<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 12 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>The 2011-2012 City Pairs Price Agreements have been awarded and pricing and city pairs are available for review on the SPO Travel Page at <a href="http://travel.oregon.gov">http://travel.oregon.gov</a> under City Pair Air Fare 2011—2012. There is a serious change to this year’s city pairs program with a drastic reduction in the available city pairs. With the airline industry consolidation occurring in the recent years, there are fewer airlines in the market place. Here are the recent consolidations.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>2005 America West merged with US Airways<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>2008 Northwest Airlines merged with Delta<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>2009 Midwest Airlines merged with Frontier<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>2011 Airtran Airlines merged with Southwest<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>2011 Continental Airlines merged with United<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>It is expected that one other merger will occur in 2012 with either American, US Airways and JetBlue. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>With the consolidation, Airlines are not willing to contract with States as they have in the past. This is evident in this year’s program. Airlines have dropped agreements in other states also. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>DAS SPO executed price agreements with 4 airlines, for a total of 54 city-pairs, primarily on the west coast. Only Chicago and Denver are covered east of the Rockies. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Alaska Airlines has 35 city-pairs<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>SeaPort Airlines has 13 city-pars<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>JetBlue Airlines has 1 city pair<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>United Airlines has 1 city pair.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>These new agreements become effective August 1, 2011. The current agreements expire July 31, 2011 with travel needing to be completed by August 31, 2011. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>For cities not covered under the city-pairs agreements, agencies will need to shop for the lowest published fare available through Azumano travel. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Please remember that published fares do not carry the same benefits at the contracted city-pairs. Published fares carry penalties and restrictions and are non-refundable. Agencies may need to change current approval process in order to obtain better fares. Travelers may need to fly at less desirable times to obtain lower fares. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>We are exploring other airline contracting methods at this time, but nothing will be executed prior to the expiration of the current agreements. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>There will be more discussion on this topic at next week’s travel forum scheduled for June 23, 2011 at the employment building auditorium. Details on the forum are available here <a href="http://www.oregon.gov/DAS/SSD/SPO/travel-forum.shtml">http://www.oregon.gov/DAS/SSD/SPO/travel-forum.shtml</a><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span lang=EN style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Best regards, <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span lang=EN style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Tim A. Hay, CPPB, CGTP, OPAC, OPBC<br>Lead State Procurement Analyst<br>DAS State Procurement Office<br>1225 Ferry St SE U140<br>Salem, OR 97301-4285 <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span lang=EN style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Ph. 503-378-4650<br>Fax. 503-373-1626<br>tim.hay@state.or.us <o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span lang=EN style='font-size:12.0pt;font-family:"Times New Roman","serif"'>************************************************************************<br>DAS State Procurement Office Mission: <br>"Demonstrate and provide leadership through innovative, responsive, and accountable public procurement services.<br>************************************************************************<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><i><span lang=EN style='font-size:10.0pt;font-family:"Comic Sans MS";color:green'>Please consider the environment before printing this email.</span></i></b><i><span lang=EN style='font-size:10.0pt;font-family:"Arial","sans-serif";color:fuchsia'><o:p></o:p></span></i></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><i><span lang=EN style='font-size:10.0pt;font-family:"Arial","sans-serif";color:gray'>This message, including any attachments or links, may contain privileged, confidential and/or legally protected information. Any distribution or use of this communication by anyone other than the intended recipient is strictly prohibited. If you have received this communication in error, please notify the sender immediately by replying to this message and then delete all copies of the original communication including any attachments and/or links.</span></i><span lang=EN style='font-size:12.0pt;font-family:"Times New Roman","serif";color:navy'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN> </span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>