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INDUSTRY NEWS & PEOPLE  December 2006
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AccesRail-Amadeus Pact Gives Europe’s Railines E-ticketing Edge
AccesRail, which facilitates sales of railway passenger service via global distribution systems, has signed a global technology deal that will give its members access to the advanced Amadeus Electronic Ticketing Server. The result will be the same cost savings as airlines have from e-ticketing, as well as the opportunity to present their services to travelers as a viable alternative to air travel. Implementation of the agreement will occur in phases throughout 2007.
The Amadeus e-ticketing server fulfills electronic document storage and data management needs, facilitates the storage of e-tickets regardless of their origin, as well as validates and carries out security checks on the issuance of e-tickets.
AccesRail currently distributes point-to-point tickets, often including online seat allocation and issuance of rail passes, for all train providers in the UK through ATOC, plus the express trains to Heathrow and Gatwick airports; Deutsche Bahn; Norwegian State Railways; Swedish Railways; and Skanetrafiken (Copenhagen – Southern Sweden); as well as the hourly service between Amsterdam and Brussels that is operated by the Dutch and Belgian railways.
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Air Partner Launches Hurricane Evacuation Program
Air Partner, an aircraft charter broker, has introduced its Hurricane Evacuation Program, an air transport service designed to assist individuals, corporations and governments in the evacuation of people in regions threatened by hurricanes. The program comprises two services: preplanning and evacuation. Preplanning services include air evacuation planning and preferred aircraft access. Evacuation is carried out based on the preplanning component, with preferred aircraft to pre-selected destinations.
The program provides clients a rapid response program by securing vital passenger, financial, departure and destination planning that would otherwise be time consuming and difficult to manage during times of crisis. It is the latest service developed by Air Partner’s Emergency Planning Division, which assists corporations and governments with the preplanning and evacuation of their employees from regions at risk due to political instability and natural disasters.
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Amtrak Streamlining Online Distribution To Int’l Travelers
Travel agents in 40 countries will be able to purchase Amtrak train tickets through a new RailAgent web-based booking system that is scheduled to become operational at the beginning of 2007. Developed by Wandrian, RailAgent will directly connect agents to Amtrak’s reservations system, and streamline the worldwide distribution of Amtrak’s rail products, allowing international travel professionals to book tickets and passes in real time.
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ANA Narita Adds $ Exchange
ANA’s two First Class and two Business Class departure lounges in the new South Wing of Tokyo’s Narita Airport Terminal 1 now offer automated currency exchange. Transactions will be offered from yen into US dollars, euro and yuan. The service is being offered in collaboration with Mizuho Bank.
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ANA Teams With InterContinental To Form Hotel Operating Company
ANA (All Nippon Airways) and InterContinental Hotels Group launch their new hotel operating company, named IHG ANA Hotels Group Japan, this month. Three co-brands have been created for the joint venture: ANA-Inter Continental, ANA-Crowne Plaza and ANA-Holiday Inn.
Under terms of the agreement, ANA will sign new management contracts with IHG ANA Hotels Group Japan for its 13 owned and leased hotels, which will be rebranded over the next two years. That begins in April, with the renaming of the flagship ANA Hotel Tokyo to ANA-InterContinental Tokyo. In addition, the joint venture will continue to operate ANA Hotels & Resorts’ other 18 hotels under management contracts, franchise agreements and marketing referral agreements. These hotels will be offered the co-branding option.
IHG currently operates 11 hotels in Japan. The two companies share an interest in developing in China.
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Avis Launches Training Program For Serving Disabled Travelers
Avis has introduced an enhanced Avis Access national training program to educate employees on how to best assist customers with disabilities. The curriculum offers practical service skills, including recognizing certain disabilities and how to interact effectively. Employees are also trained in the correct usage of terminology and language when dealing with persons who use wheelchairs or are sight-, hearing- or speech-impaired. The video reinforces the proper use and installation of Avis Access products and services for disabled travelers.
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Balboa Becomes BCD Affiliate
Balboa Travel Management, a regional travel agency based in San Diego, has joined the BCD Travel Affiliates Program. Balboa formerly was a member of the RADIUS network of corporate travel agencies. Balboa’s annual sales volume is more than $100 million.
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British Airways Unveils Its Newest Lie-flat Bed
British Airways has unveiled its new Club World bed, which the airline says is 25 percent wider and offers more privacy, greater comfort and more storage. The six-foot-long bed (which can be extended to six feet, six inches) is part of an investment program in the airline’s products and services that includes enhancements to its first-class cabin and the introduction of an on-demand in-flight entertainment system in every cabin across its long-haul fleet.
British Airways says a new “Z” bed position allows the body to assume a position similar to that in zero gravity, ideal for watching movies. Other features include electronically operated privacy screens; a laptop locker where customers may stow electronic items, a small bag and shoes; and an enhanced entertainment system that allows customers to pause, stop, fast-forward or rewind up to 100 films and TV programs and play games on 10-inch digital screens.
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BusinessJet, LimoLink Partner
BusinessJet Class, a distribution system for private jet charter, has signed an agreement with LimoLink, a provider of ground transportation services. The agreement gives travel agents the ability to book ground transportation services in conjunction with flight reservations booked on the BusinessJet Class reservation system.
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Delta Begins NYC-Mumbai Route
Delta has begun the first nonstop service between New York and Mumbai, India. The new route is the latest milestone in the ongoing restructuring of Delta’s route network to connect more global centers of commerce to the U.S. nonstop, replacing routes that previously required flight connections in Europe.
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Eurostar’s New London Station Will Speed Travel To Continent
Eurostar, the high-speed passenger train operator between the U.K., France and Belgium, will launch passenger services from St. Pancras International Terminal a year from now, on Nov. 14, 2007. The move to a new station in central London, served by the U.K.’s first 100 percent high-speed line, High Speed 1, will cut journey times between London, Paris and Brussels by an average of 24 minutes.
Currently, Eurostar travels on high-speed track for much of the journey in England until just outside of London, when the trains revert to the existing rail track at much lower speeds.
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FCC Gives Continental Right To Offer Own Wi-Fi At Logan
A decision by the Federal Communications Commission enables Continental Airlines to continue to offer free wireless Internet access through its own carrier in its lounge at Boston’s Logan International Airport.
Massport, the operator of Logan Airport, had sought to remove Continental’s Wi-Fi antenna and force the airline to use Massport’s carrier instead. Continental reports that the FCC has “affirmed its rules pertaining to the installation and use of wireless antennae, which prohibit landlords, such as airports, from restricting this service in areas under the control of the airline.”
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Frontier, AirTran Establish Frequent-flyer Reciprocity
Low-cost carriers AirTran Airways and Frontier Airlines have teamed up to create a referral and marketing relationship that enables passengers to earn and redeem frequent-flyer rewards between both airlines. Both airlines will include an integrated route map and full list of destination options on their web sites, thereby doubling the destinations available to their customers. A web- and phone-based reservations referral system will channel customers to the partner airline when they are looking for a destination that is currently not offered by their carrier of choice.
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IHG Hotels Begin MasterCard Folio Data Reports In January
InterContinental Hotels Group will participate in the MasterCard enhanced folio data program, starting in January. The program allows hotel expenses paid with a MasterCard corporate card, including room, tax, meal, telephone, business center fees and other in-room charges, to be electronically delivered to the company’s expense-management systems.
MasterCard corporate customers will be able to get line item expense data from more than 11,000 IHG hotels in the U.S. and Canada. IHG brands are InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites, Candlewood Suites and Hotel Indigo.
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iJET Unveils Two New Programs For Building Corporate Security
Over the course of the past month, iJET Intelligent Risk Systems has begun publishing two programs to help corporations build and maintain risk management programs. The first, the Travel Risk Management Maturity Model, provides a framework that traces the logical development of a risk management program. The roadmap also helps organizations assess their current programs and serves as a benchmark against other programs.
