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ZED Super Low - WG-

ZED Super Low - WG- Dallas, Texas October 2017 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

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ZED Super Low - WG-




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ZED Super Low- WG- Dallas, TexasOctober 2017

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

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

Market prices mileage zone 1: examples Current ZED fares: RT ZMR2 without taxes: 2 x 24 = 48 $, ZLR2 : 2 x 15 = 3 0 $ 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 taxesNo refund, no changes, 1x luggage incl.TYO-OSA/ flyPeach: Public fare: 87 $ RT fare, without airport taxesNo refund, no changes, 1x luggage incl.NYC-BOS/ Delta-Jet Blue- AA: Public fare: 108 $ RT fare, without airport taxesNo refund, no changes, 1x luggage incl. Lower than ZEDMIBA R1 on ZM Lower than ZEDMIBA R1 on ZM Lower than ZEDMIBA R1 with ZM

Market prices Mileage zone 3: examples Current ZED fares: RT ZMR2 without taxes: 2 x 39 = 78 $ , ZLR2 : 2 x 29 = 58 $ 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 taxesNo refund, no changes, 1x luggage incl.SIN-DPS/ Tiger Air: Public fare: 126 $ RT fare, without taxesNo refund, no changes, 1x luggage incl. GIG-BUE/ EMRATES : Public fare: 239 $ RT fare , without taxesNo refund, no changes, 2x luggage incl. Lower than ZEDMIBA ZLR2 Close to ZEDMIBA ZMR1 Lower than ZEDMIBA ZMR1

Market prices mileage zone 6: examples Current ZED fares: RT ZMR2 without taxes: 2 x 79 = 158 $ , ZLR2 : 2 x 59 = 118 $ 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 No refund, no changes, 1x luggage incl. Lower than ZEMIBA ZLR1 Lower than ZEDMIBA ZM R1

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

Proposal for the new fare levels

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

Proposal for the new fare levels

Proposal for the new fare levels

Proposal for the new fare levels

Proposal for the new fare levels

Considerations proscons   Worldwide standard for airlines which need a lower fareA new product within ZEDFits existing ZED fare structureNo complex calculationEasy to add to existing agreementsAn option if fare adjustment rule prevents further decrease Maybe not all airlines will use themMaybe too inexpensiveRevenue lost (fix cost not covered?)New fare basis ISTA & Concurrence form updateMyID travel & tools update

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.

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  

Many Thanks  17