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INDUSTRY NEWS & PEOPLE  April 2008
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• Just Asking: Industry Insiders Analyze Delta-NWA Merger
Forecasts of fallout from the proposed Delta-Northwest airlines merger have come from inside the worldwide business travel and aviation industries. These observers see a few bright spots but overall, at least in the short-term, they do not bode well for corporate and private consumers — and often not for the airlines themselves.
Coincidentally, on May 19 at the ACTE conference in Washington, DC, Mark Walton, principal with Consulting Strategies, will be moderating a panel discussion about "unidentified opportunities from industry consolidation." RedLines' collection of insiders' reactions to the proposed Delta-Northwest merger starts with his:
"Other than halting the demise of one or both of these airlines, I cannot think of many benefits that this merger provides to the traveling public, both discretionary and non-discretionary.
• Already known for their aggressive pricing, the strengthening of fortress hubs and overall market positions for the combined entity should be of significant concern to corporate travel managers. One only needs to explore the pricing in Detroit, Minneapolis and Cincinnati to gain an understanding of what effects competition (or the lack thereof) has on the overall market.
• Memphis and Cincinnati government leaders and DL/NW employees [in those locations] should be particularly concerned. Just take a look at what American did in St. Louis after their acquisition of TWA: it will give an advanced picture of what is likely to be the case in both or one of these markets. Those hubs exist as pure hub markets, just as STL did. The difference with a Memphis or Cincinnati vs. other major hub markets such as Chicago or Detroit is local population base. Cincinnati and Memphis hubs don’t exist because of the local population base. That is why in a merger, it is unlikely that one or both of the hubs would survive as they provide a similar connecting complex.
• Here is an example of what the lack of market competition looks like. Looking at fares for April 16 on a round trip, same day basis; travel to/from Chicago and Cincinnati on Delta is $1,423 and on United between Chicago and St. Louis; $269. Both city pairs are nearly the same stage length yet there is no similarity in fare structure. Another example showing the effect on city dominance is [obtained by] viewing fares from Chicago to LA vs. Cincinnati to LA, where DL has the only nonstops between CVG and LAX. That next day fare is $1,578 and the fare between ORD and LAX is $669.
• Travel agencies are most likely going to feel the pinch too. Expect incentive or override programs to decrease as market dominance will cause these airlines to remove incentives from some distributors. That too is likely to cause a ripple effect with agencies passing those increased costs to consumers.
• Further industry consolidation is perhaps the biggest negative consequence as other airlines such as United, Continental, US Airways and American are likely to make a move, further exacerbating the problems described above.
"The only positive is that this move, in certain situations, may give the so-called 'low cost carriers' additional room for growth, filling a void left as DL/NW schedules are reduced, adding service where yields and loads dictate market opportunities.
"There are anti-trust implications, but whether or not the government intervenes will be determined in the company markets. Certainly, microscopic scrutiny of this planned merger is in order."
Similarly, Brad Seitz, president and CEO of Topaz International, took a look at his company's data: "I thought I would look at four key hub-to-hub markets, and the average segment cost for the past year (April 1, 2007 to March 31, 2008). [It's] close in all markets, as you would expect -– but sure to rise with the new combined airline." Seitz supplied the following figures:
Hub-to-hub Segment
ATL-DTW
ATL-MSP
CVG-DTW
CVG-MSP
Northwest's Avg. Price
$306.59
$361.81
$571.04
$782.49
Delta's Avg. Price
$302.46
$349.29
$578.79
$767.57
Observations from Susan Gurley, executive director of the Association of Corporate Travel Executives, are more hopeful: “Business travelers have to be assured that the merger, or any others, will not result in an increase of delays, lost baggage, or other service issues that add to the stress of travel. If anything, a merger should be regarded as a solution to relieve these issues over the course of time.”
The traveling public should have every expectation of “business as usual” throughout the federal antitrust review, she continues, observing that the cautious manner in which both of these carriers addressed the merger issue suggests that reservations systems and airport operating systems will be merged as seamlessly as possible. But she also acknowledged that all airlines are going to be taking a harder look at route profitability and that predictions of higher travel costs are likely to come true: “Oil hit a record $113.00 a barrel today. Any downward slides will be more of the exception than the norm. As operating costs rise, so too will ticket prices. That’s inevitable.”
This is just the beginning, warns Kevin Maguire, president and CEO of the National Business Travel Association: "The 'rush to merge' scenario will continue into 2009, with Continental and United following the Northwest-Delta deal very shortly. AA is the 'odd-man' out and may have to wait until rules pertaining to foreign ownership of US airlines changes, before [it] can find a viable partner.
"Unfortunately, US carriers have little choice but to merge or they may not be competitive with foreign airlines. US carriers, with little exception, do not have new, fuel efficient planes on order and even if they ordered today, it would be 2012 - 2015 before they could receive the aircraft. The US air traffic control system is a disaster — 30 years out of date and missing the necessary funding to quickly replace the current system. It will take another 20-30 years before the US can have the newest, most efficient technology in place for an adequate air traffic control system.
"US airports are no better. Fly from the new airport in Singapore or Bangkok to LAX or Newark, etc. ... and you fly from heaven into hell. The whole system is broken ... functioning, but broken. It's very sad, very scary."
Calling the merger "a no-brainer," an analysis from the Centre for Asia Pacific Aviation (CAPA), a specialist in aviation intelligence and data services, also says "the propsects of the merger actually occurring are probably not even as good as 50 percent. Why? Because all of the forces of inertia come to bear." Among those forces, says the Centre, are "archaic, nationalistic foreign ownership restrictions" and opposition from affected labor unions.
"Thirdly," says the Centre's analysis, "the merger will change the competitive balance of the US indsutry as well as the international marketplace, where the SkyTeam alliance, led by Air France/KLM and Delta, will become a much greater force. As soon as the deal is formally agreed, US anti-trust and European competition law authorities will all swing into (inertial) action."
SkyTeam's response may not be quite as CAPA envisions. A message sent to the 45,000 employees of Continental Airlines by Larry Kellner, chairman and CEO, and Jeff Smisek, president, promises that "we will review our continued participation in the alliance with Northwest, Delta and SkyTeam, as we evaluate what course of action would be in Continental's best interest.
"This merger will change the competitive landscape for Continental and the entire airline industry. As we've said repeatedly for more than a year and a half, our preference has been to remain independent as long as the competitive landscape remained the same... One important result of last night's announcement is that it enables us to redeem the 'Golden Share' that Northwest owns in Continental ..." (A statement filed with the SEC this morning by Continental indicates that it has indeed redeemed Northwest's Golden Share for $100. The share prevented Continental from engaging in certain business combinations without Northwest's consent but entitled it to redeem the share at that price upon a Northwest change in control, which Continental says occurred when Northwest entered into the merger agreement with Delta.)
As noted by Walton and CAPA, the proposed merger is of intense interest as well in the various hub cities — also sources of inertia, in CAPA's estimation. Jack Lanners, chairman of the Metropolitan Airports Commission that oversees the Minneapolis-St. Paul International Airport, noted that "in 1992 and again in 2007, Northwest Airlines made legally binding commitments to the Metropolitan Airports Commission to keep the airline's hub and headquarters, or that of its successor, here. In the days and weeks ahead, we will work to the best of our ability to leverage those commitments and to protect air service and jobs in Minnesota."
And yesterday, in a letter to American Airlines employees, Gerard Arpey, CEO of American Airlines, called the announcement "the latest example of the changes that continue to roil our industry." He continued "Should Delta and Northwest succeed in combining, despite labor opposition, it will change the competitive landscape in our industry, and make it more important than ever that we effectively leverage the strength of our own formidable network. As we have many times before, we will do whatever is necessary to position our airline to compete effectively in an environment of continuous disruptive change."
The National Business Travel Association had already surveyed its travel manager members about their view of consolidation in the airline industry when Northwest and Delta made their announcement. Eighty percent of that early survey's 207 respondents saw further consolidation in the US airline industry by 2009 as “inevitable.”
The survey sought their opinions on the impact of two potential mergers, one of them the long-anticipated Delta-Northwest agreement. Fifty-three percent said they believed it would create an improved international route structure; 46 percent, a more financially stable airline; and 35 percent, a stronger, more convenient US route structure than either of the two carriers could maintain on its own. At the same time, many saw negative effects: 54 percent, on customer service; 46 percent, on access to smaller US markets; 41 percent, on flight schedules and frequencies; and 40 percent, on corporate account management.
Respondents’ expectations of an often-discussed merger of Continental Airlines and United Airlines merger are similar, though they anticipated changes in fewer service areas.
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Academy Bus Enables Online Booking
Hoboken, NJ-based Academy Bus is now enabling customers to book its charter services online through the company’s web site. Customers can book a charter, receive pricing and provide payment.
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ACTE Survey Measures Preliminary Fallout of Aircraft Maintenance Groundings
Preliminary survey results of US-based business travel managers indicate that 62 percent of respondents are presently considering adding a stipulation to their airline agreements certifying that a carrier is in compliance with Federal Aviation Administration air worthiness directives. According to a poll conducted by the Association of Corporate Travel Executives (ACTE), the purpose of this stipulation would be to assure travelers that there is no question regarding approved maintenance procedures, and to eliminate any duty of care contention.
The overwhelming majority of ACTE members responding to the survey, 74 percent, described the recent flight cancellations due to maintenance issues as more of an inconvenience than a major cost issue. Twelve percent did cite the cancellations as a source of expense due to missed meeting and canceled events. Another twelve percent said they were unaffected.
Ninety percent of the survey’s respondents claim they are not considering switching carriers over the current maintenance crisis, but 10 percent say they are. There could be a direct correlation here to revenue lost through cancelled meetings or other events.
Only 3 percent of survey respondents said their travelers have indicated significant concerns about safety, while 59 percent have received some inquires from travelers, but were not regarded as significant enough to warrant cancellations. Thirty-eight percent reported they had received no inquiries.
The survey indicates there have been recent cutbacks in travel, but not for safety reasons. Twenty percent of survey respondents indicated their cutbacks were directly related to economic reasons, while 80 percent stated they had not yet cut back on travel.
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ACTE To Host First Forum In Central America
The Association of Corporate Travel Executives (ACTE) will hold its first joint Executive Forum in Costa Rica on April 9, in partnership with BCD Travel in Costa Rica. The event will feature panels, presentations and roundtable discussions on proven travel management techniques, technological developments and advanced travel management theory.
The event is one of a series that will mark ACTE's growing presence throughout the Latin American region. In 2008, ACTE will host events in Mexico City, Santiago, Sao Paulo, Rio de Janeiro and Buenos Aires.
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ACTE: DHS Proposal For Biometric Exits Carries $300M Tab
A proposed rulemaking by the US Department of Homeland Security (DHS) for new biometric exit procedures at the nation’s airports be supported by airlines would cost about $300 million a year, according to the Association of Corporate Travel Executives (ACTE). That cost, predicts ACTE's executive director, Susan Gurley, "would be passed directly to the traveler."
ACTE's estimate is based on DHS estimates that the cost of collecting and transmitting the biometric data collected at gateway airports would be two or three dollars per passenger, multiplied by a base of 100 million qualifying passengers. Noting that the protection afforded by the proposed biometric system would reach beyond air travelers, Gurley contends that the cost of the program should be paid by "a special appropriation from Congress."
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Aer Lingus Signs Codeshare Pact With United
Irish carrier Aer Lingus and United Airlines have inked a codeshare agreement that will take effect on November 1, pending government approval. The codeshare agreement will cover all seven of Aer Lingus' US gateways. The United flight code will be placed on all Aer Lingus transatlantic flights to and from Shannon and Dublin.
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Air Canada Offers Speedy Fee-based Service When Flights Disrupted
Air Canada has introduced a travel-assistance service for customers called On My Way. The new service “provides customers with speedy phone access to specially trained Air Canada customer service agents who will provide travel and accommodation solutions for customers whose plans have been disrupted by factors such as adverse weather conditions or airport and air traffic delays,” says Air Canada. The service costs $25 for short-haul flights and $35 for long-haul flights, each way.
Air Canada says it will find alternate flights on Air Canada or other airlines and, if required, will provide complimentary hotel accommodations and meals. On My Way travel assistance is available for all Air Canada and Jazz flights within Canada as well as to and from the US, including Hawaii and Alaska.
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Air China Partners With AirPlus
Air China and corporate travel payment provider AirPlus International have introduced the Air China AirPlus Company Account. The solution provides the airline’s corporate customers with a new travel payment option on all national and international Air China flights and tariffs. The companies say the joint product is the first of its kind in China and will be released in July 2008 prior to the Olympic Games.
AirPlus has founded a subsidiary company in Shanghai, AirPlus Payment Management Co., to support the rollout of the joint payment solution.
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Air France-KLM And Alitalia Break Off Merger Talks
Because Air France-KLM could not hammer out an agreement with Alitalia's unions, merger negotiations between the two carriers has ended. Alitalia Chairman Maurizio Prato, who had said that a merger with Air France-KLM was the carrier's only chance to continue flying, resigned after talks broke down. Air France-KLM and Alitalia's board of directors reached a preliminary $1.1 billion merger agreement last month.
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Air France-KLM Closes Door On Alitalia
Air France KLM has declared that its bid to acquire Alitalia is “no longer valid,” following a request from Alitalia that they “clarify the legal situation following the interruption of negotiations” between the carriers. The board of directors at state-owned Alitalia accepted Air France-KLM’s $220 million buyout offer in March, but Alitalia’s unions and Air France-KLM failed to reach an agreement.
