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INDUSTRY NEWS & PEOPLE  January 2009
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Abacus Automates Airfare Refunds
Abacus International has claimed the distinction of being the first GDS to implement automated refunds, accomplished in cooperation with BSP Singapore as part of IATA's efforts to streamline operations for travel agencies. The automated refund feature would also allow agencies to easily reconcile with BSP accounting as the agents will submit their refunds directly to the airlines for billings while on the Abacus GDS system. Hard copy submissions of refunds would no longer be necessary as the refund information is updated on the airline ticket system.
BSP refers to the billing and settlement system that is designed to facilitate and simplify the selling, reporting and remitting procedures of IATA-accredited agents for flight bookings as well as to improve financial control and cash flow for BSP Airlines.
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ACTE: Some Companies Put Biz Travel To India On Hold
The terrorist attack in Mumbai will prompt short-term cancellations in business travel to India and Pakistan, according to a survey conducted by the Association of Corporate Travel Executives (ACTE). Nearly half of the 134 international business travel managers who replied to the survey reported that their companies made extensive travel to the region; 48 percent indicated they were curtailing travel to India "until the situation became more settled." Seven percent claimed they were doing so indefinitely.
The survey also revealed that 78 percent of responding travel managers would be seeking a review of their hotel contracts with a greater emphasis on security and guest safety.
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Aer Lingus Adds Merchandising Capability To Web Site
Aer Lingus has launched fare-merchandising capabilities, powered by Datalex. The Datalex distribution platform on Aer Lingus' web site enables pre-seat selection fees, baggage fees and integrated insurance booking, among other items.
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Air Canada Gets Loan From GE Capital
Air Canada has reached a financing agreement with General Electric Capital Corp. that will provide the airline with up to $195 million. Air Canada has already received $80 million of the loan's first installment, which will pay a total of $155 million. The second installment is expected to close and fund prior to the end of January. Funding is subject to certain conditions, including the conclusion of a sale and leaseback of one Boeing 777-300ER aircraft with GE Commercial Aviation Services.
Air Canada secured a $78 million loan from Calyon New York Branch and Norddeutsche Landesbank Girozentrale earlier this month. The airline's majority owner, ACE Aviation Holdings, is in the process of shedding assets and dissolving, a move that will make Air Canada an independent company.
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Air Canada Independence Goes To Vote On Feb. 27
ACE Aviation Holdings, Air Canada's parent company, will hold a special meeting of shareholders on February 27, when shareholders will be asked to approve a liquidation plan of ACE's net assets. Once ACE divests its holdings in Air Canada, the airline will become an independent, publicly-traded company.
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Air Canada To Become Independent Company
ACE Aviation Holdings, the owner of Air Canada, has unveiled a plan to distribute assets to shareholders and dissolve ACE, enabling Air Canada to become an independent, publicly traded company. ACE has been Air Canada's parent since 2004, when the airline exited bankruptcy reorganization. The wind-up of ACE Aviation has been long planned by company CEO Robert Milton; ACE has already sold regional airline Jazz and Aeroplan, Air Canada's loyalty program.
"We believe there are many benefits to becoming an independent company," says Air Canada CEO Montie Brewer. "Air Canada's shares are now free to trade based on the airline's fundamentals without the impact of the ACE overhang and with the benefit of a greater public float."
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Air Transport Assn. Forecasts 9 Percent Drop In Holiday Airline Traffic
The Air Transport Association (ATA), a trade group representing US airlines, is forecasting a 9 percent decrease in the number of passengers this holiday season. The ATA defines the holiday season as the 21 days beginning December 18. The ATA notes that the number of available seats has declined 9 percent from the same period a year ago, resulting in full or near-full flights throughout the holiday.
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Air Transport Assn. Trashes Proposed UK Airport Tax Hike
The UK government's plan to raise the air passenger duty (APD) to fund environmental programs has been severely criticized by the Air Transport Association, a trade group representing US airlines. The measure would increase the APD on transatlantic coach passengers from 40 to 45 British pounds for travel beginning on November 1, 2009. Premium-class passengers would have to pay 90 pounds, up from 80. The UK government proposes further increases the following year: transatlantic coach passengers would pay 60 pounds, while premium-class passengers would pay 120 pounds.
"The decision to revise and further increase the UK duty is a revenue raiser for the government under the guise of environmental protection," says ATA President James May. "The funds collected do not go to environmental projects, and yet the taxes take money from airlines that they could otherwise invest in more fuel-efficient and greenhouse gas-efficient technologies."
ATA says it will fight the proposed increase in court. "Among other things, the duty improperly asserts regulatory jurisdiction over flights far outside UK airspace, by taxing flights according to various distance bands arbitrarily set by the UK government," ATA says. "And a lesser tax is imposed on those flights within the UK and the European Union, even though a flight from the United States is not in UK airspace for any longer (and often less) than such flights."
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AirPlus Study Finds Companies Toughening Travel Policy
Forty-seven percent of American companies expect to make travel policy tougher in 2009, up from 39 percent last year, according to a study by AirPlus, a provider of a travel payment system for corporations. More than half of American respondents (55 percent) think the significance of travel management within their company will increase in the next one to two years, even though 76 percent already consider travel management services in their company to be valued, says AirPlus. However, 42 percent of these travel managers are disappointed with the time allotted for their role, and 39 percent say they do not feel they have the rights necessary to perform their job successfully.
AirPlus surveyed 1,500 travel managers worldwide.
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Alaska Air Web Site Offers Access America Trip Insurance
Alaska Airlines and Horizon Air customers can now purchase Access America trip insurance. Customers can purchase trip protection when booking at AlaskaAir.com or by contacting Access America via phone or online. Insurance covers reimbursement of nonrefundable travel expenses in case of emergency cancellation or trip delays, reimbursement for unexpected travel expenses and 24-hour access to emergency medical assistance.
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Amadeus e-Travel v12 Books Help For Handicapped Travelers
The newest version of Amadeus e-Travel Management self-booking tool allows mobility- and visually-impaired travelers to arrange for special assistance, such as a wheelchair or a guide, at the time of booking trips. The latest release (version 12.0) also offers business travelers more choice of hotel and air fares. Other new features include:
* inclusion of premium economy fares within its Single View display.
* a best available rate indicator, which guarantees access to equivalent or lower fares available from any distribution channel, thus preventing travelers from wasting time comparing fares on disparate systems.
* 'passenger type' discounted fares: travelers indicate their 'passenger
type' and are automatically given any discounts for which they qualify at booking.
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Amadeus Launches Online Support Resource For Agents
Amadeus is rolling out the Amadeus e-Support Center, an online tool for travel agents to browse support information, resolve problems and log a case to the Amadeus help desk. The online resource is currently in use in France, Australia, Malaysia, the Philippines and Hong Kong, and will shortly be launched in North America, Brazil, Scandinavia, Singapore, the UK, Ireland, Portugal and Latin America. The resource, available at no extra cost, is designed to increase productivity and reduce telephone bills, Amadeus says.
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Amadeus e-Travel v12 Books Help For Handicapped Travelers
The newest version of Amadeus e-Travel Management self-booking tool allows mobility- and visually-impaired travelers to arrange for special assistance, such as a wheelchair or a guide, at the time of booking trips. The latest release (version 12.0) also offers business travelers more choice of hotel and air fares. Other new features include:
• inclusion of premium economy fares within its Single View display.
• a best available rate indicator, which guarantees access to equivalent or lower fares available from any distribution channel, thus preventing travelers from wasting time comparing fares on disparate systems.
• ‘passenger type’ discounted fares: travelers indicate their ‘passenger type’ and are automatically given any discounts for which they qualify at booking.
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Ambassadors CEO Will Forego $3 Million Compensation
Ambassadors International's chairman and CEO, Joe Ueberroth, has refused compensation due to him by September 2009, when he is slated to leave the company. Ueberroth was entitled to receive between $3 million and $6 million by next September. In addition, Ueberroth chose to forego $750,000 in stock options this year. Ueberroth announced his resignation from the chairman and CEO positions in September, and agreed to remain with Ambassadors during a one-year transition period. Ambassadors has three businesses: cruising, marine management and event planning.
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American Airlines Goes Cashless On Domestic, Canadian Flights
American Airlines has gone cashless on its flights within the continental United States, as well as flights to and from Hawaii, Alaska and Canada. Only credit or debit cards are being accepted for in-flight purchases, such as headsets, fresh meals, snacks and alcoholic beverages. Flight attendants use hand-held sales recorders to charge credit and debit cards. Receipts will be provided to passengers upon request.
Cashless cabins will not be implemented onboard American Eagle and AmericanConnection flights — cash only will continue to be accepted onboard those flights.
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American Express Offers Free Travel Program Assessment
American Express Business Travel is offering a complimentary travel program assessment to companies of all sizes worldwide. Previously only available to existing American Express clients, the assessment will use a proprietary tool to analyze key performance indicators such as online booking adoption, nonrefundable ticket usage and compliance to preferred vendors and travel policies.
Companies have until January 6 to log on to American Express' corporate travel online community, www.BusinessTravelConneXion.com, to request a complimentary assessment.
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American Express Offers Free Travel Program Assessment
American Express Business Travel is offering a complimentary travel program assessment to companies of all sizes worldwide. Previously only available to existing American Express clients, the assessment will use a proprietary tool to analyze key performance indicators such as online booking adoption, nonrefundable ticket usage and compliance to preferred vendors and travel policies.
Companies have until January 6 to log on to American Express’ corporate travel online community, www.BusinessTravelConneXion.com, to request a complimentary assessment.
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ANA Lowering International Fuel Surcharge For Qtr 1, 2009
ANA says it plans to lower its fuel surcharge on its international flights, beginning on January 1 and extending through the first quarter of 2009. Tickets issued on or after January 1 outside of Europe or Japan for travel between Japan and Europe, North American and the Middle East will carry a charge of $204, down from the $312 currently charged. The same tickets purchased in continental Europe will be EUR144; in the UK, GBP116.
The surcharge schedule excludes Hawaii. Travel between Japan and Hawaii or India will carry a $135 fee for tickets purchased outside Europe and Japan. In continental Europe, the fee will be EUR95; in the UK, GBP76.
The fuel surcharge, which must be approved by Japan’s Ministry of Land Infrastructure and Transport, is fixed for a period of three months, after which it is revised on the basis of the average market price of Singapore kerosene for the three months previous to the date of an application for revision. Jet fuel fell to an average of US$115.92 per barrel from August to October this year.
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American Express Taps Federal Bailout Funds
The US Treasury has approved American Express' participation in the Troubled Asset Relief Program (TARP), a move that will result in the government owning a stake in the company. American Express expects to sell preferred stock of approximately $3.4 billion to the Treasury, plus warrants to purchase shares of common stock for up to 15 percent of that amount, or $510 million.
American Express became eligible to apply for TARP on November 10, when the government approved its application to become a bank holding company regulated by the Federal Reserve.
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American Reopens Lounge In Miami
American Airlines has reopened its Flagship Lounge at Miami International Airport. American's first-class international and transcontinental customers have access to the lounge. American also offers Flagship Lounges in Chicago, London, New York and Los Angeles.
Although the airline announcement does not explain why the lounge had been closed in the first place, other published reports say that it was closed more than six years ago to cut costs.
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American Resumes Boston-San Diego Service
American Airlines will reinstate Boston-San Diego service on April 7, eight months after discontinuing the route because of high fuel prices. The flight will run six days per week. Other Boston expansion on April 7 will include a fourth daily flight to Los Angeles, a ninth daily flight to Dallas/Fort Worth and a third daily flight to St. Louis. On May 1, American will add a third daily flight between London and Boston, and will resume daily, seasonal service between Boston and Paris.
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American To Initiate Dallas-Madrid Service
American Airlines will begin daily service between Dallas/Fort Worth and Madrid on May 1, using 225-seat Boeing 767s in a two-class configuration. Madrid is a hub for Oneworld alliance partner Iberia.
"We are making this investment with the belief that our joint business agreement and antitrust immunity application with British Airways and Iberia will ultimately be approved," said American CEO Gerard Arpey. "Once approved, we earnestly hope and believe that it will be the first of many other opportunities to enhance and expand connections between the United States and Europe."
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ANA Lowering International Fuel Surcharge For Qtr 1, 2009
ANA says it plans to lower its fuel surcharge on its international flights, beginning on January 1 and extending through the first quarter of 2009. Tickets issued on or after January 1 outside of Europe or Japan for travel between Japan and Europe, North American and the Middle East will carry a charge of $204, down from the $312 currently charged. The same tickets purchased in continental Europe will be EUR144; in the UK, GBP116.
The surcharge schedule excludes Hawaii. Travel between Japan and Hawaii or India will carry a $135 fee for tickets purchased outside Europe and Japan. In continental Europe, the fee will be EUR95; in the UK, GBP76.
The fuel surcharge, which must be approved by Japan's Ministry of Land Infrastructure and Transport, is fixed for a period of three months, after which it is revised on the basis of the average market price of Singapore kerosene for the three months previous to the date of an application for revision. Jet fuel fell to an average of US$115.92 per barrel from August to October this year.
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Avis Budget Cuts 2,200 Jobs; Hikes Walk-up Rates
As part of its cost-reduction initiative announced on November 6, Avis Budget Group says it has eliminated more than 2,200 positions across all areas of its business. The company plans to close a call center in Wichita Falls, TX, consolidating its call center operations to facilities in Tulsa, OK, and Fredericton, New Brunswick. It also plans to close under-performing airport locations and a claims-processing center in Orlando.
In addition, Avis Budget has raised rental rates by $3 per day and $20 per week at all airport and non-airport locations in the US. The rate hike excludes corporate accounts and other negotiated agreements.
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Avis Budget Eliminates 2,200 Jobs; Hikes Walk-up Rates
As part of its cost-reduction initiative announced on November 6, Avis Budget Group says it has eliminated more than 2,200 positions across all areas of its business. The company plans to close a call center in Wichita Falls, TX, consolidating its call center operations to facilities in Tulsa, OK, and Fredericton, New Brunswick. It also plans to close under-performing airport locations and a claims-processing center in Orlando.
In addition, Avis Budget last week raised rental rates by $3 per day and $20 per week at all airport and non-airport locations in the US. The rate hike excludes corporate accounts and other negotiated agreements.
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Avis Budget Equipping Fleet For Wireless Toll Collections
Avis Budget Group is teaming up with TransCore and Highway Toll Administration (HTA) to supply eZGo Anywhereä wireless toll collection transponders for its car and truck rental fleets. The tags can be used to pay tolls wirelessly virtually anywhere in the country, according to Michael Caron, vice president of product and program development. They will also give Avis Budget "greater flexibility in managing its dynamic fleet movements because the transponders work virtually anywhere," he adds.
The new tags will be tested and deployed by HTA, which provides electronic toll payment services to Avis Budget Group. The eZGo Anywhere transponders are interoperable with more than 95 percent of all toll systems in the US.
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Avis Budget Secures Credit Extension To Finance 2009 Fleet
Avis Budget says lenders have extended two conduit facilities, credit lines that it uses to finance cars in its fleet. The company says the agreement will enable it to satisfactorily meet demand in 2009. A $1.45 billion conduit facility was extended through December 22, 2009, and a $1 billion facility will have a final maturity in November 2009, following a 25 percent decrease in borrowing capability for September and October.
