Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing...

17

Transcript of Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing...

Page 1: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXIntroduction to Farelogix

We are a provider of distribution and management technology solutions for the global travel industry

For Travel Suppliers - provide low cost direct connect distribution technology for greater airline channel control custom content delivery (ancillarymerchandising) resulting in immediate distribution savings

For Travel Agencies - provide software for content sourcing management and travel-agency controlled business rules enabling greater agency control enriched content and closer supplier relationships

For Travel Consumers - although we do not sell solutions directly to consumers Farelogix technology enables airlines to significant realize distribution savings and differentiate their product leading to lower ticket prices and improved consumer choice

2

Why We Are Here F ARELOGIX

(The Issue at Hand)

GDS companies and their supporters are advocating legislation and rule making that if enacted would cause harm to both airlines and consumers The proposed rules would

w Force airlines to continue using antiquated high cost and inflexible distribution technology for travel agency (non airlinecom) sales

w Enable the GDS companies to avoid making needed investments into their own platforms and continue to widen the gap between the capabilities available to travel agencies versus on wwwairlinecom

w Restrict consumer choice and access to airline productsservices

w Unfairly protect GDS monopolistic power over airline distribution including protection of exorbitant GDS fees that translate to higher ticket prices

w Prevent airlines from marketing and selling products and services in a manner that enables brand differentiation and a move away from Ifcommoditized selling - which is vital to economic survival of the airline

3

F ARELOGIXSetting the Facts Straight (1)

You may have heard Airlines are attempting to hide fees from consumers

Airlines lack a market incentive to solve the problem N bull

When in fact the following is true The airline business model relies on repeat business

Fee information is readily available on websites and major OTAs

4

F ARELOGIXSetting the Facts Straight (2)

0lt You may have heard Technology has been built to enable airlines to publish fees through

the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it

0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer

requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom

5

F ARELOGIXSetting the Facts Straight (3)

of You may have heard Airlines have not made fee information available~ in a useful wayN to

the GDSstravel agency distribution channel

of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate

airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost

and inflexible GDS systems

6

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 2: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Why We Are Here F ARELOGIX

(The Issue at Hand)

GDS companies and their supporters are advocating legislation and rule making that if enacted would cause harm to both airlines and consumers The proposed rules would

w Force airlines to continue using antiquated high cost and inflexible distribution technology for travel agency (non airlinecom) sales

w Enable the GDS companies to avoid making needed investments into their own platforms and continue to widen the gap between the capabilities available to travel agencies versus on wwwairlinecom

w Restrict consumer choice and access to airline productsservices

w Unfairly protect GDS monopolistic power over airline distribution including protection of exorbitant GDS fees that translate to higher ticket prices

w Prevent airlines from marketing and selling products and services in a manner that enables brand differentiation and a move away from Ifcommoditized selling - which is vital to economic survival of the airline

3

F ARELOGIXSetting the Facts Straight (1)

You may have heard Airlines are attempting to hide fees from consumers

Airlines lack a market incentive to solve the problem N bull

When in fact the following is true The airline business model relies on repeat business

Fee information is readily available on websites and major OTAs

4

F ARELOGIXSetting the Facts Straight (2)

0lt You may have heard Technology has been built to enable airlines to publish fees through

the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it

0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer

requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom

5

F ARELOGIXSetting the Facts Straight (3)

of You may have heard Airlines have not made fee information available~ in a useful wayN to

the GDSstravel agency distribution channel

of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate

airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost

and inflexible GDS systems

6

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 3: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXSetting the Facts Straight (1)

You may have heard Airlines are attempting to hide fees from consumers

Airlines lack a market incentive to solve the problem N bull

When in fact the following is true The airline business model relies on repeat business

Fee information is readily available on websites and major OTAs

4

F ARELOGIXSetting the Facts Straight (2)

0lt You may have heard Technology has been built to enable airlines to publish fees through

the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it

0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer

requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom

5

F ARELOGIXSetting the Facts Straight (3)

of You may have heard Airlines have not made fee information available~ in a useful wayN to

the GDSstravel agency distribution channel

of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate

airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost

and inflexible GDS systems

6

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 4: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXSetting the Facts Straight (2)