The second program, iJET’s new Monthly Intelligence Forecast, offers a strategic view of key issues and trends affecting corporation’s global assets and operations through a series of intelligence snapshots of emerging security and geopolitical events in five super-regions: Africa, the Americas, Asia/South Pacific/Oceania, Europe/Russia/CIS and Mideast/North Africa. The Forecast features maps that serve as entry points to articles, helping readers zero in on the articles of most importance to them. A datebook feature identifies key dates in the weeks ahead and allows readers to move them to their personal Microsoft Outlook calendars.
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JetBlue Signs With Worldspan
Worldspan and JetBlue Airways have signed a five-year distribution agreement. Through the agreement, all of the carrier’s published fares and inventory, including published fares JetBlue offers through other distributors, its reservation offices and at JetBlue.com, are available to corporate clients and traditional travel agencies.
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National, Alamo Schedule U.S. Roll-out Of Self-service Kiosks
Alamo Rent A Car and National Car Rental plan to roll out self-service kiosks at rental locations throughout the U.S. now that tests in Dallas, Las Vegas and Jacksonville, Fla., have been successfully completed. Kiosks are being installed this month in Orlando, Detroit, Denver and Los Angeles. Located in Boston, Philadelphia, Houston, St. Louis, Dallas, Miami, San Francisco and Atlanta will have kiosks by March. According to an Alamo spokesman, nearly 80 rental locations will be outfitted with the touch-screen kiosks by next summer.
The system cuts check-in time by about 50 percent compared to the average counter check-in time, says Alamo. The touch-screen kiosk is available to any customer with a valid driver’s license, major credit card and an existing reservation. After a customer agrees to the terms and conditions, a receipt-sized rental agreement is printed from the kiosk and the customer is directed to his or her rental car on the lot. At the exit booth, the customer shows the booth agent his rental agreement and driver’s license. The kiosk also allows the customer to review rental information, upgrade to a larger car class, add additional drivers and purchase option items such as child car seats, a GPS unit, collision damage waiver and pre-pay gasoline.
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nuTravel To Integrate Databasics Expense Tool With Booking Tool
Databasics and nuTravel Technology have formed a partnership that enables the integration of Databasics’ expense-reporting service, ExpenSite, with nuTravel’s corporate online booking tool, CTS. Ultimately, say the companies, their partnership will eliminate double-entry of information, centralize functionality common to the applications and enable a new level of budget control and reporting.
NuTravel has been rapidly growing its business, having recently signed a five-year distribution agreement with the Travel Management Alliance, a group of seven regional travel management companies. Agencies in the alliance are Austin Travel, Colpitts World Travel, Executive Travel Associates, Liberty Travel (corporate division), Linden Travel, The Travel Team and Tower Travel.
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Rearden-American Express Partnership Produces AXIOM
American Express Business Travel has officially launched Axiom (for “American Express Intelligent Online Marketplace”), a web-based marketplace powered by Rearden Commerce’s platform, to provide a one-stop-shop for finding, purchasing and managing both traditional travel services and a growing list of ancillary services that are estimated to total roughly half of corporations’ T&E expenditures. The partnership includes American Express taking a minority stake in Rearden for approximately $22.5 million, which gives it a place on Rearden’s Board, plus the formation of a joint six-man product council to guide development. Three Council members will represent American Express; three, Rearden Commerce.
AXIOM salesmen lined up 15 customers in their first three weeks of showing customers the new product, according to Andrew McGraw, senior vice president and general manager of American Express Business Travel. Those sales are all within the United States, although some are to multinational companies. McGraw says that AXIOM sales will concentrate on the North American market first, “but we expect to go worldwide soon.” Given the size of the American Express sales force, “we can take this to market quickly,” says McGraw, calling it a “network effect.” American Express currently has more than 4,000 clients, from Fortune 500 to small businesses, in North America. Worldwide, it has nearly 14,000.
The first 15 customers all signed up for the complete AXIOM package, sometimes with the exception of one or two categories, says McGraw, but not all abilities have been “turned on” by the new customers.
The creation of AXIOM does not preclude separate sales by the Rearden sales team. Although it is small compared to American Express’s force, Rearden executives say they expect that team to “have a very busy active Quarter 1.”
The AXIOM marketplace will open up new saving opportunities to business of all sizes, say its creators. Large travel operations that have about maxed out their potential for savings in air, hotel and car can now drive down costs in the other half of their T&E budget. Small businesses will have access to “pricing they can actually manage,” says McGraw.
In addition to the traditional air, hotel, and car purchase categories managed by corporate travel departments, Rearden and the new AXIOM marketplace currently offers access to purveyors of airport parking, limousine services, dining and event tickets. Any categories identified by the joint council for inclusion in the marketplace will be available exclusively to AXIOM customers for the first six months. However, there will be new categories that are not jointly developed.
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Singapore Airlines Taps AirPlus
AirPlus International, a provider of business travel payment solutions, has partnered with Singapore Airlines to offer companies in Singapore a complete payment and cost-analysis solution. AirPlus International will now offer Singapore Airlines’ corporate customers the AirPlus Company Account, an air travel payment, billing and reporting system.
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SkyTeam Carriers Co-locate At Sao Paulo Int’l Airport
Four SkyTeam carriers serving Brazil are co-locating their services at Sao Paulo’s International Airport of Guarulhos. Aeromexico, Air France, Alitalia and KLM Royal Dutch Airlines are operating out of the new facility, located in Terminal 1 Wing A. SkyTeam says the facility is the airline alliance’s first location that features participating carriers equally.
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United Beefs Up International Service
After launching nonstop service from Dulles to Kuwait City and Narita, Japan, in October, United Airlines says it is now ready to increase capacity to China and add routes to Europe from San Francisco and Washington, DC.
Starting March 25, United will operate its daily nonstop between Chicago and Shanghai with a Boeing 747, the carrier’s largest aircraft, offering customers 658 more seats a week to China. With this aircraft change, all four of United’s daily flights to mainland China will be operated with a B747.
As part of its international expansion effort from Dulles International Airport, United plans Washington-Rome service on April 1, and is awaiting approval from the Italian government. Starting April 24, United is adding a second route between San Francisco and Frankfurt, making it more convenient for West Coast customers to connect to flights within Europe via code-share partner Lufthansa.
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Vanguard Selling National, Alamo Holdings In EMEA To Europcar
Vanguard Car Rental Holdings, which operates the National Car Rental and Alamo Rent A Car brands, has entered an alliance with Europcar A.A. that includes the sale of the of its subsidiary, Vanguard Car Rental EMEA Holdings, Ltd. The transaction is expected to close in the first quarter of 2007.
The Europcar partnership will help Vanguard provide its customers with an alternative in the global market, says William E. Lobeck, president and CEO of the Tulsa-based company. Under the alliance, National, Alamo and Europcar will be operating in more than 150 countries with access to nearly 6,000 locations and a fleet of more than 500,000 vehicles.
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With New Financing Secured, Eos Plans To Expand Fleet
Eos Airlines has secured a second round of institutional investment, which will enable the airline to expand its fleet of 757 aircraft in preparation for new routes in 2007. The airline also has identified and prepared initial applications for a range of possible new routes from New York, including Paris and Zurich, as well as potential new U.S. cities for flights to and from London.
Eos, which launched premium-class-only service between New York and London in 2005, announced the start of a second daily flight between New York and London in September.
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Amadeus Will Charge US Subscribers Up To 80 Cents Per Segment
Amadeus has introduced Amadeus Content Plus, a program that will guarantee its GDS subscribers in the U.S. access to full content without being subject to airline content surcharges. The new program begins Jan. 1, and all subscribers in the U.S. will be automatically enrolled in the program.
In exchange for access to full content, Amadeus GDS subscribers will incur a content access fee of up to 80 cents per net booked segment on participating airlines. America West, Delta, Northwest, United and US Airways are the initial participating carriers in the program with more carriers expected to be added. Amadeus said the program meets the airlines’ desire for reduced distribution costs.
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American Allows Pre-flight Orders For Japanese Entrees
American Airlines is now enabling travelers in first and business classes to order Japanese-style entrees prior to flights between the U.S. and Japan. The option is free. Orders must be placed a minimum of 24 hours in advance of flight departure.
