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US Airline Corporate Contracts  
User currently onlineLHCVG From United States of America, joined May 2009, 1605 posts, RR: 2
Posted (5 years 2 months 3 weeks 2 days 22 hours ago) and read 6978 times:

Does anyone know the major corporate contracts that the legacies (I figure they are the ones with the most contracts) have?

73 replies: All unread, showing first 25:
 
User currently offlineDLPMMM From United States of America, joined Apr 2005, 3594 posts, RR: 10
Reply 1, posted (5 years 2 months 3 weeks 2 days 21 hours ago) and read 6936 times:

Corporate contracts?

What kind?

Supplier?

Preferred vendor?

Consolidator?

Freight?

Labor?

Every contract made by a corporation is by definition a corporate contract.

Most corporate contracts are considered proprietary, and as such are not published, and even the existance of the contract may be considered proprietary, much less the terms.


User currently offlineOP3000 From United States of America, joined Jun 2009, 1775 posts, RR: 2
Reply 2, posted (5 years 2 months 3 weeks 2 days 19 hours ago) and read 6826 times:

I assume the OP is referring to the wholesale contracts airlines offer corporations for travel by their employees on business trips. Here's a good description of how they typically work:

http://www.freshpatents.com/System-a...ment-dt20080124ptan20080021746.php

[0006] In general, two exemplary types of corporate contract savings include: (1) rebates and (2) up-front discounts. "Rebates" involve the airline providing a refund in accordance with the amount of business with the airline generated by the corporation. The size of the rebate generally depends upon the "trigger" threshold level achieved by the company. The "trigger" may be represented by price volume, sectors flown, an agreed percentage market share or a number of other factors. "Up-front discounts" generally come in two forms, "net fares" and "agreed percentages." Net fares are typically fixed, discounted fares offered on specific routes in a specified class of service (e.g., Business Class, London Heathrow to New York, JFK). Agreed percentages are typically fixed percentage discounts on a particular group of fares (e.g., 25% discount on all fares in Business Class from the United States to the UK).

[0007] In addition to the discounts on air travel, some airlines offer "soft" benefits aimed at the corporate employee's comfort such as, for example, priority check-in, fast-track security, limousine services, access to lounges/shower facilities, free upgrades/priority seating, and free transfers from airport to city center. Thus, the "soft" benefits may help ensure traveler satisfaction and compliance with the contracts of a preferred airline.


User currently onlineLHCVG From United States of America, joined May 2009, 1605 posts, RR: 2
Reply 3, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6787 times:



Quoting OP3000 (Reply 2):
I assume the OP is referring to the wholesale contracts airlines offer corporations for travel by their employees on business trips.

Yes this is what I originally meant -- sorry for the confusion!  ashamed 


User currently onlineLHCVG From United States of America, joined May 2009, 1605 posts, RR: 2
Reply 4, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6773 times:



Quoting OP3000 (Reply 2):
some airlines offer "soft" benefits aimed at the corporate employee's comfort

That's a good idea, since the traveler's only benefit is the FF miles AFAIK (I'm not even sure if this is still done),


User currently offlineOP3000 From United States of America, joined Jun 2009, 1775 posts, RR: 2
Reply 5, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6759 times:

Quoting LHCVG (Reply 4):


Quoting OP3000 (Reply 2):
some airlines offer "soft" benefits aimed at the corporate employee's comfort

That's a good idea, since the traveler's only benefit is the FF miles AFAIK (I'm not even sure if this is still done),

The soft benefits are usually provided by automatically granting elite status (platinum in many cases, which includes all of those perks except the limos) and lounge membership to a certain number employees chosen by the corporation.



[Edited 2009-07-31 14:48:27]

User currently offlineDFWEagle From United States of America, joined Dec 2006, 1075 posts, RR: 9
Reply 6, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6732 times:



Quoting LHCVG (Thread starter):
Does anyone know the major corporate contracts that the legacies (I figure they are the ones with the most contracts) have?

