1. ZED Super Low - WG-
Dallas, Texas
October 2017

2. ZED and MIBA fares: our journey to-date
ZED was retained as the industry standard, with the ZMR2 levels used as a baseline against which ZL and ZH were calculated
Annual review according to trend of commercial fares published by members in each zone
New Adjustment Mechanism was introduced to review fares annually
Fares in some bands were adjusted to more logical amounts
ZEDR1 and MIBAS1-C1 fares were “merged”: same fares regardless of leisure or duty
ZL zone 1 became our new baseline with minimum fare set at $15
Premium economy introduced

3. Ongoing questions and some results
What is a fair price to pay for standby travel?
What is the minimum fare that operating carriers agree that adequately offsets their operating costs?
What is good value for money for confirmed fare? Despite an offer by ZMAC to outsource to a third party the task of conducting some research, members chose not to pursue this
Levels of fares are constantly being scrutinized by ZEDMIBA forum to ensure they are relevant
New product (ZED Super Low) was conceived, developed and a proposal shared at last year’s AGM
Vote GVA 17 proposal failed as 54% vote against
At the same event, Members chose to retain the baseline fare for standby travel

4. Market prices mileage zone 1: examples
Current ZED fares:
RT ZMR2 without taxes: 2 x 24 = 48 $, ZLR2 : 2 x 15 = 30 $
RT ZMR1 without taxes: 2 x 62 = 124 $, ZLR1: 2 x 28 = 56 $
Public fares within mileage zone 1: two weeks prior to departure (MAR’17)
PAR-NCE/ Easyjet: :
Public fare: 86 $ RT fare, without airport taxes
No refund, no changes, 1x luggage incl.
TYO-OSA/ flyPeach:
Public fare: 87 $ RT fare, without airport taxes
No refund, no changes, 1x luggage incl.
NYC-BOS/ Delta-Jet Blue- AA:
Public fare: 108 $ RT fare, without airport taxes
Lower than ZEDMIBA R1 with ZM
Lower than ZEDMIBA R1 on ZM
Lower than ZEDMIBA R1 on ZM

5. Market prices Mileage zone 3: examples
Current ZED fares:
RT ZMR2 without taxes: 2 x 39 = $, ZLR2 : 2 x 29 = $
RT ZMR1 without taxes: 2 x118= 236 $, ZLR1 : 2 x 53 = 106 $
Public fares within mileage zone 3: two weeks prior to departure, non-stop flight (MAR ’17)
FRA-IST/ Pegasus Airlines :
Public fare: 55 $ RT fare, without taxes
No refund, no changes, 1x luggage incl.
SIN-DPS/ Tiger Air:
Public fare: 126 $ RT fare, without taxes
GIG-BUE/ EMRATES:
Public fare: 239 $ RT fare, without taxes
No refund, no changes, 2x luggage incl.
Lower than ZEDMIBA ZLR2
Lower than ZEDMIBA ZMR1
Close to ZEDMIBA ZMR1

6. Market prices mileage zone 6: examples
Current ZED fares:
RT ZMR2 without taxes: 2 x 79 = 158 $, ZLR2 : 2 x 59 = $
RT ZMR1 without taxes: 2 x 248= 496 $, ZLR1: 2 x 163 = 326 $
Public fares within mileage zone 6: two weeks prior to departure, non-stop flight (MAR ‘17)
CGN-MIA/ Eurowings:
Public fare: 400 $ RT fare, without airport taxes
No refund, no changes, 1x luggage incl.
BKK-MEL/ Jet Stars:
Public fare: 318 $ RT fare, without airport taxes
Lower than ZEDMIBA ZM R1
Lower than ZEMIBA ZLR1

7. ZED and MIBA fares: future
Question we must ask ourselves:
Is there still an case for introducing a ZED Super Low level?

8. Proposal for the new fare levels

9. Proposal for the new fare levels
Space available – Premium Economy Class

10. Proposal for the new fare levels

11. Proposal for the new fare levels

12. Proposal for the new fare levels

13. Proposal for the new fare levels

14. Considerations pros cons
Worldwide standard for airlines which need a lower fare
A new product within ZED
Fits existing ZED fare structure
No complex calculation
Easy to add to existing agreements
An option if fare adjustment rule prevents further decrease
Maybe not all airlines will use them
Maybe too inexpensive
Revenue lost (fix cost not covered?)
New fare basis
ISTA & Concurrence form update
MyID travel & tools update

15. How might this impact MyID System?
Assumptions
The Fare Level ZS uses the same structure as ZL, ZM and ZH.
Just the fare amounts are different.
Each airline can choose itself if the Fare Level will be used or not.
Costs
The costs for the general adjustment and the fare load will be borne by myIDTravel. There will be no individual costs for the airlines from LHIND side.
Out of Scope
Adjustments in airline pricing systems e.g. for auto pricing airlines or any other 3rd party systems are not included. Airlines using a special taxation need to verify the usage at their own cost.
Currently there are no known items to LHIND but customer airlines needs to verify that.

16. Any implications for Infonia?
Assumptions
The Fare Level ZS uses the same structure as ZL, ZM and ZH.
Just the fare amounts are different.
Costs

17. Many Thanks 