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American To Expand Snack Selection In ’07
Starting Jan. 1, American Airlines will offer customers new choices in light meals, snacks and bottled water, all of which can be purchased with credit cards, debit cards or cash. Snacks and bottled water will be available on all flights two hours or longer, and light meals will be available on all flights three hours or longer. The new items replace the snack boxes and muffins that were previously offered for purchase on flights three hours or longer. Snacks will sell for $3 each, bottled water for $2 each, and light meals for $5 each. Choices of light meals will vary based on destination, but currently include a breakfast bagel sandwich, club croissant sandwich, Italian wrap, Asian chicken salad, and turkey and swiss ciabatta.
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American To Upgrade Planes Flying Transcontinental Routes
American Airlines plans to invest $20 million — $1.3 million each — in upgrades on its fleet of 15 Boeing 767-200 aircraft used on transcontinental routes. The upgrade includes updated first- and business-class seats and a brighter cabin interior, new personal entertainment devices and a 10th first class seat.
The new entertainment systems are making the additional first class seat possible, explains David Cush, the airline's senior vice president of global sales; the change to a digital system allows the elimination of the audio-visual closet that runs older systems. "That extra seat will help pay for a lot of the upgrades."
In addition, American will enhance its lounge-admittance policy in conjunction with the opening of the new Flagship Lounge and second Admirals Club lounge at New York’s JFK International Airport by summer 2007. First-class passengers flying on transcontinental routes on three-class aircraft will have access to American's Flagship Lounges, usually reserved for international premium class customers. Business-class passengers traveling on transcontinental routes on three-class aircraft will have access to American’s Admirals Club lounges.
"We're pretty methodical when it comes to these things," says Cush. "First we re-established financial stability by rebuilding the balance sheet. A little over a year ago we began to look at where to re-invest and started with international — it's the most profitable, most competitive part of our business. Transcontinental was the obvious next choice."
By the end of next year, "everything will be done," he continues, "and then we will start turning our attention to the domestic fleet."
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ANA Relaunches Web Site
All Nippon Airways (ANA) has launched its renewed North American website with enhanced searching and booking functions. Shoppers will have the ability to search seat availability and applicable fares directly from the top page. The flight search area has been enlarged and uses an improved search module designed to simplify the process from start to finish, says ANA.
Seat availability will be sorted by fare type and will be available for both the day before and the day after the selected departure. Once logged in, ANA Mileage Club members can check the availability of upgradeable fare types and then reserve an upgrade in class with one click.
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ARG/US Expanding Charter Audit Service Into Europe
Aviation Research Group/U.S. (ARG/US) is expanding its Charter Evaluation & Qualification (CHEQ) service to include international air charter operators in Europe. The new program, based on the results of a survey of Fortune 500 flight deaprtments, is scheduled to begin in the first quarter of 2007. Results of the audits will be made available to CHEQ Enterprise level subscribers and above.
ARG/US is also discussing audits with operators in Canada and plans to expand the I-CHEQ program further once this phase is implemented. Mexico, South America and the Far East are under consideration.
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ARINC, Starling Jointly Offer Broadband For Business Jets
ARINC Direct and Starling Advanced Communication have agreed to jointly provide broadband Internet solutions for business jets. ARINC’s SKYLink system and service is currently limited in its installation to business aircraft that can accommodate the mechanically steered tail mount antenna. Under this agreement, ARINC will combine the SKYLink system with Starling's MIJET and MiniMIJET, fuselage-mounted broadband antenna systems. The partnership opens up the broadband Internet market to thousands of additional aircraft, said the companies. ARINC and Starling will jointly develop and carry out service demonstrations, customer visits and sales support.
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ASI Group Consolidates Operations
ASI Group (formerly known as Air Security International), a provider of global risk management services, has moved into larger quarters at its Houston headquarters address. The new 10,000-square-foot-facility houses the company’s 24/7 intelligence and operations center along with all administrative, accounting and sales divisions. The new facility allows ASI Group to consolidate all of its divisions and staff members into one central location, enabling a more streamlined flow of communications, says CEO Tim Maystrik.
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Austrian Airlines Launches Iraq Service, Unveils New Business Class
Austrian Airlines has begun twice-weekly service between Vienna and Erbil, a city in northern Iraq, in the country’s Kurdistan region. Austrian had originally intended to launch service to Erbil last March but canceled those plans. Austrian is the first European commercial carrier to operate flights to Iraq.
Austrian has also upgraded its business-class seats on routes between the U.S. and Vienna. The new seats are electronically controlled, enabling passengers to sit upright for meals and when working, recline when reading and watching movies, and lie flat when sleeping. Seats also have individual laptop power and dimmable reading lights. The new business class will be offered initially from Washington, with flights from New York starting in February and from Chicago at the end of May.
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Bombardier Flexjet Waives Repositioning Fees For All Mexico Destinations
Bombardier Flexjet, a fractional business jet ownership program, has expanded its secondary service area to include all of Mexico, giving fractional aircraft owners the option of traveling to and from any location in Mexico without incurring repositioning charges. Flexjet says the decision to add all Mexican locations was a response to a significant increase in travel to and from Mexico by Flexjet owners, for business and leisure trips.
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Carlson Hotels Assists Guests With Dwarfism
In July, Carlson Hotels Worldwide plans to offer kits to guests with dwarfism. The kits will include a step stool, a reaching tool, a bar to lower the clothes rack in closets and a device to retrofit the latch-hook lock on the door. Kits will be available at Radisson, Park Plaza and Country Inns & Suites hotels in the Americas. Carlson is rolling out the service after a yearlong test of the kit at owned and managed hotels in the Americas.
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China Southern Has A New Home At LAX
After more than nine years at Terminal 5 at Los Angeles International Airport, China Southern Airlines will be moving to the Tom Bradley International Terminal on Dec. 8. The airline says this will allow it to offer customers more international flight connections throughout North, Central and South America.
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Choice Takes Over Some Franchises In Europe
Choice Hotels International has agreed to take over franchises operated by CHE Hotel Group in France, Belgium, Portugal, Spain and portions of Switzerland. Concurrent with the signing of the sale and purchase agreement, the master franchise agreement between Choice and CHE for these countries was also terminated, and all of CHE’s employees and infrastructure involved in its franchising business were transferred to Choice.
As a result, Choice will directly operate the 139 hotels in these countries from the existing headquarters in Bretigny sur Orge, France.
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CNL Hotels Sells 32 Properties
CNL Hotels & Resorts, a hotel real estate investment trust, has entered into an agreement to sell 32 hotels to an affiliate of Whitehall Street Global Real Estate Limited Partnership 2005 for approximately $405 million. The hotels include 14 Hampton Inns, four Holiday Inns, three Holiday Inn Expresses, three Residence Inns, three Sheratons, two Sheraton Four Points, one Courtyard, one Homewood Suites and one Ramada. The transaction is part of the REIT's effort to intensify its focus on luxury and upper-upscale hotels, according to CEO Thomas Hutchison III.
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Continental And United In Early Merger Discussions
According to several published reports, United and Continental are holding talks about a potential merger. There is much merger talk in the U.S. airline industry: US Airways proposed to buy Delta last month and AirTran proposed to acquire Midwest Airlines this week.
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Continental Enables Online Check-in For Clients Of Two Agencies
Continental Airlines has unveiled two separate web sites that allow clients from American Express Business Travel and Mahwah, N.J.-based Directravel to check in, reserve or update seat selections and print boarding passes for their Continental flights online. Clients who purchase Continental tickets are sent a check-in prompt via e-mail within 24 hours prior to their flight’s departure. The e-mail links the traveler to a co-branded webpage where the check-in process can be managed.
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CWT Enhances Calendar Tool
Carlson Wagonlit Travel has released a new version of CWT Freedom, which automatically delivers travel itinerary information to Microsoft Outlook and mobile devices such as BlackBerrys, smart phones, Palm devices and Pocket PCs. By January, Freedom will also provide functionality to travelers using IBM Lotus Notes.
In addition, Freedom is now compatible with all GDSs, all online booking tools and with direct-connect bookings made through the CWT Symphonie platform. Freedom was introduced in 2002 as a Palm-compatible device for Symphonie transactions only.
