Nick Horne

1

• Nick Horne
• Commercial Manager South LATAM
• British Airways
• O Que Producirá 2007?

2
About me

• 11 years with British Airways
• Before South America, in UK Sales, responsible
  for all corporate deals
• Worked extensively in Commercial area and also in
  Airports

3
What will 2007 produce?

• Another year of significant challenges
• All costs will continue to challenge
• Economic indicators are mixed
• Regulation / Political
• Competitive marketplace remains strong
• Partnerships with key corporate customers
• All mean the focus on the customer will remain key

4
Costs challenges

• Fuel costs are rising again
• Airlines will continue to take on other external
  costs
• Costs of doing business are increasing
• Airline specific cost issues

5
Economic indicators

• World economies appear stable, but there are
  underlying threats
• US sub-prime lending market
• UK house prices
• Dollar weakness
• New economies in Asia
• Economies drive a huge part of airline
  profitability and we cannot control them!

6
Regulation / Political

• Major changes continue in 2007!!
• EU/US open skies
• South America in chaos
• Acquisition / merger activity rife

7
Competitive marketplace

• Product investment
• New entrants
• New partnerships
• New niches
• Existing carriers growth
• Adjustment to life without RG

8
Partnerships with corporates

• The corporate travel market is key to airlines
• This relationship is well established in most
  markets, but still developing in South America
• Issues that arise here
• Commissions
• Lack of transparency in the tripartite
  relationship
• Lack of data integrity
• Difficulty in total travel coverage
• Global deals / multi-carrier deals

9
So, what do airlines need to do?

• Ensure all customers are profitable
• Match capacity very closely to profitable demand
• Capitalise on new business models to simplify
  customer interactions
• Turn over all the stones