ZED Super Low - WG- Dallas, Texas

Presentation on theme: "ZED Super Low - WG- Dallas, Texas"— Presentation transcript:

Slide1

ZED Super Low- WG-

Dallas, TexasOctober 2017Slide2

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 introducedSlide3

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 travelSlide4

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 ZMSlide5

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 taxes

No 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 ZMR1Slide6

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 Slide7

ZED and MIBA fares: future

Question we must ask ourselves:

Is there still an case for introducing a ZED Super Low level?Slide8

Proposal for the new fare levelsSlide9

Proposal for the new fare levels

Space

available

– Premium Economy ClassSlide10

Proposal for the new fare levelsSlide11

Proposal for the new fare levelsSlide12

Proposal for the new fare levelsSlide13

Proposal for the new fare levelsSlide14

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 updateSlide15

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. Slide16

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

 Slide17

Many Thanks 

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