Air France-KLM also encountered political opposition in Italy when Silvio Berlusconi was elected prime minister this month. Opposing the Air France-KLM takeover was a central component of Berlusconi’s campaign. The Italian politician has insisted on a takeover by an Italian company. Meanwhile, the Italian government has approved $478 million in emergency funding for Alitalia, which is reportedly losing $1.6 million per day and likely needs a buyer to step up soon if it is to continue flying.
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AirTran To Charge $10 For Second Checked Bag
AirTran customers who are traveling on or after May 15 may check one bag free and a second bag for $10. (In May, many major carriers will start charging $25 for a second checked bag.) AirTran's fee will not apply for passengers who hold elite status in AirTran’s frequent-flyer program or ticketed passengers traveling in business class. The airline will continue to allow passengers to check additional bags at $50 each.
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Alaska Airlines Zapped By FAA Audit Of MD-80s
Alaska Airlines on April 9 grounded MD-80 aircraft to meet a Federal Aviation Administration (FAA) airworthiness directive related to wire bundling in the aircraft’s wheel wells. American Airlines had to cancel flights on its MD-80s for the same reason. Alaska has nine MD-80s, and the inspections led the airline to cancel three flights on April 8, and 14 flights on April 9.
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Aloha Airlines Shuts Down Passenger Service
Aloha Airlines ended its passenger flight operations on March 31, just 11 days it filed for Chapter 11 bankruptcy protection. The shutdown affected about 1,900 employees. The airline had "no choice," according to David Banmiller, Aloha's CEO" “Despite the groundswell of support from the community and our elected officials, we simply ran out of time to find a qualified buyer or secure continued financing for our passenger business. We had no choice but to take this action.”
Hawaii Gov. Linda Lingle, not convinced that Aloha management did all it could to stay in business, has filed a motion in the US Bankruptcy Court in Honolulu to force Aloha to remain operating. However, Judge Lloyd King ruled that Aloha made a good-faith effort to continue operating and that he would not stand in the way of a “business decision.
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Amadeus Introduces Merchandising Capability For Airlines
Amadeus has launched is Airline Retailing Platform, which offers airlines a range of merchandising features, enabling them to package fares, up-sell, display product characteristics and display advertising. Functionality ensures products are sold in compliance with airlines’ commercial policies and to guarantee revenue integrity, says Amadeus.
A graphical user interface through which airlines can manage their distribution through all Amadeus points of sale enables real-time, standardized business-rule deployment. The platform was developed in collaboration with major carriers worldwide, including Iberia and Qantas, and will be rolled out in phases over the next two years. Airlines increasingly want to be able to merchandise their products through the GDSs like they can on their own web sites.
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American Back To Normal Schedule: Ovation Describes The Process
After five days in which the carrier canceled about 3,000 flights to re-inspect MD-80 aircraft, American Airlines returned to a normal schedule on April 13. American had to ground planes because the Federal Aviation Administration said wiring was not bundled properly in the wheel wells.
According to a spokesman at Ovation Corporate Travel in New York, the experience was "extremely difficult on the passengers, somewhat difficult on agents due to lack of alternatives." The TMC has 1,341 ticketed travelers on AA between April 7 and April 13. Approximately 30 percent were affected: "Either we have or AA has reaccommodated them." Perhaps ironically, Ovation is watching events at Delta, which it says has 117 MD-80s in its fleet.
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American Eagle Launches Dallas-Tampico Route
American Eagle has begun daily service between Dallas/Fort Worth and Tampico, Mexico. The addition of the route increases American Airlines’ offerings to 15 cities in Mexico. American Eagle will use 44-seat Embraer jets on the route.
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American Express Records '07 Cost Hikes In International Travel
American Express Business Travel clients paid an average fare of $1,836 for international flights in 2007, a 7.6 percent increase from the year before and a 21.3 percent increase from 2004, according to the company’s 2007 Business Travel Monitor. The average paid domestic fare dropped slightly, from $231 in 2006 to $230 last year.
Hotel spending in 2007 was up in the US and abroad. The average international booked rate was $266, a 15.7 percent increase; the average domestic booked rate was $157, an 11.3 percent rise.
The average domestic car rental rate in 2007 increased 4.4 percent, to $72.
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American Groundings Of MD-80s Continue Into Day 3
American Airlines canceled more than 900 flights today as it works to complete the inspections and subsequent work on its MD-80 fleet, which numbers 300 aircraft. The airline canceled 460 flights on Tuesday (April 8) and another 1,094 yesterday (April 9) for the inspections. As of yesterday afternoon, 179 MD-80s had been completely inspected — of those, 60 have been returned to service and the remaining 119 were still undergoing work. At that time, there were 121 MD-80s yet to be inspected.
The airline is also working to re-accommodate customers affected by this week’s activity. Customers who were scheduled on a flight that was cancelled may request a full refund or apply the value of their ticket toward future travel on American. Additionally, customers scheduled to travel on any MD-80 flight April 8-11, even if their flight has not been cancelled, may rebook without a change fee to any AA flight with availability in the same cabin as long as their travel begins by April 17.
The airline says the additional MD-80 inspections were being done to “ensure precise and complete compliance with the Federal Aviation Administration’s airworthiness directive related to the bundling of wires in the aircraft’s wheel wells.” It has stressed that the inspections were related to safety-compliance issues and not flight safety issues. American canceled hundreds of flights two weeks ago to address the same airworthiness directive in MD-80s. The airline said it plans to contract with an independent third party to review American's processes for compliance with all future FAA airworthiness directives.
Since early March, when the FAA fined Southwest Airlines $10.2 million for flying planes after missed safety inspections, the FAA has been crackdown on compliance with airworthiness directives. The FAA on March 18 announced that it would be conducting audits of airlines’ maintenance records. Since then, American, Alaska Airlines, Delta, United and Southwest have grounded planes and canceled flights to redo inspections.
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American To Launch Miami-Antigua Service
American Airlines will begin daily service from Miami to Antigua on November 20. The new service from Miami complements existing flights to Antigua from San Juan offered by American and American Eagle.
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ARC Cuts Staff, Offers Volume Discount To Airlines
Airlines Reporting Corp. (ARC), the airline-owned financial settlement solution, says it has reduced its workforce by 4 percent in response to “the rapidly changing economies of the air travel market.” Also, ARC has introduced Flex-Rate, an optional pricing model for airlines that reduces transaction fees for incremental new volume.
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ARC Enhances Fare Data For Airlines
The Airlines Reporting Corporation (ARC) has enhanced its Itinerary Detail product with average fare display for Other Airline (OAL) transactions and prorated fares on every segment. In addition, nine new, optional data elements are now offered on top of 49 standard data elements, providing segment-level detail on ARC-reported transactions. ARC says participating airlines look to ARC Itinerary Detail for timely and accurate data on which to base sound business decisions.
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ATA Airlines Suddenly Ends Operations
After filing for Chapter 11 yesterday (April 2) in the US Bankruptcy Court in Indianapolis, ATA Airlines discontinued all operations this morning and canceled all current and future flights. Following the loss of a key contract for its military charter business, ATA says, it has became “impossible” to continue operations. “Unfortunately, we were not in a position to provide our customers or others with advance notice.”
ATA says it is currently unable to provide refunds to customers who purchased tickets directly from ATA with cash or a check. These customers may be able to obtain a full or partial refund for their unused tickets by submitting a claim in ATA's Chapter 11 proceedings, says the airline. Customers who purchased tickets using a credit card should contact their credit card company or travel agency directly for information about how to obtain a refund for unused tickets.
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ATA Challenges DOT On Authority To Implement Congestion Pricing
The Air Transport Association (ATA), a trade group consisting of US airlines, says the Department of Transportation does not have the authority to mandate congestion pricing and slot auctions at airports. In a March 31 letter sent to US Transportation Secretary Mary Peters, ATA President James May writes that the DOT's proposed changes to its policy on airport rates and charges at Newark and JFK airports are “specifically intended to encourage congestion pricing,” and that “these actions are legally indefensible and inconsistent with international practice.”
The DOT disagrees: a spokesman for the department insists that the DOT has the authority to allow airports to charge carriers higher landing fees during peak periods.
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Atlanta Airport Not Ready To Implement Registered Traveler
Hartsfield-Jackson Atlanta International, the nation’s busiest airport, has delayed its decision to implement the registered traveler program. Instead, the airport will expand the number of security checkpoints to shorten wait times. The $25 million construction project involves increasing the number of lanes at the existing Terminal North checkpoint (T Gates) from three to six, removing outdated screening equipment and adding four new lanes to Terminal South. This will result in 32 lanes for security screening, up from the current 28. Construction of the new lanes is scheduled to be completed before the end of the summer. The airport says it will defer a decision on the implementation of the registered traveler program until the effectiveness of the new lanes can be evaluated.
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Auto Europe Brings Chauffeur Service To China
Auto Europe has expanded its chauffeured service to China, where it is now available in Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Qingdao, Sanya, Nanjing, Hangzhou and Chengdu. Clients can choose from several car models, including the VW Passat, GM GL8, Audi A6 and the Mercedes Benz S350.
A car and driver can be arranged for airport-hotel transfers and four-hour and eight-hour touring.
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Avis Establishes Airport Locations In China
Avis has opened a new rental location at Beijing International Airport and an additional location at Shanghai Pudong International Airport. The car rental brand now operates from the new international Terminal 3 at Beijing and the new Terminal 2 at Pudong Shanghai.
Avis has offices in 14 cities in China and offers services at the airports in Beijing, Shanghai, Guangzhou and Shenzhen.
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BA Catches Its Breath After Chaotic Debut Of New Heathrow Terminal
British Airways and many of its customers have had a week to forget in Terminal 5, the airline's new home at London Heathrow Airport. On the first day of service from the new facility, British Airways' baggage system malfunctioned, resulting in misplaced bags and canceled flights. (The airline has not yet moved its transatlantic operations to Terminal 5.)
BA attributed the difficult first day at Terminal 5 to “teething problems.” The baggage system was “generally working better” by Sunday, according to CEO Willy Walsh. But by that time the airline was faced with a mountain of undelivered bags - 28,000 of them according to a BBC report. Walsh apologized for the “disruption and inconvenience caused to customers whose flights have been canceled or whose bags have been delayed.” A week after opening the terminal, British Airways is still not operating all of its scheduled flights from the facility.
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BA To Boost JFK Service To Gatwick, Suspend Manchester Service
British Airways is boosting its services between New York JFK and London by starting daily flights to Gatwick Airport on October 27. The new flights mean that the airline will fly 62 times each week from JFK to London as the Gatwick flights will operate in addition to 55 weekly flights to Heathrow. They will use a Boeing 777, configured in four classes: First, Club World, World Traveller Plus and World Traveller cabins.
Also in October, British Airways will suspend its daily flight between New York and Manchester and will base the Boeing 767 aircraft that operates the service at Heathrow. It will also start new shorthaul routes from Gatwick this October with daily services to Oporto and Valencia. Second daily services from Gatwick to Alicante and Turin also will be added from the end of October. Flights to Warsaw will move from Gatwick to Heathrow in October.
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Banyan Tree Resorts Plan North America Debut In 2009
Banyan Tree, which operates resorts throughout Asia, will open its first property in North America in early 2009, when the Banyan Tree Mayakoba opens on Mexico’s Riviera Maya. The Banyan Tree Mayakoba will have 132 villas and 50 residences. Amenities will include private pools, outdoor jet-pools and terraces overlooking Mayakoba’s lagoons, mangroves, golf course and the sea. The Saffron restaurant will serve Thai cuisine. Owners and guests will have access to El Camaleon, a Greg Norman-designed golf course.
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Boeing Postpones Delivery of First 787 Dreamliners — Again
Boeing has revised its schedule for the first flight and initial deliveries of the 787 Dreamliner. The company has pushed back the delivery date four times in the past seven months. The first flight of the 787 will occur in the fourth quarter of this year rather than the end of the second quarter, and the first delivery is now planned for the third quarter of 2009 instead of the first quarter.
“While significant progress has been made assembling Airplane #1, the first flight is being rescheduled due to slower-than-expected completion of work that traveled from supplier facilities into Boeing’s final assembly line, unanticipated rework and the addition of margin into the testing schedule. The new delivery schedule is based on a more conservative production plan developed with the 787 partner team,” according to a Boeing announcement.
The 787 Dreamliner is a mid-size, long-haul aircraft that Boeing says will be more fuel-efficient than earlier Boeing aircraft. It will be the first commercial jet to use lightweight composite materials instead of metal for most of its construction.
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BridgeStreet Acquires Government Housing Specialist
Corporate housing provider BridgeStreet Worldwide has acquired Temporary Quarters, a Washington-based furnished-apartment business specializing in the government and military markets. Terms of the deal were not disclosed.
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BridgeStreet Shows Off US, UK Developments
BridgeStreet Worldwide has outlined four building projects currently in progress in the US and the UK, collectively worth $500 million. The projects are seen as being representative of the strategic goals outlined last year when Dublin-based Sorrento Asset Management purchased BridgeStreet to be its property management division. The four projects are:
• A 145-apartment / 200-guest room residential-hotel complex located in Chicago’s River North area, being developed in collaboration with Kimpton Hotels & Restaurants and the John Buck development company.
