EXECUTIVE TRAVEL SKYGUIDE E-ALERT 01/31/05
Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of January 31, the weekly e-mail of essential business travel news!

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 Delta's low-fare Song plans new service from JFK to LAX, SFO, SEA
US Airways sees end to Chapter 11; starts DCA flights from six cities
United suffers heavy losses, faces possible mechanics' strike
ATA sets plan to cut back service at Indianapolis
Delta ends guaranteed Shuttle seats
Southwest to pull out of Houston Bush Intercontinental in April
American starts in-flight snack sales this week
Northwest orders more A330s to replace transatlantic DC-10s
Airlines blast Bush plan to hike security fees
Hotels: NYC's Plaza to close; Marriott will replace beds

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AIRLINES
Delta's low-fare Song plans new service from JFK to LAX, SFO, SEA
Song, the low-fare affiliate of Delta Air Lines, said last week it will nearly double its operations out of New York's JFK Airport this year, adding five new destinations - including non-stop transcontinental service to Los Angeles, San Francisco and Seattle. Song officials noted that the company will take on more airplanes starting May 1, increasing its fleet from 36 757s to 48.

Song said it will start JFK-LAX service May 1, growing to seven daily non-stops by June 18; JFK-San Francisco flights begin July 4, increasing to five roundtrips by September 1; and JFK-Seattle operations also kick off July 4, increasing to three a day by September 2. Song will also begin JFK-San Juan, Puerto Rico service June 18, adding a second daily flight June 19. And new weekly Saturday service between JFK and Aruba will start July 23.

US Airways sees end to Chapter 11; starts DCA flights from six cities
US Airways, which only weeks ago appeared to be headed for liquidation, now is planning to emerge from Chapter 11 bankruptcy by the end of June, the company said in an e-mail to frequent flyers last week. CEO Bruce Lakefield told the airline's top customers that US Airways' success in winning approval from employee unions for new wage and work rule concessions will save the company more than $1.1 billion a year for the next several years, putting the airline on a more solid financial footing. As part of its restructuring, the airline is cutting back its Pittsburgh operations from a hub to a focus city, and will be revamping other schedules in the weeks ahead - including the launching of new non-stop service to Washington's Reagan National Airport on February 6 from Atlanta, Chicago, Cleveland, Dallas, Detroit and Houston, all with regional jet aircraft. Lakefield told customers that US Airways' "most difficult days are behind us."

United suffers heavy losses, faces possible mechanics' strike
There was plenty of news at United Airlines last week, and it was all bad. First, the company reported a fourth-quarter net loss of $664 million, vs. a deficit of $476 million for the same period a year earlier. The company cited a 58 percent jump in fuel costs, along with continued downward pressure on fares. United's December loss was bad enough that it would have been in default to its lenders if they hadn't given the airline an exemption from the terms of the loan. After that bad news, United got word that members of its machinists' union voted down a tentative new contract negotiated by their leaders that would have saved the airline millions of dollars a year. What's more, members of the Aircraft Mechanics Fraternal Association also voted to call for a strike if United's bankruptcy court decides to impose unilateral changes in their contract.

ATA sets plan to cut back service at Indianapolis
Citing "fierce competition in the Indiana market" - especially from Northwest Airlines, which is significantly expanding operations there - bankrupt ATA Airlines said last week it will scale back service at its Indianapolis hub. On February 28, ATA will halt service from Indianapolis to San Francisco, Dallas and New York, followed on April 10 by the termination of flights from Indianapolis to Cancun, Ft. Lauderdale, Sarasota, St. Petersburg and Phoenix. On March 28, ATA said, it will end recently-announced service between Indianapolis and Evansville, Milwaukee, South Bend, Ft. Wayne and Flint. Indianapolis-Gary service that was due to begin February 1 will be dropped. But beginning in April, ATA said, it will offer daily flights from Indianapolis to Orlando, Ft. Myers, Las Vegas and Los Angeles. Management called the cutbacks "necessary steps in ATA's reorganization."

