Executive Travel SkyGuide

EXECUTIVE TRAVEL SKYGUIDE E-ALERT 01/24/05

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of January 24, the weekly e-mail of essential business travel news!

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Airlines make progress with new labor agreements
United confers instant elite status with new prepaid travel cards
Northwest, Delta enhance web options for frequent travelers
America West exits some non-stop transcon routes
International Briefs: KLM adds e-mail, LH expands new biz class...
DFW reports airline interest in taking over Delta's gates
Milwaukee airport's new Amtrak station offers Chicago rail link
BWI Airport rolls out new shuttle bus fleet
Hotels: D.C. strike averted; Hyatt sets Gold Passport expansion

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AIRLINES

Airlines make progress with new labor pacts
Labor groups at major airlines are showing an increasing acceptance of management's contention that new wage and work rule concessions are necessary if the companies are to survive.

US Airways got over a big hump last week when members of the International Association of Machinists - historically one of the most intransigent airline unions - voted to approve a new agreement that cuts their pay up to 18 percent, ends their pension plan, and tightens work rules, saving the company more than $350 million a year. The Machinists were the last holdout among US Airways' unions to agree to a new contract. It still requires bankruptcy court approval, but Chairman David Bronner said that with new concession agreements now in place from all its unions, "the outlook for US Airways is much brighter...public discussion about the airline in much more optimistic."

Meanwhile, pilots at United Airlines last week reached a tentative agreement with management on a new contract after an earlier one had been tossed out by the judge overseeing United's bankruptcy. Members of the Aircraft Mechanics Fraternal Association, representing mechanics and other ground workers at United, are scheduled to vote this week on a tentative agreement with management as well. No details were released about either agreement. United also has a tentative new pact with its flight attendants, although that one reportedly put off a decision on what to do about the union's pension plan. United has stated repeatedly that it needs to abandon all of its traditional defined benefit pension plans if it is to emerge from Chapter 11.

Continental Airlines said last week it has come to terms on wage and benefit concessions with the union representing its ticket agents, gate agents, ramp workers and other employees. The new terms will save the airline almost $100 million a year, the company said.

United confers instant elite status with new prepaid travel cards
Bankrupt United Airlines has a new marketing plan aimed at boosting revenues from business travelers with a simple concept: Pay in advance. The new United Mileage Plus Prepaid Elite Travel Card will give purchasers automatic, immediate elite status in the Mileage Plus program, even if they have no miles in their account; it also gives them a five percent discount on United, United Express and Ted flights when they're booked online and paid for with the card. And of course they'll get the usual elite-level perks, like mileage bonuses, access to Economy Plus seats, preferred check-in and boarding and discounts on Red Carpet Club membership.

United will start selling the cards February 1; they'll be valid through February 2006, and purchasers will have the price of tickets deducted each time they use the card to book travel on United and its affiliates. They come in three levels: Premier, for $5,000; Premier Executive for $10,000; and 1K for $20,000. For details, go to www.united.com/prepaidtravel.

Northwest, Delta enhance web options for frequent travelers
New functionality from Northwest and Delta could make life easier for members of their frequent flyer programs. Northwest said it has improved its www.nwa.com site so that WorldPerks members can now buy tickets and redeem miles for a first-class upgrade in a single online transaction. The 'Flight Search' page now has a 'Search for Mileage Upgrade' button with a drop-down menu to select an upgrade from the lowest qualifying fare or a full fare; 'Flight Selections' will then display fares, schedules and miles needed for an upgrade. The site's search function also can now look over fare and schedule options from nearby airports in addition to the primary airport selected. Special group and meeting fares can now be accessed online, and a new dynamic packaging link lets users book a combined air/hotel package for a single price.

At www.delta.com, meanwhile, SkyMiles members can now book award trips online not just for the U.S. and the Virgin Islands, but also for Canada, Mexico and the rest of the Caribbean. Users can also book an award ticket for someone else, even when they're not traveling together; and can redeem miles online for one-way, stopover and multi-city award travel.

America West exits some non-stop transcon routes
Citing high fuel costs an uneconomically low fares, America West Airlines confirmed last week that it is ending service on some transcontinental non-stop routes it launched two years ago that bypass its Phoenix and Las Vegas hubs. The airline had already cut its San Francisco-Boston and San Francisco-JFK service for the winter, but said it will not resume those flights in June as it had planned. America West is currently flying once a day between Washington Dulles-Los Angeles, but will drop that route in April. The airline will continue to fly non-stop between Boston-Los Angeles and JFK-LAX; it is currently down to one flight a day on both routes, but will increase service to twice daily in June.

International Briefs: KLM adds e-mail, LH expands new biz class...
• KLM said that by May 2005, it will be offering e-mail service and cell phone messaging aboard its fleet of 10 777s, expanding it to Airbus A330s by August. The airline said it will charge $2.50 for each sent and received message or email.

• Lufthansa is bringing its new Business Class to more routes. The enhanced cabins -- with 79-inch-long seats that recline almost flat, broadband Internet access, and new personal entertainment systems - are due to come to Newark-Frankfurt flights January 24, Chicago-Frankfurt in February, Atlanta-Frankfurt in mid-February, Houston-Frankfurt March 1 and JFK-Frankfurt (LH 407/406) March 2. It's already available from LAX, DEN, DTW, MIA, JFK (LH 401/400) and SFO.