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Delta Files Reorganization Plan, Rejects US Airways Merger Proposal
Rejecting US Airways’ merger proposal and saying that its creditors, as well as its other stakeholders, are best served by moving forward with a standalone plan of reorganization, Delta Airline’s board of directors has filed a reorganization plan and related disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York. The plan, says the airline's board, would "provide the company’s creditors with superior value and greater certainty on a much faster timetable than the US Airways proposal."
Delta intends to emerge from Chapter 11 in the spring of 2007. Its five-year business plan projects a return to profitability in 2007 with a 50+ percent reduction in net long-term debt from approximately $17 billion in 2005 to approximately $7.5 billion in 2007. By 2010, according to the plan, the airline will have reached an increase of net income to approximately $1.2 billion, after profit sharing, from an income of approximately $500 million in 2007. Operating margins are projected to grow from 8 percent in 2007 to 10.5 percent in 2010.
Delta says the US Airways proposal "is structurally flawed and cannot be executed as claimed due to overwhelming antitrust and labor issues; would harm consumers and communities due to its substantial anticompetitive effects; relies on claimed synergies that are premised on flawed economic assumptions; would burden the combined company with a precariously high debt load; and would reverse Delta’s progress and erode the value of the Delta brand."
Nevertheless, Us Airways remains "a disciplined and determined bidder for Delta," says its CEO, Doug Parker. "We continue to work productively with the Creditors Committee and the Ad Hoc Bondholders Committee. Finally, we recognize and appreciate the creditors’ ultimate authority in this process."
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Delta Launches Johannesburg Route, Plans Pittsburgh-Salt Lake City Service
Delta has introduced its first-ever service between Atlanta and Johannesburg, South Africa. The flight stops in Dakar, Senegal. Beginning Dec. 11, Delta will begin serving Accra, Ghana from New York.
On March 1, Delta will add nonstop service between Salt Lake City and Pittsburgh. The route will be the only nonstop service between the two cities.
In the meantime, the airline, operating under Chapter 11 bankruptcy protection, has reached a settlement agreement with the government-run Pension Benefit Guaranty Corp. that will terminate the Delta Pilots Retirement Plan. The agreement has been submitted to the U.S. Bankruptcy Court for approval. The bankruptcy court previously determined that Delta could not reorganize or emerge from Chapter 11 unless the pilot plan was terminated. The agreement calls for the PBGC to receive a $2.2 billion claim against Delta and $225 million in senior unsecured notes. Retired Delta pilots will receive $800 million in allowed claims. Delta's active pilots are now covered by a defined-contribution pension plan previously negotiated with the Air Line Pilots Association
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Delta To Increase Short-haul Service From Boston
Delta and Montana-based Big Sky Airlines have signed a memorandum of understanding for Big Sky to operate Delta Connection service beginning in the second quarter of 2007. As part of the agreement, Big Sky will fly eight 19-seat Beechcraft 1900D planes, featuring stand-up cabins, on short-haul routes from Boston, representing an 18 percent increase in Delta departures from that city. Specific routes and frequencies will be announced later this winter. The Boston service will be Big Sky’s first operations on the East Coast; the airline currently serves 20 cities in Montana, Idaho, Oregon, Washington, Colorado, Wyoming and Illinois.
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Dolce To Manage Hotel And Conference Center Near Munich
Dolce International will manage a new 250-room hotel and conference center just outside of Munich, Germany. The new hotel will be adjacent to the Ballhaus Forum in Unterschleibheim, a conference facility that Dolce will manage, beginning in March. The new hotel, due to be completed in the fourth quarter of 2008, will also have meeting facilities covering about 32,000 square feet.
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Dragonair To Join Oneworld
Hong Kong-based Dragonair will join the Oneworld global airline alliance in 2007. Dragonair will add a total of 15 destinations to the Oneworld map, 12 of them in mainland China.
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Egyptian Carriers To Participate In IATA Safety Program
The Egyptian government has confirmed that all carriers registered in Egypt will incorporate the IATA Operational Safety Audit (IOSA) into their safety oversight programs by the end of 2006. As part of this initiative, all new applicants for an Air Operating Certificate in Egypt must successfully complete an IOSA registration prior to commencing operation. Existing airlines on the Egyptian registry will be required to undergo an IOSA re-audit every two years.
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European Union Concerned About U.S. Screening System
The European Union has added its voice to expressions of concern about the Department of Homeland Security’s Automated Targeting System, a security screening system that makes a risk assessment of international travelers. Franco Frattini, European Commission vice president, says there are "significant differences between the way in which PNR data are handled within the ATS and the stricter regime for European PNR data." The E.U., concerned about safeguarding privacy, has asked the U.S. government for a clarification on how European PNR data is being used.
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Expedia Launches New Search Tool For Corporations In Europe
Expedia Corporate Travel has launched a new flight search for the European market. The search highlights lowest-fare and in-policy options as well as narrower time windows for departures, airline alliance choices and connection-city alternatives. It also provides the option of using multiple airlines within one trip. The results allow travelers to choose flights based on airline, class of service, price and time schedules.
In addition to English, search results and travel information will be available in French and German.
Expedia CT also is launching a new global reporting suite that will help travel managers oversee travel programs across multiple regions, giving them greater access to information and the ability to better evaluate and optimize their travel decisions. In addition, travel managers can set policy controls for specific routes, price caps for total spend on air and rail travel, and class-of-service restrictions based on length of a trip. Policy controls can also be set for traveler groups by department or level within an organization.
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Fontainebleau Miami Beach Joins ALHI
The Fontainebleau Miami Beach, currently undergoing a $1 billion renovation and expansion, has joined Associated Luxury Hotels International (ALHI). Associated Luxury Hotels will provide authorized national sales services and will have responsibility to the meetings industry for the resort, which is preparing to serve the meetings, incentives and convention markets, beginning in June 2008.
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Frontier Plans Denver-Vancouver Service
Frontier Airlines will launch daily service between Denver and Vancouver on May 5. Vancouver will be the second Canadian city served by Frontier from its Denver hub; it began service between Denver and Calgary in May.
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Furnished Quarters To Add New York Apartments
Furnished Quarters, a corporate housing provider, has signed deals with three residential properties in New York. Furnished Quarters offers furnished apartments at The Melar (250 West 93rd Street) and will be offering apartments at Morgan Lofts (11 East 36th Street) and Crest Lofts (67 Wall Street) when they open in early 2007.
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GlobalStar Adds Partner In Japan
GlobalStar Travel Management has welcomed Japan-based Tokyo Masters to its network of corporate travel agencies. Tokyo Masters was founded in 1975 and counts companies such as Shell, Royal Bank of Scotland, Calloway Golf and Hermes as clients.
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Gulf Air, American Reach Frequent-Flyer Agreement
American Airlines has teamed up with Gulf Air to offer frequent-flyer reciprocity. American customers in the U.S. can travel on American to London Heathrow, Paris, Frankfurt or Dublin and make a connection to Gulf Air destinations in the Middle East/Indian subcontinent or Africa and earn or redeem miles for their entire journey.
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Hancock Bank Teams With GE To Offer Corporate Card
Hancock Bank has formed an alliance with GE Money - Corporate Payment Services, in which Hancock offers a co-branded version of the Productivity MasterCard to small- and middle-market business customers in Mississippi, Louisiana, Alabama, and Florida. Productivity Online, an online self-service tool, allows real-time tracking and reporting of transactions plus online payment and account management options.
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Harrah’s Agrees To $27.8 Billion Buyout
Affiliates of the Texas Pacific Group and Apollo Management private equity companies have entered into an agreement to acquire casino operator Harrah's Entertainment in an all-cash transaction valued at approximately $27.8 billion, including the assumption of approximately $10.7 billion of debt. Under the terms of the agreement, Harrah's stockholders will receive $90 in cash for each outstanding Harrah’s share, representing a premium of approximately 36 percent over Harrah's closing share price on Sept. 29, 2006, the last trading day before disclosure of Apollo and TPG's initial offer to acquire Harrah’s for $81 per share. The transaction is expected to be completed in approximately one year and is subject to stockholder approval, regulatory approvals and customary closing conditions.