Delta ends guaranteed Shuttle seats
Delta Air Lines said that effective February 1, its New York-Boston and New York-Washington Delta Shuttle service will no longer provide guaranteed seats. Previously, the airline would accommodate everyone who showed up for a specific hourly departure, even rolling out a second plane if necessary. But Delta said it needs to allocate its aircraft more efficiently now. Passengers who can't get on their desired Shuttle flight will simply be put on the next one an hour later, the company said.

Southwest to pull out of Houston Bush Intercontinental in April
Southwest Airlines said last week it will stop flying out of Houston's Bush Intercontinental Airport effective April 2. Passengers ticketed to fly in or out of IAH after that date will be rebooked, the company said. The airline's Houston Bush Intercontinental schedule includes six daily flights to Dallas Love Field, which Southwest will continue to serve from its major Houston base at Hobby Airport. Southwest operates 139 flights a day at Hobby. The company said it has been losing money for years at IAH, and cannot continue to serve two Houston airports.

American starts in-flight snack sales this week
February 1 is the launch date for American Airlines' in-flight sale of snacks and meals. From 6 a.m. to 9:59 a.m., the service will offer a breakfast snack box for $3, and from 10 a.m. to 7:30 p.m., a standard snack box for $3 with crackers, salami slices, cheese, fruit mix and cookies. Some transcontinental and Hawaii flights will offer a fresh sandwich or wrap for $5. Initially, transactions will be cash-only. Meals will still be provided at no cost in first class cabins.

Northwest orders more A330s to replace transatlantic DC-10s
Northwest Airlines said last week it has ordered eight more wide-body Airbus A330s, which it will use to replace the remaining DC-10-30s on its transatlantic routes as the new planes are received in 2006 and 2007. The aircraft order includes six A330-300s with 34 business class and 264 coach seats; and two longer-range A330-200s, with 32 business class and 211 coach seats. All will feature the airline's new World Business Class lie-flat seats, as well as new video-on-demand in-flight entertainment systems in both classes.

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FAA/SECURITY
Airlines blast Bush plan to hike security fees
The airline industry is blasting as "outrageous" a plan by the Bush Administration to more than double the fee paid by passengers to cover the costs of airport security. According to a draft of the new White House budget obtained by the Associated Press, the proposal would increase the security fee from the current $2.50 one-way to $5.50, and would cap the fee at $8 for multi-leg flights, up from the current maximum of $5. The Air Transport Association, an airline trade group, said the proposed increase "demonstrates a complete failure to comprehend the economics of a crippled industry. We find it incredible that an administration advocating reduced taxes is considering doubling this tax, when this industry and its customers already pay more than $3.2 billion annually for security."

HOTELS
Plaza to close; Marriott will replace beds
In hotel news last week, New York City's famous Plaza Hotel, a member of the Fairmont group, said it will close its doors by April 30 and will undergo conversion into a multi-use facility including condominiums, upscale retail stores, and a smaller hotel with about 150 rooms before reopening late in 2006. It currently has 805 rooms. The Plaza has been a Manhattan landmark since it opened in 1907 ... Marriott Hotels is the latest chain to roll out a new sleeping product. The company said it plans to replace 628,000 beds in 2,400 of its member hotels by the end of 2005. The new beds will feature 300-thread-count sheets, extra pillows and down comforters.

AIR ROUTES
ATLANTA (ATL). Now that Delta has taken down its hub at Dallas/Ft. Worth, it is using those idle aircraft to expand service at its other hubs. At Atlanta, for example, Delta on January 31 will begin offering hourly departures to Baltimore/Washington (15 flights a day), Newark (14 a day) and Boston (14). Delta will also boost frequencies from Atlanta to Albany from four a day to six; to Birmingham from eight to 10; to Charleston from eight to 10; to Charlotte from nine to 11; to Ft. Lauderdale from 11 to 14; to Greensboro from nine to 11; to Hartford from seven to 10; to Minneapolis from seven to 10; and so on. On the same date, Delta will begin new 757 daily non-stops between Atlanta and Burbank, Calif.

BOSTON (BOS). JetBlue on February 3 will add a third daily roundtrip to its Boston-Ft. Myers route.

