues In Travel Management • Why RT Today? • Security – move passengers from unsecure areas to secure areas • Airline Profitability - return of high yield business travelers • Airport Real Estate - RT provides more real estate without more lanes (EZ-Pass) • Business Traveler Predictability - convenience; corporate efficiency

23. Strategic Issues In Travel Management • RT Today – Green Light for Fast Lanes • TSA – rules, roll-out, oversight • Airports – embracing – SFO, DEN, MWAA, ATL • Corporations due diligence - purchasing guidelines - NBTA Enrollment - commitments • Industry Partnerships - now is the time • Airlines – stuck in neutral

24. Strategic Issues In Travel Management • Who are the Players? • FLO Corporation • Unisys – RTgo • Verrant Identification Systems • Verified Identity Pass – CLEAR • Vigilant Solutions

25. Strategic Issues In Travel Management Lanes Open Today Orlando Cincinnati Indianapolis San Jose JFK - Terminal 1,4,7 Jacksonville, FL Albany, NY Newark Terminal B Reno Little Rock Opening Soon Huntsville San Francisco LGA – Main Terminal • RFPs in Process • Washington Reagan • Washington Dulles • Baltimore • Denver • Oakland • Atlanta • Miami • Ft Lauderdale • Anchorage • LAX • San Antonio • Airline Controlled • JFK-LGA-EWR

26. Home/Office Destination Strategic Issues In Travel Management • RT 1.0 • Born of TSA pilots • Focused on lane only • Rigid business model • Today – front of line only • Future – no removal of shoes, coats, laptops Airport Security

27. Limo Services Airline Status Upgrade Airline Clubs Airport Parking Home/Office Airport Security Destination Remote Baggage Check-in Concession Discounts Global Assist Services RT 2.0 Strategic Issues In Travel Management

28. Thank You!