• British Airways said it will suspend its flights from London Heathrow to Jeddah and Riyadh, Saudi Arabia effective March 17 due to a falloff in passenger demand.

• Delta has applied for rights to operate Atlanta-Moscow service, with a daily 767-300ER roundtrip. No starting date was set. Delta already flies between New York JFK and Moscow.

• Qantas and America West have started code-sharing; the code-share links America West service from Phoenix and Edmonton, Alberta, with connections via Los Angeles to Qantas' Australia and New Zealand flights.

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AIRPORTS

DFW reports airline interest in taking over Delta gates
Delta Air Lines is due to eliminate its Dallas/Ft. Worth hub operation by January 31, keeping only a few flights a day to its other hubs and eliminating more than 200 daily departures. DFW Airport officials said last week that "multiple airlines" have indicated interest in taking over some of Delta's gates in Terminal E - although it didn't identify any of them. The airport said it is dangling a "multi-million dollar incentive and stimulus package" to entice airlines to expand or begin new service at DFW, and some are apparently sniffing at the bait.

One airline said last week it will "respectfully decline" DFW's incentives, much to the chagrin of airport officials: Southwest said it will continue to press for an overhaul of federal rules that will allow it to expand Dallas Love Field operations to serve more distant destinations. A Southwest statement said DFW "is not the type of airport it (Southwest) historically chooses to serve, when it has a choice."

Milwaukee airport's new Amtrak station offers Chicago rail link
Officials at Midwest Airlines are hoping to draw more Chicago-area passengers to their base of operations at Milwaukee's Mitchell International Airport now that Amtrak has opened a rail station serving the facility. Located along the western edge of the airport, the new Amtrak station has parking for 300 cars and free shuttle bus service to the airport terminals. The station is a new stop on Amtrak's Chicago-Milwaukee route, which leaves from Union Station in downtown Chicago and also stops in suburban Glenview, Ill., on its way north. Amtrak operates seven daily roundtrips on the route. From downtown Chicago, a train ride to Mitchell International will cost $20 and take 74 minutes.

BWI Airport rolls out new shuttle bus fleet
Baltimore/Washington International Airport is putting a fleet of 50 new shuttle buses into service this week. The red-and-white buses each seat 29 passengers, or 35 percent more than their predecessors, with standing room for 25 more. They have storage space for luggage, new electronic signs, automated voice announcements of upcoming stops, and GPS tracking. The buses carry passengers between passenger terminals and airport parking lots, as well as to and from the BWI rail station served by Amtrak and regional trains.

HOTELS

Strike averted in Washington D.C.
Frequent Washington D.C. visitors who have been reading about threats of a big hotel workers' strike in the nation's capital can breathe easier: Union members last week reached agreement with hotel operators on a new three-year contract, thus ending their strike threat just in time for the presidential inauguration. Some 4,000 union workers had been threatening to walk off the job at 14 first class and deluxe hotels in the District of Columbia.

Hyatt's Gold Passport plan will be expanded April 1
Hyatt Hotels last week set an April 1 start for the extension of its Gold Passport frequent-stay program to guests staying at AmeriSuites hotels nationwide. AmeriSuites, an all-suite chain with 143 properties, was recently acquired by Hyatt. Effective April 1, Hyatt said, members staying at AmeriSuite properties will be able to earn and spend points in Gold Passport. Program members can start redeeming points for stays at AmeriSuites hotels as of July 1, Hyatt said.

Changing Brands...
London's famous Savoy Hotel is now a member of the Fairmont chain ... The former Radisson Hotel San Diego is now the Sheraton San Diego, Mission Valley ... The newly branded Hilton Suites Boca Raton in Florida was previously a Radisson ... The Doubletree Hotel in Glenview, Ill., seven miles from O'Hare Airport, has become the Wyndham Glenview Suites.

THIS WEEK'S DEALS AND SPECIAL OFFERS FOR BUSINESS TRAVELERS

American Airlines has matched a British Airways promotion for front-cabin flyers, giving AAdvantage members the chance to earn 50,000 miles each time they take a qualifying business class or first class roundtrip to London through April 30. You have to register in advance at www.aa.com/offers, using promotion code LONAA, or by calling 800-882-8880.

Got business in the Big Apple this winter? Metro-Home (800-987-1235; www.Metro-Home.com), a company that rents furnished apartments in various sizes around Manhattan, has reduced winter rates available now through March 30, subject to availability. Prices start as low as $99 a night for a studio apartment, with a three-night minimum stay. The company also has one- and two-bedroom units.

Malaysia Airlines (800-552-9264; www.malaysiaairlines.com) has come out with a 2005 AirPass for premium-cabin flyers. Priced at $3,777 in business class and $5,777 in first class, the AirPass provides three free stopovers within Southeast Asia during a 21-day travel period. Possible stopovers include five cities in Malaysia and four in Indonesia, as well as Brunei, Phnom Penh, Singapore, Manila and a few lesser destinations. Maximum stay is 30 days. Malaysia flies to Kuala Lumpur from LAX and Newark.

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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