October 2017 ZED and MIBA fares our journey todate 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 ID: 757306
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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
17