Session 6: Expanding Choices in Distribution Moderator: Mark Pilling, Editor, Airline Business Panelist: Michael Randall, VP, Worldwide Business Development, ITA Software Georg Bolz, Director Portflio Management Airline Solutions, Lufthansa Systems Maurice Coleman, Head of Commercial Strategy, Aer Lingus Darren Peisley, General Manager of Distribution Strategy & Sales Planning, Qantas Graham Wareham, Star Alliance: General Manager for Product Distribution, Air Canada

SESSION 6: Expanding Choices in Distribution Lufthansa Systems Dr. Georg F. Bolz Director Portfoliomanagement Airline Solutions Am Weiher 24 D Kelsterbach

Distribution Channel Management Load Control Check-In/ Boarding Ticketing InventoryReservation Schedule Management Future Airline Core Environment Hotel/Car ATO’s/CTO’s Call Center Corporate Implants Airline.com GDS 2-N GDS GNE Travel agents/ Tour operators/ Consolidators Private ACAP’s LSY TMC’s / Corporate Thesis 1: Active management of the various distribution channels will be a vital core ingredient of advanced airline business models.

Thesis 2: GNE‘s are about to become a viable alternative, and evolve to absorb a significant portion of the market in a sustainable way. GDS FACE Distribution Channel Mgr Travel Agencies Airline GDS GNE selective access private fares global access public fares Status GNE’s: Industry background of their management teams Endorsement from major carriers, including Star Alliance Functionally ready, platforms installed, test usage Contracts with major carriers and large TMC’s signed DCA-type contracts expire in 2006, GNE’s ready to take-off GNE’s started in the US market in 2005 and will expand internationally, with support from regional airline groups and alliances. GNE’s are backed by Venture Capitalists to expand their scope. GNE providers are enhancing their functionality by partnering with airline IT providers to become a full scale alternative to traditional GDS. GNE‘s are serious contenders and a viable alternative GNE‘s will become real in 2006 GNE‘s and GDS‘s will continue to coexist in the market, developing different profiles, serving different needs --off onally, th airline DS.

Thesis 3: Evolution of airline distribution is driven by cost reduction; selective availability of content and control of channel cost are key. Airline RES Own Content Direct Sales NewGen Tech. Community Platforms Community Content Private/Nego Fares GNE-Tech.&Comm.Enh. GDS „Full Content“ TA‘s, TMC‘s, Corporates Host Tech. Airline Reservation Center GDS Published Tariffs Trad.TA with global reach Host Tech. GDS/spec.contracts Corporate/Private Fares Host Tech./marg.cost GNE Full Content NewGen Tech. GNE Private/Corporate Fares TMC‘s/Corporates NewGen Tech. Airline CRS Own Content Own Sales Offices Airline RES Own Content Direct Sales Host Tech. IBE „Web Fares“ Direct Sales GDS Full Content Travel Agencies new scale Airline RES Own Content Call Center Cutting Commissions Introducing Service Fees Direct Connect „DCA3“ Online Portals Airline Portals Note: conceptual - not to scale. overall distribution costs before, platform costs to airlines after „disruptive period“ ca