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Maximizing Yields by Lowering the Cost of
PaymentPaymentAPG WorldConnect
Monaco25 October 2012
K. David Holmes, IIIVice President, Global Sales
Airline Operating Costs
7,8%
25,3%8,0%
7,3%
9,0%
2,6%
Aircraft operating costs
Employee costs
Engineering and other aircraft costs
Fuel and oil costs
2
11,8%28,2%
8,0%Fuel and oil costs
Handling, catering and other
operating costs
Landing fees and en-route charges
Property, IT and other costs
Selling costs
* based on IAG, AF, LH 2011 data ** based on A4A data combined with US DOT P1.2 filings MY 2012
Airline Industry Operating Margin
0.6%0.6%
3Source: IATA
This is why the cost of payment matters!!!matters!!!
4
About UATP
• Issued as a form of payment by 18 airlines• Accepted as payment by over 260 airlines,
rail carriers and select travel agencies
5
2011
Charge Volume
USD 13B
+24%
Airline-Owned
UATP vs. Other Credit Cards
7
Why Do Airlines Accept UATP?
• Incremental Sales Volume
• No Joining Fees or Annual Dues
• Low Merchant Fees
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• Low Merchant Fees
• Easy Access to Alternative Forms of Payment
Why Airlines Issue UATP
• Reduce or eliminate Credit Card Fees
• Creates an incremental revenue stream
• Market Intelligence• Builds corporate
customer loyalty and market share
9
• 100% web-based, hosted and supported by UATP
• Supports Data Feeds • Supports Data Feeds to ERP Systems
• Multiple Languages and Currencies
• System Evolves with UATP
1010
Supported DataStream Applications
• Standard Charge Accounts
• Prepaid Accounts• Prepaid Accounts
• Barter and/or Declining Balance
• Government Travel Management
11
• Transaction Research Portal
• Web-based and supported by UATPsupported by UATP
• Airline and Corporate Customer Applications
• Standard and Custom Reports
12
Why Issue UATP Now?
• New Models can be self-funding!• Industry is now focused on reducing CC
Fees– Since 2008, 12 new Shareholder/Issuers– Since 2008, 12 new Shareholder/Issuers
• Solutions are flexible, scalable, and quick-to-market
• New Product Enhancements Launching Soon
13
Summary
• All airlines should be Merchants– No Fee to join, Low Merchant Fees!
• Airlines should consider the benefits of Issuing to help improve their yield per
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Issuing to help improve their yield per ticket
• UATP is eager to work with you on any payment-related issue
QuestionsQuestions
15