Continental Airlines’ Cargo Operations Getting Boost From Manugistics Revenue Optimization Solution
SAN DIEGO, Calif.–(BUSINESS WIRE)–May 7, 2002
From enVISION 2002, Manugistics Group, Inc. (Nasdaq: MANU), the leading global provider of Enterprise Profit Optimization(TM) (EPO) solutions that help companies enhance margins by lowering costs and improving revenues across their supply-demand networks, today announced Continental Airlines (NYSE: CAL) continues to see significant benefits using a Manugistics revenue optimization solution developed specifically to help enhance profitable operations for the cargo industry.
Continental credits high employee morale, strong customer service and a consistently high completion factor for enabling it to remain in the top-tier of airlines based on operational performance. Success can also be traced to Continental’s laser-focus on technology, with the launch of several recent initiatives including CargoProf – a revenue management system powered by Manugistics. Launched in July 1999, CargoProf helped support a strong growth surge in Continental’s cargo business. From 1997 to 2000, Continental’s cargo revenue grew 42 percent, outpacing a robust 28 percent increase in the airlines’ available seat miles over the same period.
“We calculate that the incremental benefit from the system is now in excess of $9 million – a 2.5 percent increase in net revenues on the flights managed by the system,” said Ed O’Meara, Continental Airlines’ Director of Cargo Revenue Management. “CargoProf was a key component in the management of this cargo growth.”
The Manugistics solution forecasts the capacity available to meet anticipated customer demand. The solution then assigns to available capacity an optimized price by market – as based on origin-and-destination (O&D) – designed to enhance profit, advance the customer relationship, maintain market share, or achieve other strategic corporate goals. In addition to incorporating opportunity and variable costs into its optimized price offerings, the solution addresses freight loadability issues, recommends least-cost routings for accepted bookings, and incorporates strategic rules for different countries or regions. Powerful reporting, alert and analysis capabilities give users required visibility needed to ensure that the solution is operating at peak performance.
“Our success with expanding Pricing and Revenue Optimization (PRO) solutions across multiple industries stems in part from our long history of success at transportation leaders like Continental Airlines,” said Jeff Collins, Manugistics’ senior vice president of pricing and revenue optimization. “These innovators were the first to embrace effective pricing as a strategy to drive top-line revenue growth that enhance margins – and they have been some of the first to reap the rewards.”
Continental is also using the solution to more effectively match available capacity on its inter-city trucking fleet to customer demand in order to generate a higher level of return. System alerts advise Continental when more trucking capacity is needed to meet customer demand. In addition, the solution enables Continental to determine the vendor-specific truck costs of a shipment before a booking is evaluated.
Continental Airlines is one of the more than 70 client speakers at Manugistics’ award-winning enVISION conference in San Diego, May 5-8, 2002. For more information about Manugistics and enVISION2002 San Diego, go to www.manugistics.com.
About Continental Airlines
Continental Airlines is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 126 domestic and 89 international destinations. Operating hubs in New York, Houston, Cleveland and Guam, Continental serves more international cities than any other U.S. carrier, including extensive service throughout the Americas, Europe and Asia. For more information, visit continental.com. Continental was named the 2001 Airline of the Year by Air Transport World, as well as the 1996 Airline of the Year, making it the only carrier to receive this honor twice in five years. For the fourth consecutive year, Continental was named one of the 100 Best Places to Work For by FORTUNE(R) magazine, and is ranked the nation’s No. 1 airline in customer satisfaction for long and short-haul flights by Frequent Flyer Magazine and J.D. Power and Associates. Continental has received numerous awards for its BusinessFirst premium cabin (Conde Nast Traveler, OAG, Entrepreneur and SmartMoney magazines), OnePass frequent flyer program (InsideFlyer’s Freddie Awards) and overall operations and management (FORTUNE magazine).
About Manugistics Group, Inc.
Manugistics helps companies lower operating costs, improve customer service, enhance profitability, and accelerate growth by optimizing the supply-demand network from design and procurement through pricing and delivery. The company provides comprehensive solutions – for pricing and revenue optimization, service and parts management, supplier relationship management, and supply chain management. Its clients include industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Fairchild Semiconductor, Ford Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Staples, Texas Instruments, Unilever, and United Airlines. For more information, go to www.manugistics.com
The enVISION conference series, hosted by Manugistics, is an award-winning conference series which gathers industry leading customers and partners to explore the future of Enterprise Profit Optimization.
FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-255-5330.
FORWARD LOOKING STATEMENT
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, increased economic uncertainty following the tragedy of September 11, 2001, the timing and degree of any business recovery in light of the continuing economic downturn, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, competition, risks related to quarterly performance, risks of new business areas, international expansion, business combinations and strategic alliances, lengthening of sales cycles for software products and services, and the effectiveness of the cost reduction efforts undertaken by Manugistics. A decreased demand for computer software due to weakened economic conditions could result in decreased revenues or lower revenue growth rates. More information about factors that potentially could affect Manugistics’ financial results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended February 28, 2001 and Quarterly Report on Form 10-Q for the quarter ended November 30, 2001. Manugistics assumes no obligation to update the forward-looking information contained in this announcement.
Manugistics is a registered trademark, and the Manugistics logo, the phrase “Leveraged Intelligence,” Enterprise Profit Optimization and Manugistics NetWORKS are trademarks of Manugistics, Inc. All other product or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
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