• A mixed use property on Manhattan’s West 48th Street, in a 43-floor skyscraper that will offer commercial space in addition to 122 apartments.
• A 36-story Manhattan highrise on 34th Street, scheduled to open in Fall 2008 with 110 apartments.
• A mixed-use development in London’s trendy Clerkenwell area that will offer 48 apartments with balconies overlooking landscape gardens, and European-designed kitchens and baths.
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British Airways Postpones Airport Move
British Airways will not move its long-haul flights, including transatlantic operations, to London Heathrow Airport’s new Terminal 5 until June. The carrier had been scheduled to move long-haul flights to Terminal 5 on April 30. British Airways currently uses Terminal 4 for long-haul service.
Terminal 5 is now “working well” after a chaotic start, according to CEO Willy Walsh, but he adds that the airline “needs to have confidence that good service can be maintained when the terminal is handling larger numbers of customers.” In its first 12 days at the new terminal, British Airways had to cancel hundreds of flights. When the facility opened on March 27, the baggage-routing system crashed, causing mass confusion and flight cancellations. The airline misplaced thousands of bags.
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BTC Warns Senate Today Of 'Dirty Secret' In NWA-Delta Merger
In testimony scheduled to be given this afternoon before the Senate Judiciary Committee's Subcommittee on Antitrust, Competition Policy and Consumer Rights, the Business Travel Coalition's Kevin Mitchell calls the proposed merger between Northwest and Delta airlines "the proverbial canary in the coal mine," funded by overseas interests and portending an anticompetitive future of higher airfares, lower air travel service standards and a domino effect on the industry supply chain.
Charging that "all the potential external funding" for currently-proposed mergers among US airlines is coming from European airlines, Mitchell says the mergers, if approved, would give Air France and Lufthansa as much as 95 percent control of the US market with "zero possibility of new competition."
The full prepared text of Mitchell's testimony is available at http://tinyurl.com/5bc46a
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Carey Brings Carbon-Offset Program From UK To US
Carey International has expanded its partnership with the CarbonNeutral Company, a carbon-offset and climate consulting business that Carey was already working with in the UK. The partnership will now cover North American operations, starting with Carey San Francisco. Carey says CarbonNeutral has helped Carey San Francisco measure and reduce their CO2 emissions from vehicle operations, electricity use, business travel, employee commuting and landfill waste.
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Champion Air To Shut Down
Charter airline Champion Air will cease flight operations on May 31. The Minnesota-based airline is a partner of Northwest Airlines' Worry Free Vacations. “Unfortunately, our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for our services,” says Champion President and CEO Lee Steele. “Those factors also have impeded our efforts to attract new capital and new investors. Accordingly, the management team and our board of directors have decided that the best course of action is to cease flying and to wind up our operations in a responsible, deliberate manner.” Compounding the challenges facing the airline was a growing trend in the marketplace away from charter carriers for certain types of flying, says Steele.
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Choice Hotels Enables Wireless Booking
Choice Hotels has launched a booking site that can be accessed via web-enabled devices such as cell phones and PDAs. The mobile version of Choicehotels.com enables users to search for hotels, make reservations, change reservations, access online profiles, access their Choice Privileges account and contact customer support. When users type Choicehotels.com into the web browser of any mobile device, they automatically gain access to streamlined, mobile content.
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Choice Opens 30 Properties In March
Choice Hotels International opened 30 franchised properties during March. The openings include hotels in 16 states and five countries, adding more than 2,400 rooms to the company’s portfolio. Among the new hotels are the Quality Hotel Conference Center outside Atlanta in College Park, Ga., and the Clarion Hotel Euroopa in Tallinn, Estonia.
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Continental Also Will Charge For Second Bag
Continental Airlines on May 5 will begin charging coach passengers $25 for a second checked bag, matching United, Delta, US Airways and Northwest. Customers who are elite members of Continental’s frequent-flyer program, Presidential Plus credit card holders and customers who pay for full-fare coach or premium-class tickets are exempt from the $25 charge. The policy will apply to destinations within the US, Puerto Rico, the US Virgin Islands and Canada.
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Continental Expands Cleveland Service
Continental Airlines has launched daily, nonstop service from its Cleveland hub at Hopkins International Airport to four new cities: Birmingham, AL; Charleston, SC; Green Bay, WI; and Tulsa, OK. The new cities are part of Continental’s expansion program underway at Cleveland, which is adding new domestic nonstop destinations in addition to previously-announced launch of service to Paris on May 22. New service from Cleveland to Greensboro, NC; Omaha, NE; and Savannah, GA, began in March.
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Continental Will Lower Domestic Capacity, Balanced By Int'l Growth
As a result of record high fuel prices, a weakening economy and a weak dollar, Continental Airlines says it will reduce domestic mainline capacity by 5 percent beginning this fall. Continental expects that its 2008 mainline capacity, including international growth, will increase about 2 percent, and that its 2009 mainline capacity, including international growth, will be approximately flat compared to 2008.
Continental Airlines plans to remove 14 older, less fuel efficient 737-300 aircraft as leases expire on those aircraft between September 2008 to April 2009. The 14 are in addition to 34 737-300s and 500s that were already planned to be removed from service in 2008 and 2009. Continental also expects to reduce regional jet capacity beginning in this fall. However, these plans are not yet firm as it is attempts to negotiate better economics with ExpressJet, and as the CRJs flown for Continental by Chautauqua come off lease.
The airline outlined its plans this morning in press releases and SEC filings.
The transition has already begun: Continental began twice-daily nonstop wide-body service to London/Heathrow from both its New York and Houston hubs, on March 29. The airline continues to offer nonstop flights to London/Gatwick from New York (twice daily) and Houston (daily), as well as Cleveland (daily, seasonal). The company also took delivery of seven new Boeing 737-900ER aircraft during the quarter just finished. The new aircraft have one of the lowest operating costs in the fleet and allow Continental to serve high demand markets more efficiently. The company also took delivery of three Boeing 737-800 aircraft in the quarter, and an additional 737-900ER aircraft in April. Through 2008, Continental will take delivery of 32 new, fuel efficient 737-800s and 900ERs, and an additional 18 737s in 2009. In addition, Continental is taking delivery of two 777-200ERs in 2009. Continental also introduced a new type of regional aircraft at Newark Liberty International Airport, the 74-seat Bombardier Q400, an "ideal aircraft" to operate at Liberty, it says, as it will allow more extensive use of alternate approach and departure routes and will enable flight operations at lower altitudes. It is also more fuel efficient per seat mile than the company's regional jets.
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Continental’s Expansion Of Hub In Cleveland Begins To Take Off
Continental Airlines’ expansion of its hub operation at Cleveland’s Hopkins International Airport has gotten underway with the launch of new daily nonstop service to Greensboro, NC; Omaha, NE; and Savannah, GA. Ultimately the carrier says it will add a dozen new destinations from Cleveland this year, in addition to new international service from Cleveland to Paris. It will be the second European city with nonstop service from Cleveland.
The other new cities that Continental plans to add from Cleveland are Birmingham, AL; Charleston, SC; Green Bay, WI; Tulsa, OK; Little Rock, AR; Memphis, TN; Lansing, MI; Des Moines, IA and Kalamazoo, MI. Flights will be operated by 50-seat Continental Express regional jets, equipped with leather seating, individual reading lamps and air conditioning outlets, a full-size lavatory, storage for carry-on luggage and a wardrobe closet. Advance seating is provided.
The airline is moving forward with its decade-old fleet modernization program, expanding the size of the fleet at the same time it reduces the different types of aircraft used form nine to three. In late February, 27 more aircraft (eight new 777s for use on long-haul international routes and 19 new Next Generation 737s) were added to its Boeing order sheet, bringing the total to 111 new planes to be delivered over the next six years.
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Courtyard By Marriott Unveils Redesigned Lobby
Courtyard by Marriott has completed its first redesigned lobby at the Courtyard Fair Oaks Fairfax in Fairfax, VA. The traditional front desk has been replaced with separate “welcome podiums” to create more personal and private interactions when guests check in, says Courtyard. Seating options include a communal table in the middle of the lobby, more private media booths with a high-definition TVs and semi-enclosed lounge areas. A signature element of the new lobby is the Courtyard GoBoard, a 52-inch LCD touch screen with local information, maps, weather and news. Guests can use the touch screen to find restaurants, local attractions and directions. A new patio and fire pit are outdoor elements integrated into the lobby design.
Courtyard and its hotel owners and franchisees in the US and Canada expect to introduce the new lobby to at least eight more hotels this year and as many as 100 in 2009.
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Crowne Plaza To Open Belgrade Hotel
InterContinental Hotels Group has signed an agreement with Serbia-based Delta Real Estate to open the first Crowne Plaza in the Serbian capital of Belgrade. The 415-room hotel, located in the commercial center of New Belgrade, will undergo a major refurbishment before opening under the Crowne Plaza brand in 2010. The hotel was previously the state-owned Hotel Continental. Last year, IHG and Delta Real Estate agreed to develop and manage a new-build, 325-room InterContinental hotel in Belgrade, due to open in the first half of 2011. That hotel will be less than a half-mile from the Crowne Plaza.
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Cvent Partners With Newmarket
Newmarket International, a provider of sales and catering software for the hospitality industry, and Cvent, a provider of communications software for event management, have formed a partnership. MeetingBroker, Newmarket’s web-based lead-management solution, is now integrated with the Cvent Supplier Network, a site selection and RFP tool designed for meeting and event planners. RFPs sent through the Cvent Supplier Network are immediately distributed to MeetingBroker-enabled venues electronically.
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CWT Unveils Compliance-Focused Reporting Tool
Carlson Wagonlit Travel has launched CWT Agency+Card Reporting, a data reporting tool that compares data from CWT bookings with actual credit card expenditures for air, rail, hotel and rental car. Drill-through functionality provides trend charts and graphs as well as reports identifying the top 10 non-compliant travelers for the current month, previous quarter and year-to-date. A hotel summary shows all compliant and non-compliant spending for key properties and chains. CWT says it can process data feeds from all major credit card providers.
Interactive dashboards and reports are available in multiple languages and currencies.
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Delta And Northwest Agree To Merge
Delta and Northwest have agreed to merge in an all-stock transaction with a combined enterprise value of $17.7 billion. The combination of the two carriers would create the world’s largest airline. The combined airline, which will be branded Delta, will be led by current Delta CEO Richard Anderson. Delta chairman Daniel Carp will become chairman of the new board of directors, and Northwest chairman Roy Bostock will become vice chairman. Current Delta president and chief financial officer Ed Bastian will be president and CFO of the combined carrier. The board of directors will be made up of 13 members. Seven of them, including Anderson, will come from Delta’s board; five, from Northwest’s board, including Bostock and Doug Steenland, the current Northwest CEO. One director will come from the Air Line Pilots Association.
The new Delta would have executive offices in Atlanta, Minneapolis/St. Paul and New York, and international executive offices in Amsterdam, Paris and Tokyo. The company’s world headquarters will be in Atlanta. Delta says it is committed to retaining jobs, operations and facilities in Minnesota (Northwest is based in Minneapolis).
Combined, the merged airline will have more than $35 billion in aggregate annual revenue, operate a mainline fleet of nearly 800 aircraft and employ approximately 75,000 people worldwide. The merger is subject to the approval of Delta and Northwest shareholders and regulatory approvals. The airlines say they expect that the regulatory review period will be completed later this year.
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Delta Expands Food-For-Sale Program
Delta is now selling meals on all flights within the US of 750 miles or more and select flights between the US and beach destinations in the Caribbean and Latin America of 1,550 miles or more. Delta launched its food-for-purchase menu in September 2007 on coast-to-coast, mainline flights between New York and Los Angeles, San Diego, San Francisco and Seattle.
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Delta Launches Online Check-in For Selected International Flights
Delta customers departing the US on international flights can now print boarding passes at Delta.com and proceed directly to security when they arrive at the airport. Those traveling with luggage can check in bags simultaneously at Delta.com, and make a quick stop at a Delta baggage drop location before heading to security.
Delta.com check-in is available for travel to any destination served by Delta that does not require the customer to hold a visa.
Customers can check in online up to 24 hours prior to departure using their SkyMiles number and PIN, a confirmation code, credit card or electronic ticket number.
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Delta, American Express Co-brand 'Reserve' Card
American Express and Delta have introduced the Delta Reserve Credit Card and the Delta Reserve for Business Credit Card, which the companies say offer new benefits for frequent Delta customers. The cards enables flyers to earn Medallion Qualification Miles (MQMs) faster, share MQMs with others, access Delta Crown Room clubs and access priority boarding and expedited security screening. The annual membership fee is $450.
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Denver Hotel Reopens As Doubletree
After a $15 million renovation, the Doubletree Denver Tech Center has opened. The hotel, formerly known as the Hotel Denver Tech Center, has 305 rooms and 20,000 square feet of space available in various configurations.
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DHS Postpones Launch Of Passport Law For Land, Sea Travel
Land and sea travelers traveling to the US won't have to present a passport until June 1, 2009, according to a ruling issued by the US Department of Homeland Security (DHS) and the State Department. The ruling follows Congress' passing of a December bill ordering a delay until at least June 2009 the passport requirement for land and sea travelers.
Homeland Security Secretary Michael Chertoff says the government is “on course to implement and enforce” the passport rule for land and sea travelers. A law requiring all commercial air passengers to present a passport when flying to the US is already in effect.