Avis Budget also expects a senior credit facility to be amended by the end of the year, enabling it to remain in compliance with debt covenants. The credit line will be reduced from $1.5 billion to $1.15 billion, and the cost of borrowing will increase 2.5 percent.
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Azul, Brazil's Newest Airline, Begins Service
Azul Linhas Aereas Brasileiras, a Brazilian airline launched by JetBlue founder David Neeleman, has started service. Azul began operations with Embraer 190 and 195 service between three cities: Campinas (Viracopos Airport), Salvador de Bahia and Porto Alegre. The airline will begin nonstop service from Campinas to Vitoria and Curitiba on January 14. Azul intends to grow in 2009 to serve 25 cities throughout Brazil with 16 Embraer planes.
Like JetBlue, Azul has all-leather seats and will have individual seatback monitors with Live TV programming by the end of 2009.
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Bangkok Airports Remain Under Siege By Government Protesters
A sit-in by anti-government protesters has paralyzed Bangkok's Suvarnabhumi Airport since they stormed the facility on November 25. Protestors also shut down Don Muang, the former international airport that now serves domestic routes. According to published reports, 300,000 travelers remained stranded in Thailand on Monday. The protestors have reportedly allowed empty planes to leave the airport for a military airfield in Bangkok, where stranded travelers are being flown home. Tourism Minister Weerasak Kohsurat has warned it may take a month to get travelers out of Thailand.
The protestors, the People's Alliance for Democracy (PAD), want to oust the government under Prime Minister Somchai Wongsawat. The PAD accuses Wongsawat of being a pawn for his brother-in-law, former premier Thaksin Shinawatra, who was ousted in a 2006 coup.
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Bangkok International Airport Reopens
Bangkok's Suvarnabhumi International Airport reopened last Wednesday after anti-government protestors ended their weeklong blockade. According to Thailand's tourism chief, the airport closure stranded 230,000 travelers. Airport officials have said it would take several days before the stranded visitors would be able to leave.
The protesters departed the airport after a court banned Prime Minister Somchai Wongsawat from politics and ordered his political party dissolved because of election fraud.
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Boeing Delays Dreamliner Deliveries
Boeing has confirmed that the first flight of its 787 Dreamliner has been pushed back to the second quarter of 2009, and the first delivery has been postponed to the first quarter of 2010. The delay was caused by labor and production problems. "The new schedule reflects the impact of disruption caused by the recent machinist strike along with the requirement to replace certain fasteners in early-production airplanes," Boeing says. Prior to the strike that halted much of Boeing's commercial airplane work from September into November, the 787 was to make its first flight late in the fourth quarter of 2008. The first delivery was slated for the third quarter of 2009.
Boeing has 896 orders for the Dreamliner, which will use 20 percent less fuel than today's airplanes because it is being built with lightweight, plastic composite materials, according to Boeing.
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British Airways, Qantas End Merger Talks
Two weeks after announcing it was talking with Qantas about a merger, British Airways announced on December 18 that the talks have ended. "Despite the potential longer-term benefits to both British Airways and Qantas, the airlines have not been able to come to agreement over the key terms of a merger at this time," British Airways said in a statement. Among those key issues, according to independent reports, was the ownership ratio of the combined airline. Both Australia and the European Union have foreign-ownership restrictions for airlines.
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Brussels Airlines To Join Star Alliance
Brussels Airlines will become a member of the Star Alliance after an integration period. Brussels' sponsor, Lufthansa, will also be the airline's owner. In September, Lufthansa agreed to take over Brussels by purchasing a 45 percent stake, with an option to buy the entire carrier in 2011.
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Carino Collection Looks To '09 With New Name, Logo & Staff
The Carino Collection, which provides reservation, sales and marketing services to independent luxury hotels, has changed its company name to Carino Hotels & Resorts Worldwide, reflecting its plans to expand the brand globally. The change is effective January 1. The change will also involve a new logo, and rebranding throughout the company's web site, directory and all collateral material.
Other changes planned for 2009 include the addition of a GDS code for the company's member hotels and expansion of the company's senior staff.
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Carino Hotels Secures GDS Code
Carino Hotels & Resorts Worldwide, a sales representative for independent luxury hotels, will get a GDS code in the first quarter of 2009. With the addition of the GDS code, the organization's members will be able to track Carino bookings in the global distribution systems. The new "UN" chain code can be used in advertising promotions, adds Carino.
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Cayman Airways Begins Chicago Service
Cayman Airways has launched seasonal service between Chicago and Grand Cayman. The twice-weekly service will operate through April 22. The launch of Chicago service comes four days after Cayman Airways began twice-weekly service from Washington Dulles.
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Choice Hotels Extends Stock Repurchase Plan To 6 Million Shares
Choice Hotels International has authorized the acquisition of up to an additional 5 million shares of its outstanding common stock. The increase brings to approximately 6 million the total number of shares authorized for repurchase under its program as of December 18. The repurchased shares will be held in treasury and used for future acquisitions and the company's stock-based employee and director benefit plans.
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Choice Introduces Ascend Collection: Unique Sites For Meetings
Choice Hotels International has just introduced its Ascend Collection, offering meeting and event planners a quick and easy way to find out-of-the-ordinary venues. The Collection is comprised of 23 historic, boutique and unique lodgings across the US and the Caribbean. It includes:
* The Golden Hotel in historic downtown Golden, CO., in the foothills of the Rocky Mountains yet minutes from Denver's business district. The 62-room lodge boasts 40,000 square feet of meeting and event space.
* The Baechtel Creek Inn & Spa, a scenic retreat amidst the wineries and redwood forests in the heart of California's Mendocino Coast, just north of San Francisco. The inn houses a business center and the Redwood Room for small meetings and events.
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Choice Unveils Ascend Collection Of Unique Sites For Meetings
Choice Hotels International has just introduced its Ascend Collection, offering meeting and event planners a quick and easy way to find out-of-the-ordinary venues. The Collection is comprised of 23 historic, boutique and unique lodgings across the US and the Caribbean. It includes:
• The Golden Hotel in historic downtown Golden, CO., in the foothills of the Rocky Mountains yet minutes from Denver’s business district. The 62-room lodge boasts 40,000 square feet of meeting and event space.
• The Baechtel Creek Inn & Spa, a scenic retreat amidst the wineries and redwood forests in the heart of California’s Mendocino Coast, just north of San Francisco. The inn houses a business center and the Redwood Room for small meetings and events.
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CityCenter Preparing To Hire 12,000 Employees
CityCenter, the Las Vegas mega-resort jointly owned by MGM Mirage and Dubai World, will start accepting online job applications on January 5. CityCenter, due to open in late 2009, says 12,000 positions will be filled. CityCenter will be hiring for positions at the Aria Resort & Casino, Vdara Hotel & Spa and Crystals, the development's retail and entertainment district.
The Mandarin Oriental Las Vegas and the Harmon Hotel, Spa & Residences will begin accepting applications in the spring.
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CO Alters Cleveland's Service To EU; Assesses January Bookings
Continental Airlines this spring will launch seasonal service between Cleveland and London Heathrow, and will scrap seasonal service between Cleveland and Paris. The daily Heathrow flight, to run from May 2 through Sept. 26, will replace seasonal service between Cleveland and London Gatwick. Continental has now moved all of its London service from Gatwick to Heathrow. Earlier this year, the airline transferred London flights from Newark and Houston to Heathrow.
Described itself as "comfortable with its advanced booked seat factor," the airline has informed investors that, as of December 11, advanced bookings on its domestic routes through January 22 are running two to three percentage points higher than for the same period a year ago. Mainline Latin bookings are running one to two points ahead of last year. Transatlantic bookings are about flat as compared to last year. Pacific bookings are running two to three points behind last year. In total, for the fourth quarter, the airline expects load factors to be down about one point year-over-year.
At the time of its announcement, Continental estimated that its fourth quarter load factors would be close to 82 percent on its domestic routes; 79 percent on routes into Latin America; 75 percent on transatlantic routes; and 74 percent on Pacific routes.
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Concur Adds Premium Services To Help Clients Improve Analytics
Concur has launched Concur Premium Services, which provides post-deployment training and consulting services to help clients develop a customized analysis of corporate travel spending and expense-management activities. Concur Premium Services can include analytics, on-site training, customized reporting and audits.
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Concur Adds Premium Services To Improve Clients’ Analytics
Concur has launched Concur Premium Services, which provides post-deployment training and consulting services to help clients develop a customized analysis of corporate travel spending and expense-management activities. Concur Premium Services can include analytics, on-site training, customized reporting and audits.
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Continental Jet Skids Off Runway In Denver
A Continental Airlines flight carrying 110 passengers veered off the runway and into a ravine at Denver International Airport on December 20, following a scheduled 6 pm departure for Houston. The Boeing 737 caught fire and nearly broke apart, and passengers evacuated on emergency slides. No deaths were reported, but 38 injured people were taken to hospitals, according to published reports. A Denver firefighter assigned to the airport told the Associated Press that it was a "miracle" there were no casualties.
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Continental Nearly Finished With Installation Of Entertainment System
Continental's on-demand entertainment system is now available to economy class customers on all but two of its Boeing 757-200 aircraft. The remaining two aircraft are currently being retrofitted and will re-enter service by December 23, Continental says.
The planes are used primarily on transatlantic flights to and from Newark. The Panasonic eFX system features individual seatback video screens enabling customers to choose from up to 25 movies, 25 TV shows and 50 music CDs. The entertainment system also has 20 video games and an interactive Berlitz Word Traveler program that teaches foreign language. As part of the upgrade, AC power ports have been installed throughout the economy cabins on the 757s.
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Continental Schedules Biofuel Test Flight For January 7
Continental Airlines says it will stage a biofuel-powered demonstration flight in Houston on January 7. The demonstration flight, which will be operated with no passengers and one of two engines on the aircraft, will be powered by a special fuel blend that is 50 percent traditional jet fuel and 50 percent biofuel derived from algae and jatropha plants -- sustainable, second-generation fuel sources that don't impact food crops or water resources, and don't contribute to deforestation. It is being conducted in partnership with Boeing; CFM International, a 50/50 joint company of General Electric Company and Snecma (SAFRAN Group); refining technology developer UOP, a Honeywell company; and oil providers Sapphire Energy (algae) and Terrasol (jatropha).
The airline says the test involves several "firsts" - the first biofuel flight by a commercial carrier using algae as a fuel source; the first using a two-engine aircraft, a
Boeing 737-800 equipped with CFM International CFM56-7B engines.
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Continental Schedules Biofuel Test Flight For January 7
Continental Airlines says it will stage a biofuel-powered demonstration flight in Houston on January 7. The demonstration flight, which will be operated with no passengers and one of two engines on the aircraft, will be powered by a special fuel blend that is 50 percent traditional jet fuel and 50 percent biofuel derived from algae and jatropha plants — sustainable, second-generation fuel sources that don’t impact food crops or water resources, and don’t contribute to deforestation. It is being conducted in partnership with Boeing; CFM International, a 50/50 joint company of General Electric Company and Snecma (SAFRAN Group); refining technology developer UOP, a Honeywell company; and oil providers Sapphire Energy (algae) and Terrasol (jatropha).
The airline says the test involves several “firsts” — the first biofuel flight by a commercial carrier using algae as a fuel source; the first using a two-engine aircraft, a Boeing 737-800 equipped with CFM International CFM56-7B engines.
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Continental To Begin Daily Houston-Frankfurt Flight In '09
Continental Airlines plans to launch daily service between Houston and Frankfurt, Germany, on November 1, 2009. Frankfurt would join London, Paris and Amsterdam as European cities served by Continental from Houston. Continental already flies to Frankfurt daily from Newark.
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Crowne Plaza Testing Bedtime Call To Help Overworked Guests Sleep
Observing that "today's Brits in business are losing on average one night's sleep a week" because of increasing work and financial pressures, Crowne Plaza is testing the "switch-off call" at a number of UK hotels in the next three months. The service is a phone call telling guests that it's time for bed. Guests will also be offered a mint or ginger tea, selected for their calming qualities, to follow their switch-off call.
The service, if popular, will be introduced at hotels worldwide, says Crowne Plaza.
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CWT Acquires Agencies In Ireland, Canada
Carlson Wagonlit Travel (CWT) has acquired Executive Travel Group, a company that has been its partner in Ireland for the past 13 years. CWT also has agreed to buy Madison Travel of Ottawa.
Executive Travel has offices in Dublin, Cork and Limerick. Its present management will continue to run the business, reporting to Andrew Waller, CWT's executive vice president for the UK and Ireland.
Madison Travel has been operating as a franchisee for Carlson Wagonlit Travel Associates. After the acquisition, Madison Travel owner Sandra Granatstein will become a consultant to the business.
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Delta Adding Service To Sydney, Sao Paulo and Rome
Delta will begin daily service between Los Angeles and Sydney, Australia, on July 1. The launch means Qantas will face even more competition on US service next year. V Australia, an upstart airline owned by Australian carrier Virgin Blue, is scheduled to launch LA-Sydney service in February.
Also, Delta will begin thrice-weekly service between Los Angeles and Sao Paulo, Brazil, on May 21.
Delta will launch daily Detroit-Rome service on June 4. Delta subsidiary Northwest Airlines, in cooperation with Northwest joint-venture partner KLM, will operate the flight.
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Delta Tells RDU It Is Delaying Start Of Service To Paris
Officials at Raleigh-Durham International Airport in North Carolina report that they were notified on December 23 by Delta Air Lines that it will delay the start-up of nonstop service between RDU and Paris Charles de Gaulle Airport until 2010. The non-stop flight between RDU and Paris was one of 22 new international routes announced by Delta this fall following its merger with Northwest Airlines. RDU officials say the airline is also postponing other routes announced between the US and cities such as Shannon, Ireland and Gothenburg, Sweden.
The reversal was based on the current economic climate and not the strength of the market or demand for the service. Delta's original announcement of the planned service was made on November 6. Since that time, the RDU has been working with the North Carolina Division of Travel and Tourism, Research Triangle Regional Partnership and other organizations to promote the route. Nearly 500 people daily travel between RDU and an overseas destination. Approximately 150 of those travelers a day use nonstop service on American Airlines' daily flight to London-Heathrow. The remainder travel through gateways such as Atlanta, Boston, Chicago, Dallas, Miami, New York and Washington DC.
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Delta, Northwest Start To Align Loyalty Benefits
Delta is aligning benefits and rewards for elite-status customers in the Delta SkyMiles and Northwest WorldPerks loyalty programs. Beginning in 2009, the programs will offer segment qualification, currently a WorldPerks benefit. Segment qualification allows members to reach elite status by flying a designated number of flight segments. For 2009, silver elite flyers must reach 25,000 elite-qualifying miles or 30 qualifying segments; gold elite, 25,000 miles or 60 segments; and platinum elite, 75,000 miles or 100 segments.
Customers reaching elite status receive complimentary upgrades, mileage bonuses, priority boarding and preferred seating. In 2009, customers of both programs will be able to receive complimentary upgrades on Northwest and Delta for eligible flights.
