GSA Federal Supply Service

AIRLINE CITY PAIR

PROGRAMFY2006

SUMMARY

Jerry W. Ellis

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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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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)

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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)

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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.

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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

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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

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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)

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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

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Outlook for FY07

• GSA Multiple Award Schedule

– Travel Services Solutions (TSS)

» FEDFARES pilot program

» Air Charter Services

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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 $$

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For more information...

www.gsa.gov/citypairs/

Linda L. SmithContracting Officer703.605-2915lindal.smith@gsa.gov

Eddie MurphyContracting Officer, Acting Branch Chief703.605.2919Eddie.murphy@gsa.gov

Jerry W. Ellis Ergene LeeContract Specialist Contracting Officer703.605-2928 703.605-2917jerry.ellis@gsa.gov Gene.lee@gsa.gov

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Questions?