June 11, 2002

 

Ms. Cheryl Hutchinson
President
ACTE
515 King Street, Suite 340
Alexandria, Virginia 22314

Dear Cheryl:

The ACTE white paper on airline pricing accurately reflects the opinions of many of the corporate travel executives we talk to on a daily basis. This topic of pricing simplification has been discussed off and on for many years at the same time that pricing and distribution channels have been becoming more complex and numerous.

America West has listened to you and your members and made a bold move that parallels the reforms you call for in your white paper. We have eliminated Saturday night stays and round trip purchase requirements that have traditionally prohibited business travelers from availing themselves of reasonably priced transportation. Below are a few examples that illustrate the benefits to your members of this new pricing structure.

BOS – SFO

HP

Other

Majors

HP vs

Majors
  1. Day AP/w/no SAT night stay – daily

7 DAY AP w/no SAT night stay – daily

OW walkup

$ 452 RT

$ 484 RT

$ 399 OW

$ 1,848 RT

$ 2,292 RT

$ 1,239 OW

$ (1,396)

$ (1,808)

$ (840)

DFW - SJC

HP

Majors

HP vs Majors

14 Day AP/w/no SAT night stay – daily

7 DAY AP w/no SAT night stay – daily

OW walkup

$ 246 RT

$ 566 RT

$ 333 OW

$ 1,596 RT

$ 2,038 RT

$ 1,070 OW

$ (1,350)

$ (1,472)

$ (737)

While our new pricing has received positive comments from many of your members, we need to receive much more than moral support; we need to capture more of your members' business to help offset the punitive response we have experienced from many of our competitors who want to see our initiative fail. We are committed to this new structure that addresses ACTE'S pricing concerns. At the same time, it can only succeed if you and your members vote with your buying power. We need your business and appreciate any additional actions that you and your members can take to support America West and the reforms called for in the ACTE white paper.

Please let us know if we are missing any opportunities.

Sincerely,

 

Ron Cole
Vice President, Sales

RC:bm
c: Nancy Holtzman