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Hawaiian To Suspend San Diego-Maui Service
Hawaiian Airlines is temporarily suspending nonstop daily flights between San Diego and Maui from Jan. 9 to March 15, due to a delay in the availability of additional aircraft to its fleet. In May, Hawaiian announced that service on several routes between the West Coast and Hawaii would be expanded during the fourth quarter in conjunction with the addition of four Boeing 767 jets to its fleet. Hawaiian said suspension of the San Diego-Maui service became necessary because the airline has encountered an unexpected delay in getting interior modifications completed and certified.
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Hertz Expands Toll Tag Program On The East Coast
PlatePass, Hertz’s electronic toll payment system in the New York metropolitan area, has been expanded to Boston, Philadelphia, Baltimore and Washington. PlatePass requires the rental of a small electronic device that can be picked up at the Hertz rental counter. The device enables electronic toll collection wherever E-Z Pass is accepted on toll roads and bridges throughout the Northeast corridor. Customers utilizing PlatePass are charged a usage fee of $2.50 per day that they use the system, up to a maximum of $10 per week.
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Hi-Mark Being Acquired By TRX; Focus Remains On Travel Transactions & Data
TRX Inc. has agreed to acquire Hi-Mark Software, in a deal described by TRX CEO Trip Davis as "a tuck-in acquisition" that's indicative of "exciting changes in the marketplace and a future of data-driven economics." The acquisition will be completed in January 2007. Up to that point, the two companies will support their individual clients under their respective company and product brands, then operate under the TRX banner. Integration of their operations and development of joint product planning is scheduled for completion by March 31.
Both companies serve corporations, agencies and suppliers in the travel industry. TRX is a provider of transaction processing and data integration services. Hi-Mark's bailiwick is data acquisition and data quality improvement; e-mail notification, and business intelligence and reporting. It has also made inroads into the data-dependent financial services and healthcare industries.
But after the merger is completed, says Davis, corporate travel data reporting will remain as a priority. "We work with a number of expense reporting companies now and you'll see more from us about that in the near future ... Our technologies are feeding those companies data from the card companies. Our expense reporting engines have an important function in helping corporations work with their internal (financial) systems."
Both companies are based in Atlanta. TRX has a strong presence in North America, Europe and Asia. Hi-Mark has approximately 175 clients supporting over 1,000 companies around the world, mostly in North America and Europe. Davis envisions his company becoming a global leader in corporate travel data reporting: "It's all about better access to and understanding of global transaction data," he says. "Together, we’re one of the world’s leading, independent providers of data reporting applications that can handle all kinds of data – travel data, payment data, and expense data."
"The reality is that most companies have islands of data that they can’t easily share with other systems because of disparate data types and geographic diversity," notes Tim Fahy, chief operating officer at Hi-Mark, which was, he adds, "created to address this challenge." Hi-Mark's top management, including Fahy and Kevin Austin, its president and founder, have signed three-year contracts to stay with TRX.
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Homewood Suites Enabling Online Room Selection
Homewood Suites by Hilton will launch Suite Selection, a tool guests can use when checking in online. Available in the first quarter of 2007 on HomewoodSuites.com, Suite Selection allows Hilton HHonors guests to view a floor plan and select a suite based on their preferences (whether they prefer to stay on a high floor, by an exit, away from the elevator, by the lobby, etc.). Suite Selection features floor plans, photographs and descriptions of every room type in Homewood Suites properties throughout North America.
The functionality initially will be available to HHonors Gold and Diamond members. Soon after, Silver members will be able to use the tool, and by end of 2007, Homewood Suites anticipates making Suite Selection available to anyone with an HHonors profile.
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HSMAI Offers Sourcebook For Meeting Planners
In cooperation with Ascend Media, the Hospitality Sales & Marketing Association International (HSMAI) has begun distribution of its Sourcebook for Meeting Planners 2007. All registrants of the 2006 HSMAI Affordable Meetings® three-show series, which is the basis for the Sourcebook's articles, were mailed copies in early December. A limited number remain available.
The sourcebook features articles from 10 of the educational seminars that were presented during HSMAI’s Affordable Meetings 2006 shows in Washington, Chicago, and Long Beach, Calif. The summaries are based on insight from speakers who shared their thoughts and ideas for generating more profitable and productive meetings. Another section of the book covers pertinent information for planners as they research venues for upcoming events, such as transportation, airports, city population, average temperatures and rainfall, number of hotels and hotel rooms and area attraction. In addition, it contains a listing of a variety of meeting facilities, convention and visitors bureaus, and an assortment of other meeting products and services. The listings are arranged alphabetically by city, state or region and include descriptions, addresses, telephone numbers, fax numbers, e-mail addresses and web site listings.
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Hyatt Begins Selling Merchandise Online
Hyatt Hotels has launched HyattAtHome.com, an online store featuring Hyatt and partner-branded luxury products. Hyatt is selling bedding, luggage, furniture, bath products and athletic equipment.
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JetBlue And Sabre Airline Solutions Expand Pact
Sabre Airline Solutions, a provider of software and services for the airline industry, will expand its relationship with JetBlue to help optimize its flight operations, crew management and resource management capabilities. Specifically, JetBlue has renewed its commitment to the Sabre Flight Control Suite and Sabre Dispatch Manager, and added functions to its Sabre Streamline Resource Management Suite. The agreement follows JetBlue's decision to participate in the Sabre GDS.
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JetBlue Revises Forecasts, Cuts Back Aircraft Deliveries
JetBlue Airways has revised its fleet delivery plan in order to manage capacity growth. Between 2007 and 2010, JetBlue had planned to take delivery of 72 Embraer 190s; it reduced that to 40 Embraers. JetBlue forecasts a 2007 capacity growth of 14-17 percent, reduced from the 18 to 20 percent growth it previously expected.
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JetBlue To Create More Legroom By Removing Seats
JetBlue Airways will remove a row of seats from its Airbus 320 fleet and reconfigure the cabin with at least 36-inch pitch in rows 1 to 11 and at least 34-inch pitch in rows 12 to 25. The changes are expected to be completed by March.
JetBlue estimates that it will save $30 million over five years by removing the six seats from the A320s, based on a reduction of the in-flight crew to three members and of the weight of the aircraft by approximately 904 pounds, which will lower the fuel burn. Although the $30 million takes into account lost revenue opportunities as a result of selling six fewer seats per A320 flight, it "does not include any revenue improvement that may result from the enhanced JetBlue experience," the carrier adds.
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JourneyCorp Enhances Reporting Tool
JourneyCorp Travel Management, based in New York, has enhanced PerisKope, its web-based management information system. The new search criteria page allows the user to sort and summarize a fixed data set by pointing and clicking on 10 different fields including passenger name, department code and ticket status. PerisKope’s view of air, car, rail and hotel information is combined with city pair benchmarking statistics, fare savings analysis as well as user-defined trend information and customer-satisfaction results.
There are 40 standardized reports in both detail and summary formats. These reports include vendor data for market-share tracking and unused ticket logs; all are exportable in multiple formats for integration with the client’s enterprise system.
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Kayak Improves Search Tool With 'Pins' To ID Preferred Options
Kayak.com has introduces "pins" to its list of travel search features. Pins let consumers select and save a preferred flight, hotel or rental car at the top of their search results as they evaluate other options. To pin a preferred travel option, users select the pushpin icon listed next to every search result for flights, hotels and rental cars. After a specific option has been pinned, it will remain at the top of the page while users click through pages of results or interact with Kayak’s search filters to adjust their parameters.
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KSL Completes Acquisition Of ClubCorp
KSL Capital Partners, a private equity firm, has completed its acquisition of ClubCorp, whose portfolio of assets includes Barton Creek Resort & Spa in Austin, Texas, and The Homestead in Hot Springs, Va. As part of the acquisition, Eric Affeldt, a former partner of KSL Capital Partners, has joined ClubCorp as president and CEO. KSL Resorts, a division of KSL Capital, will manage The Homestead and Barton Creek.
