Airfare Fuel Cost Model TRAVEL ANALYTICS INC Finding Bigger Savings Faster Finding Bigger Savings Faster SM April 2006

2 Purpose of This Model n Airfares have increased significantly since 2004 n Airlines typically point to the dramatic rise in jet fuel prices as a driver of the fare hikes n Many corporate buyers are sympathetic to the airlines’ need to pass fuel costs on to buyers n Fare hikes that exceed the cost of jet fuel should be fair game for negotiations This Model Helps Buyers Recognize Fair Fuel Cost-based Increases

3 Using This Model n Travel Analytics has supplied several reference points regarding u Average fuel efficiency by aircraft type u Historic spot prices for U.S. jet fuel u Distances for some major markets n Users are encouraged to print this document before using the model n The user will need to put this file into “Slide Show” mode in order to use the dynamic properties of the model u Go to View; Slide Show u Or press the F5 function key n Once the file is in Slide Show mode, then move the sliders on the last page to reflect the values you wish to model

4 Fuel Cost Model Reference Points

5 About Travel Analytics n We provide sophisticated negotiating and spend management services to corporate and government travel buyers worldwide n Our support services include u Savings diagnostics u Airline contract analysis u Airline negotiation support u Strategic sourcing project management u Spend analysis and reporting u Travel policy cost analyses n For more information: travelanalytics.com