EXECUTIVE TRAVEL SKYGUIDE E-ALERT 01/03/05

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of January 3, the weekly e-mail of essential business travel news!

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Delta said to plan domestic fare overhaul this week
United flight attendants vote to support job action
Aloha Airlines files for Chapter 11 reorganization
United to cut domestic schedules this week
Continental orders next-generation Boeing 7E7 Dreamliners
Connexion by Boeing expands in-flight Internet service to more routes
DOT seeks consumer reports of holiday travel disruptions
Feds probe recent incidents of lasers aimed at aircraft
DFW Airport signs on 49 concessionaries for new Terminal D
Hyatt to absorb AmeriSuites into company, Gold Passport program

AIRLINES

Delta said to plan domestic fare overhaul this week
Time Magazine reported on its web site that Delta Air Lines is expected to unveil a major fare initiative this week. Delta's plan will reportedly involve cutting prices across the board, ending the Saturday night stay requirement for discount fares, and dropping its ticket change fee from $100 back to $50. You may recall that those were all elements of a pricing initiative that Delta rolled out in the Cincinnati market last year, and the airline has reportedly decided to spread the tactic throughout its domestic system.

United flight attendants vote to support job action
Eighty-eight percent of United Airlines' flight attendants last week voted to initiate strike activities if the bankruptcy court allows the company to toss out its current contract. The judge overseeing United's reorganization is due to begin hearings January 7 on the airline's request to terminate its labor contracts if it cannot successfully renegotiate them -- which United says it must do in order to emerge from Chapter 11. The flight attendants' union said that if its contract is unilaterally ended, it will implement a strategy called CHAOS (Create Havoc Around Our System). "Action could take the form of a system-wide one-day strike, a strike targeted for one specific city, or an individual flight at a remote location," the union said. United management said it believes that such action is prohibited by the Railway Labor Act and the Bankruptcy Code.

Flight attendants at bankrupt US Airways recently approved a similar job action, but their union came to an agreement with management on new contract terms.

Meanwhile, the federal Pension Benefit Guarantee Corporation last week petitioned the bankruptcy court to take over the pension plan for United's pilots. The pilots had agreed to forego their traditional defined benefit plan as part of a new wage concession pact with the company. United has told the court that it needs to shed all of its current pension obligations in order to emerge from bankruptcy in a condition to compete effectively.

Aloha Airlines files for Chapter 11 reorganization
Hawaii-based Aloha Airlines and its parent company, Aloha Airgroup, last week became the newest members of the bankrupt airlines club. Aloha filed for Chapter 11 protection, but pledged it will operate "business as usual as we move forward to complete the restructuring of our company," according to CEO David Banmiller. The other Hawaii-based carrier, Hawaiian Airlines, filed for Chapter 11 restructuring in March 2003. Aloha, which was the beneficiary of $45 million in government-backed loans courtesy of the federal Air Transportation Stabilization Board, blamed its troubles not only on rising fuel prices and price competition, but also on reduced visitor arrivals from Asia and increasing numbers of flights from the mainland operating directly to Hawaiian islands other than Oahu.

United to cut domestic schedules this week
Frequent travelers on United Airlines should expect to see fewer options for domestic travel after January 6. That's when the airline is expected to implement a reduction in domestic flight operations as part of its ongoing efforts to cut costs. Domestic flight capacity will reportedly be cut back by about 14 percent overall, mainly by reducing frequencies out of United's hubs at Chicago O'Hare, Denver, San Francisco, Los Angeles and Washington Dulles. However, United is expected to boost operations on its international routes, so the net reduction in capacity system-wide will amount to around three percent.

Continental orders next-generation Boeing 7E7 Dreamliners
Continental Airlines last week became the first major U.S. carrier to place an order for Boeing's new 7E7 Dreamliners. The company ordered 10 of the next-generation airplanes, worth a total of $1.3 billion. Continental will start taking delivery of the planes in 2009, and will put them into service on international routes out of its Houston and Newark hubs. Boeing claims that airlines will save up to 20 percent on fuel costs with the 7E7, which is lighter weight because of the composite materials used in its construction. Foreign carriers that have ordered 7E7s include ANA, Air New Zealand and Japan Airlines.

Connexion by Boeing expands in-flight Internet service to more routes
Connexion by Boeing, the Boeing subsidiary developing high-speed WiFi in-flight Internet services, has issued a progress report noting that its product is becoming available on a wider range of international air routes. During December, Boeing said, the Connexion by Boeing service was deployed on Japan Airlines' Tokyo-London route; on selected SAS routes out of Copenhagen; and on Lufthansa's Munich-San Francisco and Munich-Miami routes. It was already available on ANA's Tokyo-Shanghai route and on Lufthansa service from Frankfurt to Denver, and from Munich to Charlotte, Tehran, Tokyo and Los Angeles.