Delta says SkyMiles and WorldPerks members would be able to transfer miles between accounts in early 2009. Delta plans to finish merging the two loyalty programs late next year.
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Delta, Northwest Start To Align Loyalty Benefits
Delta is aligning benefits and rewards for elite-status customers in the Delta SkyMiles and Northwest WorldPerks loyalty programs. Beginning in 2009, the programs will offer segment qualification, currently a WorldPerks benefit. Segment qualification allows members to reach elite status by flying a designated number of flight segments. For 2009, silver elite flyers must reach 25,000 elite-qualifying miles or 30 qualifying segments; gold elite, 25,000 miles or 60 segments; and platinum elite, 75,000 miles or 100 segments.
Customers reaching elite status receive complimentary upgrades, mileage bonuses, priority boarding and preferred seating. In 2009, customers of both programs will be able to receive complimentary upgrades on Northwest and Delta for eligible flights.
Delta says SkyMiles and WorldPerks members would be able to transfer miles between accounts in early 2009. Delta plans to finish merging the two loyalty programs late next year.
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Dollar Thrifty Amends Credit Facility, Cutting Borrowing Power
Dollar Thrifty Automotive Group has amended its senior secured credit facility so that the company is in compliance with debt-to-equity ratio requirements. Under the amended agreement, compliance at any date through February 28, 2009, will be based on earnings for the four quarters ended June 30, 2008, rather than for the most recently completed four quarters. Through February 28, Dollar Thrifty may not borrow under its credit agreement and must maintain at least $60 million in unrestricted cash and cash equivalents. As of September 30, Dollar Thrifty says, it had $209 million in unrestricted cash. Dollar Thrifty also amended fleet-financing agreements with Chrysler Financial and another bank group.
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Dollar Thrifty Amends Credit Facility, Limiting Borrowing Power
Dollar Thrifty Automotive Group has amended its senior secured credit facility so that the company is in compliance with debt-to-equity ratio requirements. Under the amended agreement, compliance at any date through February 28, 2009, will be based on earnings for the four quarters ended June 30, 2008, rather than for the most recently completed four quarters. Through February 28, Dollar Thrifty may not borrow under its credit agreement and must maintain at least $60 million in unrestricted cash and cash equivalents. As of September 30, Dollar Thrifty says, it had $209 million in unrestricted cash. Dollar Thrifty also amended fleet-financing agreements with Chrysler Financial and another bank group.
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Dollar Thrifty Halts Kiosk Development Program
Dollar Thrifty Automotive Group, parent of the Dollar and Thrifty car rental brands, has suspended the development of self-service kiosks for use by customers in rental transactions. A pilot program had been implemented in April at its Houston location. According to Dollar Thrifty CEO Scott Thompson, the program "did not satisfy our minimum return on invested capital, thus we concluded that continued full-scale development of self-service kiosks was not in our shareholders' best interest."
Dollar Thrifty said it expects to record a non-cash, pre-tax charge of $4.3 million in the fourth quarter of 2008 to write off all costs relating to the program.
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DOT Reduces LaGuardia Flight Cap
The Department of Transportation is reducing scheduled operations at New York's LaGuardia Airport from 75 to 71 flights per hour. The DOT says it's making the move because its plan to reduce congestion through slot auctions was stayed by an appeals court in Washington, DC, earlier this month.
"Too many flyers know that LaGuardia's delays are the worst of the worst, and we want to use every tool at our disposal to help passengers stuck with this grueling congestion," explains Transportation Secretary Mary Peters. Last year, LaGuardia ranked last among the 32 largest US airports in on-time performance, and is 28th over the first 10 months of 2008, according to DOT statistics.
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Egencia Forms Meetings Division, Incorporating Travel Technology
Reward Worldwide, a meetings and incentives agency acquired by Egencia in June 2008 in conjunction with its purchase of Synergi Global Travel Management, is being rebranded as Egencia Meetings & Incentives. The new company offers an integrated global solution for meetings policy and reporting, combining online registration, attendee management, and travel booking and reporting. The combination “brings together our highly-experienced meeting managers with market-leading technology in a single solution,” says Pam Keenan Fritz, senior vice president of Egencia North America.
Attributes of the new company include:
• Expert support for clients’ meeting needs, whether for small meetings, large and complex corporate events or creative incentive trips. Egencia’s in-house negotiation team is also available to drive flexible and cost-effective contracts.
• Consolidated management for meetings and corporate travel into a single tool, helping identify savings opportunities. Clients can leverage Egencia preferred supplier relationships to attain deeper savings and bypass reservation fees levied by outside agencies.
• A consolidated reporting platform with insight into online and offline bookings and real-time visibility into meetings and corporate spend. Clients of Egencia’s travel management service also get quarterly reviews combining corporate travel and meetings spend.
The company also points out that combining the travel and meeting management functions reduces complexity and the chance of errors; drives online adoption; and saves travelers the need to enter their preferences twice.
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Egyptair, United Sign Codeshare Deal
Beginning in summer 2009, United will place its code on EgyptAir flights linking New York and London Heathrow with Cairo. EgyptAir will place its code on United flights linking New York with Los Angeles and San Francisco, and on flights linking London Heathrow with Chicago, Los Angeles, San Francisco and Washington Dulles.
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Emirates' Planned Green Flight Goes Beyond Fuel Savings
Emirates Airline has launched an environmental program with an inaugural green flight from Dubai to San Francisco on December 15. Emirates has estimated that environment-friendly measures will save approximately 2,000 gallons of fuel and 30,000 pounds of carbon emissions on the 16-hour flight. Emirates says the jet would be specially washed beforehand to minimize drag; use electrical power on the ground in Dubai rather than running its auxiliary power unit; receive priority clearance for taxiing and departure in Dubai; fly a route over Russian and Canadian airspace for the most efficient path, taking into account prevailing winds and the aircraft's weight; use minimal thrust on landing and a single engine to taxi to the gate; and collect all onboard glass, newspapers, aluminum and paper for recycling.
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Emirates, Jet Airways Ink Codeshare Pact
Indian carrier Jet Airways is placing Emirates Airline's code on flights to Dubai from Mumbai and New Delhi. The two carriers also have launched a reciprocal frequent-flyer arrangement. Jet Airways also has codeshare agreements with Air Canada, American Airlines, All Nippon Airways, Brussels Airlines, Etihad, Qantas and JetLite.
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Etihad Granted Rights To Fly To Japan
Etihad Airways, the national airline of the United Arab Emirates, has been awarded rights to start service from Abu Dhabi to Tokyo in March 2010. The decision follows recent bilateral talks between the UAE and Japanese governments. Etihad has permission to operate five flights per week.
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Extended Stay Hotels Says It Is Paying Debts
Extended Stay Hotels issued a statement last week saying the chain is in compliance with all of its debt terms, is profitable on an operating basis and intends to grow the business. Extended Stay released the statement in response to a Wall Street Journal story that reported the chain was in early talks to transfer the chain to lenders. In 2007, Lightstone Group acquired Extended Stay Hotels from Blackstone Group for $8 billion in a highly leveraged deal.
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Fairwood Hotel Investment Fund Will Capitalize On Bad Economy
Three senior hotel executives have launched a hotel investment fund formed to acquire hotels since the recent upheaval in the credit and equity markets. Fairwood Capital's principals are Robert Solmson, the founder and former CEO of Memphis-based RFS Hotel Investors; Ed Ansbro, former senior vice president of Equity Inns; and Richard Reiss, chairman of New York-based Georgica Advisors. Initially, Fairwood will focus on Marriott, Starwood (including Sheraton and Westin) and Hilton hotels.
"We believe the turmoil in the credit markets, together with the prospect of a recession, the depth and duration of which is unknown, will create compelling opportunities to acquire hotels at historically attractive prices," says Solmson.
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Fairwood Hotel Investment Fund Will Capitalize On Bad Economy
Three senior hotel executives have launched a hotel investment fund formed to acquire hotels since the recent upheaval in the credit and equity markets. Fairwood Capital’s principals are Robert Solmson, the founder and former CEO of Memphis-based RFS Hotel Investors; Ed Ansbro, former senior vice president of Equity Inns; and Richard Reiss, chairman of New York-based Georgica Advisors. Initially, Fairwood will focus on Marriott, Starwood (including Sheraton and Westin) and Hilton hotels.
“We believe the turmoil in the credit markets, together with the prospect of a recession, the depth and duration of which is unknown, will create compelling opportunities to acquire hotels at historically attractive prices,” says Solmson.
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Fifth Ave. Partners Launches New Sè Hotel Brand
Fifth Ave. Partners has changed the name of its just-opened luxury hotel, Setai San Diego, to Sè San Diego in an effort to distance itself from the Setai Miami, a hotel owned by failed bank Lehman Brothers. Fifth Ave. Partners is planning to develop other Sè hotels.
The owners say the new name comes from the Chinese word "sè," which means "color, look, quality; expression, sensuality and physical attraction [and] better represents the level of design, art and experience that will be unique to the San Diego property and long-term vision of the company."
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FlightStats Unveils Localized Site For UK-based Travelers
FlightStats has announced the public launch of a localized web site designed to provide flight status and airport information to UK-based travelers. Visitors to the site are greeted with a map showing current airport delay conditions for the UK and Ireland and a flight status search tool to find current flight information by flight, by route or by airport. To coincide with the launch of flightstats.co.uk, the company has also announced the availability of map-based flight tracking for most European flights. The new flight tracker lets visitors see the current location of individual flights in European airspace, complete with route tracing and a weather radar overlay.
Flightstats.com has been heavily used by UK residents and travelers, says the company but the new localized version will make it that much easier to get timely, complete and accurate information on flight status and airport conditions in the UK and across the globe.
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Frontier Implements Flat Fee For Same-Day Airport Changes
Frontier Airlines is now charging a flat fee of $75 for same-day schedule changes made at the airport. Previously, customers were charged the fare difference between the original fare and the current price of the new flight, which in most cases resulted in a fee higher than $75, Frontier says. Customers making changes in advance of airport arrival will be assessed a $150 change fee plus the difference, if any, between the original fare and the price of the new flight.
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Frontier Implements Flat Fee For Same-day Airport Changes
Frontier Airlines is now charging a flat fee of $75 for same-day schedule changes made at the airport. Previously, customers were charged the fare difference between the original fare and the current price of the new flight, which in most cases resulted in a fee higher than $75, Frontier says. Customers making changes in advance of airport arrival will be assessed a $150 change fee plus the difference, if any, between the original fare and the price of the new flight.
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Frontier Pilots Tentatively Agree To Pay Cut
Frontier Airlines has reached a tentative agreement for long-term wage and benefits concessions with leaders of the Frontier Airlines Pilots Association. The agreement will go before the union membership for a ratification vote. If pilots approve the agreement, Frontier says, it will have secured concessions from all of its represented employees, a "critical milestone in the company's ongoing restructuring efforts," The airline has been operating under Chapter 11 since April.
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Frontier Unveils New Fare Structure
Frontier Airlines has introduced AirFairs, a new fare structure with three options: Classic Plus, Classic and Economy. Customers who buy a fully refundable and fully flexible Classic Plus ticket receive priority boarding, advanced seat assignment, two free checked bags, complimentary DirecTV, an in-flight snack (a Grizwald's Gourmet Café item), a premium beverage (alcoholic drink, energy drink or large bottled water) and 150 percent mileage credit.
Classic customers get advanced seat assignments, two complimentary checked bags, complimentary DirecTV(R) and 125 percent mileage credit. They will be charged a $50 fee for itinerary changes and $75 for same-day flight changes.
Economy customers pay extra for phone reservations, pay $5.99 for DirecTV and pay for checked bags. They can get a seat assignment at Frontier's web site 24 hours before departure. The fee for same-day changes and itinerary changes is $150 for Economy customers. Frontier said the Economy fare is "for the customer who is traveling light and doesn't foresee any schedule changes." Economy tickets are generally $20 less than Classic tickets, says the airline.
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Gaylord Rejects Competitor's Bid To Increase Its Shareholder Stake
Gaylord Entertainment has rejected a proposal by its largest shareholder, TRT Holdings, to up its stake in the company to 30 percent and replace three current board members with TRT representatives. Gaylord, an owner and operator of convention hotels, says that accepting TRT's proposal would "give TRT effective control over the company's long-term corporate strategy without a full and fair price being paid to all Gaylord shareholders." The company adds that newly appointed TRT board members would not be able to act in the best interests of Gaylord shareholders because of TRT's ownership of Omni Hotels.
Gaylord and Omni each have hotels in three major markets (Dallas, Orlando and Washington, DC).
TRT, led by Texas billionaire Robert Rowling, increased its Gaylord stake to 14.3 percent in July. Gaylord then adopted a poison pill provision, making a hostile takeover more expensive. The provision goes into effect when a shareholder acquires 15 percent of the company; TRT proposed increasing the triggering threshold to 30 percent.
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Gaylord Rejects Competitor’s Bid To Hike Its Shareholder Stake
Gaylord Entertainment has rejected a proposal by its largest shareholder, TRT Holdings, to up its stake in the company to 30 percent and replace three current board members with TRT representatives. Gaylord, an owner and operator of convention hotels, says that accepting TRT’s proposal would “give TRT effective control over the company’s long-term corporate strategy without a full and fair price being paid to all Gaylord shareholders.” The company adds that newly appointed TRT board members would not be able to act in the best interests of Gaylord shareholders because of TRT’s ownership of Omni Hotels.
Gaylord and Omni each have hotels in three major markets (Dallas, Orlando and Washington, DC).
TRT, led by Texas billionaire Robert Rowling, increased its Gaylord stake to 14.3 percent in July. Gaylord then adopted a poison pill provision, making a hostile takeover more expensive. The provision goes into effect when a shareholder acquires 15 percent of the company; TRT proposed increasing the triggering threshold to 30 percent.
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Hainan Airlines Assets Being Seized In Bankruptcy Case
Dornier Aviation North America (DANA) has begun seizing assets of Chinese carrier Hainan Airlines, says H. Jason Gold, the court-authorized liquidating trustee for DANA's bankruptcy estate. Gold says he has "successfully garnished the first of several Hainan Airlines bank accounts" and is preparing to seize additional assets. The money will enable DANA to pay creditors, Gold said.
A US Bankruptcy Court previously issued Hainan an order to pay DANA $14 million in a civil judgment, but the Chinese airline refused to comply. Gold considered the refusal to pay "perplexing" given that Hainan is seeking Department of Transportation approval to expand its US service. Hainan began serving the Seattle-Beijing market earlier this year, and has applied to serve Beijing-Boston.
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Hertz Launches Car-Sharing Business
Hertz has launched Connect by Hertz, a car-sharing club, in London, New York City and Paris. Expansion to more cities is planned for 2009. The self-service, pay-as-you-go system provides members with 24/7 access to a fleet of environmentally-friendly vehicles strategically distributed over a neighborhood or city, transferring the fixed costs of car ownership to per-trip costs.
Membership in Connect by Hertz includes insurance, fuel, roadside assistance, maintenance and cleaning. Connect by Hertz members can reserve, drive and return vehicles on their own, via the Internet or phone. Upon enrolling in Connect by Hertz, members receive a smart-chip card that gives them keyless entry to any reserved car in the fleet.