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DHS To Require Fingerprinting Of Departing Foreign Travelers
The US Department of Homeland Security (DHS) says that by January it will require airlines and cruise lines to collect international passengers’ digital fingerprints when they exit US air and sea ports. The DHS noted that a majority of non-US citizens are already required to submit digital fingerprints and a digital photograph for admission into the US.
The proposed rule would require commercial air carriers and cruise line operators to collect and transmit international visitors’ biometric information to the DHS within 24 hours of leaving the US. The proposed rule does not designate a specific location within the port of departure for biometric collection and does not apply to small airlines, operators of small vessels or general aviation.
Based on the results of a test of biometric exit procedures at several US airports and seaports last year, the DHS says it “determined that biometric exit procedures must be integrated into the existing traveler process to ensure compliance and provide visitors with a consistent experience from port to port.
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DOT Doubles Denied-Boarding Compensation
The US Department of Transportation has finalized changes to its bumping rule, which doubles the limit on compensation airlines must pay passengers who are involuntarily bumped from their flight. Under the new rule, which goes into effect next month, passengers who are involuntarily bumped will receive up to $400 if they are rescheduled to reach their destination within two hours of their original arrival time or four hours for international flights, and up to $800 if they are not rerouted within that timeframe. The new rule also covers more flights, including those operated with aircraft seating 30 people or more; the current rule covers flights with 60 seats or more.
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DOT Study: Fares Rose 4 Percent In Fourth Quarter
Average domestic air fares in the fourth quarter of 2007 were up 4 percent from the prior year‘s fourth quarter, according to the US Department of Transportation’s Bureau of Transportation Statistics (BTS). BTS reported that the average domestic fare was $331, the highest fourth-quarter average since 2001 but 2.7 percent below the high mark set in 2000.
The 10 airports with the highest average domestic fare were Anchorage ($539.21); Cincinnati ($531.73); San Francisco ($427.58); Madison, WI ($426.02); Knoxville, TN ($425.10); Grand Rapids, MI ($419.45); Washington Dulles ($404.18); Houston Bush ($397.45); Des Moines, IA ($389.49); and Newark, NJ ($389.30).
The 10 airports with the highest rate increases were Houston Bush (16.2 percent), Washington Reagan (13.3), Boston Logan (13.2), Washington Dulles (11.9), Honolulu (11.6), Charlotte, N.C. (10.8), Detroit (9.5), Chicago Midway (8.8), Philadelphia (8.6) and Houston Hobby (8.1).
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Dubai Acquires Stake In Landmark Miami Hotel
Nakheel Hotels, a property developer owned by the Dubai government, has purchased a 50 percent stake in the Fontainebleau Miami Beach for $375 million. Fontainebleau and Nakheel are partners in renovating the hotel, which will cost $500 million and is expected to be completed in the second half of 2008.
Jeffrey Soffer, Fontainebleau Resorts’ executive chairman and majority equity holder, says the alliance “is the beginning of a larger relationship that will lead to other major growth opportunities around the world.” Fontainebleau Resorts is also building the Fontainebleau Las Vegas, a $2.9 billion, 63-story resort and entertainment complex on the Las Vegas Strip. That resort is expected to open in fall 2009.
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Element Brand Adds LEED Certification To Profile
Starwood Hotels & Resorts said Element hotel owners must pursue the US Green Building Council’s LEED (Leadership in Energy and Environmental Design) certification. A LEED-certified building is one that has demonstrated a whole-building approach to sustainability in five key areas of human health and environmental impact: sustainable site development; water efficiency; energy performance and climate protection; materials selection; and indoor environmental quality.
Element’s key green features include energy-efficient appliances and lighting; water-efficient faucets and fixtures; recycling bins for paper, plastic and glass; soap dispensers in the showers; low VOC (volatile organic compound) paints and carpets with up to 100 percent recycled content; and anti-microbial carpet pads. Guests driving hybrid cars will be rewarded with priority parking. Element, Starwood’s new extended-stay brand, will open its first hotel in Lexington, Mass., in July.
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Emirates To Launch Second West Coast Gateway
Following an announcement four weeks ago that it would start Dubai-Los Angeles service, Emirates says it plans to launch a San Francisco-Dubai route on October 26. Emirates will be the first airline to connect the two cities, operating daily service with long-range Boeing 777 aircraft.
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Emirates To Open Corporate Apartments In Dubai
Emirates Hotels & Resorts, the hospitality management division of Dubai-based Emirates Airline, will make its debut in the corporate housing sector with the opening of the Green Lakes Serviced Apartments on May 1 in Dubai. Green Lakes will be Emirates’ second Dubai property, following the opening of the Harbour Hotel & Residence in November last year. Located in the Jumeirah Lake Towers precinct, Green Lakes will have 283 apartments with one, two or three rooms.
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Enterprise Continues Buyouts Of National-Alamo Licensees
The Taylor family of St. Louis, which owns the Enterprise, National and Alamo car rental businesses, has purchased Steward Ventures, the largest single US licensee of the National and Alamo brands in terms of revenue and fleet size.
Steward is the 12th licensee to be purchased since the Taylors acquired the National and Alamo businesses last August.
The most recent previous acquisition occurred on February 8, when the Taylor family acquired Eastman Leasing, a licensee which operated in Wilmington, Jacksonville, New Bern and Rocky Mount, NC.
Steward Ventures operated four Arizona airport rental locations: Phoenix Sky Harbor Airport, Scottsdale Municipal Airport, Phoenix-Mesa-Gateway Airport and Mesa Falcon Field. In addition, it operated four other locations throughout the Phoenix metropolitan area.
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Enterprise Installing Energy-efficient Transaction System
Enterprise Rent-A-Car this summer will complete the rollout of a transaction system that the company says will increase its energy efficiency and benefit the environment. The new system, ECARS 2.0, connects the reservations, billing and reporting operations of more than 7,000 Enterprise rental offices worldwide. Instead of using personal computers for ECARS 2.0, Enterprise is deploying a network of 45,000 energy-saving thin terminals. Enterprise says use of the technology will enable Enterprise to cut its annual carbon dioxide emissions by 6.5 million pounds, a reduction of nearly 1,000 pounds of carbon dioxide per branch office per year. Thin terminals use 13.6 watt-hours and 2.4 watt-hours of electricity in active and passive states, respectively, compared with the 77.1 watt-hours and 1.8 watt-hours consumed by PCs, said Enterprise.
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Enterprise Offers Ethanol-Fueled Cars At Texas Location
Enterprise Rent-A-Car designated one of its Dallas-area rental locations as its first E85/FlexFuel branch in Texas. Approximately 25 percent of vehicles at the Enterprise branch at the Classic Chevrolet dealership in Grapevine will have the ability to run on E85 fuel, a blend of 85 percent ethanol and 15 percent gasoline.
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Enterprise Opens “Green Branches” In Atlanta
Enterprise Rent-A-Car has designated its first “green branches” in the US at four locations in the Atlanta area, in response to demand for hybrid and fuel-efficient vehicles in and around the city. Hybrids and fuel-efficient vehicles will comprise approximately 60 percent of the fleet at each of the four locations. Fleets will be composed of approximately 30 percent hybrid gas/electric vehicles and 30 percent fuel-efficient vehicles that average a highway fuel efficiency rating of at least 28 miles per gallon.
The green branches are in Buckhead, Emory, Dunwoody and downtown Atlanta.
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Eos Anticipates $50 Million In New Funding Next Week
Eos, which operates premium-class-only service from New York to London Stansted, says a current shareholder will invest an additional $50 million into the airline on May 1. “When we closed on our last round of financing, we were clear that we would need to raise additional capital,” says Jack Williams, Eos president and CEO. “Our success, in the face of this extremely challenging economic and credit environment, shows that investors continue to be enthusiastic about our business model.”
Williams says the airline now has the financing required to make the company profitable in 2009.
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Expedia Adds Air Berlin Inventory
Expedia has signed a multiyear agreement with Air Berlin, Germany’s second largest airline. Under the agreement, all of Air Berlin’s fares, schedules and inventory will be available worldwide on Expedia and Expedia Corporate Travel.
Air Berlin flies to New York, Los Angeles, Miami and Fort Myers, FL.
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FAA Encourages Inspectors To Report Safety Concerns
The Federal Aviation Administration and the National Air Traffic Controllers Association have jointly created the Air Traffic Safety Action Program (ATSAP), designed to foster a voluntary, non-punitive environment for the reporting of flight safety concerns by employees of the FAA. The agreement is for 18 months and will begin at several targeted facilities.
If the program is determined to be successful after a comprehensive review and evaluation, both sides intend for it to be a continuing program. At a March 7 news conference called to address Southwest's flying of planes after missed safety checks, Rep. James Oberstar (D-Minn.), chairman of the House Transportation and Infrastructure Committee, said FAA inspectors found it difficult to take enforcement action against Southwest because FAA management was “too close to airline management.” Oberstar added that inspectors feared they would be fired if they took enforcement action.
Oberstar has scheduled a hearing for today (April 3) on the FAA's alleged lapses in the enforcement of aircraft inspections.
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FAA Institutes New Aircraft Inspection Procedures
US Secretary of Transportation Mary Peters says the Federal Aviation Administration (FAA) will launch a program that tracks aircraft inspections conducted by the FAA’s field offices. Under the new program, she says, “key personnel” would be alerted whenever a safety inspection is overdue. Peters adds that the FAA will begin requiring senior-level officials at FAA field offices “to be accountable for accepting voluntary safety disclosures from airlines.” FAA inspectors also will be required to go through a “cooling-off period” before they can work for an airline they used to oversee.
In addition, Peters says, the FAA is establishing a National Safety Inspection Review team that will conduct airline safety reviews. The team’s deployments “would be based on where the safety data indicates problems are most likely to occur.
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Fairmont Plans Vail Resort
Fairmont Hotels & Resorts will open the Fairmont Vail resort in Vail, CO, in 2011. The 128-room resort will also feature 73 Fairmont Residences as well as Fairmont Heritage Place, the company's private residence club homes. Amenities will include a selection of dining outlets, a Willow Stream spa and 9,500 square feet of function space.
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Fairmont-Branded Hotel To Be Part Of Dominican Republic Resort
A Fairmont hotel and residence complex will be a part of Roco Ki, a luxury resort project under development in Punta Cana, Dominican Republic. The Fairmont properties are scheduled to open in 2010, and will include the 255-room Fairmont Roco Ki;, the Fairmont Residences, a collection of condominiums, villas and estate homes; and Fairmont Heritage Place, a private residence club. The hotel will offer several restaurants and bars and 17,500 square feet of meeting space.
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Farelogix Adds Merchandising Capabilities For Airlines
Farelogix is now offering a customizable flight and fare merchandizing capability for airlines that distribute via Farelogix's selling platform. The offering, an extension of the Fare Management System being used today by Farelogix customers, incorporates pricing capabilities to address optional services and the up-selling and discounting of fares. An additional component allows airlines to present special offers to travelers, corporations and/or travel management companies.
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FCm Adds Partner In Brazil
FCm Travel Solutions, an Australia-based travel management company, has inked a partnership agreement with Kontik Franstur, a 300-employee company that operates business travel centers in Sao Paulo, Rio de Janeiro and Salvador. Kontik clients include Petrobras (Brazil's largest corporation) and Bradesco Bank (Brazil's largest private bank).
“Given Brazil is the largest and fastest growing economy in Latin America, we are very pleased to have secured a strong partner who will also be a shareholder in our regional operating company,” says Anthony Grigson, FCm Travel Solutions’ global executive general manager.
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FLO Adds Membership Packages
FLO Corp., a provider of a registered traveler program, has unveiled new membership packages. Besides offering expedited security screening at U.S. airports, the Gold Ambassador membership, priced at $100, includes travel-related discounts, identity-theft protection, worldwide travel assistance, travel medical services and GPS tracking and navigation services. Platinum Ambassador is priced at $200 and offers additional benefits such as worldwide airline lounge access, global concierge services, mortgage benefits and travel insurance.
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Four Points Opens In Houston, Eyes Asia Expansion
The Four Points by Sheraton Houston, Memorial City has opened. The 171-room hotel is the first of three Starwood hotels to open in the Memorial City project, a mixed-use community in West Houston that includes medical buildings, retail outlets and a mall. Starwood plans to open the Sheraton Houston, Memorial City in the fall of 2008 and the Westin Houston, Memorial City during the spring of 2009.
Also, Four Points by Sheraton is accelerating its expansion in the Asia Pacific region. Four Points expects to open six new hotels in the region this year, including four in China, its first hotel in Malaysia and its first in Vietnam.
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Frontier Files Chapter 11
Frontier Airlines has filed Chapter 11 bankruptcy, which frees it from the threat of creditors' lawsuits while it reorganizes its finances and continues normal business operations. The Denver-based airline says the filing followed “an unexpected attempt by its principal credit card processor to substantially increase a holdback of customer receipts, which threatened to severely impact Frontier's liquidity.”
Frontier CEO Sean Menke says the bankruptcy filing will give the airline “the time and legal protection necessary to obtain additional financing and enhance our liquidity.” Frontier will operate its full schedule of flights; honor tickets and reservations; provide refunds and exchanges; maintain its EarlyReturns frequent-flyer program; provide employee wages, healthcare coverage, vacation and sick leave without interruption; and pay suppliers for goods and services received during the reorganization process.
