Program & Agreement Assessment-Leading Canadian Airline
Background
Our client, a leading Canadian airline, had longstanding relationships with its card issuer and payment network and was generally pleased with both relationships
Based on rapid program growth, the airline was proactively approached by its card issuer and payment network to extend their agreements prior to the contract renewal notification date
Corporate governance required that an independent assessment be performed to ensure that proposed terms and conditions were competitive by market standards
Engagement Objectives
Conduct an evaluation of program performance
Benchmark proposed financial terms and agreement terms to those being provided for similarly situated programs in the market
Identify gaps to best practices
Develop a negotiating strategy involving multiple trade-offs to achieve client long term objectives
Results
Recommended negotiating strategy was successful in closing all material proposal gaps
Enhanced the financial commitments provided by the card issuer and the payment network
Secured updated contract terms reflecting industry best practices
New agreements were quickly executed, with maintenance of program momentum and positive goodwill between airline, issuer and payment network