CHICAGO MIDWAY (MDW). Southwest Airlines continues expanding at Midway on February 4, when it will add a sixth daily flight to Orlando, a fifth to Ft. Lauderdale, a fourth to Manchester (N.H.), a tenth to Las Vegas, and a fourth to Raleigh-Durham. On the same date, Southwest's new partner at Midway, ATA Airlines, plans to increase MDW-LaGuardia frequencies to eight a day, and MDW-Minneapolis frequencies to eight a day as well.

CINCINNATI (CVG). Delta Connection carriers Comair and Atlantic Southeast will start five new routes out of Cincinnati on January 31, operating two daily regional jet flights to Baton Rouge; two to Montgomery; two to Mobile; three to Pensacola; and three to Ft. Walton Beach, Fla.

FORT LAUDERDALE (FLL). US Airways will greatly expand service at Ft. Lauderdale in February, expanding frequencies to daily between FLL-Baltimore/Washington, FLL-Hartford and FLL-LaGuardia. Other new domestic non-stops from Ft. Lauderdale include Boston, Newark, Key West, Orlando and Tampa. US Airways will turn FLL into a mini-hub for connections to the Caribbean and Latin America, adding new non-stops to Guatemala City, Kingston (Jamaica), Panama City and San Salvador, as well as Nassau, Providenciales (Turks & Caicos), Santo Domingo, San Jose and San Juan.

NEW YORK KENNEDY (JFK). Delta Connection/Comair on January 31 will begin twice-daily regional jet non-stops between JFK and Melbourne, Fla.; two a day between JFK and Tallahassee; two between JFK and Pensacola; and one daily roundtrip between JFK and Charlotte, N.C.

ST. LOUIS (STL). American Airlines on January 31 will begin operating one daily mainline jet flight between St. Louis and Tulsa; on the same date, the carrier's STL-Washington Reagan National schedule will change from two daily mainline and four AmericanConnection flights to three mainline and two AmericanConnection flights, and service to Cancun will increase from two flights a week to three through April 2. American will add a third daily departure from STL to Orlando and a second from STL to Ft. Lauderdale from January 31-June 8, and a second from STL to Ft. Myers January 31-April 30.

SALT LAKE CITY (SLC). January 31 is the launch date for new non-stop Delta service linking Salt Lake City with Baltimore/Washington, Ft. Lauderdale, Tampa and New Orleans. Also on January 31, Delta Connection carriers Atlantic Southeast and SkyWest will begin new regional jet non-stops from SLC to Austin, El Paso, San Antonio, Wichita, Little Rock and Northwest Arkansas Regional Airport, while SkyWest kicks off new regional jet service from Salt Lake City to Lewiston, Idaho and Burbank, Calif.

WASHINGTON REAGAN NATIONAL (DCA). January 31 is the starting date for new Delta Connection/Atlantic Southeast non-stops between Washington Reagan National and Birmingham, Ala., with one daily regional jet roundtrip; and between DCA and Jackson, Miss. with one flight a day. On February 6, US Airways' MidAtlantic Airways division kicks off four daily regional jet flights between DCA and Atlanta.

THIS WEEK'S DEALS AND SPECIAL OFFERS FOR BUSINESS TRAVELERS
El Al (800-223-6700; www.elal.com) has a winter sale on business and first class fares to Tel Aviv for travel through March 31. The business class sale fare is $2,399 roundtrip from JFK or Newark, or $2,999 from LAX. In first class, two persons traveling together can go for $4,599 each from JFK or Newark, $4,705 from Chicago, $4,764 from Miami and $4,898 from Los Angeles. The two first class passengers must book at the same time and travel on the same flights.

Hotwire.com (www.hotwire.com), the low-priced "opaque" travel web site (i.e., you won't know which hotel you've booked until it's already paid in advance), has expanded to Europe. Bookings are nonrefundable and can't be changed, but the rates are exceptionally low because the hotel's identity is kept secret from everyone except the buyer. Buyers can also select the hotel's price category and approximate location. Cities offered include London, Paris, Rome, Amsterdam and Barcelona. Sample nightly rates cited by Hotwire include $99 a night for a four-star hotel in London's Regents Park area; $129 for a four-star in Amsterdam's city center; and $145 a night for a four-star property in Paris' Montparnasse neighborhood.

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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