Some of AA’s top corporate travel contracts include -:

GlaxoSmithKline
Citibank
Wells Fargo
Boeing
Anheuser Busch
Burger King
Taco Bell
Carnival Cruises
Chicago Tribune Media



Ryan / HKG
User currently offlineOP3000 From United States of America, joined Jun 2009, 1775 posts, RR: 2
Reply 7, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6720 times:



Quoting DFWEagle (Reply 6):
Some of AA’s top corporate travel contracts include -:

GlaxoSmithKline
Citibank
Wells Fargo
Boeing
Anheuser Busch
Burger King
Taco Bell
Carnival Cruises
Chicago Tribune Media

Not too many surprises here in terms of company locations:

GlaxoSmithKline = RDU
Citibank = LGA, JFK
Wells Fargo = SFO, LAX
Boeing = ORD
Anheuser Busch = STL
Burger King = MIA
Taco Bell = LAX
Carnival Cruises = MIA
Chicago Tribune Media = ORD


User currently offlineRidgid727 From United States of America, joined Jul 2008, 1214 posts, RR: 0
Reply 8, posted (5 years 2 months 3 weeks 2 days 18 hours ago) and read 6706 times:

Virgin America

State of California for SFO-LAX, SFO SAN, SFO SNA
Dreamworks Animation
Levi Strauss
Lucas Arts
Gap Inc
Twitter


User currently offlineFreequentFlier From United States of America, joined Feb 2007, 901 posts, RR: 12
Reply 9, posted (5 years 2 months 3 weeks 2 days 17 hours ago) and read 6667 times:



Quoting DFWEagle (Reply 6):

I'm surprised AA has Wells Fargo. Isn't their corporate HQ in San Francisco? AA has a pretty small (and getting smaller) presence in the Bay Area.


User currently offlineHVNandrew From United States of America, joined Jan 2006, 438 posts, RR: 0
Reply 10, posted (5 years 2 months 3 weeks 2 days 17 hours ago) and read 6633 times:

DL has a large contract with P&G, correct? Isn't that one of the reasons usually given for why CVG won't ever drop to just a spoke in the network?

User currently offlineTheGMan From United States of America, joined Nov 2008, 678 posts, RR: 0
Reply 11, posted (5 years 2 months 3 weeks 2 days 13 hours ago) and read 6553 times:

These contracts are usually dependent on who has a hub close to the corporate headquarters of the company. duh.

User currently offlineBMI727 From United States of America, joined Feb 2009, 15781 posts, RR: 27
Reply 12, posted (5 years 2 months 3 weeks 2 days 13 hours ago) and read 6521 times:



Quoting DFWEagle (Reply 6):
Boeing

As far as I know AA does not have a special deal with Boeing. It just happens that two of Boeing's large employee bases are AA hubs. I think that Boeing employees are supposed to go with the cheapest flight, although they can justify extra expense for things like a nonstop flight.



Why do Aerospace Engineering students have to turn things in on time?
User currently offlineBlueFlyer From United States of America, joined Jan 2006, 4069 posts, RR: 2
Reply 13, posted (5 years 2 months 3 weeks 2 days 2 hours ago) and read 6400 times:
Support Airliners.net - become a First Class Member!

Many of those contracts are supposed to be confidential, but I do know CO has J&J from talking to many of their employees on various TATL flights.

Quoting FreequentFlier (Reply 9):
I'm surprised AA has Wells Fargo.

Could be AA is just one of X contracts Wells Fargo has.



I've got $h*t to do
User currently onlineFWAERJ From United States of America, joined Jun 2006, 3768 posts, RR: 2
Reply 14, posted (5 years 2 months 3 weeks 2 days 1 hour ago) and read 6352 times:



Quoting DFWEagle (Reply 6):

Some of AA’s top corporate travel contracts include -:

GlaxoSmithKline
Citibank
Wells Fargo
Boeing
Anheuser Busch
Burger King
Taco Bell
Carnival Cruises
Chicago Tribune Media

Don't forget PepsiCo (JFK for Pepsi-Cola and global HQ, DFW for Frito-Lay, ORD for Quaker Oats)... it's the reason why AA has a two-cola policy, along with Frito-Lay snacks.



