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Thales wins key revenue management contracts with National Express

CONTACT
24  September  2008
Thales today announces that it has been awarded two multi-million pound contracts to deliver revenue management systems to support two of National Express Group’s biggest rail franchise operations.

Berlin, 24 September 2008 - Thales UK today announces that it has been awarded two multi-million pound contracts to deliver revenue management systems to support two of National Express Group's biggest rail franchise operations.

National Express East Anglia is adopting JDA Software's Rail Revenue Optimiser (RRO) solution and National Express East Coast has chosen the state-of-the-art Price Sensitive Revenue Management (PSRM) solution, also from JDA Software.

The revenue management solutions for both National Express franchise operators are being designed and implemented by Thales in partnership with revenue management specialists JDA Software Group. Thales will deliver PSRM and RRO as managed services. International operator Eurostar is already successfully using this PSRM solution.

Work on both contracts has already commenced. National Express East Anglia's system is scheduled for operational service in the fourth quarter of 2008; National Express East Coast is expected to go live with Price Sensitive Revenue Management in the second quarter of 2009.

As well as implementing the systems Thales will provide maintenance and support, including secure hosting, for the duration of both franchises. Thales is also supplying production systems for day-to-day revenue management operations. Separate reference systems will also be provided so that enhancements and fixes can be tested safely offline. The reference systems will also provide disaster recovery back-up.

Revenue management is business-critical so care is being taken to minimise the risk of service interruptions. The revenue management systems for both franchise operators will be co-sited at two new high-security data centres owned and operated by Thales in Yorkshire.

PSRM represents a milestone in the development of revenue management technology. It allows train operators to determine ticket prices by analysing levels of demand through use of the software and in providing accurate demand forecasts. Because PSRM can be used to support demand management strategies is it particularly suited to train operators. As well as working well in situations where demand outstrips supply, PSRM can help operators to fill trains at times when capacity would otherwise exceed demand.

The RRO solution chosen by National Express East Anglia is based on similar principles, generating detailed demand forecasts for each journey, recommending the optimal allocation of demand to capacity and appropriate inventory controls, and allowing operators to price fares in reaction to market trends.

National Express East Coast, which took over the InterCity East Coast franchise last December, carries around 18 million passengers a year. National Express East Anglia provides passenger services throughout the east of England and handles 110 million passengers each year. National Express East Anglia and National Express East Coast are both subsidiary companies of National Express Group PLC, the international transport operator.

The contracts with National Express East Coast and National Express East Anglia were awarded separately and their respective PSRM systems will be operated independently.

Tim Porter, Director of Sales & Marketing, Thales, Critical Information Systems, says:
"I am delighted that we have further developed our relationship with the National Express Group to provide advanced revenue forecasting and optimisation. Thales, and its strategic partner JDA Software, have a well-established partnership that allows us to provide train-operating companies with business critical revenue management systems, with minimal risk, which provide an excellent return on investment. We are continuing to build on our success in the Transport sector and envisage further expansion in the delivery of advanced decision support systems world-wide."

Simon Pearson, Head of Revenue Management, National Express East Coast, says: "The Thales-JDA Software solution allows us to fine-tune ticket pricing and supports our continuing commitment to get closer to our customers. It will allow us to make the most efficient use of capacity, while providing passengers with the best possible choice and value for money. We firmly believe that PSRM is a win-win solution both for National Express and for the millions of rail travellers who use our services."

- Ends -

 

Notes to Editors
Revenue management solutions help rail operators forecast passenger journey demand on every train operation in order to set the optimal quota of seats available at the optimal fare at the right time. Revenue management for the rail industry must be able to manage complex origin and destination optimisation, as well as generate optimal prices within regulatory guidelines.

The Thales revenue management solution is used extensively by train operators and the latest contracts with National Express consolidate Thales' and JDA Software's leadership position in this increasingly important market. Thales and JDA Software have successfully implemented revenue management systems for a number of train operating companies including CrossCountry, operated by Arriva, Midland Mainline and Eurostar. Eurostar was the first UK implementation of Thales' PSRM for rail operators.


About Thales
Thales is a leading international electronics and systems group, addressing defence, aerospace and security markets worldwide. Thales's leading-edge technology is supported by 22,000 R&D engineers who offer a capability unmatched in Europe to develop and deploy field-proven mission-critical information systems. To this end, the group's civil and military businesses develop in parallel and share a common base of technologies to serve a single objective: the security of people, property and nations. The group builds its growth on its unique multi-domestic strategy based on trusted partnerships with national customers and market players, while leveraging its global expertise to support local technology and industrial development. Thales employs 68,000 people in 50 countries with 2007 revenues of €12.3 billion.

Thales Press Contact
Victoire Le Barazer - Tel. +33 1 73 32 13 20 - victoire.lebarazer@thalesgroup.com


About National Express East Coast

National Express East Coast operates 136 weekday train services along the East Coast Main Line, linking London King's Cross, the East Midlands, Yorkshire and Humberside, North East England and Scotland, carrying about 18 million passengers a year.

Contact
National Express East Coast Press Office on 0845 059 3988 or 0845 059 3494. Out of normal office hours (17.30 to 09.00 hours) please call 08700 005151 and ask for the duty press officer to be paged.
Visit the National Express East Coast Media Centre at mediacentre.nationalexpresseastcoast.com for a full image library and press release archive.

About National Express East Anglia:
National Express East Anglia operates services from London Liverpool Street across the East of England. Over 100 million passenger journeys are made on its services each year. Contact: National Express East Anglia Press Office on 0207 549 5966 / 5964


About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results - fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimisation solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably. JDA Software Group's Services Industries Group has pioneered pricing and revenue management solutions. Today, leaders in the service-based Travel, Transportation, Hospitality and Media industries leverage JDA's expertise to maximize their profits. JDA clients include Delta Airlines, Carlson Worldwide, Continental Airlines Cargo, Harrah's-Caesars Entertainment, Omni Hotels, Princess Cruise Lines, Eurostar and TUI UK (formerly Thomson Holidays).

For more information on JDA Software, visit www.jda.com or contact at info@jda.com or call +1 800 479 7382.