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Frontier Parts Ways With Republic Airways
Frontier Airlines and Republic Airways have mutually decided to terminate their codeshare deal. As a result, Frontier, which is reorganizing its business under Chapter 11 bankruptcy protection, will discontinue some routes from its Denver base. Service to Missoula, MT, which was scheduled to start May 16, will not begin. Service to Sioux City, IA, will end May 12, and service to Jacksonville, FL, will cease on May 31. On June 1, Frontier will no longer fly to Little Rock, AR; Memphis, TN; and Tulsa, OK.
Frontier’s securities were delisted from the Nasdaq Stock Market on April 22.
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Garber Picks FLO As Preferred Registered Traveler Vendor
Garber FCm Travel Solutions, a Boston-based travel management company, Garber, has selected FLO (Fast Lane Option) as the preferred provider of registered traveler services to its clients. Membership in FLO grants frequent business travelers access to faster processing at airport security checkpoints.
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Harrah’s Will Change Corporate Name To Caesars
Harrah's Entertainment plans to change its name to Caesars Entertainment Corporation in a move “designed to capitalize on the high international name recognition enjoyed by the Caesars brand and to appeal to customers attracted by its connotation of luxury, opulence and world-renowned entertainment, dining and shopping options.” The Harrah’s name will continue to be one of the company's three primary casino brands, along with Caesars and Horseshoe.
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Hilton Brings Homewood Suites Brand To India
Homewood Suites by Hilton and development partner DLF are constructing two extended-stay hotels in India. The 100-room Homewood Suites by Hilton New Delhi/Dwarka will be located at the International Convention Centre complex in Dwarka, a suburb of New Delhi. The complex comprises nearly 2 million square feet of development, including convention/exhibition facilities and commercial facilities. The 100-room Homewood Suites by Hilton Chennai/OMR will be located along Old Mahabalipuram Road, which is often referred to as India's IT Highway because of the abundance of IT companies based there.
Both Homewood Suites properties in India will be side-by-side builds with Hilton Garden Inn hotels. DLF and Hilton Hotels Corp. plan to build 75 hotels in India in the next seven years.
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Hilton Signs Development Deal For Doubletree Hotels In Russia
Hilton Hotels has entered into a franchise agreement with London & Regional Properties to introduce the Doubletree brand to Russia. Doubletree will make its debut in Novosibirsk, Russia’s third-largest city. A hotel there is scheduled to open toward the end of 2008. The Doubletree deal is an outgrowth of a Hilton alliance with London & Regional Properties, which calls for the opening of approximately 25 new hotels across Russia, encompassing selected brands owned by Hilton.
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Hilton To Manage Thailand Hotel
Hilton Hotels will manage the Hilton Pattaya, a 300-room hotel in Pattaya, Thailand, when it opens in 2010. The Hilton Pattaya will be part of the new Central Festival Pattaya Beach complex, one of the largest beachfront-shopping complexes in Asia, Hilton said.
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Holiday Inn Goes Global With Rebranding
The Holiday Inn London Heathrow and the Holiday Inn Farnborough, both in the UK, are the first two hotels in Europe to reopen with features of Holiday Inn’s $1 billion brand relaunch. Eleven Holiday Inn and Holiday Inn Express hotels across Europe, the Middle East and Africa — plus 19 in the US and six in Asia Pacific -– were chosen to test new bedding, new showers and signature scent and sound packages. Of the 19 hotels testing the changes in the US, 16 are open, including properties in New York, Washington and Los Angeles. Hotels in Germany, Italy, France, the United Arab Emirates, China, Thailand and Australia will soon have elements of the new brand.
Following customer feedback and staff training over the next few months, these hotels will be fully relaunched by July, says Holiday Inn. The full global rollout (affecting about 4,000 hotels) is scheduled for completion by the end of 2010. All Holiday Inn hotels will incorporate new service standards, redesigned entrance and reception areas, refurbished guest rooms and new signage.
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Homewood Suites To Make New York Debut
Homewood Suites by Hilton plans to build its first property in New York, a 100-suite hotel in Brooklyn, near the Manhattan Bridge. The extended-stay hotel, expected to open in September 2009, will be a joint new-build with Hilton Garden Inn. There will be separate Homewood Suites and Hilton Garden Inn lobbies on different floors as well as separate elevators leading to each hotel’s guest rooms.
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HRG Launches Affiliate Program In North America
Four travel management companies have become founding members of the new North America affiliate program started by Hogg Robinson Group (HRG). The founding HRG affiliates are Austin Travel of Melville, NY; Avia International Travel of Houston; Casto Travel of Santa Clara, CA; and Short’s Travel Management of Overland Park, KS.
The affiliate program is designed to enable regional travel management companies to secure the resources they need to be competitive with TMCs that have a global presence. HRG says its worldwide network will “provide the affiliates with access to a range of products and proven international expertise as well as the opportunity to bid on large national, regional and international accounts not previously accessible to them.
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Hyatt Renews Partnership With Clear
Clear, a registered traveler program that offers a fast pass through airport security, has renewed its partnership with Hyatt Hotels & Resorts. Clear and Hyatt will continue national co-marketing campaigns, and Hyatt will continue to offer Diamond and Platinum members of its Hyatt Gold Passport program complimentary one-year memberships in Clear. Hyatt, the first hotel company to align with Clear, struck a partnership with Clear two years ago.
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IATA Again Lowers '08 Profit Forecast For Airlines
The International Air Transport Association (IATA) has again lowered its industry profit expectation for 2008 to $4.5 billion based on global economic growth slowing to 2.6 percent and an average annualized oil price of $86 per barrel. In September 2007, IATA predicted a $7.8 billion profit for this year; the initial impact of the credit crunch prompted IATA to lower the prediction to $5 billion in December.
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IATA Sets 25% Fuel Efficiency Target By 2020 To Cut CO2
The International Air Transport Association (IATA) has signed a commitment to tackle climate change, setting targets of a 25 percent improvement in fuel efficiency by 2020, using 2005 as a base, and 10 percent use of alternative fuels by 2017. Announcing the plan at last week's Summit on Aviation and the Environment in Geneva, IATA's Giovanni Bisignani said the goals would be pursued with a four-pillar strategy: investment in new technology, flying aircraft "more effectively"; building and operating an efficient infrastructure; and using "positive economic measures."
Bisignani also insisted that "governments should play their part," stressing the need for more effective investment in environmental technologies and development of a Single European Sky by 2012, which he said could lead to a savings of 12 million tons of CO2 "at a stroke."
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Interstate To Manage Cambria Suites In Atlanta
Interstate Hotels & Resorts has signed an agreement to manage the 143-room Cambria Suites near Atlanta’s Hartsfield Jackson International Airport. Cambria is Choice Hotels’ upscale brand. Construction of the property is expected to begin next month, with a scheduled opening in the first quarter of 2009.
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JAL Fined For Price-Fixing Cargo Rates
Japan Airlines (JAL) has pleaded guilty to a conspiracy to fix international cargo rates, agreeing to pay a $110 million fine. According to the charges filed on April 16 in the US District Court for the District of Columbia, JAL engaged in a conspiracy in the US and elsewhere to eliminate competition by fixing the rates for international shipments from April 2000 to February 2006. During that time, JAL was the largest carrier of cargo between the US and Japan; it earned almost $2 billion from its cargo flights to and from the US, according to the Department of Justice.
In August, British Airways and Korean Air Lines separately pleaded guilt to fixing cargo rates and passenger fares or fuel surcharges. In January, Qantas also pleaded guilty to fixing international cargo prices. An ongoing investigation into airline price-fixing is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the FBI.
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Jet Airways To Start San Francisco Service
Jet Airways will commence daily service from San Francisco to Shanghai and Mumbai on May 5. With the launch, Jet Airways will become the first Indian airline to fly from San Francisco to Mumbai and the second to fly nonstop from San Francisco to Shanghai (United is the other). The San Francisco-Mumbai flight will be the airline's fourth daily North American departure to India, following launches of service from New York JFK, Newark and Toronto within the past year.
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Jet Aviation Partners With Dubai Company
Jet Aviation and Dubai-based Elite Jets, a private jet operator established in 2004, have signed a partnership agreement under which the two companies will work together to provide aircraft management and charter services in the Middle East. Elite Jets will provide regional charter services to Jet Aviation customers in the Middle East, while Jet Aviation provides line and unscheduled maintenance services to their fleet of business aircraft. In addition, Jet Aviation will provide operational assistance to Elite Jets in compliance with the company’s safety and service standards and conduct recurrent training of all staff and crew members.
Switzerland-based Jet Aviation will designate a member to the board of directors of Elite Jets and will appoint a new director of ground operations to be based in Dubai.
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JetBlue Accepts PayPal As Form Of Payment
JetBlue customers booking at the airline’s web site now have the option to make purchases using PayPal, the online payment business owned by eBay. Northwest and US Airways are among the US carriers that already accept PayPal.
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JetBlue Founder Launching Fourth Carrier
David Neeleman, the chairman and founder of JetBlue, plans to start up his fourth airline, a domestic carrier in Brazil. Neeleman, who was born in Brazil, has raised $150 million to finance the carrier. The airline, yet to be named, will be based in Sao Paulo and plans to commence operations in early 2009 and ultimately serve most major markets in Brazil by 2013 with as many as 76 new Embraer aircraft. The jets will seat 118 passengers in a two-by-two configuration. As on JetBlue, every seat will have LiveTV satellite television.
Besides JetBlue, Neeleman has co-founded Morris Air (which was acquired by Southwest) and WestJet.
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JetBlue Offers Discount Codes For Meeting Bookers
JetBlue has simplified the online booking process for CompanyBlue Meetings. By offering a meeting-specific discount code, JetBlue now enables meeting planners to receive a discount off JetBlue's lowest available fares when entering codes. Additionally, for every 40 customers booked to the same event, CompanyBlue Meetings provides planners with one complimentary travel certificate that may be applied to the current group, used for site inspection or for future travel.
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JetBlue To Charge For Second Checked Bag
Like several U.S. hub-and-spoke carriers, JetBlue will commence charging customers to check a second bag. The $20 fee, which is $5 less than what other airlines will charge, goes into effect on June 1.
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JourneyPod, InMotion Partner On Travel Guide
JourneyPod, a guide to trendy hotels and restaurants around the world, and InMotion Entertainment, an airport electronics retailer, have formed a strategic alliance to offer downloadable travel guides. InMotion customers now download JourneyPod's guides onto their MP3 players from in-store airport kiosks, dubbed PlayPoint.
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Kempinski, Anantara Form Partnership Focused On EU, Asia
Anantara Hotels & Resorts, an Asia Pacific brand, has formed a joint venture with Kempinski Hotels & Resorts for strategic development opportunities in Europe and Asia. With knowledge and experience in the Asia market, Anantara said it is well placed to seek out development opportunities on behalf of Kempinski. In turn, key locations being tapped for expansion by Anantara include the Mediterranean basin, where Kempinski has existing properties.
Over the next 10 years, Anantara says, it expects to have at least 40 resorts in Asia, Africa, the Middle East and Europe.
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Kimpton Secures Funds For Expansion
Kimpton Group Holding, the parent company of Kimpton Hotels & Restaurants, has closed its third institutional real estate fund and its follow-up fund to Kimpton Hospitality Partners. With the close of this fund, Kimpton has raised $246 million, with the goal of acquiring more than $800 million worth of hotels over the next three years.
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L'Avion Increases Frequency Between Newark & Paris
L'Avion, an all-business-class airline, will again increase flight frequency on its Newark-Paris Orly route. Already offering flights seven days a week, L'Avion will add flights on Mondays and Thursdays, beginning April 3. Also, it will add another Wednesday flight on May 18. The expansion follows the addition this winter of a second flight on Fridays and Sundays.
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LCC WestJet Heads To NYC As It Debuts On Expedia USA
WestJet, which will add service between Calgary and Newark on June 2, has agreed to make its content available to the US market via Expedia. WestJet had already been available to Canadians on Expedia.ca. Bob Cummings, WestJet’s executive vice president of marketing, says the departure times, 10:15am from Calgary and 6pm from Newark, will be “very convenient for business travel between Calgary and New York,” and that the service will “add to WestJet’s continually improving business schedule.”
WestJet currently provides service to Phoenix; Las Vegas; Los Angeles and Palm Springs, CA; and four Florida cities — Orlando, West Palm Beach, Fort Myers and Fort Lauderdale. Newark will be the Canadian LCC’s first New York-area service.
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LaGuardia Slots May Be Auctioned Under DOT Proposal
Aiming to increase competition and reduce congestion, the Department of Transportation has proposed to institute slot auctions at New York’s LaGuardia Airport. Under one option, all carriers would be given up to 20 slots a day for the 10-year life of the rule. Over the next five years, 8 percent of the additional slots currently used by an airline would be made available to any carrier via an auction. The DOT says an additional 2 percent of the slots would be retired to help cut delays. Proceeds from the auction would be invested in congestion reduction and capacity-improvement initiatives in the New York area, the DOT says.
A second option also would give airlines access to up to 20 slots a day for a 10-year period. Beyond those flights, 20 percent of slots currently used by the airlines would be made available over the next five years to all airlines through an auction. Under this option, the carriers would retain the net proceeds of the auction.
“Our plan strikes a sound balance between protecting investments by incumbent carriers and ensuring that all airlines have the ability to fly to New York’s LaGuardia,” says DOT Secretary Mary Peters. “While the status quo at LaGuardia has led to stagnant service, delays and unnecessarily high fares, open access and competition will help give flyers more choices, fewer delays and lower fares.