"Did he really need the triple bypass? Or was it the miles?"
User currently offlineDFWEagle From United States of America, joined Dec 2006, 1075 posts, RR: 9
Reply 15, posted (5 years 2 months 3 weeks 2 days ago) and read 6300 times:



Quoting BMI727 (Reply 12):
As far as I know AA does not have a special deal with Boeing. It just happens that two of Boeing's large employee bases are AA hubs. I think that Boeing employees are supposed to go with the cheapest flight, although they can justify extra expense for things like a nonstop flight.

It could very well be the case that they don’t have a written contract. But certainly Boeing is one of AA’s largest corporate customers in Chicago area.

Quoting BlueFlyer (Reply 13):
Could be AA is just one of X contracts Wells Fargo has.

Definitely. A lot of companies have contracts with more than one carrier. For example, Wal-Mart uses AA a lot, but DL also gets a lot of their business.



Ryan / HKG
User currently onlineLHCVG From United States of America, joined May 2009, 1605 posts, RR: 2
Reply 16, posted (5 years 2 months 3 weeks 2 days ago) and read 6279 times:



Quoting DFWEagle (Reply 15):
Definitely. A lot of companies have contracts with more than one carrier. For example, Wal-Mart uses AA a lot, but DL also gets a lot of their business.

So do they more so use this as carrier A for domestic and B for international (or however you might divvy it up route-wise) or us it just using two carriers for the purpose of leveraging a better deal from both?


User currently offlineBlueFlyer From United States of America, joined Jan 2006, 4069 posts, RR: 2
Reply 17, posted (5 years 2 months 3 weeks 2 days ago) and read 6260 times:
Support Airliners.net - become a First Class Member!

I believe UA has the biggest of them all, the World Bank/IMF. Several airlines serving IAD have a good slice of it too (BA and AF come to mind).


I've got $h*t to do
User currently offlineCommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Reply 18, posted (5 years 2 months 3 weeks 1 day 23 hours ago) and read 6244 times:



Quoting BlueFlyer (Reply 17):
I believe UA has the biggest of them all, the World Bank/IMF.

I highly doubt that the World Bank and IMF are the world's largest corporate contract.


User currently offlineBobnwa From United States of America, joined Dec 2000, 6493 posts, RR: 9
Reply 19, posted (5 years 2 months 3 weeks 1 day 23 hours ago) and read 6236 times:



Quoting Commavia (Reply 18):
I highly doubt that the World Bank and IMF are the world's largest corporate contract.

You are right, World Bank and IMF aren't even in contention for the worlds largest corporate contracts.


User currently offlineLJ From Netherlands, joined Nov 1999, 4461 posts, RR: 0
Reply 20, posted (5 years 2 months 3 weeks 1 day 5 hours ago) and read 6083 times:



Quoting DLPMMM (Reply 1):
Most corporate contracts are considered proprietary, and as such are not published, and even the existance of the contract may be considered proprietary, much less the terms.

Correct. However sometimes airlines themselves publish a "name".

Quoting DFWEagle (Reply 15):
Definitely. A lot of companies have contracts with more than one carrier. For example, Wal-Mart uses AA a lot, but DL also gets a lot of their business.

Many big companies conclude contracts on "alliance" level. Thus a contract is not for a specific airline but specific alliance.


User currently offlineBMI727 From United States of America, joined Feb 2009, 15781 posts, RR: 27
Reply 21, posted (5 years 2 months 3 weeks 1 day 5 hours ago) and read 6068 times:



Quoting DFWEagle (Reply 15):
It could very well be the case that they don’t have a written contract. But certainly Boeing is one of AA’s largest corporate customers in Chicago area.

I think that that is exactly the case. I want to say that McDonnell Douglas did have a contract (TWA I think) so many employees who later went to Boeing had status with them and later AA. Also, Boeing does not pressure employees to fly on airlines that fly Boeing aircraft.



Why do Aerospace Engineering students have to turn things in on time?
User currently offlineAA2MM From United States of America, joined Aug 2001, 119 posts, RR: 0
Reply 22, posted (5 years 2 months 3 weeks 1 day 4 hours ago) and read 6061 times:

Toyota USA/Torrance/LAX has exclusive contracts with UA.
My friend is pretty high up there in their management team. He has to travel as much as he can on UA, because the corporate travel agency has control of the booking. He told me that most time he travels in full fare C class and UA most times try to upgrade him free to FC.
For their personal travel, if they book through that corporate agency and travel on UA, UA will give them 10% off. Do you know that the Toyota US President travels to Nagoya or Japan one week out of the month ? I think that NGO is the Toyota World Headquarter.


