Business Travel News - February 9, 2009 - (Page 26)

NEWS Amex Integrating GE Card Continued from page 1 card and purchasing card, but now you have two of the top 10 consolidated. When that happens, there should be opportunities. There are only so many $10 billion clients you can acquire. To be able to acquire something like this is something that comes up not frequently. BTN: How does the economic downturn affect the acquisition? Williams: The timing is not something we planned. From our perspective, the timing works out well. ONE-ON-ONE ANRÉ WILLIAMS, AMERICAN EXPRESS GLOBAL COMMERCIAL CARD PRESIDENT As companies reduce the number of employees they have or trips they’re taking, we’re in the process of integrating billions of dollars of business and issuing hundreds of thousands of cards to clients. BTN: Is further merger and acquisition activity in payment likely? Williams: You never know what can happen. However, with the financial services industry overall, most of the players are going through a lot of turmoil. Some of the large ones in the United States— U.S. Bank, Wells Fargo, Bank of America, JPMorgan Chase—all of them have a lot with which to deal. Chase is dealing with the integration and acquisition of Washington Mutual. Wachovia, which was a competitor, was acquired by Wells Fargo. Also, our competitors are distracted by other issues related to financial services, lending, mort- gages and banking. We, on the other hand, are uniquely focused on our AIRLINES HAIL NEW DOT HEAD LAHOOD ON SLOT AUCTIONS commercial card business. No other The aviation industry last month praised the U.S. Senate’s confirmacompetitor in the United States is tion of Rep. Ray LaHood (R-Ill.) as U.S. Transportation Secretary, citing like that. We can have a laser-like foLaHood’s stated opposition to the plan of his predecessor, Mary Peters, cus on our industry, while our comto auction slots at the three major New York-area airports. Continenpetitors are focused on other chaltal Airlines, for example, said LaHood “acknowledged that the prior adlenges and opportunities that aren’t ministration’s misguided proposal for auctions in the New York/New in the commercial card space. When Jersey airports would not reduce congestion.”The plan to auction slots it comes to commercial card, it will initially was to go into effect this month, but an appeals court in Washbe a little bit of a distraction for ington, D.C., in December ordered the U.S. Department of Transthem. I see financial services comportation to halt auction amid legal review (BTNonline, Dec. 9, 2008). panies continuing to consolidate, but JetBlue Airways CEO Dave Barger in a statement said, “Initial views commercial card providers probaexpressed by Secretary LaHood, including an urgency to implement bly are not going to change, and they NextGen, the next generation air traffic control system, and opposiare being distracted. tion of slot auctions at New York airports, demonstrate his desire to BTN: How is the integration of improve our nation’s air travel system.” Air Transportation Association former General Electric payment president and CEO James May in a statement said, “We look forward to systems customers progressing? working with the secretary to continue to advance our core shared Williams: It’s going very well. safety agenda while also working to reduce delays, consume fuel as efWe’re now switching their cards over ficiently as possible and make the best possible investments to meet to American Express. the future needs of a growing, transportation-dependent economy.” BTN: Since you are honoring exLaHood represented Illinois’ 18th district in the U.S. House of Repreisting contracts with former GE sentatives since 1995. He did not seek re-election in 2008. clients using the MasterCard and —Jay Boehmer Visa platforms, how many GE clients are moving to the American Express platform? Williams: We can’t disclose the you want to build the business your- want to do at this time. It’s not just exact number of clients, but I can self or partner with someone else. the technology that we’re adding, say that it was in line with our pro- We had a lot of respect for GE’s com- but it also is the clients we’re adding. jections. A significant number of mercial card team, particularly with BTN: What other expansion oplarge companies and organizations the purchasing card product and the portunities do you have right now? have decided to convert over to electronic payment technology, so Williams: One of the things that American Express, which we’re ex- when the opportunity came to buy didn’t cost us money upfront was cited about. We began issuing plas- them, we acted on it right away. the partnership with Carlson Wagtic to new accounts in December, We’re acquiring someone with onlit Travel that we announced last and that will continue all the way unique technology capabilities that summer. We struck a partnership through March. That started with are highly regarded. We’re bringing with them where they will recomGeneral Electric itself issuing Amer- over the client base, the technolo- mend American Express products. ican Express corporate cards to all gy and a lot of talented people and They’re going to be a distribution employees. the strategies they were using for channel for us, especially in parts of BTN: What’s the timeline for the the purchasing card business. world like Europe and Asia, where conversion? BTN: What is the status of your they’re trying to streamline their Williams: What we 13 percent stake in own back office. They’re looking to For on-demand Webcasts, communicated on the Concur (BTNonline, outsource that, so the card compasee btnonline.com/Webcasts day of the acquisition July 29, 2008)? ny can pay the agency right away. is still true. We closed on March 27, Williams: The Concur investment BTN: Are you looking for more of 2008, and we said in one year we’d was another opportunity for us, that kind of relationship this year? convert the clients who were inter- rather than building our own exWilliams: It’s not just about Carlested in moving to American Ex- pense management system or try- son. We have distribution partnerpress. We’re within 90 days of being ing to buy another company. In this ships with other travel agencies. completed with the conversion. environment, it gives you better We’ll partner with anyone who we BTN: Besides adding clients, clients. When I talk to chief finan- think will help companies streamwhat was driving the acquisition? cial officers about the advantages of line savings. That’s the ultimate cusWilliams: When looking at expense management, their eyes tomer: the one we can help better growth, you have to decide whether light up, because that’s what they manage savings. ■ Business Travel News WASHINGTON WIRE 26 Monday, February 9, 2009 www.BTNonline.com http://www.btnonline.com/Webcasts http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - February 9, 2009

Business Travel News - February 9, 2009
Contents
Inside Track
Profiles In Travel Mgmt
Forum
Aviation
Lodging
Car & Ground Transportation
Travel Management
Destinations
Washington Wire

Business Travel News - February 9, 2009