EXECUTIVE TRAVEL SKYGUIDE E-ALERT 01/17/05
Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of January 17, the weekly e-mail of essential business travel news!

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 ATA sets Chicago Midway schedule as Southwest code-share begins
Southwest, ATA frequent flyer plans not linked in code-share deal
US Airways gets some financial breathing space
JetBlue reportedly eyes Boston-NYC service
Swiss International starts all-business-class Newark-Zurich service
Boeing plans to end production of 717s
Poll finds flyers opposed to lifting in-flight cell phone ban
Houston Intercontinental gets new international arrivals terminal

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AIRLINES
ATA sets Chicago Midway schedule as Southwest code-share begins
Bankrupt ATA Airlines last week said that it will maintain a schedule of 65 daily flights out of Chicago's Midway Airport now that its financial partnership and code-sharing deal with Southwest Airlines has been approved. Part of ATA's new strategy for Midway is to boost frequencies to major business destinations; the airline said that on February 4, it will increase its Midway-New York LaGuardia schedule to eight flights a day, and its Midway-Minneapolis/St. Paul schedule to eight daily non-stops. On April 3, ATA said, it will boost frequencies to five a day in the MDW-Boston, MDW-Newark and MDW-Denver markets.

Effective today (January 17) for travel beginning February 4, passengers can book new code-share services that let them connect between Southwest and ATA flights via Midway Airport. Flyers originating in a number of Southwest cities will be able to book online connections via Midway to the following ATA destinations: Boston, Denver, Ft. Myers/Naples (Fla.), Honolulu, Minneapolis/St. Paul, New York LaGuardia, Newark, San Francisco, Sarasota-Bradenton (Fla.), St. Petersburg/Clearwater (Fla.) and Washington D.C.'s Reagan National Airport. Likewise, ATA travelers originating in those cities will be able to book connections via Midway to more than 40 Southwest cities.

Meanwhile, AirTran Airways, which was an unsuccessful bidder for ATA's Midway operations, has unveiled plans to invade ATA's main hub at Indianapolis. AirTran said it will start non-stop service between Indianapolis and its own Atlanta base on May 4, as well as Indianapolis-Orlando flights on June 7. In other bad news for ATA, members of its pilots union have rejected a proposal that would have cut their pay by 15 percent.

Southwest, ATA frequent flyer plans not linked in code-share deal
In announcing their new code-share plans, Southwest Airlines and ATA also noted that for now, the partnership does not include frequent flyer program reciprocity. Instead, persons who fly on Southwest/ATA code-share services will earn credit in the program of the carrier through which they booked their trip. "There also is no change in the service offered for redemption of travel awards," a Southwest official said. Thus Southwest Rapid Rewards tickets will only be issued for flights operated by Southwest, and vice-versa for free travel in the ATA Travel Awards program. Code-shared flights cannot be booked as award trips.

US Airways gets some financial breathing space
A federal bankruptcy judge last week approved an agreement between US Airways and the federal Air Transportation Stabilization Board that will provide the struggling airline with more access to cash proceeds from its federally guaranteed loan. US Airways has been facing a January 15 deadline for use of those funds, but the new pact with the ATSB extends the company's cash access through June 30, by which time it said it expects to emerge from Chapter 11. As a result of the extension, "Our customers should book us with confidence, knowing that we have sufficient cash to operate," said US Airways CEO Bruce Lakefield. Meanwhile, the airline is waiting to see the results of a vote by the International Association of Machinists on a proposed new wage reduction agreement reached with union negotiators. The court has already given the airline permission to terminate its previous contract and impose new terms if rank and file members reject the new pact. The union's vote should be completed by January 21.

JetBlue reportedly eyes Boston-NYC service
New York Newsday reported last week that JetBlue Airways is planning to begin new service between Boston and New York, perhaps as early as October 2005. The newspaper cited a JetBlue official, who said the start-up would probably take place after JetBlue begins to take delivery of its new Embraer 190s. The airline has ordered 100 of the new regional jets, which have 100 seats. JetBlue has been building up its operations at Boston Logan over the past year, and reportedly wants to give Boston passengers a way to connect to the airline's much larger network out of its base at New York's JFK Airport. Currently, American and Delta operate Boston-JFK service to feed their international operations at Kennedy Airport, but a JetBlue presence on the route isn't seen as a major threat to the primary carriers of traffic between Boston and New York - the US Airways and Delta Shuttles at LaGuardia, as well as the American Eagle service based at LGA.

