Strategic Issues In Travel Management

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Published on February 22, 2008

Author: Panfilo

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20th Annual Conference 2007 Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition:  20th Annual Conference 2007 Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition Strategic Issues In Travel Management :  Strategic Issues In Travel Management What I Will Cover PAX Rights Legislation Outsourced Aircraft Maintenance Registered Traveler Strategic Issues In Travel Management :  Strategic Issues In Travel Management PAX Rights Legislation Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  Strategic Issues In Travel Management Growing Calls for Congressional Intervention Strategic Issues In Travel Management :  Strategic Issues In Travel Management A Government, Societal and Free Market Issue FAA Modernization NIMBY Airline financial crisis and declining service Hub economics and over scheduling Operational meltdown contingency planning No National Air Transportation Policy Security hassle Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  Strategic Issues In Travel Management BTC Testimony Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  Strategic Issues In Travel Management Outsourced Maintenance Strategic Issues In Travel Management :  Strategic Issues In Travel Management Perfect Storm - Summary 9/11 airline race to the bottom on costs FAA sleeping on the Job Strategic Issues In Travel Management :  Strategic Issues In Travel Management 9/11 All attention on security Airlines, press, government Strategic Issues In Travel Management :  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… Strategic Issues In Travel Management :  Strategic Issues In Travel Management 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 :  Strategic Issues In Travel Management House More inspectors If same system, still have a problem Strategic Issues In Travel Management :  Strategic Issues In Travel Management 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 :  Strategic Issues In Travel Management Registered Traveler Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  Strategic Issues In Travel Management Who are the Players? FLO Corporation Unisys – RTgo Verrant Identification Systems Verified Identity Pass – CLEAR Vigilant Solutions Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  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 Strategic Issues In Travel Management :  Strategic Issues In Travel Management RT 2.0 Strategic Issues In Travel Management :  Strategic Issues In Travel Management Thank You!

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