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Le Meridien Shanghai Opens
The Le Meridien Shanghai, located in a 66-floor building in the heart of Shanghai, has opened. The hotel has 770 rooms and suites with floor-to-ceiling glass windows and an ultra modern design. The hotel has 10 restaurants and bars, two grand ballrooms, a spa, sauna and gym plus an indoor swimming pool with Jacuzzi, sauna and steam bath.
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Leading Hotels Of The World Pays Bonus Commission
The Leading Hotels of the World is launching a bonus 2 percent commission program for North American agencies making voice reservations through February. Reservations must be new bookings and must be made through sales and reservations offices of the Leading Hotels of the World in North America.
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Loews Cutting Trans-fats From Its Menus
Loews Hotels has announced that the company’s 18 hotels and resorts in the U.S. and Canada will implement a ban on all artificial trans-fats by June 1. The ban applies to restaurants, room service, banquet functions and snack foods in the in-room mini-bar.
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Mesa, Shenzhen To Launch Airline In China
Mesa Air Group has signed a joint venture agreement with Shenzhen Airlines to create a Chinese regional carrier, provisionally named Beijing Airlines. The new airline is expected to begin scheduled service within 12 months, initially operating 50-seat regional jets on domestic routes within the People's Republic of China. The new airline expects to have 20 50-seat regional jets in service prior to the Beijing Summer Olympic Games in 2008 and plans to grow to more than 100 planes within five years, comprising a mix of 50-, 70- and 90-seat regional jets. Most of Mesa’s business in the U.S. is as a regional jet operator for US Airways, Delta and United.
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Midwest Rebuffs AirTran’s Merger Proposal
AirTran Holdings, parent of AirTran Airways, has made a proposal to acquire all of the outstanding common stock of Midwest Air Group for $11.25 per Midwest share in cash and AirTran stock, or a total equity value of approximately $290 million. Midwest has declined AirTran’s offer, but AirTran says it will continue to pursue a merger with Midwest because "both companies would benefit by building greater scale, efficiencies and growth opportunities."
Milwaukee-based Midwest envisions a more lucrative future as an independent carrier. "While it is the fiduciary obligation of the board of directors to review credible offers, the board unanimously concluded that Midwest's business plan as a stand-alone company would support a considerably better return to our shareholders than AirTran's offer," says Timothy Hoeksema, Midwest’s CEO.
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Midwest Selects SkyWest To Operate Regional Service
Midwest Airlines has signed a five-year agreement with SkyWest Airlines to operate 50-seat regional jet service beginning in April. SkyWest will operate a minimum of 15 and up to 25 regional jets for Midwest during the five-year term of the agreement. The jets will fly as Midwest Connect. Under the agreement, SkyWest will provide aircraft, flight crews and maintenance services. Midwest Airlines will oversee route planning, scheduling, marketing and sales.
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MobiMate Upgrades Product For Palm Treos
MobiMate has released the WorldMate 2007 Professional Edition for the new Palm Treo 680 smartphone. MobiMate, a provider of travel-related mobile services, said the release features enhanced global weather coverage.
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Names In The News 12/14/06
bmi has named Chris Roemmer its sales director for the Midwestern United States. Roemmer most recently was the Cleveland account manager at United Airlines.
Carlson Wagonlit Travel has appointed Christophe Renard to the newly created position of senior director of the CWT Travel Management Institute. He is based in the company’s Paris offices. Renard joined CWT in 1998 as an account manager, and in his most recent position directed the account management sales and marketing team for CWT France.
Farecast.com, a fare-predicting web site, has added former Expedia CEO Erik Blachford to its board of directors.
Sabre has announced that Todd Wallace, managing director for airline distribution at Sabre Travel Network, has been elected president of the Computerized Airline Sales and Marketing Association, a nonprofit organization that provides an educational forum for members to address the challenges of airline distribution.
The Transportation Security Administration has named Mike Golden chief technology officer, overseeing the implementation and development of security technologies across several modes of transportation. Golden joins the TSA from Southwest Airlines, where he served as senior director of airport security technologies.
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Names In The News 12/21/06
Corinthia Hotels has announced that Tony Potter has assumed his position as the company’s new CEO, based at the company’s head office in Floriana, Malta. Potter was group chief executive officer of Millennium & Copthorne Hotels prior to joining Corinthia.
The Convention Industry Council (CIC) has inducted five professionals into its Hall of Leaders. They are Christine Duffy, president and CEO, Maritz Travel; Steven Hacker, president, International Association for Exhibition Management; Bob Moore, executive vice president, The Freeman Cos; Edward Scannell, director, Center for Professional Development and Training; and Roger Tondeur, president, MCI Group Holding.
The Discover America Partnership has partnered with Tom Ridge, the first secretary of the Department of Homeland Security and former governor of Pennsylvania, to work on a variety of projects, including a study of best practices among other countries for balancing security and open borders, an assessment of U.S. border and facilitation issues, and an analysis of the U.S. visa process and its effect on America’s economy. The Discover America Partnership, launched in September 2006 by U.S. business and travel industry leaders, is an advocacy campaign designed to educate policymakers on the power of travel.
HelmsBriscoe, a meeting planning firm, has added Las Vegas-based Kelly Corrieri to its list of associates. The company’s 800th associate, Corrieri has held national sales roles with the Venetian Resort Hotel Casino and Harrah’s Entertainment.
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Names In The News 12/28/06
Barcelo Hotels & Resorts has promoted Oscar Serrano to senior director of sales and marketing for North America and Fernando Ortiz to sales manager for the Southeast U.S. Previously, Serrano served as the commercial director for North America and Ortiz was the assistant commercial director for North America. Both Serrano and Ortiz are headquartered in Miami.
Capital City Jet Center, headquartered at Bolton Field Airport in Columbus, Ohios, has appointed Doug Blakely to the position of director, marketing and sales. In this new role, Blakely is responsible for promotion and sales of airport FBO services, aircraft charter, aircraft management and flight school. Prior to joining Capital City Jet Center, Blakely was principal at Travelers Consulting Group, a travel management consultant firm.
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Names In The News 12/7/06
The Association of Corporate Travel Executives has named Annemarie Reininger ACTE Canada’s regional chair. Reininger is manager of global supplier relationships for MDS Inc., a health and life sciences company based in Mississauga, Ontario. She succeeds Onita Dey-Frankian, the outgoing Canada chair.
Avis Budget Group has named Larry De Shon executive vice president of operations. In this role, he will oversee all domestic car rental operations as well as quality assurance and field security for Avis and Budget. De Shon most recently was United Airlines’ senior vice president of airport operations.
Choice Hotels International has named Robert Goldsack to the newly created position of project director, design and construction for the Cambria Suites brand. He is responsible for providing assistance to the prototype development team and construction management support for all projects related to Cambria Suites. Goldsack joined Choice in November, having worked closely with the company for five years as a consultant, supporting the Cambria Suites brand in the areas of food service, kitchen and laundry design. In addition, he provided consulting assistance with construction management and document reviews for new construction projects for a number of Choice’s brands.
Expedia Inc. has announced that Henrik Kjellberg has been appointed president of Expedia Asia Pacific, succeeding Barney Harford, who has held that role since 2004. The transition provides for Harford's continued involvement with Expedia Asia Pacific as a director of eLong, an online travel agency in which Expedia holds a controlling 52 percent interest. Expedia also established its new Asia Pacific regional headquarters in Hong Kong.
Orient-Express Hotels has announced that James Sherwood, chairman and founder of the company, has expressed a wish for personal reasons to retire from his executive duties with the company. Sherwood will continue to serve as non-executive chairman of the company until the next annual meeting of shareholders in June 2007. After that, he will continue to serve as non-executive director.
Ovation Travel Group, a travel management company based in New York, has promoted Marcia Amoye to chief operating officer, a new position created in response to Ovation’s growth. (The company has added over $50 million in new business in the past year.) Amoye joined Ovation as senior vice president of client solutions in early 2006. Previously, she was a general manager at Carlson Wagonlit Travel, responsible for strategic planning, customer retention and profitability for some of the company’s clients.