Swiss International starts all-business-class Newark-Zurich service
Taking a page from Lufthansa's book, Swiss International Airlines on January 16 started operating an all-business-class service between Newark and Zurich six days a week (except Saturday). Swiss is using the same operator - Geneva-based PrivatAir - that Lufthansa uses for its all-business-class flights to Dusseldorf from Chicago and Newark, and to Munich from Newark. The specially configured Boeing Business Jet, essentially a modified 737, has 56 lie-flat seats, with a 60-inch pitch. Seats have laptop power ports, and the flights provide food and beverage comparable to Swiss' own business class, as well as individual DVD players and a selection of movies.

Boeing plans to end production of 717s
Boeing said it will shut down production of its 100-seat 717 jetliner after current orders are filled. The manufacturer has taken orders for 169 of the planes since it started building them, and delivered 137. The 717 has faced increasing competition from regional jet manufacturers, who have recently come out with larger models that approach the passenger capacity of the 717. The largest operator of 717s is AirTran, with 79 in its fleet and six more coming this year. AirTran said Boeing's announcement was "not unexpected," and will have no impact on its schedules or its growth plan; in 2003, AirTran ordered 100 Boeing 737s to use as its primary vehicle for fleet expansion in the future.

FAA/SECURITY
Poll finds flyers opposed to lifting in-flight cell phone ban
Should air travelers be allowed to use cell phones to make calls in-flight, now that new technology will soon make that possible? The FAA is studying whether the new communications links will present any problems of interference to navigational equipment or other vital aircraft systems, but it has also asked for flyer feedback, and received a number of complaints about the prospect. A new USA Today/CNN/Gallup poll of several hundred "frequent or occasional flyers" put the question to consumers - i.e., should passengers be allowed to yak on the phone aboard an aircraft - and 68 percent said no, the FAA should maintain its existing ban. Some 29 percent said the ban should be lifted, and the rest had no opinion.

AIRPORTS
Houston Intercontinental gets new international arrivals terminal
Houston Bush Intercontinental Airport on January 16 held a public open house for its new $440 million International Arrivals Building, which will begin regular operations on January 25. The three-level building has 784,000 square feet; the basement is for baggage handling and re-checking; the middle level houses baggage claim carousels as well as a meet-and-greet lobby; and the top level is home to Federal Inspection Services personnel who will process arrivals, as well as a transit lounge and Continental Airlines ticketing. The new IAB, linked by secure passenger bridges to Terminals D and E, more than doubles the airport's international passenger capacity. Officials noted that the number of international travelers at IAH last year was running almost 14 percent higher than in 2003, and now exceeds pre-9/11 levels.

AIR ROUTES
TAMPA (TPA). Continental Connection/Gulfstream International on January 17 will begin three Tampa-Pensacola non-stops per day, using turboprop and regional jet aircraft.

THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS
British Airways has a big new bonus promotion for existing or newly enrolled Executive Club members who live in the U.S. or Canada. Sign up for the offer at www.ba.com/winteroffer, take at least one roundtrip transatlantic flight in first class or Club World by April 30, and you'll earn a minimum of 50,000 regular and bonus miles - enough for two free economy roundtrips within North America on partners American, Alaska or America West. And there's no limit on how often you can do this during the promotional period.

United Mileage Plus members who sign up for a one-year T-Mobile service plan and take a qualifying United flight for $250 or more by April 30 (purchase deadline: March 31) will get a free Blackberry device with e-mail, web browsing, organizer and telephone capabilities. You'll have to register in advance, of course; go to www.united.com/blackberry for all the details.

The InterContinental Hotels Group is offering its Priority Club members double points or miles for each qualifying stay, beginning with their second stay, for visits from January 17 through April 30. The offer applies for all the group's brands, including InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites. Participants must register for the promotion at www.priorityclub.com. For Staybridge and Candlewood, the double points/miles offer applies with the first stay, as long as it is a minimum of five nights.

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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