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Hospitality News
Baton Rouge: A new Cambria Suites, Louisiana's first, has opened in Baton Rouge. Cambria is Choice Hotels' upscale brand.
Beaver Creek, CO: Vail Resorts has expanded its RockResorts division with the opening of The Osprey at Beaver Creek. The 45-room boutique hotel was formerly known as the Inn at Beaver Creek.
Big Island, HI: The Mauna Kea Beach Hotel had a soft reopening on December 20, two years after the hotel was forced to close due to earthquake damage. The flagship property of the Prince Hotels and Resorts, Mauna Kea will have its grand opening in March. The hotel's classic exterior architecture design remains the same, but the total guest room count has been reduced from 310 to 258 due to the enlarging of rooms in the main building.
Dallas: The Sheraton Dallas has begun construction on the first phase of its $90 million renovation project. Starwood Hotels & Resorts, owner of the Sheraton brand, took over the former Adam's Mark hotel in early 2008. The renovation will take place in four phases and will be completed in the summer. Public spaces and guest rooms will be redesigned.
Las Vegas: The M Resort, Spa and Casino, scheduled to open in March, has begun accepting room reservations. The resort will have 390 guest rooms ranging from 550 to 2,400 square feet and 60,000 square feet of meeting space. The off-Strip property is located on South Las Vegas Boulevard.
Las Vegas: Encore, a 2,034-suite resort adjacent to the Wynn Las Vegas, will open on the evening of December 22. The hotel has five restaurants and seven bars.
St. Louis: Marriott has rebranded the St. Louis Union Station Marriott, a former Hyatt Regency hotel. A $20 million renovation is under way. Hyatt still has a presence in the city at the Hyatt Regency St. Louis Waterfront, a former Adam's Mark hotel.
St. Martin: Carlson Hotels Group has opened its 1,000th hotel worldwide, the Radisson St. Martin Resort. In previous management stints, the 252-room Caribbean resort operated as a Le Meridien and L'Habitation de Lonvilliers. The hotel has 7,500 square feet of meeting space.
San Antonio: Choice Hotels has opened its first Cambria Suites hotel in Texas in San Antonio. Cambria is Choice Hotels' upscale brand.
Turks & Caicos: Gansevoort will open its first hotel in the Caribbean, the 91-room Gansevoort Turks & Caicos, in March. The hotel will be the boutique brand's third; Gansevoort currently has properties in New York City and Miami Beach. The brand plans to open hotels in Toronto and Chicago in 2011.
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Hospitality News
Bahrain: Hilton Hotels Corp. has agreed to manage the first Conrad hotel in Bahrain. The 250-room Conrad Bahrain, due to open in 2011, will be located on the man-made Reef Island near Manama, Bahrain's capital city.
Bethesda, MD: Expansion of the Bethesda North Marriott Hotel & Conference Center is being completed this month, adding 229 new guest rooms enough additional meeting space to bring the total to 40,000 square feet, including 13 meeting rooms; a 23,500-square-foot ballroom; and 130-seat amphitheater. Room night bookings for the new space have already doubled previous records, according to General Manager Bob Daley. The hotel is located minutes from the I-270 technology corridor and downtown Rockville, within 15 minutes of Washington, DC, and adjacent to the metropolitan area's Metrorail system.
Bloomington, IN: The Crowne Plaza Bloomington opens this month near the campus of Indiana University, following a $12 million renovation of a conversion from the Radisson brand. It is the only full-service hotel in Bloomington, offering 118 guest rooms and 2,700 square feet of meeting space. Consistent with the Crowne Plaza brand, the hotel offers a comprehensive meetings program consisting of a two-hour response guarantee, Crowne Meetings director and a daily meetings debrief. Other amenities include complimentary wireless, fitness center, outdoor pool, business center and a full-service restaurant.
Cluj, Romania: Starwood Hotels & Resorts has agreed to manage the Sheraton Cluj Hotel and Residences. Scheduled to open in early 2012, the property will be part of a mixed-use development, Sigma Towers, in Cluj, a city 275 miles northwest of Bucharest. The 26-story tower will have 202 hotel rooms and 110 residential apartments.
Coral Gables, FL: The Hyatt Regency Coral Gables has completed a $10 million renovation that retains the hotel's Moorish design theme reminiscent of the Alhambra Palace in Spain. The hotel offers 250 guest rooms and nearly 18,000 square feet of function space. It is about 10 minutes from Miami International Airport and within walking distance of the Miracle Mile.
Hong Kong:Marriott International has opened the Hong Kong SkyCity Marriott, a 658-room hotel attached to AsiaWorld Expo exhibition center at Hong Kong's international airport.
Jersey City, NJ: The Westin Jersey City Newport is due to open in February 2009 and is accepting group and individual reservations. The new 429-room hotel is in the heart of the waterfront financial district of Jersey City, offering views of the Manhattan skyline.
Medan, Indonesia: The JW Marriott Medan has opened in the city's north central business district, about four miles from Polonia International Airport. Marriott International says the 287-room hotel is the company's first branded property on the Indonesian island of Sumatra.
Northlake, TX: Ground has been broken for a new Motel 6 here, showcasing the brand's new "Phoenix" Euro-chic design. the property is located between Dallas and Fort Worth. In addition to its modern styling, the design incorporates a number of green and environmentally friendly features, such as wood-effect laminate flooring made of 80 percent pre-consumer recycled material; a thermal solar panel system for water heating; fluorescent light bulb and battery recycling program; technologically advanced heating and cooling system from Honeywell; and water conservation measures. Major design features include a spacious lobby; 24-hour food and beverage vending marketplace; and guest rooms with flat-screen TVs, multi-media panel for mp3 players, CD players and laptop computers, Wi-Fi internet access, and a settee/banquette seating area.
San Diego: The Grand del Mar, a hotel that opened last year, has joined Associated Luxury Hotels International. ALHI provides meetings-related sales services for hotels.
San Marcos, TX: The new 10-story, 283-suite Embassy Suites San Marcos Hotel, Spa and Conference Center held its grand opening this month with several conferences for 2009 already booked, including the H.O.G. Rally, Randolph Brooks Federal Credit Union, South Texas Press Association, Texas Press Association, and Texas Farm Bureau. Located between Austin and San Antonio, San Marcos is home to Texas State University and the LBJ Museum of San Marcos. The $50 million hotel and spa is owned and managed by John Q. Hammons Hotels & Resorts; the adjoining conference center, also managed by Hammons, is owned by the city of San Marcos.
Valley Forge, PA: The Embassy Suites Philadelphia/Valley Forge has opened its doors following a $10 million renovation and transformation from Valley Forge Suites. The hotel was originally built in 1984 and opened as an Embassy Suites. During the hotel's 24-year-history, it has operated as six hotel brands. The renovation includes a new bar, a redesigned restaurant, newly designed suites and redecorated meeting rooms, pool and lobby. Located just off Route 202 in the Chesterbrook business complex in Wayne, the hotel features 229 two-room suites, a fully equipped Precor fitness center and indoor pool, nine meeting rooms and more than 5,000 square feet of meeting space.
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Hospitality News
Almaty, Kazakhstan: Golden Tulip Hospitality Group has signed a management agreement with ZHARAT LLP for Royal Tulip Almaty, whose construction is expected to be complete in September. Golden Tulip has seven of the upper upscale Royal Tulip brand hotels under contract. Besides Almaty, they are located in Amsterdam, Eilat (Israel), Shanghai, Dubai and Oman.
Bogota, Colombia: InterContinental Hotels Group (IHG) has signed an agreement to open the 76-room Holiday Inn Express Bogota in Colombia. The new Holiday Inn Express Bogota will open in first quarter of 2009 within the city's new business tower and hotel center, the OXO Center Bogota.
Indianapolis, IN: The new 118-room Hampton Inn & Suites Indianapolis has opened in the Ameriplex Business Park at the New Indianapolis International Airport on the city's west side. The hotel, owned and operated by Schahet Hotels, is one of the first in the state to have the brand's newest concepts - "The Perfect Mix Lobby" and "Jump Start Fitness Room." This hotel is the first of two that Schahet Hotels is developing at the new airport. The second hotel, Hilton Garden Inn, is scheduled to open in February 2009.
Irving, TX: The Staybridge Suites DFW Airport North has opened at 2220 Market Place Blvd. here. The all-suite hotel combines boutique-style custom décor and a resort-style outdoor retreat in three suite-types: deluxe studio, one bedroom and two-bedroom/two bath. Other amenities included fully equipped kitchens, separate highly functional work areas; 24-hour convenience store, 24-seat theater, outdoor pool, grill and Sport Court. Internet access, daily deluxe breakfast, evening receptions, laundry and fitness center are all complimentary. More than 3,000 square feet of functional meeting space is also available. The Staybridge Suites DFW Airport North is owned and operated by Atlantic Hotels Group located in Carrollton, Texas.
King of Prussia, PA: Dolce Hotels and Resorts has completed the final phase of a $20 million renovation to its newest hotel, Dolce Valley Forge. Upgrades include a facelift to the building's façade, all new guest rooms, meeting facilities and dining destinations; a new fitness center and lobby as well as redesigned landscaping. The transformation includes the pool and patio area, 327 guest rooms and the second floor meeting space and grand ballroom, which now offers 24,000 square feet of dedicated meeting space with audio-visual capabilities. The hotel also features a new business center, fitness room and Lavazza coffee barista and sundry shop.
London: Doubletree by Hilton has made its London debut with the rebranding of a hotel in the city's West End. The 112-room Courthouse Doubletree by Hilton London-Regent Street formerly was a Kempinski property. Also, Hilton has entered into a franchise license agreement with Sanguine Hospitality, which will see the Hoole Hall Country Club and Hotel in Chester, England, become a Doubletree in early 2009.
OVERLAND PARK, KS: The Overland Park has completed a $20 million renovation, which began in April 2008 and includes all 398 guest rooms and suites, hotel corridors, concierge lounge, the ballroom and 14,000 square feet of meeting space. The updated meeting space offers in-house audiovisual technology and Red Coat service featuring "red button" 45-second response time. The 15 meeting rooms have updated sound and lighting systems, as well as new digital reader boards. All guest rooms feature the Marriott Revive bed with luxurious linens and 37-inch, high-definition, flat-screen TVs, high-speed Internet, and plug-in options for MP3 devices, digital cameras, camcorders or other electronic devices.
Raleigh, NC: A 103-room Cambria Suites hotel has opened one-quarter of a mile from Raleigh-Durham Airport. Alliance Hospitality Management operates the hotel.
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Hospitality News
Atlanta, GA: Gemstone Hotels & Resorts has added the 110-room Glenn Hotel, downtown Atlanta's first boutique hotel, to its management portfolio. The hotel, owned by Legacy Property Group, is the third boutique hotel management contract added by the company in less than 60 days. Glenn Hotel is housed in a converted historic former office in the heart of the Luckie Marietta District.
Bedford, PA: Omni Hotels will take over as operator of the Bedford Springs Resort in Pennsylvania's Cumberland Valley on January 1. The property will be flagged as the Omni Bedford Springs Resort. The Bedford Springs, currently operated by Benchmark International, completed a $120 million restoration and expansion in July 2007 after being closed for over 20 years.
Berlin, Germany: Several new hotels, all targeted to the city's MICE market, are under construction and scheduled to open here in 2009. Andel's Hotel Berlin, offering 557 guest rooms and 3,800 square meters of meeting space, will be the fourth largest convention hotel in the city. The Spanish Silken Group's new hotel, on Lietzenburger Strasse, opens in March 2009, featuring 205 rooms, a Japanese garden with a waterfall, a large wellness area and a 450-square-meter meeting and conference area. The Spanish Camper Group's new Casa Camper, with 54 rooms and conference facilities, will be ready of booking in spring. Conversion of the former police headquarters in Alexanderplatz to the Leonardo Royal Hotel Berlin will add 345 guest rooms and meeting rooms for up to 300 people to the city's inventory. Also on tap: the abba Berlin Hotel near the station Zoologischer Garten; the Seminaris Campus Hotel Berlin-Science & Conference Center of the Free University; and the Soho House Berlin, to be located in the former House of Unity at the foot of Prenzlauer Berg, scheduled to open in the autumn.
Key West, FL: Effective December 15, the Beachside Resort & Conference Center will be operated as a full-service Marriott hotel under the name Key West Marriott Beachside Hotel. Beachside offers 222 guest rooms and 9,653 square feet of indoor/outdoor event space including Key West's largest ballroom and an exquisitely designed waterfront pool and lounge area. The hotel is situated on seven waterfront acres along the Gulf of Mexico.
Lagos, Nigeria: Sun International Hotels & Resorts has added the historic Federal Palace Hotel here to its portfolio. The hotel underwent a US$10 million refurbishment after Sun took over operational management responsibility in August 2008. Refurbishment of the linked Federal Palace Towers will commence in January 2009 at an estimated cost of US $150 million. The main hotel offers 150 guest rooms and eight meeting rooms; the Tower, 224 rooms, spa and meeting & business center. The hotel is owned by The Tourist Company of Nigeria PLC and will effectively be a joint venture between Sun International and Ikeja Hotels PLC.
Los Angeles, CA: Embassy Suites Hotels has opened the Embassy Suites Los Angeles-Glendale. The 272-suite hotel is the brand's first in Glendale, its sixth in the greater Los Angeles area and the 196th Embassy Suites Hotel in the brand's portfolio. The hotel, which is eight miles from Bob Hope Airport, is owned and managed by Arcadia, CA-based Kam Sang Company, and marks its first Embassy Suites Hotel and first Hilton Family property.
Milan, Italy: Construction of the Armani Hotel Milano has begun. The property's developer, Emaar Properties of Dubai, says the hotel will open in 2010. The Milan hotel will be the flagship property for Armani Hotels & Resorts, a partnership between Emaar and Italian fashion designer Giorgio Armani. The first Armani hotel is scheduled to open in Dubai in the fourth quarter of 2009 in the Burj Dubai, the world's tallest building.
Nha Trang, Vietnam: Sheraton plans a May opening for a beachfront hotel in Nha Trang, Vietnam. The 281-room Sheraton Nha Trang will have a spa, health club, restaurants and nearly 20,000 square feet of meeting space. Sheraton already has two city hotels in Vietnam, in Hanoi and Ho Chi Minh City.
Naples, FL: The Inn on Fifth, an 87-room boutique hotel, has put the finishing touches on a $500,000 guestroom refurbishment that began in August 2008 and has focused on heavily on guest bathrooms. Central to the renovation is the addition of luxurious Travertini tile on bathroom floors and in the showers. The renovation also includes environmentally-friendly enhancements such as energy-efficient shower heads and recessed lighting, "green" paper products and the move to an optional three-day linen and towel change system.
Philadelphia, PA: Marshall Management Inc. has opened the 92-room Four Points by Sheraton Philadelphia Convention Center under an agreement with Lam's Realty Corporation. Located across the street from the Philadelphia Convention Center, near the Philadelphia Museum of Art and the University of Pennsylvania, the hotel offers 2,688 square feet of flexible meeting space, a full-service restaurant, fitness center and free high-speed Internet in all public areas and guest rooms. It is convenient to Chinatown, City Hall and the Reading Terminal Market and nearby corporate offices, including GlaxoSmithKline, KPMG, IBM and Accenture.