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Leading Hotels of the World Announces New Members
The following hotels have recently been accepted as members in the Leading Hotel of the World: Seehotel Ueberfahrt in Rottach-Egern, Germany; New York Palace in Budapest, Hungary; Trump International Beach Resort in Sunny Isles, FL; Trump International Hotel & Tower in Las Vegas; Villa Rothschild Hotel and Restaurant in Koenigstein, Germany; Carcosa Seri Negara in Kuala Lumpur, Malaysia; Chedi Club at Tanah Gajah in Bali; and Chedi Chang Mai in Thailand.
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Lufthansa Aims Capacity Hike At Four North American Cities
Lufthansa is expanding its seating capacity worldwide by 7.4 percent this summer, and that includes new daily service from Frankfurt to Seattle. Also, on May 12 Lufthansa will be flying Lufthansa Business Jet connections to Newark and Chicago from Düsseldorf with wide-body Airbus A340 jets.
New nonstop flights out of Düsseldorf will also be available to Toronto.
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Lufthansa To Offer Business Jet Service To India
Beginning July 1, Lufthansa will launch business jet service from Frankfurt to Pune in western India. The Frankfurt-Pune roundtrip will run six times a week in an Airbus A319 that has been refitted as a 48-seat Lufthansa business jet. Privatair will operate the service.
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Marriott Announces Middle East Development Deals
Marriott International has signed agreements to brand nine properties in the Middle East by 2011. The planned additions include a Marriott resort in Marsa Alam, Egypt; a Marriott hotel and Marriott Executive Apartments in Damman, Saudi Arabia; a Ritz-Carlton with 100 Ritz-Carlton Residences in Riyadh, Saudi Arabia; a Courtyard in Jubail, Saudi Arabia; a Renaissance and Courtyard in Abu Dhabi, United Arab Emirates; and a Marriott Vacation Club resort in Dubai.
Each of the hotels in this Middle East expansion will be managed by Marriott International under long-term agreements. The company expects to expand its current portfolio of properties from 26 to 65 in the Middle East through 2011.
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Marriott Launches Carbon-Offset Program
Marriott International has unveiled a carbon-offset program to help fund rainforest protection. Marriott signed an agreement with the Brazilian state of Amazonas that commits $2 million to fund a rainforest-protection plan administered by the Amazonas Sustainable Foundation. By year’s end, Marriott will have a program in place for guests to offset the greenhouse gas emissions generated from their hotel stays by contributing to the fund. In addition to offering the carbon-offset program, Marriott says it is taking steps to reduce the company’s water use, waste and energy consumption. Marriott also says it will utilize resource-efficient design and construction for new hotels.
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Mexicana & Its LCC Subsidiary To Join Oneworld Alliance
Mexicana has accepted an invitation to become part of the Oneworld airline alliance. Its low-cost subsidiary, Click Mexicana, will join at the same time as an affiliate member. The joining process is expected to take 12 to 18 months to complete, with Iberia sponsoring Mexicana, assisted by American Airlines.
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Microtel And Hawthorn Launch Online Directories
The web sites Microtel Inns & Suites and Hawthorn Suites each now have a downloadable directory that has a listing of every hotel around the world. US Franchise Systems, the franchisor of Microtel and Hawthorn, says periodic updates to the directories will be made to ensure that users have the most up-to-date information.
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Names In The News
American Express Business Travel has realigned its senior leadership team to “provide a continued focus on growth while enhancing existing customer and supplier relationships.” Under the realignment, COO Priyan Fernando is now also the president of the American Express’ customer group, reporting to Charles Petruccelli, president of American Express Global Travel Services. In addition to retaining his current responsibility for leading global operations, Fernando now adds client management and advisory services to his portfolio. Andy McGraw has been appointed to the newly-created position of senior vice president and general manager, worldwide sales. McGraw will lead the American Express Business Travel sales organization across all regions, markets and industry segments worldwide. Lisa Durocher has been promoted to senior vice president, marketing and innovation. She will continue to lead all marketing, innovation, product management and online strategy. Andrew Winterton retains his role as senior vice president and general manager of global supplier relations, partner network and Latin America and the Caribbean.
Carlson Wagonlit Travel has named Douglas Anderson president and CEO. Anderson, who joined the travel management company as executive vice president and chief financial officer a year ago, succeeds Hubert Joly, who became president and CEO of Carlson Cos., the majority shareholder of CWT, on March 1. Anderson will be based in Paris.
Expedia Corporate Travel has named Simon Tam senior vice president of product and technology, as he returns to the company after a two-year absence. Tam was a founding member of the Expedia Corporate Travel team. In his new role, Tam will lead the team responsible for product strategy, marketing, management and development, as well as technology direction worldwide.
The Harmon Hotel, Spa & Residences, scheduled to open in Las Vegas in 2009, has named Scott Blakeslee vice president of sales and marketing. Blakeslee most recently was director of sales and marketing for the St. Regis Resort, Monarch Beach in Southern California.
KSL Resorts has appointed Dale Scharlat director of national sales for the Northeast market and pharmaceutical accounts. For the past 11 years, Scharlat has served as executive director of regional sales for Sonesta Hotels and Resorts.
Marshall Management, a hotel management company, has named Duane Quintana and Josephine Allen regional director of sales and marketing and marketing manager, respectively. Quintana comes to Marshall with an extensive background in the hotel industry, including 15 years with Marriott. He also served as vice president of sales and marketing at Luxe Worldwide Hotels, Grand Tradition Hotels & Resorts and Utell Hotels & Resorts. Allen comes to Marshall from Perdue Farms. She also worked with Salisbury University, where she specialized in new product development, marketing campaigns and advertising.
Millennium & Copthorne Hotels has named Richard Hartman CEO. Hartman was most recently the managing director of InterContinental Hotels Group’s portfolio of hotels in Europe, the Middle East and Africa. Interim CEO Wong Hong Ren has returned to being an executive director at Millennium & Copthorne. Ren temporarily filled in when Peter Papadimitropoulos departed Millennium & Copthorne in August after just five months on the job.
JetBlue has announced that David Neeleman, founder of JetBlue and chairman of the airline’s board of directors, will not be standing for re-election at the airline’s annual shareholders meeting on May 15. Neeleman recently announced plans to start a new airline based in Sao Paulo, Brazil, and says he will be devoting his full attention to the new venture.
Starwood Hotels & Resorts Worldwide has promoted Denise Coll to president of its North America division. In her new role, Coll, who most recently served as senior vice President of operations for the division, will oversee operations, sales and marketing for more than 450 hotels in the US, Canada, US Virgin Islands, Bahamas, French Polynesia and British West Indies.
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Names In The News 4-17-08
Amadeus has appointed Bertrand Kientz vice president of software development strategy. Kientz joined Amadeus after working as information systems director with JC Decaux, a provider of urban outdoor advertising. He had previously worked for 18 years with Air France.
Associated Luxury Hotels International (ALHI) has named Karmen Finney director of marketing. ALHI provides meetings and conventions sales services for its membership of more than 100 hotels. Finney had served as vice president of hospitality services for Chisano Marketing Group, a full-service marketing agency based in Longwood, FL.
British Airways says it plans to appoint a chief operations officer to take over the jobs of Gareth Kirkwood, director of operations, and David Noyes, director of customer service. Both executives have left the company in the wake of the airline’s calamitous debut at London Heathrow’s new Terminal 5. The airline, which opened the $8.6 billion facility on March 27, lost thousands of bags and had to cancel hundreds of flights in the 12 days following the opening of the new terminal because the baggage-routing system failed.
Concord Hospitality Enterprises has named Grant Sabroff senior vice president of business development. In his new position, he will focus on growing Concord’s third-party management portfolio, which currently accounts for approximately 50 percent of the company’s total portfolio of owned and managed properties. Sabroff joins Concord from Boykin Management, where he was senior vice president of business development.
The Heldrich has promoted Bill Spencer to senior sales manager of the hotel and conference center in New Brunswick, NJ. Spencer joined the Heldrich in 2006 as sales manager during the hotel’s pre-opening phase.
Homewood Suites By Hilton has promoted Roy Johnson to senior director of product development and services; and Adrian Sugars to senior director of brand revenue management. Johnson joined Homewood Suites in 2005 as director of product and service development. Sugars is a 10-year veteran of the Homewood Suites team, initially joining the brand as revenue manager supporting 75 hotels. In 2000, she was promoted to director of revenue management.
Medex Global Group, an emergency assistance and insurance company, has appointed Mike Roban vice president of sales. Roban was senior vice president of sales and marketing for the Americas region for International SOS.
On Call International, a medical and travel assistance specialist, has named Gina Gretchko director of marketing. Most recently, she handled media relations for On Call as a senior account executive with Landau Public Relations of Cleveland.
Red Roof Inn has named Robert Wallace senior vice President of franchise and Andrew Alexander senior vice president and general counsel. Wallace joined Red Roof Inn in 1980 and has more than 28 years of operational experience with the economy lodging brand. Prior to joining Red Roof, Alexander held the position of senior vice president and general counsel of Boykin Lodging Co.
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Names In The News 4-24-08
InterContinental Hotels Group has named David Tessier senior vice president and chief financial officer for the Americas region. He will join the company on May 12. Tessier most recently served as CFO for Kerzner International Resorts.
Jets.com, a Boston-based private jet membership company, has appointed Kathryn Shehade director of marketing and business development. For over 10 years prior to her position with Jets.com, Shehade ran her own Boston-based media and entertainment communications group, K4.
Starwood Hotels & Resorts has named Simon Turner president, global development. Prior to joining Starwood, Turner spent more than 10 years as a principal for Hotel Capital Advisers, a hotel investment advisory and asset management firm.
Travel and Transport has appointed Thomas Nicholson as a national sales manager in Seattle. Before joining the travel management company, Nicholson was a senior account representative for Hertz in Seattle.
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Names In The News 4/3/08
nTAG Interactive, a provider of real-time event technology, has appointed Meg Fasy to the role of vice president of venue sales. Fasy has established an office in Las Vegas and will manage the company's partnership with Las Vegas Meetings by Harrah's Entertainment as well as develop alliances nationally to support the company's sales and marketing efforts. Prior to nTAG, Fasy managed business development at Event Strategy Group.
Radius has named Edyta Citron director of multinational corporate sales, North America. Citron will work with Radius member travel agencies in North America to develop service standards for their corporate clients that are consistent globally and tailored to reflect local conditions and capabilities. Previously, she worked for four years for Worldspan\Travelport in the UK and the US as a product strategist.
Starwood Hotels & Resorts has promoted Denise Coll to president of its North America Division. In her new role, Coll, who most recently served as senior vice president of operations for the division, will oversee operations, development, sales and marketing for more than 450 hotels in the US, Canada, US Virgin Islands, Bahamas, French Polynesia and British West Indies.
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NBTA Denounces Congestion Pricing At Airports
The National Business Travel Association (NBTA) has filed comments in response to the Department of Transportation’s proposed amendment to Federal Aviation Administration airport rate policies designed to encourage congestion-based pricing. In its filing, the NBTA says it “strenuously opposes the proposal to allow airports to impose new costs on air carriers which will be passed along to the traveling public and business travelers in particular. The increased costs and likely reduction in flight options for business travelers would be a dual blow to NBTA members who are already suffering under an antiquated aviation system that the proposed rule cannot and will not solve. Moreover, NBTA does not believe that the proposal would actually alleviate congestion in the particular airports and regions that are the most affected by current traffic woes.
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NBTA: One Week Left To File For Allied Position On Board
The filing deadline is a week away (April 30) for suppliers who wish to be candidates for the Allied Director-at-Large position on the Board of Directors of the National Business Travel Association. The two-year term begins at the close of the 2008 Convention. To be eligible, Allied members of the Association must be members in good standing for at least three years; been in the travel industry for at least five years and have at least one year of service to the Association or a local chapter. The position is the second to two created in 2006 to replace two Direct seats. It will bring to four the total number of Allied (supplier) positions on the Board; the president and vice president of the NBTA's Allied Leadership Council are non-elected members.
Registration for the NBTA Convention is up 31 percent over the same time last year, according to LA INC.
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Northwest Matches Competitors, Sets $25 Fee For Second Checked Bag
Northwest Airlines has matched United, Delta and US Airways in charging coach-class passengers traveling within North America $25 for a second checked bag. The Northwest policy goes into effect on May 5. Northwest's elite WorldPerks customers, SkyTeam elite customers and passengers booked in full-fare classes may still check two bags free of charge. Customers booked in first class can continue to check up to three bags for free. Northwest's other baggage-policy changes include an increase from $80 to $100 for three or more checked bags and an increase from $25 to $50 for overweight bags greater than 50 pounds.
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Northwest Raises Fuel Surcharge, Cuts Capacity
Northwest Airlines is increasing fuel surcharges and cutting capacity in response to the high cost of fuel and a wobbly economy. Fuel surcharges on flights from Japan to North America will increase $20, to $160 one way, starting May 1. On March 18, Northwest increased one-way fuel surcharges, ranging from $115 to $155, from North America to Europe, India, Japan and most other destinations in Asia.
In September, after peak summer travel concludes, Northwest will reduce its scheduled domestic capacity by approximately 5 percent versus its 2008 business plan. The airline will remove 15 to 20 aircraft from service. Northwest says it will seek to realize a profit improvement of $100 million on an annual basis through cost reductions, productivity improvements and revenue enhancements. The new baggage policy, in which Northwest will charge $25 for a second checked bag, takes effect on May 5 and is expected to generate approximately $25 million in added revenue for 2008.