RADIUS, a network of travel management companies, has elected its new board of directors. The new appointments were Egil Riisnes, VIA Travel Group (Norway); Andrew Ross, Travel force (Australia); Michael Steiner, Ovation Travel Group (U.S.) and Jeronimo Vaqueiro, Tropical Tours (Bolivia). J.J. Singh, Weco Travel (Poland), was re-elected to the board.
The members of the board selected Bill Tech of Travel and Transport (U.S.) as chairman, Brian Robertson of Vision 2000 Travel Group (Canada) as vice chairman, J.J. Singh as secretary and Hanna Sawalha of Nebo Tours (Jordan) as treasurer.
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NBTA To Increase Supplier Representation On Board
The National Business Travel Association has voted to increase the number of supplier representatives on its board of directors from two to four. The measure passed by a vote of 86 percent to 14 percent. One new allied (supplier) member will be elected during the 2007 NBTA election, and a second will be elected during the 2008 cycle. Each new allied representative on the board will replace a direct (travel buyer) member whose term is expiring. After the 2008 election, the size of the board will remain the same, and representation will consist of nine direct and four allied Members. The key officers on the board (president and CEO, vice president and chairman/past president) will continue to be direct members elected only by direct members.
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Northwest, Korean Air Expand Codeshare
Northwest Airlines will expand its codeshare relationship with Korean Air. Routes operated by Korean Air that will be marked with the Northwest code are Seoul-Seattle, Seoul-Chicago, Seoul-Tokyo, Seoul-Osaka, Tokyo-Los Angeles, Busan, South Korea-Tokyo and Busan-Osaka. Routes operated by Northwest that will include the Korean Air code are Chicago-Detroit, Memphis-Minneapolis, Los Angeles-Las Vegas, Seattle-Detroit and Seattle-Minneapolis. The new routes will augment the initial Northwest and Korean Air codeshare, which started in 2005 with Los Angeles-Memphis.
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Northwest, United Oppose AA’s Refiling Request For China Service
United Airlines has filed a motion with the Department of Transportation opposing American Airlines’ request to submit a new application for service to China, citing a conflict with its current labor contract. The United filing came days after Northwest Airlines also requested that the DOT dismiss American's application. United said American's recent request to add a Chicago stopover on its proposed Dallas-Beijing route is against DOT regulations.
Most of the major network carriers in the U.S. have submitted proposals to the DOT for new China service.
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Park ’N Fly Opens Location In San Diego
Park ’N Fly has opened an off-airport facility in San Diego. In addition to car-side pick-up and drop-off, luggage assistance and 24-hour shuttle service, travelers are offered complimentary bottled water and newspapers as well as free airport travel booties to wear through security.
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PJS Launches Corporate Shuttle
Private Jet Services Group has introduced its Corporate Shuttle Program. Each program dedicates an aircraft to operate from specific airports, adhering to the schedule that clients dictate. PJS provides a concierge service specialist for each trip to work directly with the client’s travel department regarding reservations/manifest coordination, catering, corporate client branding, on-board entertainment, customs, immigration, ground transfers and vehicle ramp access for door-to-door service.
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Qantas Board Endorses Buyout Offer
The Qantas board of directors has recommended that shareholders accept an $8.6 billion buyout offer from a private equity consortium led by Australia’s Macquarie Bank and the Texas Pacific Group (TPG), based in Fort Worth. The deal must meet the approval of the airline’s shareholders and the Australian government.
TPG has been busy this month. The company, along with Silver Lake Partners, has agreed to acquire Sabre for $5 billion. It also has agreed to buy out Harrah’s Entertainment for $17.1 billion plus $10.7 billion in debt.
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Royal Jordanian Plans Codeshare With American
American Airlines has applied to the U.S. Department of Transportation for authorization to begin codeshare cooperation with Royal Jordanian Airlines. The application proposes that codesharing begin on March 25. Under the proposal, Royal Jordanian would place its designator code on 15 of American’s domestic routes out of New York’s JFK Airport as well as to and from American’s hub at Chicago O'Hare. In turn, American would place its designator code on Royal Jordanian flights to Amman, Jordan, from Chicago, New York, London, Paris, and Frankfurt. Other codeshare flights on Royal Jordanian would include flights from Amman to Aqaba, Jordan, and Dubai, United Arab Emirates.
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Sabre To Be Purchased For $5 Billion
Private equity companies Silver Lake Partners and Texas Pacific Group have signed a definitive agreement to acquire Sabre Holdings for $32.75 per share in cash. The transaction is valued at approximately $5 billion, including the assumption of approximately $550 million in net debt. The closing of the transaction is expected to occur in the second quarter of 2007. Once the deal is done, all four major GDSs will be private companies. Amadeus was purchased by private equity firms Cinven and BC Partners last year, and Galileo was purchased by the Blackstone Group in August. Worldspan, which was taken private in 2003, last week agreed to be acquired by Travelport.
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Sabre Unveils Hotel Commission-tracking Tool
Sabre Travel Network has Sabre Worldwide Commission Manager, a product aimed at helping hotels and travel agencies manage hotel commissions more effectively. The web-based product was developed in conjunction with Worldwide Payment Systems, based in Seville, Spain. It will be implemented with Sabre's hotel customers this month. Sabre says that Worldwide Commission Manager lets hotels track commission payments to travel agencies while enabling agencies to track, manage and claim commissions easily and efficiently.
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Sheraton Opens Hotel In Ningbo, 22 Miles From Shanghai
Sheraton has opened the Sheraton Ningbo, the brand’s first hotel in Ningbo, a port city that will be connected to Shanghai by the Hangzhou Bay Bridge, when it is completed in 2008. The bridge will be 22 miles long. The 380-room Sheraton Ningbo was formerly known as the Portman Plaza Ningbo Hotel.
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South African Airways To Fly To Chicago
South African Airways will introduce service from Chicago O'Hare to Johannesburg, South Africa, beginning in May. The flight will make a stop in Dakar, Senegal.
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Starwood Capital Invests In Jin Jiang Hotels
Starwood Capital Group has entered into a strategic relationship with Shanghai Jin Jiang International Hotels Co., one of China's largest hotel operators. Under the terms of the agreement, Starwood Capital will make a $30 million investment in Jin Jiang, making Starwood the largest outside shareholder in the company. Through the new strategic partnership, Starwood Capital and Jin Jiang will work together to develop and strengthen each other’s hotel business, mainly in China, and will cooperate on hotel business projects.
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To Increase Capacity In St. Louis
American Airlines on April 10 will add more mainline jets and additional capacity on flights from Lambert St. Louis International Airport. Service changes include roundtrips with one American jet and one AmericanConnection regional jet between St. Louis and Austin, Texas; two roundtrips between St. Louis and Raleigh-Durham, N.C.; two roundtrips between St. Louis and San Antonio; and three roundtrips between St. Louis and Boston.
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Travelocity Study Shows Car Rental Taxes On The Rise
A new study from Travelocity shows that the average taxes added to base rates for car rentals at major U.S. airports has increased from 25.8 percent in March 2005 to 28 percent in December 2006. These taxes, such as facility charges, are imposed by local and state governments. Travelocity found that taxes are substantially lower at neighborhood car rental locations than airport locations, averaging only 14.9 percent of the final rental price.
Kansas City had the highest percentage difference in price between the daily base rate and the total amount due at airport locations, followed by Seattle, Anchorage, Atlanta, Dallas/Fort Worth, Phoenix, Austin Bergstrom, Albuquerque, Las Vegas and Houston Bush. Three California locations, San Diego, Orange County and Palm Springs, had the lowest percentage difference. Of the 10 airports with the lowest percentage difference, eight were in California.
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Travelport Will Make Worldspan A Subsidiary In $1.4B Deal
Travelport Ltd. says it has reached a definitive agreement to make Worldspan part of a subsidiary in a transaction that values the Atlanta-based GDS at $1.4 billion. Jeff Clarke, CEO of Travelport, will lead the combined company. Rakesh Gangwal, chairman of Worldspan, will leave that company following the completion of the merger.
