[Travel-Link] City Pairs Update

[HAY Tim * SSD SPO]

The 2011-2012 City Pairs Price Agreements have been awarded and pricing
and city pairs are available for review on the SPO Travel Page at
http://travel.oregon.gov   under City Pair Air Fare 2011-2012.    There
is a serious change to this year's city pairs program with a drastic
reduction in the available city pairs.   With the airline industry
consolidation occurring in the recent years, there are fewer airlines in
the market place.   Here are the recent consolidations.

 

2005  America West merged with US Airways

2008  Northwest Airlines merged with Delta

2009  Midwest Airlines merged with Frontier

2011  Airtran Airlines merged with Southwest

2011  Continental Airlines merged with United

 

It is expected that one other merger will occur in 2012 with either
American, US Airways and JetBlue.   

 

With the consolidation, Airlines are not willing to contract with States
as they have in the past. This is evident in this year's program.
Airlines have dropped agreements in other states also.  

 

DAS SPO executed price agreements with 4 airlines, for a total of 54
city-pairs, primarily on the west coast. Only Chicago and Denver are
covered east of the Rockies. 

 

Alaska Airlines has 35 city-pairs

SeaPort Airlines has 13 city-pars

JetBlue Airlines has 1 city pair

United Airlines has 1 city pair.

 

These new agreements become effective August 1, 2011.    The current
agreements expire July 31, 2011 with travel needing to be completed by
August 31, 2011. 

 

For cities not covered under the city-pairs agreements, agencies will
need to shop for the lowest published fare available through Azumano
travel.  

 

Please remember that published fares do not carry the same benefits at
the contracted city-pairs.  Published fares carry penalties and
restrictions and are non-refundable.   Agencies may need to change
current approval process in order to obtain better fares.   Travelers
may need to fly at less desirable times to obtain lower fares. 

 

We are exploring other airline contracting methods at this time, but
nothing will be executed prior to the expiration of the current
agreements. 

 

There will be more discussion on this topic at next week's travel forum
scheduled for June 23, 2011 at the employment building auditorium.
Details on the forum are available here
http://www.oregon.gov/DAS/SSD/SPO/travel-forum.shtml

Best regards, 

Tim A. Hay, CPPB, CGTP, OPAC, OPBC
Lead State Procurement Analyst
DAS State Procurement Office
1225 Ferry St SE U140
Salem, OR 97301-4285 

Ph. 503-378-4650
Fax. 503-373-1626
tim.hay at state.or.us 

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