1. Webinar: How to negotiate with airlines
Welcome
Webinar: How to negotiate with airlines
Our Panel
Ole Mortensen
AMM Consulting
Mark O’Brien
BCD Travel
Asif Bashir
Axcent Solutions
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2. Challenges: environment
5000 planes over the US and the same Europe and the same Asia. ONE 747 burn around liter fuel per hour or 15 tons or tons per hour Picture
US: tons fuel per hour 24/7 at 10 kilometers altitude

3. Challenges: competition

4. Challenges: oil

5. Challenges: tax man

6. Challenges: from control to outsourcing
From controlling every detail in the process to
Having control of flying only

7. Mobile and global pay, bits, internet, social media and XML
Challenges: old accounting to Apple Pay
From relaying on coupons, IATA, clearing houses and old payment agreements To
Mobile and global pay, bits, internet, social media and XML

8. Where are the airlines heading?
IN SHORT: THE AIRLINES WANT TO OWN THE CUSTOMERS/TRAVELLERS

9. Fundamental Identify focus elements Data, analytics, performance
Loyalty status, ancillary services
Data, analytics, performance
Delivering against the commitments Contract through to point of sale
Benchmarking
What’s competitive
Target feasibility assessment

10. Supplemental More detailed benchmarking
Multi-TMC data roll up and analysis

11. Commonly beyond a standard TMC offering?
Proprietary scenario modeling – consulting centric tools
Dedicated air sourcing SMEs

12. AIRLINE NEGOTIATION IS NOT A ONE-OFF ACTIVITY
SOURCING EVENT
CONTRACT LIFECYCLE

13. HAVING THE RIGHT PROCESS IS AS IMPORTANT AS THE RIGHT STRATEGY
Strategy = Right Focus
Process = Optimal Outcome
Spend
Diagnostic
Strategy
Creation
Execution
Decisions & Awards
Ongoing Review
Market Engagement, Feedback & Review Loop
Timelines, Milestones
Environment Analysis
Core Project Team

14. Focus on sustainable value Keep conversation going
BEST PRACTICE CONSIDERATIONS TO HELP OPTIMISE VALUE FROM AIRLINE NEGOTIATIONS
PRE NEGOTIATION
DURING NEGOTIATION
POST NEGOTIATION
Consider internal factors
Evaluate external factors
Analytics, strategy, and preparation
Know your numbers
Keep data handy
Have a structure
Follow the negotiation plan Focus on strengths and opportunities
Focus on sustainable value
Check final proposal have all agreed terms
Ensure rates are loaded correctly
Keep conversation going

15. Webinar: Webinar: How to negotiate with airlines
Thank you
Webinar: Webinar: How to negotiate with airlines
Our Panel
Ole Mortensen
AMM Consulting
Mark O’Brien
BCD Travel
Asif Bashir
Axcent Solutions
See more at

16. Our next webinar Friday 26 June at 11am
How TMCs are dealing with Lufthansa’s direct connect
Friday 26 June at 11am