The Travelport-Worldspan integration team will include Terry Conley, chief administrative officer of Travelport; Pat Bourke, chief re-engineering officer of Travelport; and Kevin Mooney, CFO of Worldspan. The initial integration focus will be on consolidating technology and administrative operations resulting in near-term cost savings of approximately $50 million. Management also sees opportunity to cross-sell Worldspan’s technology products to Travelport’s global customer base.
"Increasing cost pressures on travel suppliers and agencies combined with the strengthening of alternative distribution channels, such as supplier direct channels, continue to influence how travel is purchased," says Clarke. "This merger will create a more effective and efficient travel distribution provider and will ensure that we are better positioned to meet the evolving needs of our customers, the travel suppliers, travel agencies and end consumers."
Gangwal characterizes the merger as a combination of complimentary strengths of the two companies, "which will benefit existing and future customers, allowing them to address an increasingly competitive marketplace" that will directly address industry trends and provide a new standard of technology, content and service.
Currently, the two organizations serve 63,000 travel agencies and represent more than 750 travel suppliers. Two joint statement says that "Worldspan will further augment Travelport’s global breadth and diversity and will enhance Travelport’s technology platform, in particular in the online distribution segment." The proposed transaction is also expected to deliver financial benefits capitalizing on natural operational synergies.
Simultaneously with the execution of the merger agreement, Worldspan completed a recapitalization plan. As part of this recapitalization plan, Travelport loaned $125 million to Worldspan in exchange for a payment in kind (PIK) note which Travelport funded through cash on hand. In addition, one of Travelport’s parent companies also loaned Worldspan $125 million in exchange for a PIK note.
The transaction has been unanimously approved by the boards and major shareholders of both companies but consummation of the transaction remains subject to customary conditions to closing including regulatory approval. Credit Suisse, Lehman Brothers and UBS acted as financial advisors to Travelport on the transaction.
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Travizon Adds Dashboard To Reporting Tool
Travizon, a Woburn, Mass.-based travel management firm, has added a dashboard component to its NexusReporting tool, providing "a centralized launching point for all analytical reporting." The dashboard gives clients an at-a-glance, graphical view of all data related to their travel program, such as contracts, travel data, unused tickets, credit card information and risk-management statistics.
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TRX And Expedia Sign Global Agreement
Expedia and transaction-processor TRX have signed a four-year global agreement that replaces multiple country-specific and business unit-specific agreements between the two companies. The new agreement provides one set of terms, processes and service levels for the activities that TRX handles on behalf of all current and future points of sale for Expedia. It also furthers TRX's planned exit from the call center business by relieving the company of any further call center obligations for Expedia in the U.S. and U.K.
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Tzell Buys Los Angeles Travel Agency
Tzell Travel Group in New York has acquired All Star Travel Group, a Los Angeles-based travel agency with $30 million in gross sales. All Star manages corporate, entertainment, group and individual travel. Tzell, a $700 million agency, plans to merge All Star with its Western division in the spring.
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UATP Adds Five BSP Connections
Universal Air Travel Plan (UATP), an airline-owned payment system for corporate travelers, has added five direct connections to billing and settlement plans (BSPs). They are BSP Canada, Singapore, Bermuda, Cyprus and Belize. The additional BSP connections further UATP's goal of solidifying UATP usage worldwide. The five new BSP connections are in addition to more than 30 BSPs that process UATP transactions directly with ATCAN, UATP’s central transaction-processing system.
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United Unveils Details About New International First Class
United Airlines has revealed initial details about the planned $165 million upgrade to its international widebody fleet. Introduction of the new suites is scheduled for the fourth quarter of 2007.
The seat in the new first-class suite is nearly three inches wider than the existing one and reclines to multiple angles or serves as a fully flat, 6-foot, 6-inch bed. Each suite will offer an entertainment system with a 15.4-inch monitor with an on-demand video and music system. United also will offer 50 channels of XM-branded audio content. Both the entertainment system navigation controls and content will be offered in several languages. Among the suite's other amenities will be a 110-volt universal plug for laptop power, a USB port to charge personal electronic devices, multiple stowage compartments, noise-canceling headphones and an Apple iPod connector.
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US Airways Meets With Delta’s Creditors And Management
US Airways last week made a presentation to representatives of Delta’s creditors committee and management team concerning its proposal to merge with the Atlanta-based airline. Delta is currently operating under Chapter 11. "We reviewed our offer and had a chance to engage in discussions on the many facets of this proposal," said US Airways CEO Doug Parker. "While we recognize the steps that Delta management has taken, we are confident that our proposal for a new Delta will create more value than a stand-alone plan."
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Virgin America Denied By DOT
The U.S. Department of Transportation has refused to grant start-up carrier Virgin America an operating certificate because the airline is not 75 percent owned and controlled by U.S. citizens. Under the Federal Aviation Act, to be certified as a U.S. airline a company must show that it is actually controlled by U.S. citizens, that the president and two-thirds of the board of directors are U.S. citizens and that at least 75 percent of the voting interest is owned or controlled by U.S. citizens.
In its show-cause order, the DOT said it tentatively concluded that Virgin America’s close relationship with U.K.-based Virgin Group indicates that the carrier is not under the actual control of U.S. citizens. The order cited "the pervasive involvement of Virgin Group and its executives in the creation of Virgin America, the funding Virgin Group provided to the carrier, various interlocking financial agreements and Virgin Group’s ability to influence decisions of the carrier’s board." The DOT also said that the restrictive name-brand licensing agreement between Virgin Group and the airline impedes the carrier’s "independent decision-making authority."
A statement from Virgin America says it will "use the order as a roadmap to address the issues raised and to demonstrate to the DOT that Virgin America will meet all ownership and control requirements."
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Virgin Atlantic To Launch London-Chicago Service
Virgin Atlantic Airways will begin direct service between Chicago O’Hare and London Heathrow Airport on April 23. Chicago will become the 10th U.S. gateway for Virgin Atlantic and the airline's 17th daily flight from the U.S. to London.
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W Planned For Austin
W Hotels plans to open the W Austin Hotel & Residences in Austin, Texas, in 2010. The project will feature approximately 250 guest rooms and 200 condominiums and will serve as an anchor for the city’s Second Street District, said W. Starwood Hotels, W’s parent company, has entered into a management agreement with Austin-based Stratus Properties to manage the hotel.
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W Plans Second Hotel In Dubai
W Hotels Worldwide has announced plans for a new hotel in Dubai. Scheduled to open in late 2009, W Dubai-The Palm will be W’s second hotel in Dubai and the third hotel in the Middle East, following the W Dubai-Festival City and the W Doha in Qatar. Starwood Hotels & Resorts, the parent company of W, has entered into an agreement with Al Sharq Investment to manage the hotel. W Dubai-The Palm will have approximately 400 rooms, multiple restaurant outlets and a destination bar and spa.
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Waldorf-Astoria Collection Adds First International Hotel
Hilton Hotel's Qasr Al Sharq, or Palace of the Orient, will join the Waldorf-Astoria Collection, becoming the first international managed property in the collection. Qasr Al Sharq opened on June 1 in Jeddah, Saudi Arabia, as Hilton's fourth hotel in the kingdom. The Waldorf-Astoria Collection currently has four properties in the U.S.: the Waldorf-Astoria in New York, Grand Wailea Resort Hotel & Spa in Hawaii, Arizona Biltmore Resort & Spa in Phoenix and La Quinta Resort & Club near Palm Springs, Calif.
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Westin To Be Constructed In New Zealand
The Westin Queenstown in New Zealand is scheduled to open in 2009, The Hotel will be the fifth Westin in the Asia Pacific region, joining Westin hotels in Auckland, Melbourne, Sydney and Denarau Island, Fiji. Starwood Hotels, Westin’s parent company, will manage the hotel. Offering lakefront and mountain views, the Westin Queenstown will be located on Lake Wakatipu at Kawarau Falls Station in Queenstown. It will have 177 rooms and 7,800 square feet of meeting space. The hotel will be approximately three minutes by car from the Queenstown airport and about five minutes from the center of Queenstown.
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