EXECUTIVE TRAVEL SKYGUIDE E-ALERT 12/27/04

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of December 27, the weekly e-mail of essential business travel news!

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Many Comair/Delta Connection flights grounded after computer crash
Southwest wins ATA deal; sees expansion of code-sharing
Independence Air said to be seeking revival of United Express status
Delta adding 70-seat jets to Delta Connection operation
TSA reviews shoe removal, female pat-down policies
LAX opens new "cell phone waiting lot" for drivers

AIRLINES

Many Comair/Delta Connection flights grounded after computer crash
Anyone booked to fly on Comair over the next few days better call ahead to confirm that their flight will operate. Comair, which flies as the Delta Connection out of Delta's Cincinnati hub, suffered a temporary shutdown of operations over Christmas due to a computer crash. As a result, hundreds of flights were abruptly cancelled and thousands of passengers were stranded. Comair resumed some flights on Sunday (December 26) -- but only about 10 to 15 percent of its normal schedule. The company urged passengers to call 800-325-1999 or check flight status at www.delta.com. Comair said it hopes to be operating something close to its full schedule of 1,160 daily flights by the middle of this week.

US Airways also gave headaches to thousands of travelers over the holiday weekend, apparently due to an unusually large number of flight attendants and baggage handlers calling in sick. This is not a good sign for a company that has threatened to liquidate by mid-January unless it wrings ever more wage concessions out of its unions by then. Besides canceling several hundred flights over Christmas, US Airways also lost the bags of thousands of passengers, and still hadn't returned them all by Monday (December 27).

Southwest wins ATA deal; sees expansion of code-sharing
As expected, a federal bankruptcy court in Indiana last week approved Southwest Airlines' bid to acquire half a dozen gates from ATA Airlines at Chicago's Midway Airport, to acquire a minority stake in the ailing carrier when it emerges from Chapter 11, and to begin code-share services with it. Southwest won out over a competing bid from AirTran to take over all of ATA's Midway gates and its slots at LaGuardia and Washington Reagan National. The deal is worth a total commitment of $117 million, ATA said.

Southwest said that in addition to its planned code-sharing with ATA at Chicago Midway, "future code-share connection opportunities are possible at Las Vegas, Seattle, Phoenix, Los Angeles International and Orlando." Southwest also said it will begin new Chicago-Portland, Ore. non-stops in April.

Fitch Ratings, the Wall Street firm, said the deal could make Southwest a powerhouse in the Chicago market. "Because both of Chicago's airports are gate-constrained with no near-term facilities expansion opportunities, revenue per available seat mile growth fundamentals for Southwest at Midway are among the most promising in its route network," Fitch analysts said. "Southwest has already increased the number of daily departures at Midway to approximately 145, and could rapidly grow Midway to become one of its largest airports, nearing the size of its Las Vegas and Phoenix operations, once the handover of the former ATA gates is completed."

Independence Air said to be seeking revival of United Express status
USA Today reported last week that FLYi Inc., the parent of financially-ailing Independence Air has gone crawling back to United Airlines in an effort to again serve as part of the United Express network. Independence Air was created earlier this year as a low-cost carrier based at Washington Dulles, where it had previously been known as Atlantic Coast Airlines, operating there as United's primary regional partner. After several months of flying as Independence Air, the company has reportedly been mired in red ink. Low passenger load factors and rising fuel costs have put such a squeeze on its bottom line that Independence executives recently warned they might have to seek Chapter 11 protection by January if they can't renegotiate a big aircraft lease payment coming due.

But according to the newspaper, some of the company's investors have been pressing it to give up the independent operation and return to its more profitable experience as a regional feeder. FLYi is said to be bidding against nine other carriers for a new United Express contract. FLYi would only say that it is "having discussions with other airlines regarding potential strategic or business opportunities," and that it is "continuing to develop its Independence Air brand."

Delta adding 70-seat jets to Delta Connection operation
Delta Air Lines said last week it will add several 70-passenger Embraer 170 regional jets to it Delta Connection fleet starting in 2005, to be operated by Republic Airlines, a sister company of existing Delta Connection partner Chautauqua Airlines. Delta Connection/Republic will get eight of the 70-seat planes in 2005 and eight more in 2006; they'll replace 50-seat Embraer jets that had been scheduled for delivery to Chautauqua. Delta didn't say where they'll fly, except to note the new planes will operate on routes that can't be served economically by mainline jets or by the smaller regional jets in the Delta Connection fleet. The Delta Connection Embraer 170s will have a six-seat first class section, offering two-by-one seating and 36-inch pitch. Coach cabins will have 64 seats arranged two by two with 32-inch pitch, extra luggage space, wider aisle and larger seats than smaller regional jets, Delta said.



FAA/SECURITY

TSA reviews shoe removal, female pat-down policies
The Transportation Security Administration plans to conduct a review of its shoe-removal policy for passengers, the Washington Post reported last week. The newspaper said it had received dozens of complaints from readers about inconsistent application of the TSA's existing show policy, which says that passengers are not required to remove their shoes when going through security - but that they might be subject to a secondary inspection if they don't. Readers who complained to the newspaper said they have been ordered to remove their shoes at some airports, but not at others. A senior TSA official told the Post that because of such complaints, the agency is taking a new look at its existing policy and its application in the field.

Meanwhile, TSA also has responded to complaints from female passengers about overly intrusive pat-downs by some agency employees, a practice instituted a few months ago due to fears of female terrorists wearing explosives on their person - as apparently happened in Russia, resulting in two fatal crashes. From now on, TSA said, above-the-waist pat-downs of women passengers (which are always conducted by female screeners) are supposed to be limited to the "chest perimeter," and not to get more personal than that.

AIRPORTS

LAX opens new "cell phone waiting lot" for drivers
At Los Angeles International, officials last week cut the ribbon on the first of three "cell phone waiting lots" designed to accommodate persons who are picking up arriving travelers. To reduce congestion on airport roadways, persons waiting for someone can park temporarily in the cell phone lot, then proceed to the terminal curbside after the arriving party has notified them by cell phone that they're ready to be picked up. The first new lot, with space for 79 cars, is at 9011 Airport Boulevard, north of the intersection with Arbor Vitae/Westchester Parkway. It's about a five-minute drive from the Central Terminal area.

1800CheapSeats


THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS

Malaysia Airlines (800-552-9264; www.malaysiaairlines.com) set a January 16 ticketing deadline for winter sale fares to Kuala Lumpur, Singapore and Australia. The fares apply for travel from January 16 to March 31. Roundtrip fares are as low as $699 for flights between LAX-Kuala Lumpur, Newark-Kuala Lumpur, LAX-Singapore or Newark-Singapore. Fares to Sydney, Melbourne or Brisbane via Kuala Lumpur start at $899 from either U.S. gateway.

Going to New Orleans? The Wyndham Bourbon Orleans-A Wyndham Historic Hotel (800-996-3426; www.wyndham.com), which was recently renovated, has reduced rates starting at $109 a night through January 31. Located in the French Quarter, the hotel has wired and WiFi Internet access in all guest rooms.

Radisson Edwardian's (800-333-3333; www.radissonedwardian.com) 10 hotels in London now offer high-speed wireless Internet access as part of their Business Class rates, which also provide a large room with extra workspace; a personal phone number, early check-in, late check-out, full breakfast and a daily newspaper. Sample nightly Business Class prices are $248 at The Vanderbilt, $259 at The Grafton, $288 at The Sussex, $336 at The Berkshire, $394 at the May Fair and Hampshire.

For links to other websites where you can search for bargains, click here: www.executivetravelonline.com/reference/deals.html

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By Jim Glab

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