Philadelphia BTA Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition.
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Transcript of Philadelphia BTA Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition.
![Page 1: Philadelphia BTA Strategic Issues In Travel Management Kevin Mitchell Business Travel Coalition.](https://reader035.fdocuments.net/reader035/viewer/2022062516/56649dde5503460f94ad6eb6/html5/thumbnails/1.jpg)
Philadelphia BTA
Strategic Issues In Travel Management
Kevin Mitchell
Business Travel Coalition
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Strategic Issues In Travel Management
What I Will Cover
PAX Rights Legislation
Outsourced Aircraft Maintenance
Registered Traveler
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Strategic Issues In Travel Management
PAX Rights Legislation
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Strategic Issues In Travel Management
The Background
• January 1999
• New Year’s 2006; Valentine's Day 2007
• 2007 the worst summer in history delays, cancelations, service, comfort
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Strategic Issues In Travel Management
Some Stats
• Worst summer since 1995
• 25% flights nationwide delayed Vs. 22% in ‘06
• 50% flights into NYC area delayed
• Last 3 months 32K flights canceled Vs. 16K in ‘06
• 11K corporate jets Vs. 7K in ‘00
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Strategic Issues In Travel Management
Growing Calls for
Congressional
Intervention
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Strategic Issues In Travel Management
A Government, Societal and Free Market Issue
FAA Modernization NIMBY
Airline financial crisis and declining service
Hub economics and over scheduling
Operational meltdown contingency planning
No National Air Transportation Policy
Security hassle
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Strategic Issues In Travel Management
Considerations
• Threshold for legislation 36 Out of 7 Million Flights 5 Hours
• On the other hand it’s the whole experience
• 700 million to 1 billion in 7 years
• We must deal effectively with this; much at stake
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Strategic Issues In Travel Management
The Concern
• Current options inadequate
• PAX legislation harmful and will waste precious time
• Airlines unlikely to respond sufficiently
• Digging a hole we may not be able to climb out of
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Strategic Issues In Travel Management
BTC Testimony
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Strategic Issues In Travel Management
BTC House Testimony October 26
• The Problem bad motivation begets bad ideas if nothing done, 2007 just a footnote pressure mounting in an election cycle
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Strategic Issues In Travel Management
BTC House Testimony October 25
• The Problem
• A Solution Reverse-Sunset legislation National Academies of Science TRB well-vetted ideas criteria for DOT Inspector General
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Strategic Issues In Travel Management
BTC House Testimony October 25
• The Problem
• A Solution
• The Benefits• avoid punitive, ill-conceived fixes in short term• encourage all-out airline campaign• well-vetted ideas if we need them in mid term
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Strategic Issues In Travel Management
Outsourced Maintenance
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Strategic Issues In Travel Management
Perfect Storm - Summary
• 9/11
• airline race to the bottom on costs
• FAA sleeping on the Job
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Strategic Issues In Travel Management
9/11
• All attention on security
• Airlines, press, government
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Strategic Issues In Travel Management
Race to the Bottom
• New security costs, LCCs, SARS, war, bankruptcies, jet fuel…
• 147,000 jobs lost
• Thousands of years of maintenance experience gone
• Maintenance outsourced overseas…
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Strategic Issues In Travel Management
FAA Asleep
• Airlines as customers, partners
• Reliance on ATOS
• FAA staffing down as challenges grow
• System created in a different era
• 60 days notice - China
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Strategic Issues In Travel Management
House
• More inspectors
• If same system, still have a problem
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Strategic Issues In Travel Management
Senate
• Go after systemic problems
• Redefine FAA role - again
• Require airlines to pay
• Mandate outsourcing in U.S.
• Reciprocal agreements; without notification
• Consider a national air transportation policy
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Strategic Issues In Travel Management
Registered Traveler
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Strategic Issues In Travel Management
Why RT Today?
• Security – move passengers from unsecure areas to secure areas
• Airline Profitability - return of high yield business travelers
• Airport Real Estate - RT provides more real estate without more lanes (EZ-Pass)
• Business Traveler Predictability - convenience; corporate efficiency
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Strategic Issues In Travel Management
RT Today – Green Light for Fast Lanes
• TSA – rules, roll-out, oversight
• Airports – embracing – SFO, DEN, MWAA, ATL
• Corporations due diligence - purchasing guidelines - NBTA Enrollment - commitments
• Industry Partnerships - now is the time
• Airlines – stuck in neutral
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Strategic Issues In Travel Management
Who are the Players?
• FLO Corporation
• Unisys – RTgo
• Verrant Identification Systems
• Verified Identity Pass – CLEAR
• Vigilant Solutions
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Strategic Issues In Travel Management
Lanes Open Today
OrlandoCincinnatiIndianapolisSan JoseJFK - Terminal 1,4,7Jacksonville, FLAlbany, NYNewark Terminal BRenoLittle Rock
Opening SoonHuntsvilleSan FranciscoLGA – Main Terminal
RFPs in Process
Washington ReaganWashington DullesBaltimoreDenverOaklandAtlantaMiamiFt LauderdaleAnchorageLAXSan Antonio
Airline ControlledJFK-LGA-EWR
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Strategic Issues In Travel Management
RT 1.0
• Born of TSA pilots• Focused on lane only• Rigid business model• Today – front of line only • Future – no removal of shoes, coats, laptops
Home/Office Destination
Airport Security
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Strategic Issues In Travel Management
RT 2.0
Limo Services
Airport ParkingAirline Clubs
DestinationAirport SecurityHome/Office
Remote BaggageCheck-in
Concession Discounts
Global AssistServices
Airline Status Upgrade
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Thank You!