Minutes_-_Domestic_Airlift_Services_Industry_Day.pdf

Domestic Airlift Services Industry Day December 6, 2017 0800-1400

Minutes

Attendance:

Tiffany Kauffmann Nashae Perez Peter Ries Scott Rader Krissy Schneider Matt Bowen Tony Wilson Lynn Delvecchio Greg Hawkins – UPS Matt Goldberg- Delta Airlines Alan Hutson- Delta Airlines Elizabeth Russell – Northern Air Cargo Scott Knutson – Sun Country Airlines Robert Frongillo – Via Airlines Donald Bowman- Via Airlines Rebecca George – Omni Alana Brazel – Omni Samantha Davis - Lynden Ken Lundgren – National Air Cargo Creig Rice – Bode Aviation Eric Moran – Rockwell Collins

Opening Remarks presented by Ms. Krissy Schneider. Krissy discussed the creation and roles of the SAM office. Krissy expressed our desire to “break the glass” on this follow- on contract and requested that carriers provide as much assistance in helping us create the best contract moving forward.

Ms. Tiffany Kauffmann provided a brief overview of the current contract i.e. current carriers, current volume and processes. During this briefing Ken Lundgren (NAC) expressed a concern regarding poor passenger preparation for missions. AMC admitted that this is an issue and that they are working closely with the folks on the ground to get this resolved. He suggested possible consequences to shippers for not being prepared.

Ms. Nashae Perez presented carriers with the acquisition milestones and proceeded to discuss 7 RFI questionnaire questions that required further elaboration and requested open dialogue amongst carriers during the process.

Responses and Feedback for each question below:

1.) How much advance notice do you require prior to scheduling a flight?

Responses ranged from 3 to 24 hours. The difference in notification times for carriers to receive and schedule bids ranged from 3 hours to 4 weeks. Many of the carriers stated that this difference in response was based on scheduled or unscheduled service. The standard practice is not to schedule charter flights sooner than 6 weeks out, preferably 4 weeks.

2.) What are your commercial policies/charges for cancelled missions and associated timeframes?

What recourse/refund is the shipper entitled to if carrier cancels? Responses ranged from actual costs for refund, government resource for cost occurred- substitute service to be worked by the carrier awarded the mission. According to Rob Taylor, of Merrill Taylor Group, the National Guard and Reserve service members account for 95% of the carrier delays/complaints.

3.) After submitting your offer for a specific requirement derived from the Domestic Services contract, how long would that offer be valid?

Responses ranged from 24 hours to 5-7 days. Rather than dictate a standard time frame, the government is considering allowing carriers to guarantee each of their mission offers for a time that works best for their company. Carriers suggested a change in GoPax to allow carriers to select their specific offer guarantee time.

4.) How is on-time performance measured in your commercial contracts?

Currently, on the time performance rating is based on a 95% on time percentage. Is this a fair percentage based on the commercial standard? Global IATA standard is 95%. A few carriers were comfortable with increasing this standard as high as 98% and one carrier suggested decreasing this standard to closer resemble the AMC organic standard.

5.) Do you offer a delivery commitment for cargo shipments? If yes, what recourse/refund is the shipper entitled to if that delivery commitment is not met?

Responses ranged from no to full refund.

6.) What is the standard individual weight and baggage weight calculations used per passenger?

Responses varied greatly. Is there a standard estimate used or does this vary based on carrier/customer? Carriers suggested using historical actual weights as a baseline. Carriers stated that the government is customarily over estimating passenger and baggage costs and over paying for carrier services.

7.) Do you provide service to Hawaii and all U.S. territories?

Responses were mostly yes. Is this contract the best fit for this service? A high percentage of carriers do service Hawaii and felt this acquisition would be a good fit for this service however, services to ALL US Territories under this contract was not recommended based on fuel capabilities to further locations over water.

8.) Please describe your current procedures for detail reporting?

Do you all have the ability to customize reports as per the customer on a monthly basis? Carriers suggested adding a reporting feature to GoPax that would include post departure information such as actual weights and actual passengers. This would assist all involved in using historical data to determine fair estimates and pricing.

One on One Discussions were held with the following carriers:

Delta Airlines Northern Air Cargo Sun Country Airlines Via Airlines Omni National Air Cargo Creig Rice – Bode Aviation

In one on one discussions the government asked the following questions?

1.) Would a five year baseline contract be an issue/concern?

All carriers that participated in the one on one foresaw no issues with this.

2.) Are there any issues or concerns if the government were to streamline the number of NTE weight breaks?

All carriers agreed with this strategy. Many noted that they do not use NTE rates at all in consideration when making pricing determinations for offers on missions.

Minutes completed by Nashae Perez 08 December 2017