In 2005, Boeing said, "passengers can expect to see the rollout of new offerings, such as TV, and enhanced support for a broad array of services in an effort to enhance their in-flight experience." Also in December, Connexion by Boeing signed an agreement with Singapore Airlines to install the service on its long-haul fleet.

FAA/SECURITY

DOT seeks consumer reports of holiday travel disruptions
Did you run into problems traveling over the recent holiday period, as thousands of US Airways and Comair/Delta Connection passengers did? If so, you might want to participate in the Transportation Department's investigation of those problems. DOT's Office of Inspector General is asking passengers to report their difficulties to a special toll-free phone number - 866-670-3341 - or to send an e-mail detailing their travel disruptions via the Inspector General's web site at www.oig.dot.gov.

Feds probe recent incidents of lasers aimed at aircraft
The FBI has started investigating several recent incidents of laser beams apparently being deliberately aimed at the cockpits of commercial airliners. While none of the events caused any problems for the planes involved, the government reportedly wants to find out if the laser incidents are simply pranks or something more serious. There was one recent warning from government security officials that terrorists have looked into the possibility of using lasers for just such a purpose. The beams could conceivably cause temporary blindness in pilots and disrupt their landing activities. The recent laser incidents - all aimed at aircraft that were approaching airports for landing - occurred in Colorado Springs, Cleveland, Washington D.C., Houston, Teterboro (N.J.) and Medford (Ore.).

AIRPORTS

DFW Airport signs on 49 concessionaries for new Terminal D
Officials at Dallas/Ft. Worth International have signed on 49 concessionaries to operate restaurants, shops and other retail businesses in the new International Terminal D, which is expected to open later this year. The airport said it expects to offer a total of 60 concessions at the new terminal, which will be able to handle 37,000 passengers a day. Many of the concessions are units of local north Texas businesses, including MallaSadi Men's Boutique, Chammps Sports Bar, La Duni Latin Kitchen, Cool River Cafˇ, Blue Mesa Cafˇ, Reata Grill, Cantina Laredo, Cousin's Bar-B-Q and Railhead Smokehouse BBQ. Other food outlets include the usual national chains like Au Bon Pain, Ben & Jerry's, Bennigan's, McDonald's and T.G.I. Friday's. There will be three Travelex currency exchange booths in the terminal, as well as newsstands, bookstores, a PGA Tour Shop, La Bodega Winery, Dallas Cowboys Pro Shop and, of course, a Starbucks Coffee.

HOTELS

Hyatt to absorb AmeriSuites into company, Gold Passport program
Members of Hyatt's Gold Passport loyalty program will soon have a lot more places where they can rack up points. Hyatt Corporation has agreed to buy the AmeriSuites hotel chain from New York-based investment company The Blackstone Group, and to rebrand its 143 properties as a new Hyatt division after spending $150 million to upgrade them. "It is anticipated that by the second quarter of 2005, AmeriSuites customers will be able to participate in Hyatt's Gold Passport loyalty program through their stays at AmeriSuites," a Hyatt official said. "Until then, they will continue in the Prime Rewards program."

AIR ROUTES

DALLAS/FT. WORTH (DFW). American Eagle has set January 5 for the start of daily non-stop flights between DFW and San Luis Potosi, Mexico, using a 44-seat Embraer regional jet.

MILWAUKEE (MKE). On January 6, Midwest Connect will upgrade the aircraft it uses on its four daily Milwaukee-Indianapolis flights, deploying 32-seat Fairchild regional jets on the route.

TAMPA (TPA). Chautauqua Airlines/Delta Connection last week launched new daily non-stop service from Tampa/St. Petersburg to Dayton, Greensboro and Raleigh-Durham, using 50-seat regional jets.

THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS

In Washington D.C., travelers can book a special rate during the month of January (except January 17-22) at The Jefferson, a Loews Hotel, located four blocks from the White House (800-235-6397; www.loewshotels.com). Noting that Congress will not be in session most of the month, The Jefferson is offering a Recess Rate of $179 a night, single or double occupancy, or $269 for a suite.

London's Royal Garden Hotel (866-521-7017; www.royalgardenhotel.co.uk) has a guaranteed U.S. dollar rate of $259 per room per night, single or double occupancy, including continental breakfast and VAT. The rate is available through March 27, but you have to book and prepay 30 days in advance and stay a minimum of three nights. If you cancel less than seven days before arrival, you'll lose the cost of one night's lodging.

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

By Jim Glab

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