Raleigh-Durham, NC: Choice Hotels has announced the opening of the Cambria Suites at Raleigh-Durham International Airport, just over a year after the new brand made its debut in Boise, ID. The Raleigh-Durham site, owned by local developer Carolina Hotels & Resorts LLC and managed by Raleigh-based Alliance Hospitality, is the brand's 10th location; two more properties are to open before the end of the year.
Steamboat Springs, CO: Sheraton Hotels & Resorts has completed a $20 million renovation of Sheraton Steamboat Resort. The property-wide transformation of the area's only full service ski-in/ski-out resort features newly designed guest rooms, lobby, public and meeting spaces, as well as a new health and fitness program and menu for its signature restaurant. The comprehensive renovation of the Sheraton Steamboat is part of a brand-wide effort to revitalize the iconic Sheraton brand. Coinciding with the multi-million dollar resort renovation, the first phase of the new Sheraton Steamboat Resort Villas has also opened.
Toronto, Ontario: InterContinental Hotels Group has announced the opening of a new 117-room Holiday Inn Express in the Greater Toronto Area, near Markham and Richmond Hill. The hotel is 20 minutes from downtown Toronto and easily accessible by Highways 404, 407 and 401, and close to Beaver Creek Business Park. The new property offers more than 900 square feet of meeting space, a fitness centre and an indoor heated salt water pool.
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Hospitality News
Albany, NY: The Hotel Indigo Albany-Latham has opened after a $4 million renovation of a former Wingate Inn. The 107-room property, located in the Wolf Road business district, is New York's second Hotel Indigo.
Bradenton, FL: The 153-room Courtyard by Marriott Bradenton Sarasota Riverfront in central west Florida has opened. The five-story hotel has 6,100 square feet of meeting space to accommodate small meetings and functions for up to 400 people.
Corfu, Greece: Fairmont has agreed to manage a new resort on the Greek island of Corfu. The resort, scheduled to open in 2012, will have 19,000 square feet of event space. The Fairmont Corfu Resort & Spa will be north of the old city of Corfu, a UNESCO World Heritage site.
Denver: The Sheraton Denver Downtown, the former Adam's Mark, is undergoing a $70 million renovation scheduled for completion by mid-2009. The renovation of will touch guest rooms, suites and the lobby. The hotel is Colorado's largest, with 1,225 rooms.
Hanoi, Vietnam: Mövenpick Hotels & Resorts has opened a hotel in the Vietnamese capital Hanoi. The chain already manages a hotel in Ho Chi Minh City.
Huntington Beach, CA: Joie de Vivre Hotels will open the Shorebreak Hotel on April 1. The beachfront property will offer 157 guestrooms and 8,000 square feet of function space.
Lansing, MI: The Staybridge Suites Lansing-Okemos has opened less than a mile from Michigan State University and near the state capitol building, St. Lawrence Hospital and the Wharton Center of Performing Arts. The hotel has 95 suites.
Ontario, CA: The new 117-room Country Inn & Suites By Carlson Ontario has opened. The hotel is near LA/Ontario International Airport and the Ontario Convention Center.
Versailles, France: The Trianon Palace Versailles will become a Waldorf-Astoria Collection hotel in early 2009. The property will be the second European hotel to join the Waldorf-Astoria Collection. In September, the former Rome Cavalieri Hilton was relaunched as the Rome Cavalieri, Waldorf-Astoria Collection.
Wenzhou, China: The Shangri-La Hotel, Wenzhou will open on Jan. 16. The hotel is a 25-minute drive from Wenzhou Yongqiang Airport.
Wilmington, NC: The 122-room Fairfield Inn & Suites Wilmington/Wrightsville Beach has opened. The hotel, managed by Crestline Hotels & Resorts, if five miles from Wilmington International Airport.
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Hotels.com To Provide Hotel Bookings On JetBlue Site
JetBlue has contracted Hotels.com to provide hotel bookings on the airline's web site. Hotel bookings will come with Hotels.com's price match guarantee, no change or cancellation fees and no phone booking fees. Customers can also read guest reviews of hotels provided by TripAdvisor.
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IATA: US Airlines Prepped For Recession, May Turn $300M Profit
The International Air Transport Association (IATA) forecasts that the airline industry will lose $2.5 billion in 2009, but that North American carriers will turn a $300 million profit. IATA reasoned that the 10 percent capacity reduction implemented this year by North American airlines in response to high fuel prices right-sized them for the expected fall in demand in 2009. Further, the lack of fuel hedging in North America will enable airlines to take advantage of the steep fall in fuel prices, added IATA.
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IFC Specialists Schedules Webinars
IFC Specialists will offer its first-phase webinars for international fare construction every Wednesday and Friday, from January 7 to January 30. The webinar consists of eight one-hour sessions. The cost is $274. For further information, contact Dennis Brown at (360) 261-2339.
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International SOS Poll: US Travelers Remain Outward Bound
A survey of 722 Americans conducted by International SOS, a specialist in security and medical assistance for travelers, has revealed that nearly 60 percent expect to hold level or increase their travel plans in 2009. Among the business travelers participating in the survey, their resolve was based on the increasing globalization of their companies and their workforces.
Consumers, perhaps spurred by tension in their jobs, told researchers that vacations have become a necessity. Overall, 42 percent said they would be doing less international travel; 25 percent said they would be doing more and 33 percent said they plan on doing about the same amount of international travel.
Tim Daniel, executive vice president at International SOS, admits the survey results "seem counter-intuitive" but adds that his company, "with its unique global perspective on business and expatriate travel ... often sees the drivers for trends such as this firsthand."
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Interstate Warned By NYSE To Raise Stock Prices Or Be Delisted
Interstate Hotels & Resorts, a hotel real estate investor and independent management company, has received notice from the New York Stock Exchange (NYSE) that its stock has fallen below the Exchange's continued listing standard requiring a minimum average closing price of $1 per share over 30 consecutive trading days. Under NYSE rules, the company has six months to bring the average back above $1. An extension of that deadline is possible.
The company's common stock will continue to be listed on the NYSE during the cure period, subject to compliance with other NYSE continued listing requirements. The company plans to notify the NYSE that it intends to cure the deficiency.
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JD Power Survey Shows Supplier Sites Gaining On Online Agencies
While the percentage of travelers making airline, rental car and hotel bookings has increased 15 points during the past year, bookings for independent web sites have increased by only 1 point, according to the JD Power and Associates 2008 Independent Travel Web Site Satisfaction Study. While 70 percent of travel reservations were booked online in 2008 (up from 53 percent in 2007), only 16 percent were made through independent sites such as online agencies Expedia and Priceline. Additionally, consumers who booked their travel using an independent web site were considerably less satisfied compared with 2007, reports the company, with satisfaction scores declining by 17 points, to 785 on a 1,000-point scale.
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JetBlue Adds Hotel, Limo Discounts To Its Web Site
JetBlue Airways Corporation has forged a partnership with LimoRes.net and Hotels.com, to offer hotel and ground transportation on its web site at guaranteed low and discounted rates.
Hotels.com bookings made on the airline’s web site will come with a price match guarantee, no change or cancellation fees and no phone booking fees. Customers can also read guest reviews of hotels provided by TripAdvisor.
LimoRes.net bookings for ground transportation services will be available for most JetBlue destinations, including Boston, Fort Lauderdale, L.A./Long Beach, New York City, Orlando and Washington, DC/Dulles. The new option allows travelers to reserve the service online for a ride to or from the airport, including prompt curbside pick-up and drop-off by a local driver with GPS equipment to ensure efficient and stress-free travel to the final destination. For a small additional fee, customers can also elect to be picked-up inside the airport upon arrival.
The LimoRes.net online limousine reservation system operates in more than 172 countries and 5,000 airports worldwide, providing real-time prices and one bill for more than 14 different car service classes and in four different service levels.
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JetBlue Plans 2 New Caribbean Routes From Fort Lauderdale
Pending government approval, JetBlue plans to operate daily service from Fort Lauderdale to Santo Domingo, Dominican Republic and Cancun, Mexico, this winter. JetBlue will initiate Caribbean service from Fort Lauderdale on December 18 with twice-daily flights to San Juan. Service from Fort Lauderdale to Nassau, Bahamas, begins Feb. 1.
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Kayak Unveils Collaborative Search Engine, Fare History
Capitalizing on social networking technology, Kayak.com has launched new tools to help travelers find the most affordable dates of travel. The first, a collaborative search engine, enables two or more travelers in different locations to view the same search results simultaneously, and additionally, sort and filter those results in real-time.
Kayak has also combined its Buzz application, which offers a snapshot of pricing over a month, with its flexible search to create the Buzz Calendar: once a user inputs his destination airport and travel dates, Buzz Calendar displays the history of pricing for the calendar month specified, plus the best price found by other Kayak users over the past 48 hours, with the most affordable dates of departure highlighted.
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Kayak Unveils Collaborative Search Engine, History Of Bargain Fares
Capitalizing on social networking technology, Kayak.com has launched new tools to help travelers find the most affordable dates of travel. The first, a collaborative search engine, enables two or more travelers in different locations to view the same search results simultaneously, and additionally, sort and filter those results in real-time.
Kayak has also combined its Buzz application, which offers a snapshot of pricing over a month, with its flexible search to create the Buzz Calendar: once a user inputs his destination airport and travel dates, Buzz Calendar displays the history of pricing for the calendar month specified, plus the best price found by other Kayak users over the past 48 hours, with the most affordable dates of departure highlighted.
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Korean Air Increasing Service To DC, Beginning This Week
Korean Air is increasing its service between Asia and Washington, DC, on Thursday (December 11) by increasing from four times a week to daily. Flight KE094 will leave Dulles every day at 11:50 am, arriving in Seoul at 4:35 pm the next day. The return flight (KE093) leaves Seoul Incheon daily at 10 am, returning to Dulles at 9:45 am the same day, using B-777 aircraft with on demand entertainment and power outlets throughout the plane.
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L&R's Five Star Parking Winds Renewal Of OAK Airport Contract
The L&R Group's Five Star Parking division has won renewal of its contract with the Oakland International Airport (OAK), ahead of four other bidders. In the five-year, multi-million dollar deal, Five Star will manage daily parking, the economy lot and the valet operation at the airport.
L&R, headquartered in Los Angeles, operates five distinct parking divisions: Five Star Parking, WallyPark, Network Parking, Joe's Auto Parks and System Parking, Inc.
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LimoLiner Adds Free Fresh OJ, Wine, Seat Belts On NYC-Boston Run
LimoLiner Inc. has begun adding new comfort and safety amenities for its luxury road travel service between Boston and New York. New comfort amenities include freshly-squeezed orange juice with breakfast on all early departures; disposable headrest covers to enhance sanitation and comfort; and a complimentary glass of red or white wine on select evening trips. In addition, new seat belts are being installed on all vehicles in the LimoLiner fleet and a custom-produced video outlining safety rules and advice for routine travel, as well as emergencies, will be shown to passengers on each departure.
Seat belts are not legally required by the US Department of Transportation (DOT) but LimoLiner says it is "proud to be ahead of the curve in offering this safety feature." There will be no fee for the added amenities, according to Peter Pescatore, LimoLiner's CEO, who points out that his company also does not charge for "a blanket, pillow or for a seat with more room."
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LimoLiner Adds Free OJ, Wine, Seat Belts On NYC-Boston Run
LimoLiner Inc. has begun adding new comfort and safety amenities for its luxury road travel service between Boston and New York. New comfort amenities include freshly-squeezed orange juice with breakfast on all early departures; disposable headrest covers to enhance sanitation and comfort; and a complimentary glass of red or white wine on select evening trips. In addition, new seat belts are being installed on all vehicles in the LimoLiner fleet and a custom-produced video outlining safety rules and advice for routine travel, as well as emergencies, will be shown to passengers on each departure.
Seat belts are not legally required by the US Department of Transportation (DOT) but LimoLiner says it is “proud to be ahead of the curve in offering this safety feature.” There will be no fee for the added amenities, according to Peter Pescatore, LimoLiner’s CEO, who points out that his company also does not charge for “a blanket, pillow or for a seat with more room.”
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LimoRes Adds Ground Transport Option To JetBlue Site
LimoRes.net, an online ground transportation provider, has agreed to provide JetBlue customers with the option to book exclusive discount rates on the airline web site. The partnership will offer quality car service in most JetBlue destinations, including Boston, Fort Lauderdale, L.A./Long Beach, New York City, Orlando and Washington, DC/Dulles.
To take advantage of this service, customers may book on www.jetblue.com/cars at least 20 minutes prior to their desired pick-up time (times may vary by location). Rates vary depending on the location. The program complements JetBlue's current rental car partnerships across the nation and in the Caribbean.
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LimoRes.net To Provide Car Service Reservations On JetBlue Site
JetBlue Airways Corporation has forged a partnership with LimoRes.net, to provide customers with the option to book exclusive discount rates on the airline's web site for car service in most JetBlue destinations, including Boston, Fort Lauderdale, L.A./Long Beach, New York City, Orlando and Washington, DC/Dulles. The new option allows travelers to reserve the service online for a ride to or from the airport, including prompt curbside pick-up and drop-off by a local driver with GPS equipment to ensure efficient and stress-free travel to the final destination. For a small additional fee, customers can also elect to be picked-up inside the airport upon arrival.
The LimoRes.net online limousine reservation system operates in more than 172 countries and 5,000 airports worldwide, providing real-time prices and one bill for more than 14 different car service classes and in four different service levels.
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LodgeWorks Entering Boutique Market With New AVIA Brand
With the January opening of the AVIA Savannah, LodgeWorks is entering the boutique hotel market. LodgeWorks, a Wichita, KS-based hotel development and management company, plans to open the AVIA Napa and AVIA Long Beach in mid-2009 and AVIA The Woodlands, outside of Houston, in autumn 2009. All AVIA properties will be stand-alone, new-build hotels that are “highly distinctive and unique in character,” LodgeWorks says.
AVIA properties will be 70- to 160-room upscale hotels featuring the AVIA Kitchen, specializing in small dishes and tastings that showcase local and regional culinary traditions and fresh produce. AVIA would cater to the small-meetings market.
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Lufthansa Adds African Destinations With Expanded Ethiopian Codeshare
Lufthansa passengers now have a choice of four new code-share destinations in Africa, due to the expansion of its partnership with Ethiopian Airlines. These include flights from Addis Ababa to Kigali (Rwanda), Entebbe/Kampala (Uganda), Nairobi (Kenya) and to the Tanzanian airports Dar es Salaam, Kilimanjaro and Zanzibar. Nairobi and Dar es Salaam will also continue to be served on a code-share basis by SWISS.
Likewise, Ethiopian Airlines will be able to book its passengers under its own flight numbers on Lufthansa flights from Frankfurt to New York (John F. Kennedy and Newark), San Francisco, Los Angeles, Amsterdam, Geneva and Stockholm.
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Lufthansa Board Approves Bid For Austrian Airlines
Lufthansa's supervisory board has approved a plan to purchase up to 100 percent of Austrian Airlines. Lufthansa intends to initially acquire the 41.6 percent share in Austrian held by OIAG, the Austrian government's holding company. It has offered to pay 366,000 euros (about $465,000) for the Austrian government's share, plus 163 million euros (about $208 million) if Austrian hits certain performance targets. Then, Lufthansa plans to acquire private and institutional shares for 215 million euros (about $275 million). OIAG's supervisory board has given a green light to the proposed deal involving its shares.
