philadelphia bta strategic issues in travel management kevin mitchell business travel coalition
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Philadelphia BTA Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition. Strategic Issues In Travel Management. What I Will Cover PAX Rights Legislation Outsourced Aircraft Maintenance Registered Traveler. Strategic Issues In Travel Management. - PowerPoint PPT PresentationTRANSCRIPT
Philadelphia BTA
Strategic Issues In Travel Management
Kevin Mitchell
Business Travel Coalition
Strategic Issues In Travel Management
What I Will Cover
PAX Rights Legislation
Outsourced Aircraft Maintenance
Registered Traveler
Strategic Issues In Travel Management
PAX Rights Legislation
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
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
Growing Calls for
Congressional
Intervention
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
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
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
BTC Testimony
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
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
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
Outsourced Maintenance
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
9/11
• All attention on security
• Airlines, press, government
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
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
House
• More inspectors
• If same system, still have a problem
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
Registered Traveler
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
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
Who are the Players?
• FLO Corporation
• Unisys – RTgo
• Verrant Identification Systems
• Verified Identity Pass – CLEAR
• Vigilant Solutions
Strategic Issues In Travel Management
Lanes Open Today
OrlandoCincinnatiIndianapolisSan JoseJFK - Terminal 1,4,7Jacksonville, FLAlbany, NYNewark Terminal BRenoLittle Rock
Opening SoonHuntsvilleSan FranciscoLGA – Main Terminal
RFPs in Process
Washington ReaganWashington DullesBaltimoreDenverOaklandAtlantaMiamiFt LauderdaleAnchorageLAXSan Antonio
Airline ControlledJFK-LGA-EWR
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
Home/Office Destination
Airport Security
Strategic Issues In Travel Management
RT 2.0
Limo Services
Airport ParkingAirline Clubs
DestinationAirport SecurityHome/Office
Remote BaggageCheck-in
Concession Discounts
Global AssistServices
Airline Status Upgrade
Thank You!