0lt You may have heard Technology has been built to enable airlines to publish fees through

the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it

0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer

requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom

5

F ARELOGIXSetting the Facts Straight (3)

of You may have heard Airlines have not made fee information available~ in a useful wayN to

the GDSstravel agency distribution channel

of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate

airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost

and inflexible GDS systems

6

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 5: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXSetting the Facts Straight (3)

of You may have heard Airlines have not made fee information available~ in a useful wayN to

the GDSstravel agency distribution channel

of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate

airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost

and inflexible GDS systems

6

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 6: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXSetting the Facts Straight (4)

~ You may have heard There are no Technological Barriers

Industry standards are in placeso whats the problem

When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to

higher ticket fees and restricted consumer choice

and if you agree to have the selling display look like this

7

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 7: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Existing GDS points of sale inflexible commoditized -

ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 8: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARE L OGIXSetting the Facts Straight (5)

w You may have heard The ATPCO and antiquated high-cost and inefficient technology of

the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the

market

Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists

that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more

product choice and differentiation for consumers

As an example newer agency point of sale systems look like this 9

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 9: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

-- ----

---

F ARELOGIXModern Travel Agency Sales Platform Example (1)

elcome IlIchael ZumCIH -I J ut A

1- T - 10nl 001 Offi 10 -~ LO ~

F ar e Sea r c h

V Fi lon + E p ~ n j - It ()13030

Source AA AA Fli ght CflI ES- Depart -JrI e

-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)

-- 3 111 - - OF 03JULl5 30 08 J )

-- 1 E 3 11 - - OF 08JJL 07 O

-- 11 - - OF OaJUL1J 0 12 0 )

-- gao 111 - - OF OaJUL 13 30 20 2

- - -- -- - Joio t~ ~-

Flig ht Cities Oepan - In euro

-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30

-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-

~I ~ shy411ILUII IULIILUU~

S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO

il1IlY iI bull ~TII 1 COl StJps DuratJon +

~v~L Sa Qf FL Select FL 8 usmess

0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----

0 ~ 2 7- 0 170 81 0 2009 0 28 3

0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy

0 0 300 7 r 17J 81 C 200 C 22S 3 I shy

0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023

-~I - _ ~ ( -0 h _ -J r~~1r j ~

il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy

o o 2 T 7 bull ErJc y C1tt =oaolr g

~e - ~ $e - CJ Sea bull r -Flqr In e r e

o 0 2 77

o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5

0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 10: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXModern Travel Agency Sales Platform Example (2)

~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----

ZUIIDIECI-II RE IZT GIGOSJ GLD PLT

l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0

bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I

Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it

r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy

~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~

47201110212008 11

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 11: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

The Proposed Rule Verbiage is F ARELOGIX

No Coincidence

f Proposed rule verbiage Share the fee and price information with the independent sales

channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H

f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost

technology that ultimately translates to higher ticket fees and restricted consumer choice

Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines

It is not about consumers or transparency - it is market protectionism

12

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 12: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Airline Res

tIt bull

Airline delivers its parts

bull

GOS

GDS manufactures airline offer

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 13: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Airline Res

Airline Direct Connect (FareJogix)

GOS GOS functions only

as a distribution network

Airline delivers its productoffer based on traveler authentication

Witt

~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 14: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Recap Protect Choice and Lower F ARE L OGIX

Costs for Airlines and Consumers

The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model

If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices

New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry

Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way

15

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 15: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

F ARELOGIXRecap What is at Stake

If a rule is passed to dictate how airlines sell their product the travel industry will suffer

Continued inflated distribution costs forcing higher prices to consumers

Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies

Stifled innovation and competition in the travel distribution marketplace

Continued GDS monopolistic control over airlines agencies and ultimately consumers

Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways

beyond what the free market will support 16

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17

Page 16: Introduction to Farelogix - The White House | whitehouse.gov · the Airline Tariff Publishing Company ... tnB relaYing 3thmosph n a ; oa ; Included ... Force the airlines to use the

Thank You

Contact info

Jim Davidson

President and CEO

Farelogix Inc

760 NW 107th Avenue Suite 300

Miami FL 33172

305 222-5401 office

630865-3997 cell

idavidsonfarelogixcom

wwwfarelogixcom

F ARELOGIX

Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell

elopezfarelogixcom wwwfarelogixcom

Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17