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Lufthansa Board Approves Bid For Austrian Airlines
Lufthansa’s supervisory board has approved a plan to purchase up to 100 percent of Austrian Airlines. Lufthansa intends to initially acquire the 41.6 percent share in Austrian held by OIAG, the Austrian government’s holding company. It has offered to pay 366,000 euros (about $465,000) for the Austrian government’s share, plus 163 million euros (about $208 million) if Austrian hits certain performance targets. Then, Lufthansa plans to acquire private and institutional shares for 215 million euros (about $275 million). OIAG’s supervisory board has given a green light to the proposed deal involving its shares.
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Lufthansa Italia Prepares For February Launch Of Intra-EU Flights
Lufthansa unveiled its new Milan-based "Lufthansa Italia" airline last week, saying it plans to begin offering service between Milan Malpensa Airport and major European destinations in February. The airline's initial fleet will be comprised of six Airbus A319s, each offering 138 seats in business and economy class.
Flights to the first two destinations, Barcelona and Paris (Charles de Gaulle), will begin February 2. Service to Brussels, Budapest, Bucharest and Madrid will be added to the timetable four weeks later. London (Heathrow) and Lisbon will be brought into the network with the start of the 2009 summer flight schedules at the end of March.
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Lufthansa Lowers Fuel Surcharges
Effective December 16, Lufthansa has reduced its fuel surcharge to US$90 per segment on long-haul flights. On domestic German and intra-European routes, the surcharge has been adjusted to US$29.
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Marriott ExecuStay Expands Franchise Deal To Louisiana
Marriott ExecuStay, a provider of furnished temporary housing, has announced that Suite Options has becoming the franchisee for the Louisiana market. Suite Options also operates Marriott ExecuStay franchises in Texas, Iowa, Kansas, Missouri, Arkansas and Oklahoma.
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Mesa Air Offers $2M Settlement In Aloha Lawsuit
Mesa Air Group has agreed to make a $2 million cash payment to the holding company of the now-defunct Aloha Airlines as part of a lawsuit settlement. Also, Mesa has agreed to change the name of its Hawaii inter-island service from Go! to Aloha, if Mesa can acquire the name in bankruptcy court. Aloha ceased passenger operations at the end of March 2008.
Aloha sued Mesa in 2006, claiming that Mesa used confidential information to launch its Hawaii inter-island service. Mesa gained access to the confidential information as a prospective Aloha investor when Aloha was operating under bankruptcy protection.
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Mesa Pilots Ratify Labor Deal
Mesa Air Group's 1,300 pilots, represented by the Air Line Pilots Association, have ratified a two-year labor contract. Mesa operates regional service in the US for United, US Airways and Delta and flies its own service, Go!, in the Hawaiian Islands.
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Mesa-Aloha Branding Deal Put On Hold
A US Bankruptcy Court Judge in Honolulu has put Mesa Air Group's attempt to license the Aloha Airlines name on hold until February 19. Judge Lloyd King blasted the deal as insensitive to Aloha employees who lost their jobs when Aloha Airlines ceased operations at the end of March. When Aloha went out of business, it blamed the entrance of Mesa's Go Airlines in the Hawaii inter-island market for its demise. Judge King says he wants to give supporters and opponents of the deal more time to comment. Aloha's former majority shareholder, Yucaipa, has agreed to sell licensing rights for the Aloha name to Mesa, which in turn would rebrand its Hawaiian operations.
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Mexicana Introduces New Loyalty Program
As part of a general upgrade to products and services, Mexicana Airlines will launch MexicanaGo, a new loyalty program, in March. The airline says the new program offers flexible rewards and improved benefits for members, and enables customers to manage their accounts online. "To meet the needs and preferences of members, we have entered into strategic alliances with prestigious hotels, car rental agencies, banks (shared-brand credit cards), airlines (oneworld), telephone companies, department stores and Points.com, among others," says Adolfo Crespo, Mexicana's senior vice president of customer service.
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MGM Mirage Forms International Gaming Division
MGM Mirage Hospitality, an MGM Mirage subsidiary focused on operating the hotel brand outside the US, has formed a division responsible for international gaming expansion. Lloyd Nathan has been named president of the new division, named MGM Mirage Global Gaming Development. Nathan most recently served as executive vice president and managing director of MGM Mirage International. MGM Mirage Hospitality's first international casino project is the MGM Grand Ho Tram, a beachfront resort scheduled to open in 2011 in southwest Vietnam.
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MHI Hospitality Cuts Dividend For '09
In a move to conserve capital, hotel investment company MHI Hospitality Corp. has cut its 2009 annual dividend for shareholders to 20 cents per share. The payout had been at 68 cents per share. "The board of directors implemented this amendment after careful consideration and based on its expectation that the US economy, and in particular the lodging industry, will continue to face declining operating trends through 2009," said MHI.
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Missouri Hoteliers Offered Green Certification Program
The Missouri Hotel & Lodging Association has developed the Certified Green program in partnership with the Missouri Department of Natural Resources. The new program will focus on energy conservation, water conservation, waste minimization and recycling at hotels in the state.
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Morgans Gets More Time To Repay Loan For New Hotel
Morgans Hotel Group has received loan extensions for the Mondrian South Beach, a condo-hotel due to open in Miami Beach on December 1. The company says it secured extensions on third-party financing totaling $112 million for the property, a converted apartment building. Under the amended agreement, the initial maturity date of August 1, 2009, can be extended to July 29, 2013. Extension options are subject to certain conditions, including repayment of $17.5 million by August 1, 2009.
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Morgans Recapitalizes London Joint Venture
Morgans Hotel Group has announced a recapitalization of its London joint venture, enabling it to receive approximately $12 million in cash dividends. The London joint venture, a 50/50 partnership between Morgans and Walton Street Capital, owns the 204-room St. Martins Lane hotel and the 150-room Sanderson hotel in London.
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Morgans Recapitalizes London Joint Venture
Morgans Hotel Group has announced a recapitalization of its London joint venture, enabling it to receive approximately $12 million in cash dividends. The London joint venture, a 50/50 partnership between Morgans and Walton Street Capital, owns the 204-room St. Martins Lane hotel and the 150-room Sanderson hotel in London.
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Mount Airy Casino Asks Indicted Owner For Cash
The state-appointed trustee operating Mount Airy Casino Resort has asked the Pennsylvania Gaming Control Board to approve a process that would enable Louis DeNaples, the casino's indicted owner, to infuse cash into the property. The money would be used to pay taxes and fund capital projects, according to Tony Ceddia, the resort's trustee. "Like businesses in every sector of the economy, the current financial crisis has posed challenges for the company, particularly in the area of liquidity," says Ceddia, who has stressed that the property was current in all its obligations.
Gaming regulators barred DeNaples from entering the Mount Airy Casino Resort after he was charged in January with lying about alleged ties to organized crime figures. He has pleaded innocent.
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Mumbai Hotels Survey Damage After Terrorist Attacks
The Oberoi and the Taj Mahal Palace hotels in Mumbai, two of several sites in the Indian city targeted by Islamic terrorists last week, remain closed as owners assess the damage. Reportedly, other hotels in the city have introduced greater security measures in the aftermath of the attacks.
In a short period of time, a group of 10 terrorists armed with grenades and assault rifles attacked several soft targets in the city, including the two luxury hotels and the Victoria Terminus train station. According to published reports, at least 174 people were killed during the 60-hour ordeal that began on November 26.
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Names In The News
Benchmark Hospitality International has appointed Richard Pauley as director of sales and marketing for The Chattanoogan, located in the heart of Chattanooga, TN. Pauley was previously director of sales at French Lick Resort Casino in Indiana.
Cain Travel, based in Boulder, CO, has appointed Al Gilbert as district sales manager for the San Francisco Bay Area. Gilbert formerly worked for Carlson Wagonlit Travel in global sales, and BCD as regional sales director. Cain is expanding its customer base into Northern California with a focused expertise in end-to-end T&E management based on synchronizing client resources with integrated online and expense reporting technology."
Carino Hotels & Resorts has named Jan Jacobsen as its new director of sales & development for the Europe, Middle East and Africa regions. Jacobsen will focus on the corporate transient and group markets with emphasis on shifting market share to the member hotels, as well as the recruitment of hotels abroad to become members of Carino. The development of Jacobsen's position is part of the company's key growth initiatives for 2009, which includes increasing its presence in the global marketplace.
JetBlue Airways has increased the number of members of its board of directors to 12 and appointed Peter Boneparth, former president and CEO of the Jones Apparel Group, to fill the newly-created vacancy. Other past positions include as president and CEO of McNaughton Apparel Group and 10 years in investment banking.
PhoCusWright, a travel research firm, has appointed Ram Badrinathan general manager of the company's Asia Pacific region. Badrinathan joined PhoCusWright in 2002 and pioneered its efforts in the Asia Pacific region as senior director of research.
The Resort Collection of Panama City Beach, FL, has named Keith Wilt chief financial officer. The newly created position will oversee all financial operations of the Edgewater Management Company and its resorts. Wilt was vice president, CFO and asset manager for the Innisbrook Resort and Golf Club in Palm Harbor, FL.
SAS Group, owner of Scandinavian Airlines, has named Mats Lönnqvist chief financial officer and deputy president. He replaces Gunilla Berg, who is leaving the company.
Virgin America has announced that Robert B. Dana, its founding senior vice president and chief financial officer, will step down in early 2009. The exact date will depend on appointment of a new CFO; an executive search by Spencer Stuart is underway. Dana cited personal reasons for his decision, particularly the challenges of the transcontinental weekly commute from the New York area that he has conducted since the Company moved its corporate headquarters from Manhattan to Burlingame, CA, in 2005. Prior to joining Virgin America, Dana worked on Wall Street as an investment banker for 16 years at Credit Suisse First Boston and Piper Jaffray, covering the aviation and semiconductor industries.
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Names In The News 12-09-08
American Marketing Group (AMG - the parent company of Travelsavers, NEST, Travel Helpline, agent24 and others) has hired Cheryl B. Weldon to head its new travel agency group under The Affluent Traveler Collection. Previously vice president of major accounts at Worldspan, Weldon will have among her new responsibilities the development and management of travel agency and preferred supplier relationships, as well as marketing and technology efforts for the organization.
Atlas Travel International has hired Kelly Christner to oversee development of its new western division, which was opened in St. Louis on December 1. Christner comes to Atlas from American Airlines, where she was directly responsible for year-over-year sales increases of more than 20 percent, and managed more than $40 million in revenue per year. Atlas plans to increase the number of customer service agents and operational support staff in the new Western Division as well as to expand its IT and finance departments.
The Association of Corporate Travel Executives (ACTE) has named Kerin McKinnon, executive vice president of Atlas Travel International, as its US regional chair, and charged her with helping develop its regional champion program in cooperation with Bruce Finch, ACTE US regional board member and director of global travel and workplace sustainability programs for Autodesk Inc. The two are actively seeking current ACTE members to fill the roles of regional champions throughout the US to ensure that local issues and voices are heard.
CHI Hotels & Resorts has appointed Mounir Sami, previously general manager of the Corinthia Bab Africa Hotel in Tripoli, Libya, to now be general manager of the Corinthia Hotel St George's Bay Malta. In addition, CHI has named Jonathan Pace, previously deputy general manager at the Corinthia Palace Hotel & Spa in Attard, to be general manager of the Marina Hotel at the Corinthia Beach Resort in Malta.
Clearwater Beach Marriott Suites on Sand Key, FL, has appointed Deborah Cavanagh its national sales manager. Cavanagh was previously director of group sales at the Millennium Hotel St. Louis in Missouri.
FCm Travel Solutions has appointed Ciarán Kelly director of multinational business development within its European team, effective January 1. Kelly joined FCm's parent company, Flight Centre Limited, in 2002 as UK business development manager in its business travel division, then called Corporate Traveller. He went on to perform key roles within the UK business development team for the London and Greater London region after Flight Centre consolidated its corporate travel portfolio as FCm Travel Solutions in 2005.
GetThere has hired two well-known business travel executives to support its growth in 2009 and beyond: Joan England, previously vice president of marketplace performance for Meeting Professionals International, will be vice president of sales for North America; Duane Futch, previously director of Wal-Mart's global travel division, comes on board as vice president of travel procurement strategy, providing advisory services to clients, prospects and agency resellers, helping travel professionals analyze programs from a procurement perspective and devising configurable solutions that leverage GetThere's automation and support infrastructure. Both executives report directly to GetThere president Chris Kroeger.
Meeting Professionals International has announced that, after a comprehensive search, it has selected Trey Feiler as its new chief operating officer. Feiler most recently was senior vice president in charge of development at Jamba Juice Company. He will report directly to the organization's president and CEO, Bruce MacMillan, and will lead key divisions of MPI including knowledge and events; marketing and communications; and member care.
Priceline.com has promoted four executives to new senior management positions, effective January 1. Robert Mylod Jr., now CFO, will become vice chairman and head of worldwide strategy and planning. Daniel Finnegan, now senior vice president and chief accounting officer/controller, will be CFO. Matthew Tynan, now vice president of financial planning, strategy and analysis, will be senior vice president of finance and investor relations. Anthony Cali, now director and assistant controller, will be vice president and controller.
StarCite Inc. has announced that Kevin Iwamoto, formerly global commodity manager at Hewlett-Packard, has joined the company as vice president of enterprise strategy. Iwamoto brings more than 20 years of experience to his new role at StarCite, where he will be a key figure in both client and industry relations, guiding StarCite's overall strategy for engaging with buyers and suppliers. He also has served as chairman and president of the National Business Travel Association board of directors and has been widely honored for his numerous industry contributions and leadership.
The Dow Hotel Company, a hotel ownership and third-party management company, has promoted two of its senior general managers, Michael Pitstick and Steven Falciani, to the newly created positions of regional vice presidents of operations. Both will be based out of Dow's corporate office in Seattle, each responsible for all operational aspects of the company-owned and managed hotels in their respective regions. Pitstick previously was general manager of the Bellevue (Washington) Hilton and DHC's vice president of sales and marketing.
Falciani has been general manager and regional director of the 371-room Marriott Suites Anaheim.
The Heathman Hotel, Restaurant and Spa in Kirkland, WA, has promoted Kelly Smith to director of sales. The Heathman is the fourth hotel Smith has helped open. Prior to joining the Heathman in April 2007, she was on the opening team of the Westin Bellevue Hotel. Before Starwood Hotels, she worked as market sales manager for five Marriott Hotels in the Pacific Northwest.
The Heldrich in New Brunswick, NJ, has appointed Timothy J. Sofield as sales manager for the luxury downtown hotel. Sofield was previously global sales manager for Dolce Basking Ridge, located in Basking Ridge, NJ.