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NWA Rescinds Minimum-stay Rule Where It Competes With US Airways
Northwest Airlines’ new minimum-stay requirements announced last week have not stuck in every market because US Airways chose not to match Northwest. Northwest says similar policies had been instituted by United, Delta, American and Continental. However, US Airways did not adopt a similar policy, so Northwest says it is removing the new extended-stay requirements for routes where it competes with US Airways.
On April 4, Northwest extended the minimum-stay requirement for many domestic fares. Fares that previously had no minimum-stay requirement were adjusted to require a two-night stay. One-night stays increased to two nights, and two-night stays were increased to three nights. At the time, Northwest said the policy did not apply to fares where a low-cost competitor served the route.
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Open Skies, Phase 2, Talks Between US and EU Scheduled
The European Union has announced that the second stage of U.S.-E.U. open skies negotiations will begin on May 15. The first phase of the open skies deal, which allows US and EU airlines to fly from any European point to any US point, went into effect on March 30. Second-stage negotiations will address issues such as the ability of European carriers to operate service between points within the US and the loosening of foreign-investment restrictions. Currently, foreign investors are limited to a 25 percent voting equity in US airlines. The EU says if no substantial progress has been made by November 2010, it may suspend certain rights granted to US airlines.
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Palazzo Las Vegas Recognized As World’s Largest Green Building
Leadership in Energy and Environmental Design (LEED) has granted certification to the Palazzo Las Vegas, making the resort casino the biggest green building in the world. The LEED Green Building Rating System is the nationally accepted benchmark for the design, construction and operation of green buildings. The 300-suite Palazzo opened adjacent to the Venetian in December. The Palazzo’s environment-conscious features include solar heating for swimming pools (in the summer, the excess solar energy not needed for the pools is directed to the hotel’s hot water system); an air conditioning system that automatically expends less energy when guests are not in the room; waste recycling; water-efficient showerheads; low-flow lavatory faucets; and drip irrigation and moisture sensors for areas with plants. The Palazzo’s structural steel averaged 95 percent recycled material.
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Porter Airlines Launches US Service
Canadian carrier Porter Airlines has begun daily service between Toronto City Centre Airport and Newark, its first US route. Porter, which flies 70-seat Bombardier Q400 turboprops, has taken delivery of six new aircraft with six additional aircraft expected to be delivered in the next 12 months. they will be used to broaden the route network from Toronto to destinations such as Boston, Chicago, Washington and Philadelphia. In Toronto, complimentary Porter shuttle buses offer passengers a short transfer to the city's financial and entertainment districts.
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PWC Predicts No Slowdown In Hotel Investment
The US lodging industry will invest approximately $5.85 billion in 2008, a 6.4 percent increase over 2007, according to a PricewaterhouseCoopers (PWC) forecast. PWC says the US lodging industry had a record capital investment of $5 billion and $5.5 billion in 2006 and 2007, respectively. The 2008 increase reflects spending on separate spaces in hotel rooms, in-room technology, enhanced bedding, flat-screen TVs, high-speed wireless Internet, self check-in kiosks, computers in business centers, upgrades of traditional desks to ergonomic work stations and upgrades of complimentary meals.
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PrivatAir Sells US Subsidiary To UK’s Gama Holdings Ltd.
PrivatAir Group has sold its US subsidiary, PrivatAir Inc., to Gama Holdings Ltd., an international aviation group headquartered at Farnborough Airport in the UK. The company will be branded as Gama Aviation, Inc. and will remain based in Stratford, CT. Gama already has a presence at the Teterboro, NJ, general avaition airport.
PrivatAir, which says it will be refocusing its efforts on its European business, placed an order for its second Boeing 787-8 Dreamliner in January. That aircraft is scheduled for delivery in 2016. Its first Dreamliner is scheduled for delivery in 2012. “The current buoyancy of the US private aviation market makes it the perfect time to sell our US division,” says Greg Thomas, PrivatAir CEO, adding that the sale leaves his company in an ideal situatin “to aggressively target new growth markets.” The value of the sale is not being disclosed.
Founded in 1983, Gama operates business aviation services around the world. Its business activities comprise aircraft ownership, charter services, business aircraft management, medical transport operations and aircraft maintenance.
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Red Roof Inn Unveils Redesign
Red Roof Inn has introduced a new hotel prototype that upgrades bathrooms and in-room technology. New bathrooms feature granite countertops, vessel sinks and oversized walk-in showers with rain-flow showerheads. Red Roof will also add wireless Internet and flat-screen TVs outfitted with auto-sensing remote jack packs, which will enable guests to interface their electronic devices with a portable video game player on their in-room TV display. In addition, rooms will have spacious workspaces with ergonomic seating and plush bedding, and lobbies will have lots of natural light, a decorative stone wall, a lounge area and an exercise facility, says Red Roof.
The brand's first location with the new prototype will be in Beaumont, TX. The hotel is currently under construction.
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Ritz-Carlton Project In Arizona Receives Approval
The Ritz-Carlton, Paradise Valley received approval to build a resort community in Paradise Valley, AZ, a town in the Scottsdale area. The $1.5 billion development includes a 225-room Ritz-Carlton hotel, which will be surrounded by a residential community of single-family homes including villas, estate homes and one-acre estate home sites, all of which will be branded and serviced by Ritz-Carlton. Construction of The Ritz-Carlton, Paradise Valley is slated to begin this summer with completion for the entire master-planned community and hotel expected by fall 2010.
An adjoining mixed-use component is still to be planned along the Scottsdale portion of the site and is expected to include shops, restaurants, residences and a proposed Edition hotel, the new boutique hotel brand by Ian Schrager and Marriott International.
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Ritz-Carlton Reveals Plans For Mexico Resort
Ritz-Carlton and Mexican resort developer Ernesto Coppel plan to break ground on a hotel and residence development in Los Cabos this summer. The 200-room hotel, the Ritz-Carlton Los Cabos Quivira, and 200 luxury residences will be built along a three-mile beach within the 1,850-acre Quivira residential resort community in Los Cabos. The hotel is due to open in early 2011. Ritz-Carlton says every guest room will have a large balcony and a view of the ocean. Two Jack Nicklaus-designed golf courses will be part of the resort.
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Rosewood Hotel In Atlanta Opens Next Month
Rosewood Hotels & Resorts will open the Mansion on Peachtree, a 127-room luxury hotel in the heart of Atlanta, in May. Among a few of the standard amenities will be a personal butler to assist guests during their stay, a chauffer service, a GPS pocket navigator and professional, in-house auto detailing.
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Sheraton Re-flagging Hotels In Ft Lauderdale, Denver, Dallas
Private investment firm Starwood Capital Group plans to reflag the Sheraton Yankee Trader Hotel as the Westin Fort Lauderdale Beach Resort following a multi-million dollar renovation. The property will close on June 1 and reopen in February 2009. The renovation will touch the hotel’s exterior, restaurant and meeting space. When completed, the Westin Fort Lauderdale Beach Resort will have more than 32,000 square feet of flexible meeting and event space.
Former Adam’s Mark hotels in Denver and Dallas have undergone the first stage of rebranding, as the Adam’s Mark sign has been replaced with a Sheraton sign at both properties. The two convention hotels, the largest in their respective cities, are now the Sheraton Denver and the Sheraton Dallas. Chartres Lodging, which reached an agreement last May to acquire five Adam’s Mark hotels, announced in February that the Dallas and Denver hotels would become Sheratons. Chartres plans to spend $238 million renovating and rebranding the hotels.
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Short's Travel Launches Flight And Weather Trackers
Short's Travel Management, based in Overland Park, KS, has introduced flight and weather trackers for clients' wireless devices. When customers enter the airline code and flight number, within approximately 30 seconds they will receive an e-mail regarding the status of their flight. The weather tracker is also an e-mail-based product. Customers enter in the subject line one of the following formats: city and state, city and country or postal code. Within approximately 30 seconds they will receive an e-mail with a seven-day forecast.
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Silverjet Enables Mobile Booking
Silverjet, an all-premium-class carrier that operates flights from Newark to London’s Luton Airport, now allows customers to book flights, find flight statuses and schedules, select seats, and choose meals from their mobile phone. Customers can access Silverjet Mobile by entering the usual Silverjet website address into their mobile browser.
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SITA Beefs Up IT Infrastructure At Beijing Airport
SITA, an aviation IT specialist, has completed the installation of 700 workstations to support check-in, boarding and transfers at Beijing Capital International Airport's new $3 billion Terminal 3, which will boost the airport's capacity by an additional 30 million passengers. Fifty SITA self-service kiosks will also be ready when the Summer Olympics start. Airlines around the world are expected to increase the number of flights arriving in Beijing by more than 70 percent during the Olympic Games this summer, said SITA.
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Singapore Plans All-premium Service For The US Market
Singapore Airlines will convert five long-range aircraft into an all-business-class configuration this fall for daily flights from Newark and Los Angeles to Singapore. The airline cited consistently strong demand from business travelers as reason for launching the service. The current two-class, 181-seat configuration will be replaced with 100 of the airline’s business-class seats in a 1-2-1 configuration, giving every passenger aisle access. Seats will convert to a horizontal flat bed.
The implementation will be phased in gradually from mid-May 2008, on the Newark-Singapore route, with daily services in the new configuration to Newark by the end of June and Los Angeles by late September.
To manage the retrofit program, the current daily Los Angeles-Singapore flight will not operate on Tuesdays between mid-May and late-June. There will be no change to Newark service frequency.
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SkyTeam Carriers Begin Move Into New Digs At Heathrow
As they plan new service and relocation to Terminal 4 at London Heathrow, the members and associates of the SkyTeam alliance serving or planning to serve the airport are jointly determining the design of their co-branded, 325-seat lounge. The first floor of the new multi-level lounge will go into use this fall and is scheduled to be fully completed in Spring 2009. It will be the first such facility fully branded as SkyTeam in the alliance network.
SkyTeam’s move to Terminal 4 has already begun and will continue over the next 12 months. Its US carriers (Continental, Delta and Northwest) were scheduled to join KLM and Kenya Airways (which already operated out of Terminal 4) by the end of March. They will be followed in the Spring 2009 by the remaining SkyTeam carriers operating out of Heathrow: Aeroflot, Air France, Alitalia, CSA and Korean Air. The second floor of the lounge is expected to open at the same time.
Services available in the new lounge will be a common check-in area, common-use self service kiosks, more check-in desks and additional bag drop-off locations.
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Skybus Ceases Operations
Skybus Airlines stopped flying on April 5, struggling to overcome rising jet fuel costs and a slowing economy. Skybus says these two factors “proved to be insurmountable for a new carrier.” The Columbus, OH-based airline, which tried to implement Ryanair’s ultra low-cost business model in the US, launched service last May.
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SkyTeam Airlines Receive Antitrust Immunity
The US Department of Transportation has proposed to allow Delta, Northwest and four of their international partners in the SkyTeam alliance to combine their existing transatlantic alliances. In a show-cause order issued on April 9, the DOT tentatively decided to grant antitrust immunity and allow the two US carriers — along with Air France, Alitalia, Czech Airlines and KLM Royal Dutch Airlines — to coordinate their services and act as a single carrier for US-Europe services.
Northwest has an existing alliance with KLM, while Delta has an existing alliance with Air France, Alitalia and Czech Airlines.
The DOT says it has tentatively concluded that the proposed alliance is in the public interest because it features a “proposed new and highly integrated joint venture that will likely produce efficiencies and provide consumers with additional price and service options, such as lower fares and more nonstop and connecting flights.” As a condition of obtaining antitrust immunity, the DOT has proposed to require that the carriers implement the immunized alliance within 18 months. The DOT stressed that the carriers would remain subject to antitrust laws for domestic service and for international flights that are not covered by the alliance agreement.
Delta and Northwest first petitioned the DOT to allow the alliance in 2004. After an initial denial, the airlines reapplied in June of last year with a revised agreement.
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Smith Travel Research Acquires RRC, Boosting Its Global Clout
Smith Travel Research has acquired RRC Associates. Although each company will continue to operate pretty much as it has, both sides say they will gain added strength from the combination. Terms of the transaction were not disclosed.
RRC will bring “incredible opportunities to assist our existing lodging and ski resort clients who previously were unable to access the breadth of data, information and knowledge from a single source,” says Randy Smith, CEO of Smith Travel, based in Hendersonville, TN. It will also improve STR’s abilities to offer relevant and timely information on a global basis “unmatched by anyone else in the industry,” adds Mark Lomanno, president of the company.
Meanwhile, RRC looks forward to being able to give its clients “added perspective and understanding of the competitive environments within which they operate,” say its founding partners, Nolan Rosall and Chris Cares. It is anticipated that RRC will gradually increase staffing at its Boulder office as a result of the acquisition.
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Sofitel Creates Agent Advisory Board To Aid US Marketing
Sofitel has established a North American Travel Agent Advisory Board, assembled from owners and executives of top-producing travel agencies. The initiative is part of an effort to strengthen its relationship with the travel trade. Sofitel, a luxury hotel brand owned by Accor, aims to increase brand awareness in the US and increase the number of Sofitel hotels participating in consortia programs.
