Manugistics and Navitaire® Enter Strategic Alliance
Rockville, MD and Minneapolis, MN - October 31, 2001: Manugistics Group, Inc. (NASDAQ: MANU), the leading global provider of Enterprise Profit Optimization (EPO) solutions, and Navitaire Inc., a leading airline industry application services provider (ASP), today announced a strategic alliance designed to provide affordable, robust revenue optimization solutions for small and midsize airlines, previously only available to the major airlines.
The alliance will offer Manugistics NetWORKS Airline Revenue Optimizer (ARO) through Navitaire's ASP delivery model to give independent midsize and smaller airlines greater access to revenue optimization solutions, which can increase passenger revenues through improved visibility into future demand. The alliance combines Manugistics' proven revenue optimization solutions and airline industry expertise with Navitaire's world class experience in airline revenue transaction applications and ASP delivery capabilities. The joint offerings will be targeted at the two companies' existing client bases of industry leaders, as well as new prospects.
Following the initial launch, the companies plan to develop additional revenue optimization products and services. The goal is to create an integrated revenue cycle environment, in which revenue-responsible groups throughout a carrier's organization can share and optimize information dynamically as market conditions change delivered via next generation decision support systems.
"Through our alliance with Navitaire, small and mid-sized airlines can experience the same kinds of top-line revenue improvements of the larger airlines without having to make the larger technology infrastructure investment traditionally required to support advanced revenue optimization," said Greg Cudahy, Manugistics executive vice president of pricing and revenue optimization. "Backed by more than 15 years of implementation success, Manugistics' revenue optimization solution for the airline industry has proven itself a preferred choice of industry leaders seeking to improve load factors while increasing RASM (revenues per available seat miles). Soon, these airlines will gain access to a comprehensive information technology package that addresses many of their revenue cycle needs at a more affordable cost."
"Navitaire's world class ASP delivery model makes it possible to offer industry-leading applications - such as Manugistics' proven airline revenue optimization solution - with reduced implementation time and risk, improved reliability, and a cost-effective fee structure," said Tom McClain, president and CEO at Navitaire. "Manugistics solutions well complement our mission to provide a broad suite of efficient, affordable technology and business related services which allow our customers the freedom to focus on their core functions and profit margins."
Manugistics NetWORKS Airline Revenue Optimizer uses a proprietary and highly sophisticated mathematical forecasting engine to create detailed demand forecasts, by flight, for various passenger "buckets" or value classifications. Flight history, cancellation rates, no-show patterns, current-booking levels and continuous inputs from revenue management analysts are all incorporated to generate a more accurate view of demand. The solution then automatically generates recommended allocation adjustments to bucket availability for individual flights to help generate the most revenue from anticipated customer demand.
In addition to the initial offering for small to midsize airlines, the two companies expect to roll-out joint solutions designed for all airlines that combine Manugistics NetWORKS offerings for optimizing airline pricing, promotions and fare-class mix, with Navitaire's growing portfolio of airline revenue-related applications, including reservations, distribution, pricing, revenue accounting and revenue protection. Such solutions could enable carriers to significantly increase revenue and enhance profitability, while achieving strategic corporate objectives such as increased market share, accelerated market penetration, or improved customer retention.
Manugistics and Navitaire showcased their hosted revenue optimization offerings at the IATA Revenue Management & Pricing Conference 2001, October 17-19 in Athens, Greece. Presentations at other premiere airline industry events are planned.
About Navitaire
Navitaire Inc. is a pioneer in the ASP industry, providing industry leading passenger revenue accounting, revenue protection, reservations and direct connect technology to airline customers since 1993. Customers access sophisticated client-server applications on a per-transaction fee or gain-sharing basis, with application management, data center management, and network management services fully provided by Navitaire.
About Manugistics Group, Inc.
Manugistics pioneered the powerful new business discipline of Enterprise Profit Optimization, which helps enable a company's ability to drive profitable growth through the simultaneous optimization of its supply-side and demand-side business processes. Made possible through innovative combinations of Supply Chain Management, Pricing and Revenue Optimization, and Supplier Relationship Management solutions, Manugistics EPO solutions help enterprises and their trading partners lower operating costs, enhance profitability and accelerate growth. The company's list of clients includes industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford Motor Company, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines. For more information, please go to www.manugistics.com.
FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-984-5330.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, 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, increased economic uncertainty following the tragedy of September 11, 2001, lengthening of sales cycles for software products and services, the effectiveness of the cost reduction efforts undertaken by Manugistics, and the timing and degree of any business recovery in light of the continuing economic downturn. A decreased demand for computer software due to weakening 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 August 31, 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, Manugistics NetWORKS Airline Revenue Optimizer 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.
Contact:
Joel Weinshank
Manugistics, Group, Inc.
301-984-5330
jweinsha@manu.com
Susan Adelman
Navitaire Inc.
+1 (612) 317-7284