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Names In The News 12-16-08
Alaska Air Group, parent of Alaska Airlines and Horizon Air, has realigned the company's senior leadership. Brad Tilden has been elected president of Alaska Airlines. He previously was Alaska Air Group's chief financial officer and executive vice president of finance and planning. Glenn Johnson replaces Tilden as chief financial officer and executive vice president of finance. He formerly was Alaska Airlines' executive vice president of airport services/maintenance and engineering. Ben Minicucci was named Alaska Airlines' chief operating officer and executive vice president of operations. He previously was vice president of Seattle operations. Andrew Harrison was named vice president of Alaska Air Group's planning and revenue management. He had been managing director of planning. As part of the changes, Gregg Saretsky, formerly Alaska Airlines' executive vice president of flight and marketing, left the company.
The Arlington(TX) CVB has announced that Diane Brandon has been promoted to vice president of marketing & public relations as part of a series of several staff changes and promotions, as well as the creation of a new Austin- based position. Brandon's most recent position was vice president of communications & research. Joe Bedsole has been named director of state accounts for the CVB, starting in early 2009, as part of a plan to connect the Arlington region and the State of Texas Association market. In addition, Mary German has been named senior director of bureau services and programs; staff member Judy Zernechel has been promoted to convention services manager; Decima Cooper has been promoted to marketing and public relations coordinator. New hires include Michael Ly as web content editor and Kelly Bumgarner as convention sales assistant.
Atlas Travel International, a travel management company based in Milford, MA, has hired Kelly Christner to oversee the company's new western division office in St. Louis. Christner was in sales at American Airlines.
Benchmark Hospitality International has named Richard Pauley director of sales and marketing for The Chattanoogan in Chattanooga, TN. Pauley was previously director of sales at French Lick Resort Casino in French Lick, IN.
Langham Hotels International has promoted Amber Voelker to senior sales manager-Group at The Langham, Huntington Hotel & Spa in Pasadena, CA. In her new role, Voelker will continue to focus on securing new group business for the hotel throughout the eastern US, Europe and Canada, along with maintaining key client relationships and serving as a leader and mentor to other sales managers.
TRX has promoted Shane Hammond to CEO, succeeding Trip Davis, who assumes the chairman role at the travel technology company. Davis succeeds Joop Drechsel, who is the CEO of BCD Holdings, TRX's largest shareholder. Hammond, a six-year veteran at TRX, most recently was in charge of management, product development and delivery of RESX, the company's self-booking tool for corporate travelers.
United Airlines has named Gregory Kaldahl vice president of resource planning, responsible for route planning, network development and capacity planning. Since August 2006, Kaldahl has served as managing director of international planning and scheduling.
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Names In the News 12-2-08
Ambassadors International says Blake Barnett has resigned as chief financial officer, effective December 15. Laura Tuthill, chief accounting officer, will assume Barnett's responsibilities.
American Airlines has announced that Danny Martinez, vice president of line maintenance, has elected to retire in December. Ken Durst, currently managing director of line maintenance for American's Southwest division, will replace Martinez. Durst will be based in Tulsa, and will be responsible for setting strategy, establishing policies and managing all aircraft maintenance performed at airports worldwide by American Airlines mechanics.
Amtrak has named Joseph Boardman interim president and CEO. Boardman succeeds Alex Kummant, who resigned earlier this month. Boardman received a one-year appointment to lead the implementation of requirements detailed in the recently enacted authorization legislation, says Amtrak Chairman Donna McLean. Boardman has been administrator of the Federal Railroad Administration (FRA) since April 2005. Prior to that, Boardman had been commissioner of the New York State Department of Transportation.
The Fairmont Turnberry Isle Resort & Club has appointed Rita Healy as hotel manager for the Mobil Four-Star 392-room retreat. Previously, she served as director of operations for the AAA Five Diamond Fairmont Olympic Hotel in Seattle, and in several supervisory positions at The Fairmont Scottsdale Princess Resort.
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Names In The News 12-23-08
Carlson Hotels Worldwide has named Jean-Marc Busato president and managing director of Carlson Hotels Worldwide's Asia-Pacific division. Busato was Rezidor Hotel Group's area vice president and managing director for Middle East and Africa. Rezidor is Carlson's management partner in Europe, the Middle East and Africa. Carlson is also the largest single shareholder in Rezidor.
InterContinental Hotels Group has named Jim Abrahamson president for the Americas. Abrahamson takes over for Richard Solomons, IHG's finance director, who had been heading the Americas division on an interim basis since Steve Porter stepped down for health reasons in July. Abrahamson was most recently head of development for the Americas at Global Hyatt. He played a key part in Hyatt's entry into new markets and segments, leading on the acquisitions of AmeriSuites and Summerfield Suites and developing Hyatt Place and Hyatt Summerfield Suites.
The Department of Transportation under the administration of Barack Obama will be headed by Illinois congressman Ray LaHood. He is the second Republican that Obama has appointed to his Cabinet; the other is Defense Secretary Robert Gates.
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New York Council Could Pass Hotel Tax Increase Before Christmas
The New York City Council could approve an increase of the city's hotel room tax to nearly 6 percent of the room rate, up from the current 5 percent, as early as December 18. The increase would be effective in March. If the measure passes, the total amount of taxes and fees paid by hotel guests would be about 15.5 percent (includes a $2 occupancy tax and a $1.50 Javits Center surcharge, among other things). The Hotel Association of New York City condemns the proposed increase, saying that it would cause lost room revenue and lost jobs in the hotel industry during a time when it is already reeling from the economy.
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Newark Airport To Test New Traffic Control System
Newark Liberty will be the first US airport to test a satellite navigation technology called the Ground Based Augmentation System (GBAS), according to the Port Authority of New York and New Jersey. The port authority has authorized $2.5 million to cover the costs and oversee a contract with Honeywell to buy, install and maintain the GBAS system. Continental is investing approximately $1.1 million to outfit 15 planes with GBAS equipment and to train pilots. The FAA has committed as much as $2.5 million to assess the technology and expand its use.
The current radar technology is inefficient at busy airports because of the length of spacing necessary between planes, explains the port authority.
GBAS will enable planes to fly closer together and land more efficiently without affecting safety, said the port authority.
Full implementation of satellite navigation in the U.S. is "a number of years away and dependent on the expenditure of billions of dollars by the FAA for technologies that will serve as its backbone," said Port Authority Aviation Director William DeCota.
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Northwest Flight Attendants Sue Delta Over Seniority
The Association of Flight Attendants (AFA), the union representing Northwest Airlines' flight attendants, has sued Delta in US District Court to block the integration of seniority lists. The AFA claims the integration of seniority lists should not occur until the combined group votes on union representation. Delta's flight attendants do not belong to any union. Delta, which acquired Northwest in late October, plans to obtain a single operating certificate for Northwest-Delta operations.
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Omni Wins Recommendation To Manage Dallas Convention Hotel
The Dallas City Council's Economic Development Committee has recommended that Omni Hotels manage a 1,000-room hotel next to the Dallas Convention Center. The committee picked Omni over Marriott. Final approval is expected early next year. The hotel, scheduled to open in 2011, is expected to have 100,000 square feet of meeting space, several restaurants, lounges and a spa.
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Oneworld Selling Multi-airline Fares Online
Oneworld(r) has begun selling multi-airline round-the-world air tickets online with its new internet booking tool for its oneworld Explorer fare. Although the new online booking tool is now available only on the alliance's web site, member airlines are expected to add it to their own sites as well. Some may do so by providing a link to the oneworld site.
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Orbitz For Business Launches Canada And U.K. Operations
Orbitz for Business has launched travel-management services in Canada and the UK, and plans to launch international operations in continental Europe and Australia. Parent company Orbitz Worldwide called the international rollout of Orbitz for Business a key aspect of its strategy to increase bookings outside the US.
TRX was contracted to provide international ticketing, fulfillment and call center services.
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Orient-Express Hotels Win Rights To Cipriani Name In UK
A British judge ruled that the owners of the Cipriani restaurant in London cannot use the Cipriani name in the UK because its use breaks trademark law in the country. Orient-Express Hotels, operator of the famed Hotel Cipriani in Venice, had filed the lawsuit. Restaurant owners Arrigo and Giuseppe Cipriani, the son and grandson of the founder of the hotel, must change the name of the London restaurant or close down. The Ciprianis say they will appeal the ruling, which affects operations in the UK only.
The Ciprianis also have restaurants in New York, Hong Kong and Venice.
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Orlando International Opens Urgent Care Clinic For Travelers
Solantic, a provider of walk-in urgent care across Florida, has opened its newest clinic inside the Orlando International Airport (OIA), offering services to travelers, tourists and airport staff. The new clinic is the first-of-its-kind located within an airport in Florida.
The 1,100-square-foot clinic, located in the airport's B Terminal near the west security checkpoint, is expected to serve over 20,000 patients a year and will offer treatment for a wide range of healthcare needs, including coughs, colds and sore throats, headaches, upset stomachs, cuts and sprains. It will time-conscious technologies such as lobby monitors showing remaining patient wait time, as well as cell phone pages so that visitors can leave the facility to shop or eat until they receive a call from the clinic's staff alerting them it is their turn to be seen. Exam rooms will also be equipped with televisions.
Physician visits at Solantic start at $89, with most prescriptions available on site at a cost of $15. Solantic is contracted with most insurance plans.
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Ovation Travel: Hotel Rates For '09 Down 4.3 Percent
Ovation Travel Group, a New York-based travel management company, said 2009 rates at domestic and international hotels (three-, four-, and five-star) have fallen 4.3 percent, according to a survey of more than 400 hotels. "Hopefully, these lowered rates will serve as something of a relief to our clients' pocketbooks and help to curb travel costs at this time when belt-tightening has become standard travel policy for many of our corporate clients," says Paul Metselaar, CEO of Ovation Travel Group.
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PKF Hospitality Revises '09 Forecast Downward
PKF Hospitality Research has revised its revenue forecast for US hotels in 2009 downward, projecting a 7.8 percent decrease in revenue per available room (RevPAR). In a revised forecast in late October, PKF projected a 4.3 percent drop in RevPAR. The updated forecast was based on Smith Travel Research lodging data through September 2008 and the November release of Moody's US economic forecast.
"The speed and severity of the downturns in employment and income continue to accelerate," says Mark Woodworth, president of PKF Hospitality Research. "Given the strong correlation between these two economic measures and demand for lodging accommodations, we are forecasting 2.5 percent fewer occupied rooms in 2009."
A 2.5 percent falloff in demand, combined with a 2.9 percent increase in supply, will result in a 2009 occupancy level of 57.6 percent, according to the PKF forecast. The downturn will affect most US hotels, says the company, adding that leisure-oriented hotels in warm-weather destinations are particularly vulnerable. The hospitality research firm analyzed 50 US markets and determined that five of the seven largest RevPAR declines in 2009 will be in Florida: Miami (biggest US decrease at -12.9 percent), Orlando (-11.1 percent), Fort Lauderdale (-10.3 percent), West Palm Beach (-9.9 percent) and Tampa (-9.3 percent). Oahu and Phoenix also are in the top seven for RevPAR decline.
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Premier Inn Plans Floating Hotel To Circumvent Land Shortage
UK budget hotel chain Premier Inn has unveiled plans for a "floatel" in Hartlepool Marina in northeast England. The floating hotel is needed because of a growing demand for hotel accommodations in the Hartlepool Marina area but little viable building space on land. The new hotel will have 54 guest rooms and a special design that will restrict horizontal movement and the seasickness that it can cause. The waterfront hotel will be linked to an existing Premier Inn by a pedestrian ramp and an external platform lift.
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Prudential Combining Relocation And Real Estate Units
Prudential Financial is consolidating operations of its real estate and relocation businesses to streamline operations and realize cost and productivity efficiencies. The two units have already been working closely together; corporate and government employee relocations frequently involve the sale of the employee's home. The consolidation is expected to be finalized during the first half of 2009.
Prudential veteran Earl Lee has been named to the newly established role of president of Prudential Real Estate and Relocation Services, reporting to CEO John Van Der Wall. Lee will oversee the company's newly combined real estate and relocation operations. Although the company's relocation service operations will be moved to its Phoenix office, its government related sales team and account executives will remain in Washington.
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Qantas And British Airways In Merger Talks
British Airways says it was exploring a merger with Qantas Airways via a dual-listed company structure, in a statement written in response to media speculation. Qantas stressed that Qantas must keep its name in a merger, and that it would not allow an outright takeover of Australia's national carrier. However, Qantas indicated that Australia's foreign-ownership rules could be relaxed. Currently, foreign ownership of Qantas is limited to a maximum of 25 percent for a foreign individual and a maximum of 35 percent for a foreign airline.
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Quad Cities Convention Center Opens On Banks Of The Mississippi
The new $20 million Quad-Cities Waterfront Convention Center opens in January in Bettendorf, offering 24,000 square feet of flexible meeting and banquet space and eight meeting rooms, able to handle groups up to 1,400. The Quad Cities area (Bettendorf and Davenport, IA, plus Moline/East Moline, IL) is within a day's drive of Chicago, St. Louis, Des Moines, and Minneapolis. The Quad City International Airport offers over 70 flights daily to eight non-stop destinations on five major airlines. The Waterfront Center, located on the banks of the Mississippi River, is completely wireless and able to broadcast events live onto the city of Bettendorf's cable channel. It is connected via Skywalk to the Isle/s Casino Hotel, providing more than 500 guest rooms and an additional 13,520 square feet if function space, equivalent to another 1,000 attendees.
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Rearden Unveils Expense-monitoring Dashboard, Mobile Dining Service
Rearden Commerce, provider of a travel management online marketplace, has introduced two new capabilities: a site dashboard that monitors spending and a mobile dining service. The dashboard is an online tool that allows companies to monitor and manage spending for multiple services. Companies can review data on adoption rates, transaction metrics, spending and benchmark trends to determine policy adjustments needed to improve cost savings. The mobile dining service enables travelers to search for and book restaurants based on a company's policies. Additionally, it marks restaurants that offer rebates of up to 10 percent.
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Rearden's New Trend Survey: TMs Are Girding For A Tough Year
With travel managers already seeing a marked increase in tightening policies and budgets, 2009 will be the year when price takes precedence over comfort and convenience of corporate travelers, according to the inaugural quarterly trend survey conducted by Rearden Commerce. Going forward, Rearden's respondents say, travelers are likely be making more day trips and getting less hand-holding when they grapple with on-the-road encumberances. Travel programs will be making greater use of web-conferencing and less-expensive hotel bookings. Pre-trip approvals and advance ticket purchasing will get greater emphasis.
Among the specific findings of the survey:
* 68 percent say policy compliance will be getting top priority this year.
* 88 percent have seen a marked increase in stringent requirements and tighter requirements for pre-trip approvals.
* 71 percent expect a significant decline in the number of business trips overall.
* 82 percent say price has become more important than comfort and convenience.
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Red Lion Initiates Stock-Repurchase Program
Red Lion Hotels Corp.'s board of directors has authorized a stock-repurchase program that enables the company to buy up to $10 million of its common stock. The timing and actual number of shares repurchased will depend on price, corporate and regulatory requirements, and other market conditions, the company says. Red Lion has 47 hotels in its portfolio.
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Ritz-Carlton Plans Debut Of Low-density Resort Brand: Reserve
The first Ritz-Carlton Reserve will open in Krabi, Thailand, in March. Phulay Bay, a Ritz-Carlton Reserve will offer ocean views, private plunge pools, sheltered outdoor baths and showers set among indigenous flora. Ritz-Carlton says the Reserve brand will feature low-density resorts in secluded settings. Reserve resorts are planned for Costa Rica, Puerto Rico, Turks & Caicos and the United Arab Emirates.