The board includes Priscilla Alexander, ProTravel; Jennifer Wilson, Valerie Wilson Travel; Fabio Castellotto, Casto Travel; Martin Rapp, Altour; Jack Ezon, Ovation Travel; Jim Strong, Strong Travel; Bryan Leibman, Frosch Travel; Monica Varri, Lake Forrest Travel; Joseph Maza, Bannockburn Travel Management.; Daphne Bransten, Cardoza-Bungey Travel; Perla Georgino, Senator Travel; and Nina Myer, TraveLeaders.
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Southwest Adds Denver Flights
Southwest Airlines will launch new service from Denver on June 4, operating twice-daily service to Indianapolis and Portland, OR. Also on June 4, Southwest will add a daily roundtrip between Denver and Las Vegas, for a total of eight per day. On August 23, the airline will add a second daily roundtrip between Denver and San Antonio.
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Spirit Now Flies To San Antonio
Spirit Airlines has begun daily service between San Antonio and its Fort Lauderdale hub. The low-cost airline will add a second daily flight on May 1.
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St. Regis Hotel Opens Doors In Singapore
Starwood Hotels & Resorts says its newly-opened St. Regis Singapore is the first internationally-branded luxury hotel to open in Singapore in more than a decade. The hotel has 299 guest rooms and suites, a private art collection, an outdoor pool, a fitness club, a spa, two restaurants and two bars, plus 16,000 square feet of meeting and event space, including the John Jacob Ballroom.
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StarCite Secures $15M To Fund Global Growth, Tech Enhancements
StarCite Inc. has secured another $15 million in funding and says it plans to use the money to support its continued global growth and ongoing enhancements to its suite of technology offerings. The funding comes from current investors, including Internet Capital Group, TPG Ventures and Norwest Venture Partners (NVP).
“From connecting buyers and suppliers electronically through its online marketplace to streamlining the meeting planning process from start to finish, StarCite has made a dramatic impact on the market for meetings and events,” says Doug Alexander, managing director at Internet Capital Group and a member of StarCite’s board of directors. “Based on the opportunities that lie ahead for StarCite, both in the US and abroad, we are excited to provide capital along with our colleagues at TPG Ventures and Norwest Venture Partners in this round of funding.
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SunTrust Introduces Payment And Expense-Reporting Tool
SunTrust Banks has launched Enterprise Spend Platform, a commercial card management tool that include expense-management capability. The tool allows clients to view and act on detailed statements for SunTrust and compatible purchasing card and corporate card programs; manage outstanding transactions that require attention; view detailed reporting of card and cash transactions against travel and expense policies; automate invoice payments for direct settlement; and create custom requisition forms.
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Swiss Air, US Airways Begin Codeshare
Code-shared routes for US Airways and Swiss International Air Lines have gone on sale for travel on April 28 and beyond. US Airways customers traveling on the airline’s nonstop Philadelphia-Zurich flight will be able to connect to 10 European destinations that Swiss International serves: Geneva, Switzerland; Nice, France; Athens, Greece; Vienna, Austria; Dusseldorf, Germany; Hanover, Germany; Nuremberg, Germany; Stuttgart, Germany; Luxembourg; and Bucharest, Romania.
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Swissotel Opens In Shanghai
The Swissotel Grand in Shanghai has opened in the city’s Jing’An district. The property has 467 rooms and suites, executive floors, a club lounge on the 27th floor, a spa and four restaurants and bars. The Swissotel Grand offers two ballrooms and six meeting rooms.
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The Avenue To Open Next Month In Chicago
The Avenue, an upscale hotel a half-block from Chicago’s Magnificent Mile, is scheduled to open in May. The hotel will offer 150 one-bedroom and junior suites and 200 guest rooms. Tech Rooms will have iMacs, dedicated T-1 Internet connections and printers. The Avenue will have 18,000 square feet of function space and a convention services staff.
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Thrifty Opens Franchise Locations
Thrifty Car Rental has added franchise locations in New Britain, CT; Lafayette, IN; Asheville, NC; and San Antonio, TX. To date, Thrifty has 348 locations in the US, 151 of which are franchise-owned and operated.
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Travelport Acquires G2 Technology For New Travel Agent Desktop
Travelport, owner of the Galileo and Worldspan GDSs, has agreed to acquire certain software assets and intellectual property from G2 SwitchWorks, which will be used in the development of a new desktop tool for travel agents. Travelport plans to launch the desktop for Worldspan and Galileo subscribers in 2009.
The agreement includes G2 SwitchWorks' Kestrel point-of-sale application (which is under development), the G2 web services core and a number of associated software development tools. Travelport says the new solution will “incorporate, build upon and ultimately replace the company’s current agent point-of-sale products — FocalPoint/ViewPoint from Galileo and Go from Worldspan.
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Travelport Unveils Emissions Tracker For Agencies & Corporations
Travelport has unveiled the Travelport Carbon Tracker, a post-booking reporting tool designed for travel agencies and corporations to measure and report carbon emissions as part of a sustainable travel program. The tool combines industry-standard compliance reporting with a calculator that uses operational data and a range of key variables to deliver an emissions analysis. The product was developed in conjunction with Agresso and the Carbon Consultancy and was designed for use with multiple GDSs.
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Turkish Airlines Joins Star Alliance
Turkish Airlines was welcomed as the 20th Star Alliance member, adding 31 destinations - mainly in Turkey, Central Asia and the Middle East - to the Star Alliance network. By the end of the year Turkish Airlines plans to add 11 destinations and 22 aircraft.
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United To Eliminate 1,100 Jobs & Cut Capacity; Hikes Change Fee
In its first-quarter earnings report, United Airlines reveals plans to lay off 1,100 employees, including 500 salaried and management positions, by the end of the year. The airline says high fuel prices and a stagnant economy forced it to eliminate jobs.
The airline also blames high fuel costs are behind an increase in fares that don’t include a Saturday-night stay. The airline has established a Saturday-night-stay rule for about 65% of its routes, mainly in markets where United competes with other hub-and-spoke carriers.
United, which lost $537 million in the first quarter, also will further shrink domestic capacity. By the fourth quarter of 2008, United said mainline domestic capacity will be down approximately 9 percent year-over-year. The reduction follows a 5 percent reduction in the fourth quarter of 2007. In addition, United will permanently remove 30 narrow-body aircraft from its operations, 10 to 15 more aircraft than initially announced last month. United says the aircraft being retired are some of the oldest and least fuel-efficient in its fleet.
In addition, United has implemented an unannounced increase in the ticket change fee, which is now $150, up from $100.
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US Airways Pilots Start Own Union
US Airways pilots have voted to form a new union, the US Airline Pilots Association (USAPA), to replace the Airline Pilots Association (ALPA).
The pilots who fly for US Airways include former America West pilots. Since 2005 when the carriers merged, America West and US Airways pilots had operated under separate councils within the ALPA structure. ALPA says a dispute among a number of US Airways pilots had arisen over an independent arbiter’s decision regarding pilot seniority, leading to a decertification effort and the vote on a new union.
“In addition to providing quality services to the US Airways pilots, USAPA will approach management in a more businesslike fashion to address the deficiencies of the collective US Airways pilots’ contracts, both East and West — contracts which were originally accepted by the pilots during the hardships placed on the airlines during the post 9/11 era,” says Stephen Bradford, USAPA’s interim president.
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US Airways Relaunches Transatlantic Business Class
US Airways says it has “freshened up” Envoy, the airline's transatlantic business-class service. In addition to a focus on “more personalized service,” says the airline, improvements have also been made to Envoy meals. The new menus include a choice of three entrees and one optional express meal, available at the customer's leisure. The dishes feature fresh, higher quality ingredients with an emphasis on healthier choices.
Also, in the past year US Airways has been installing new, near-lie-flat seats on its Boeing 767 fleet. Each seat is located on either a window or aisle and features a drop-down inner armrest and 170-degree recline. Envoy is available on all nonstop flights between US Airways' international gateways - Charlotte, N.C., and Philadelphia - and all 20 European airports served by the carrier, including new service to London's Heathrow Airport.
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US Airways To Link Montreal And Charlotte
US Airways will launch daily service from its hub in Charlotte, NC, to Montreal on July 3. The new service will be operated by US Airways Express operator Republic Airlines using 86-seat Embraer aircraft.
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US Customs To Test International Registered Traveler Program
US Customs and Border Protection (CBP) on June 10 will launch the Global Entry program, which is designed to expedite the screening and processing of low-risk, frequent, international travelers entering the US. Biometric fingerprint technology will be used to verify the passenger’s identity and confirm his or her status as a Global Entry participant. A pilot will be initially conducted at New York JFK, Houston Bush Intercontinental and Washington Dulles airports. The program will begin processing applications from the public starting May 12.
When returning from international travel, Global Entry-enrolled travelers may bypass the regular passport control line and proceed directly to the Global Entry kiosk. At the kiosk, the traveler will activate the system by inserting his or her passport or US permanent-resident card into the document reader. The kiosk will direct the traveler to electronically provide his or her fingerprints and will compare that biometric data with the fingerprint biometrics on file. A digital photograph will also be taken of the traveler as part of the transaction record. Finally, the traveler will be prompted to answer several declaration questions posted on the kiosk’s touch-screen. Once the process is successfully completed, the traveler will be issued a transaction receipt that must be presented to a CBP officer as the traveler leaves the CBP inspection area. Travelers will be able to pay $100 to register for the program online. Applicants will undergo an interview with CBP officers at an enrollment center at JFK, Houston Bush or Dulles.
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US Helicopter, Delta Implement Codeshare
US Helicopter, which already has an exclusive agreement with Delta to transport passengers between New York’s JFK Airport and heliports in Manhattan, have formed a codeshare agreement to expedite the process. Delta has placed its code on US Helicopter’s eight-minute flights that operate between JFK and the Downtown Manhattan or the Atlantic Metroport at East 34th Street heliports.
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V Australia Makes Fares Available In Sabre Res System
V Australia, Richard Branson’s new transpacific carrier, has struck a multiyear distribution agreement with Sabre that makes the airline’s fares and inventory available to all travel agents using Sabre’s reservations system. V Australia will launch Los Angeles-Sydney service in December.
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V Australia To Launch US Service In December
Richard Branson's newest airline venture, V Australia, has set December 15 as the inaugural date for its daily Sydney-Los Angeles service. The new carrier will be taking advantage of the new US-Australia open skies agreement, which removes previous caps on the number of airlines and number of flights that can be operated in the market. V Australia, a unit of Branson's Virgin Blue Group in Australia, plans to implement a code-share with Northwest for connecting passengers in Los Angeles.
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VIPs Get Special Services With New JPMorgan Cards
JPMorgan has unveiled its new Corporate Platinum and Gold Card T&E cards, designed for corporations’ top executives. The financial services firm is placing special emphasis on the cards’ airport lounge and baggage delivery features but they also offer concierge services, travel accident and lost luggage insurance coverage, and emergency medical and dental coverage.
Access is provided to more than 500 VIP lounges in 275+ cities worldwide, regardless of whether or not the cardholder is traveling on the lounge’s sponsoring airline. That’s 50 percent more than the lounge locations offered by American Express Platinum Card, says JPMorgan’s Rich Erario, emphasizing his company’s determination to “go head-to-head with American Express.” The lounge access program has been developed under an agreement with Priority Pass.
The VIP Luggage Delivery service — a new feature among corporate card programs — eliminates the wait for checked bags after landing. “You’d be surprised how many executives are still lugging their bags around,” says Erario, who is JPMorgan’s senior vice president for commercial card and electronic procurement, invoicing and payables.
Instead, JPMorgan VIP cardholders will be able to log onto the program’s specified URL, file the pertinent information (flight number, ultimate destination, etc.) and then check their bags as usual at the airport. But at their destination airport, they can go immediately to their meeting appointments, knowing that their bags will be delivered to the specified location within four hours of landing. The service is available to Corporate Gold cardholders for $39.95 for two bags; each additional bag will cost $5. Corporate Platinum cardholders receive their first eight uses free each year; each of these deliveries can include up to eight bags. After that, they pay the same $39.95-per-two-bags fee.
The service is provided under an exclusive agreement with Priority Solutions International, which manages luggage delivery for six of the seven largest North American airline carriers.
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Viceroy Hotel Brand Coming To Manhattan
Kor Hotel Group will open its first hotel in New York, under the Viceroy brand. The 168-room Viceroy New York at Hudson Square, scheduled to open in 2010, will be located in the city’s Hudson Square neighborhood, on the western fringe of the SoHo neighborhood. The Viceroy will occupy the top 12 floors of a building on Hudson Street and be part of an office, hotel and retail complex. A 22nd floor rooftop terrace will feature an outdoor pool with cabanas. One level below, on the connecting 21st floor, there will be a boardroom, lounge and meeting space.
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Waldorf-Astoria Brand Comes To Israel
Hilton Hotels will manage the Palace Jerusalem, a Waldorf-Astoria Collection hotel in the Israeli city. Hilton anticipates that the 220-room hotel will open by the end of 2010. Approximately 30 Waldorf-Astoria Collection residences are expected to be developed on the site. The hotel will be housed in a building constructed in 1929, just steps from Jerusalem’s Old City. The building’s facade of intricate stone carvings and decorative arches will be restored and the interior completely rebuilt. The Palace Jerusalem will have three restaurants, a spa and fitness facility with pool, meeting facilities and on-site parking.
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Westin Convention Hotel Opens In Orlando
The Westin Imagine Orlando, located across from the Orange County Convention Center, has opened. The 315-room hotel has one- and two-bedroom suites and 7,200 square feet of meeting space.
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