User currently offlineBobnwa From United States of America, joined Dec 2000, 6493 posts, RR: 9
Reply 23, posted (5 years 2 months 3 weeks 1 day 4 hours ago) and read 6057 times:



Quoting BMI727 (Reply 21):
Also, Boeing does not pressure employees to fly on airlines that fly Boeing aircraft.

Yes, but Boeing has signed corporate contracts with various airlines, that it makes its employees fly on if on company business.


User currently offlineBMI727 From United States of America, joined Feb 2009, 15781 posts, RR: 27
Reply 24, posted (5 years 2 months 3 weeks 1 day 4 hours ago) and read 6052 times:



Quoting Bobnwa (Reply 23):
Yes, but Boeing has signed corporate contracts with various airlines, that it makes its employees fly on if on company business.

I have a relative who works with Boeing in STL and he says that they are always supposed to take the cheapest option, unless they can justify the added expense such as a nonstop flight.

Other sections of Boeing, especially ones that shuttle personnel frequently, may have formal contracts with airlines.

I've also heard that Boeing minimizes their use of corporate jets in favor of patronizing airlines.



Why do Aerospace Engineering students have to turn things in on time?
25 Panova98 : I believe the biggest such contracts are those for the federal government employees and government contractors, under what is called the contract air
26 Pellegrine : While it's not "the biggest corporate contract", whomever has the contract is making money on it. WB Group & IMF fly a decent number of employees in
27 Mah4546 : AA dominates corporate contracts in the LA area, mainly because they have the contracts for just about every single major entertainment company except
28 MCOflyer : I heard Siemens uses US. KH
29 FWAERJ : Oddly enough, there's a huge 300,000 unit/year, 4,000-employee Toyota plant (Toyota Motor Manufacturing Indiana; TMMI) near EVV (produces Toyota Sien
30 Rafflesking : Yes - the BizElite cabin on the CVG-CDG flights used to be like employee happy hours for me. Same with exit rows on BOS-CVG too! Some of our key comp
31 Ridgid727 : Dreamworks is contracted to utilize VX for all VX served locations. They carry a "special" ticketing code in all PNR's
32 Bluesky02 : United and Southwest have the new Walgreens (Deerfield, IL) contract.
33 Bluesky02 : Also United has the contract for Chevron (I wonder how they got that)
34 Bobnwa : I would really doubt that is true. True, but Toyota USA in LAX is a small part of the Toyota employment figures in the US. There are much more profit
35 AvConsultant : DL will not keep a hub to support a company. In fact, another thread discusses DL cut of CVG again. DL voided all corporate travel programs when they
36 United1 : I think UA has Disney if I remember right.... Possibly I know UA re-worked alot of agreements during BK, but alot of companies that had contracts with
37 EXAAUADL : Well the details maybe confidential, but airlines know very well who their competitors have CVAs with
38 AvConsultant : They might have maintained the agreements, but AA gained a lot of UA corporate business. In 2006 or 2007, UA reported a loss of revenue citing the la
39 Commavia : If I remember correctly, that's the reason I heard for why United maintains the Red Carpet Club at Orlando - because of the Disney corporate traffic
40 United1 : Nope it's UA... Oh AA defiantly has the most corporate contract out there but I not so sure any of the airlines simply voided all of their travel agr
41 FlyASAGuy2005 : Actually, i've found DL to come up more so than not on travel plans through DTS (Defense Travel System). Also, WN comes up A LOT on many route pairs
42 AvConsultant : UA and DL both had found themselves in long term established agreements that was not working for either one of them. SunTrust Bank out of ATL had an
43 Dartland : Actually, more like HPN for PepsiCo HQ -- It's right down the street! (okay, LGA and JFK also) I heard once that CO had a EWR-BSL flight in place for
44 FlyASAGuy2005 : I also believe DL has a contract with Kimberly Clark and of course a couple of the big name Georgia blue chips/ F500 companies.
45 Travelin man : You are correct, United has a lot of corporate contracts (and many are contracted as full Star Alliance Agreements). I doubt the carriers were gettin