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Ryanair Bids For Aer Lingus
Ryanair has offered to acquire 100 percent of Aer Lingus in an all-cash transaction that would pay shareholders about $176 million and the Irish government $242 million. Ryanair already owns 30 percent of the Irish airline. Ryanair’s cash offer (about $1.80 per share), is a premium of approximately 25 percent over Aer Lingus's closing price on November 28. Aer Lingus rejected a Ryanair offer of 2.80 euros per share in 2006. Ryanair proposes to operate Aer Lingus as a separate company.
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Ryanair Makes Offer For Aer Lingus
According to a regulatory filing, Ryanair has offered to acquire 100 percent of Aer Lingus in an all-cash transaction. Ryanair already owns 30 percent of the Irish airline. Ryanair's cash offer is 1.40 euros (about $1.80) per share, a premium of approximately 25 percent over the closing price (1.12 euros) of an Aer Lingus share on November 28. Aer Lingus rejected Ryanair's offer of 2.80 euros per share in 2006.
Ryanair proposes to operate Aer Lingus as a separate company under the Aer Lingus brand. If the offer is accepted, Aer Lingus' employee shareholders would receive about $176 million, and the Irish government would receive about $242 million.
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Sabre Acquires Tech Company To Support Airline Merchandising
Sabre Holdings has acquired EB2 International, a London-based vendor of e-commerce products and services to airlines. EB2's products and services will be incorporated into Sabre Airline Solutions. Sabre anticipates that the acquisition will advance the development of SabreSonic Customer Sales and Service, a new business that supports airlines' merchandising needs.
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San Francisco Hikes Hotel Tax To Fund Expansion Of Moscone
San Francisco's city government has approved a hotel tax increase, the proceeds of which will fund expansion and renovation projects at the Moscone Convention Center. The new tax, which goes into effect January 1, is 1 percent or 1.5 percent of the room rate, depending on a hotel's proximity to the convention center. Currently, San Francisco hotel patrons pay a 14 percent tax rate, so that figure will rise by 1 or 1.5 percentage points. The average daily room rate in San Francisco was $186.51 in August, according the most recent numbers from PKF Hospitality Consulting.
The San Francisco Convention & Visitors Bureau, which proposed the tax, says it had the approval of 95 percent of the city's hotel owners and operators. Without the tax increase, the city would not be able to pay for improvements to the Moscone Convention Center, potentially leading to a loss of convention business, the CVB says.
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South African Airways Adjusts US Service
South African Airways (SAA) will launch nonstop service from New York to Johannesburg on May 1, eliminating a stop in Dakar, Senegal. The return flight to New York will continue to stop in Senegal. SAA says the morning flight will enable passengers to take a same-day connection to other destinations in Africa. Also on May 1, SAA's evening flight from Washington Dulles to Johannesburg will stop in Senegal instead of flying nonstop.
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Southwest Advances WestJet Codeshare Plan
Southwest has applied for the right to operate flights between the US and Canada, even though the airline has no immediate plans to fly its own planes to Canada. The application with the Department of Transportation for a foreign air transportation certificate is required before Southwest can implement its codeshare agreement with Canadian carrier WestJet. The airlines plan to announce codeshare flight schedules in the second half of 2009.
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Southwest Eliminates Spring Flights
Southwest Airlines will eliminate a net of 13 roundtrips from its flight schedule spanning May 9 to June 26, 2009. The airline will scrap 32 flights from its current schedule and add 19. Southwest said the move was part of its plan to maximize aircraft productivity and focus on key cities such as Denver. One of the new flights is a daily roundtrip between Denver and Tucson, AZ.
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Southwest Reaches Deal With Mechanics
Southwest Airlines and the Aircraft Mechanics Fraternal Association (AMFA) have reached a tentative agreement with a four-year term. Southwest says the contract was "cost neutral," paying raises in exchange for "work rule improvements and contract flexibility."
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Southwest's Web Site Activates WestJet Link
Southwest Airlines now provides a link to WestJet's booking portal on Southwest.com. The move is the first step in a partnership that Southwest and the Canadian carrier announced in July. The two airlines say that, under that agreement, they will be able to announce codeshare flight schedules by late 2009.
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Spirit Applies For Route To Columbia's Coffee Region
Ultra low cost carrier Spirit Airlines applied to the US Department of Transportation to offer service between Fort Lauderdale and Armenia, Colombia, an area known for its coffee production. If approved, Spirit plans to begin non-stop service between the two cities by summer 2009. The ultra low-cost carrier expects to begin daily non-stop service to Medellin, Colombia, on March 1. It already offers daily non-stop service from Fort Lauderdale to both Bogota and Cartagena from its gateway in Fort Lauderdale.
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Spirit To Link Myrtle Beach And Chicago
Spirit Airlines will operate daily service between Chicago O'Hare and Myrtle Beach from March 1 to November 11. Spirit also will offer connections via Myrtle Beach for the Chicago-New York, Chicago-Boston and Chicago-Atlantic City markets.
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Star Alliance Opens New Lounge At Paris's de Gaulle Airport
Star Alliance has opened a lounge on levels 10 and 11 of Terminal 1 at Paris Charles de Gaulle (CDG) Airport. The 850 square metre facility is the largest of its kind in the terminal and offers space for more than 200 customers. It is available to first and business class customers as well as Star Alliance Gold Card holders travelling from CDG Terminal 1 on Star Alliance member airlines.
Customers are offered a wide range of complimentary drinks and can choose from a selection of international hot and cold menus. Business Centre work stations are located on both levels and complimentary Wi-Fi Internet access is available throughout the lounge. Shower facilities, state-of-the-art television screens and a wide selection of international newspapers and magazines round off the service.
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Starwood's Top Customers Get Free Clear Trial
Starwood Hotels & Resorts' Platinum members are getting free Clear cards for a year. Gold and Preferred members of Starwood's loyalty program will receive three-month trial offers. Registration can be completed through February 28.
The usual fee for Clear membership is $199 per year.
When activated, the card enables the holder to use Clear-operated security lanes at participating US airports. Clear customers must submit biometric information (fingerprint and iris scans) in exchange for the expedited processing through airport security.
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Suite Options Introduces Marriott ExecuStay In Louisiana
Suite Options, a division of Transitions Group Inc., has signed on as a franchisee for Marriott ExecuStay corporate housing in the state of Louisiana. This will be Suite Options' 12th ExecuStay franchise market. Suite Options also operates Marriott ExecuStay corporate housing franchises in markets in Texas, Iowa, Kansas, Missouri, Arkansas and Oklahoma.
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Sun Country Secures Financing
Sun Country Airlines, operating under Chapter 11 bankruptcy protection since October, has received approval from US Bankruptcy Court Judge Robert Kressel to open a new line of credit to meet payment obligations. The financing came from a sister company. The financing enabled Sun Country to restore employee wages to pre-bankruptcy levels. Earlier in the year, the Minnesota-based airline's employees had taken pay cuts of between 10 percent and 15 percent.
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SuperShuttle Enables Customers To Earn Delta Miles
SuperShuttle is offering Delta SkyMiles to customers who book airport rides at SuperShuttle's web site. Customers can earn 50 miles in each direction for riding SuperShuttle. Delta is the fourth airline to enter a frequent-flyer marketing partnership with SuperShuttle. (US Airways, Northwest and Frontier are the others.)
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Travelocity Business Joins Radius Network
Travelocity Business has become a member of the Radius network of travel management companies. Radius’ technology and on-the-ground options could best deliver a localized offering to clients in other countries, says Travelocity Business, adding that the company is attracting an increasing number of multinational accounts.
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Travelport Inks Full-Content Deal With Portugal’s TAP
Travelport GDS has signed a full-content agreement with TAP Portugal, providing all travel agency users of the Galileo and Worldspan distribution systems with access to all of TAP’s published fares and inventory, including web-only fares. In addition to the full content, Travelport and Portugal’s flag carrier will work together to explore ways to grow sales in markets across Africa as well as in France, Italy and Brazil.
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Travelport Inks Full-Content Deal With Portuguese Carrier TAP
Travelport GDS has signed a full-content agreement with TAP Portugal, providing all travel agency users of the Galileo and Worldspan distribution systems with access to all of TAP's published fares and inventory, including web-only fares. In addition to the full content, Travelport and Portugal's flag carrier will work together to explore ways to grow sales in markets across Africa as well as in France, Italy and Brazil.
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Travelport Partners With Carbon Calculator
Travelport GDS has formed a global marketing alliance with The Hotel Carbon Index Company, creator of the CarePar system for measuring carbon emissions within the hotel industry. As part of the agreement, Travelport will include CarePar hotel carbon emission data in Travelport GDS products, including Travelport Carbon Tracker.
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Trenitalia Launches High-Speed Train Linking Milan & Rome
Trenitalia earlier this month connected Milan and Rome with a new high-speed train link. The service shaves an hour off the route, bringing it down to 3 hours and 30 minutes, says Trenitalia, and reaches a maximum velocity of 186 mph.
The route's Red Arrow Train will be available for reservations on Rail Europe's travel agent web site in January.
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Trust Int'l Widens Rate-loading Ability To An Entire Chain
Trust International has launched Voyager|CRS 14, an enhanced version of its core centralized reservation system for hotel groups, leading off with a new mechanism that allows a hotel to load a rate across an entire chain in a single step. In addition, Trust's central reservation handling engine has added a text message feature allows hotels and hotel chains to broadcast messages directly to call center agents. And finally, new reports are now available on Trust's commission handling program, giving hotels a better view of outstanding and processed payments by property or agency, down to identifying the status of a single transaction, thus expediting delivery of commissions to agencies.
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TWIN Adds California Travel Agency
The TWIN (Travelsavers Worldwide Independent Network) network of travel management companies has added Traveltrust Corp. to its group. The company is headquartered in Encinitas, CA.
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UATP Adds Shenzhen Airlines As Merchant
Shenzhen Airlines now accepts Universal Air Travel Plan (UATP) for corporate payment. "Business travel within China continues to grow despite the state of the economy," says Li Kun, president of Shenzhen Airlines. "Meeting customer demand for UATP acceptance convinced us to become a UATP merchant." UATP is a low-cost payment network privately owned by airlines.
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United Sells, Then Leases Back 15 Planes To Add $250M To Coffers
United Airlines has sold 15 Boeing 757s to East Shore Aircraft for $150 million in cash. United will lease the planes back from East Shore Aircraft and will continue to operate and maintain the aircraft. With the completion of this transaction, United says it has raised more than $250 million of the $300 million of additional liquidity the company expects to raise in the fourth quarter of 2008, on top of nearly $1.4 billion the company raised in the third quarter.
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United To Pay Bonuses For Top On-time Ranking
Under a new incentive program, United Airlines says the majority of its union employees will earn $100 if the airline achieves a first-place ranking in the Department of Transportation's monthly on-time arrival rankings. Employees will get a $65 payment if the company achieves a second-place ranking or meets its own stated goal.
The airline was ranked 10th in October, 17th in September and 15th in August. United is next-to-last for the 12 months ended in October 2008.
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Virgin America Hikes CA-DC Capacity For Obama Inauguration
Virgin America is adding flights to and from Washington DC's Dulles airport (IAD) to meet the rise in demand for travel to the presidential inaugural activities the week of January 20. The airline will operate three additional roundtrips from San Francisco International Airport (SFO) and Los Angeles International Airport (LAX) to Washington Dulles (IAD) from January 16-23, operating on new Airbus A320s. The flights constitute a 23 percent increase in seats available that week.
The airline is also sponsoring students from the KIPP Academy of Opportunity in South Los Angeles for a visit the nation's capital for the inaugural week festivities.
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Virgin America To Start Boston Service
Virgin America will launch service from Boston to San Francisco and Los Angeles on February 12. The airline plans to fly two daily roundtrips to San Francisco and three daily roundtrips to LAX. Boston will be the eighth city in Virgin America's network.
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Virgin Atlantic Calls For Rejection Of AA-BA Alliance
Virgin Atlantic Airways is urging the European Commission to reject a proposed transatlantic joint venture between British Airways and American Airlines. Virgin Atlantic is calling the AA-BA proposal a "virtual merger." In a document submitted to European Commission competition authorities, Virgin Atlantic says that British Airways and American, if allowed to collaborate on transatlantic routes, "would use their market power to raise fares, adjust schedules to keep out competitors and cut off connecting feeder traffic to other carriers at Heathrow."
British Airways on its own is already bigger between London Heathrow and the US than the Star Alliance is from Frankfurt to the US, or SkyTeam is from Paris to the US, argues Virgin Atlantic.
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VisaHQ.com Opens Office In Canada
VisaHQ.com, a US-based provider of online passport and visa services, is now providing its service to Canadians. The company has opened an office in Ottawa to support international expansion.
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W Partners With Online Music Magazine Linked To African Relief
W Hotels has signed a marketing deal with Redwire, an online music magazine. Through December 2009, W Hotels' Redwire package includes a six-month Redwire membership that delivers music from artists such as John Legend, U2 and Sheryl Crow. As part of the partnership, W and Redwire will offer additional co-branded programs throughout 2009, such as the streaming of exclusive Redwire concert footage though a dedicated in-room television channel. A portion of the proceeds goes to the Global Fund, helping to buy lifesaving medicine for those who need it in Africa.
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WestJet Offering Pillow-Blanket Kits For $7; Old Style Still Free
Canadian low-cost carrier WestJet has introduced a pillow and blanket kit that customers can buy onboard all flights for $7. The kit, produced by CleanBrands, also includes a $5 coupon that can be used toward the purchase of a CleanBrands product through its web site. Reusable blankets will still be available on all WestJet flights at no charge.
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WestJet Offering Pillow-blanket Kits For $7; Old Style Still Free
Canadian low-cost carrier WestJet has introduced a pillow and blanket kit that customers can buy onboard all flights for $7. The kit, produced by CleanBrands, also includes a $5 coupon that can be used toward the purchase of a CleanBrands product through its web site. Reusable blankets will still be available on all WestJet flights at no charge.
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Wyndham Worldwide To Eliminate 4,000 Jobs
Wyndham Worldwide says it plans to cut approximately 4,000 jobs by the first quarter of 2009. The biggest cut will be in operations at Wyndham Vacation Ownership, which is being downsized, the company explains, because that will cut its reliance on the asset-backed securities market for financing. "With the credit markets showing no signs of improvement, we are effectively eliminating our need to access the securitization markets to support an otherwise well-performing vacation-ownership business," says Wyndham Worldwide CEO Stephen Holmes. Wyndham expects to reduce vacation-ownership sales by 40 percent in 2009, to approximately $1.2 billion, by eliminating sales offices and marketing programs.
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Ypartnership Study Reveals Growing Use Of Travel Agents
Three out of ten American travelers are now using the services of a travel agent on a regular basis, according to a study by research firm Ypartnership, which attributes the growth to travelers' placing a higher value on the time it takes to search multiple web sites than the fee for having an agent do the work for them. Also, consumers see agents as a potential source of unadvertised deals, says Ypartnership.
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