Updated: Wednesday, April 29, 2020
With the spread of the COVID-19 virus globally, many airlines have elected to halt the majority of, if not all, flying. Schedules are being assessed and altered on an ongoing monthly basis. Most affected are international routes, but US domestic route networks are now undergoing significant reductions as well. The “new normal” is almost impossible for airlines and analysts to predict.
Current Airline Sourcing Environment
Carriers are continuing to process and respond to airline RFPs and requests for renegotiation. In addition, for contracts due to expire within the next several months, most airlines will agree to extend existing terms and performance targets for at least an additional six month period, with some carriers extending for up to an additional year.
Recommendations from Partner Solutions Group (PSG)
1. With so much uncertainty and little ability to forecast, PSG recommends clients extend any contract that is due to expire for at least a further six months, if not 12.
2. In addition to extending current agreements, we recommend consistently reviewing the commercial aviation marketplace. How are carriers reinstating routes? What is happening to schedules month by month? How are my key routes impacted?
3. Keep up to date on carrier network changes, as well as your company’s anticipated demand recovery. Consistently communicate your company’s forecasted travel patterns with airline partners.
About Partner Solutions Group
Whether your needs involve air, hotel, ground, travel policy or travel-related technology, PSG provides customized consulting services uniquely designed to improve program optimization, category management, supplier savings and traveler experience. Ask your Travel and Transport account manager or sales manager for more information.