46 DeltaL1011man : I believe CNN, GP, Coke, Home Depot all have some kind of contract with DL. IIRC CNN has a few contracts. Also I believe that GE does alot of flying
47 Tommy767 : I would imagine that CO dominates much of the Jersey based pharma. industry as well as other NJ based companies. Can anyone else elaborate as to whic
48 DeltaL1011man : My guess is AA and CO have most of the contracts out of NYC. IMO UA more than likely has a few for the JFK-LAX/SFO runs. Whats funny is i don't belie
49 EA CO AS : The capacity-controlled ones end in DG (VDG, QDG, etc). The problems facing U.S. carriers regarding corporate contracts are twofold: 1. Company trave
50 FWAERJ : Actually, it was JPMorgan Chase, not BofA that bought WaMu. Still, I wonder if JPMorgan's travel decisions reflect those of their co-brand card agree
51 LAXintl : Some of the larger ones for UAL: Lockheed Martin Motorola Disney Toyota USA Baxter Allstate host of entertainment industry related firms
52 Panova98 : As I understand it, a GSA contract fare must end with "CA," such as the YCA (the non-capacity-controlled fare), and a BCA, VCA, whatever, (the capaci
53 Tommy767 : As a silver medallion, I've been upgraded on DL's JFK-LAX twice. I think they most definately lost their contracts as there are plenty of open F seat
54 DeltaL1011man : Unless DL trys to do some kind of P.S. type then AA and UA will keep the contract on the JFK-LAX/SFO routes. DL's F on the rotue is a joke.(though IM
55 AvConsultant : My firm was contracted for both carriers in restructuring; they were not making money due the contracts never shifted with the changes of the carrier
56 474218 : Lockheed Martin does not have an agreement with any specific airline. The Lockheed Martin travel department is free to book the traveler an any airli
57 Commavia : Lockheed Martin is a massive company with over 100,000 employees at sites in almost every state. One airline - like United - definitely would not cut
58 LAXintl : LM was United single largest corporate client in 07/08. Majority of travel is centered from their Bethesda Maryland HQ and adjacent satellite offices.
59 AirframeAS : WaMu is now Chase.
60 Commavia : Yep - absolutely. I'm certainly not disputing that Lockheed puts a lot of business onto United. I'm just saying that they probably put just as much b
61 474218 : In my thirty two (32) years with Lockheed Martin I was never issued anything but a full fare, refundable ticket. Several times I had to turn in unuse
62 AirframeAS : Who works with F9 and AS? Does anyone know? I'm sure that Boeing uses AS out of Seattle.
63 Commavia : Boeing is such a huge company that - like most other companies of that size - I'm sure they probably have multiple "preferred" or "contracted" carrie
64 AirframeAS : Not doubting you that Boeing uses UA. But I am sure they somewhat use AS, too.
65 Commavia : Now you've got to wonder what happens on a flight from Seattle to Chicago, or LA to Dulles, and sit on an Airbus!
66 PHLwok : This is my experience with most companies including my own. We have more than 50,000 US-based employees, distributed amongst 100+ offices domesticall
67 Fxramper : Does Walmart use AA or WN? At FedEx Express we use multiple carriers, but typically I've used AA for discounted travel.
68 WA707atMSP : UA has Toyota's business out of LAX, but NW / DL have most of Toyota's business from the US Midwest and the Canadian province of Ontario. NW / DL's D
69 BMI727 : Guys, Boeing does not have corporate contracts or preferred carriers, unless someone here knows something I don't. (Which does happen) Their people a
70 Nonrev : Boeing DO have contracts with airlines. As do Lockheed Martin. The ticket may look like a full-fare ticket tothe layman (not being patronising here) b
71 BMI727 : I don't even think that they are even full fare in many cases. They are supposed to get the cheapest possible option. And if they have all of these c
72 Lexy : Well, I can say with confidence that my company has a contract with AA to fly our executives to and from domestic and international destinations from
73 Lexy : Another large Japanese automaker makes use of that flight as well. A small little humble company called NISSAN.
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