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Airfare Fuel Cost Model

TRAVEL ANALYTICS INC. Airfare Fuel Cost Model. April 2006. Finding Bigger Savings Faster SM. Purpose of This Model. Airfares have increased significantly since 2004 Airlines typically point to the dramatic rise in jet fuel prices as a driver of the fare hikes

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Airfare Fuel Cost Model

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  1. TRAVEL ANALYTICS INC Airfare Fuel Cost Model April 2006 Finding Bigger Savings Faster SM

  2. Purpose of This Model • Airfares have increased significantly since 2004 • Airlines typically point to the dramatic rise in jet fuel prices as a driver of the fare hikes • Many corporate buyers are sympathetic to the airlines’ need to pass fuel costs on to buyers • Fare hikes that exceed the cost of jet fuel should be fair game for negotiations This Model Helps Buyers Recognize Fair Fuel Cost-based Increases

  3. Using This Model • Travel Analytics has supplied several reference points regarding • Average fuel efficiency by aircraft type • Historic spot prices for U.S. jet fuel • Distances for some major markets • Users are encouraged to print this document before using the model • The user will need to put this file into “Slide Show” mode in order to use the dynamic properties of the model • Go to View; Slide Show • Or press the F5 function key • Once the file is in Slide Show mode, then move the sliders on the last page to reflect the values you wish to model

  4. Fuel Cost Model Reference Points

  5. About Travel Analytics • We provide sophisticated negotiating and spend management services to corporate and government travel buyers worldwide • Our support services include • Savings diagnostics • Airline contract analysis • Airline negotiation support • Strategic sourcing project management • Spend analysis and reporting • Travel policy cost analyses • For more information: travelanalytics.com +1 440.248.4111

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