EXECUTIVE TRAVEL SKYGUIDE E-ALERT 02/07/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of February 7, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. JetBlue plans long-term expansion at Boston Logan Independence Air will fly to five west coast cities United makes progress on labor issues American issues lowest-fare guarantee for its web site Sun Country to offer new business travel options for MSP flyers Flight delays becoming a problem again as traffic revives Delta plans overhaul of terminals at New York JFK Car Rentals: Hertz expands rentals of specific car models to more airports AIRLINES JetBlue plans long-term expansion at Boston Logan JetBlue Airways last week reached an agreement with Boston's Logan International Airport to lease Terminal C, Pier C, and to use its 11 gates for long-term expansion - making Boston into its next "focus city," airline officials said. Currently, JetBlue uses just two gates in Logan's Terminal E for its 19 daily non-stop flights to Oakland, Long Beach, Denver, Ft. Lauderdale, Tampa, Ft. Myers and Orlando. The airline recently announced plans to begin flights May 3 from Boston to Las Vegas and San Jose, and said last week it will occupy five of the new Terminal C gates starting in May, also adding 14 ticket counter positions there. "Starting in 2006, JetBlue will continue its growth in Terminal C by adding one gate every six months over the next three years," a spokesman said. The company also plans to spend $9 million to develop new concessions and other passenger amenities there. According to some recent reports, JetBlue is planning to link its Boston operation to its New York JFK hub later this year when it starts taking delivery of new regional jets. Independence Air will fly to five west coast cities Independence Air, the financially troubled low-fare carrier based at Washington Dulles, said it will begin flights this spring to five west coast cities: San Diego, Los Angeles, San Francisco, San Jose and Seattle. Currently, the only western city served by Independence is Las Vegas. It will use its new Airbus A319s for the flights, which will begin April 14 to San Diego and May 1 to the other cities. All will get one daily roundtrip except San Francisco, which will have two. The airline is offering introductory fares of $84 one-way from Dulles, $114 for connections from other eastern cities, for purchase through February 18. Independence's parent company, FLYi Inc., reported last week that the airline's load factor in January was only 45.7 percent, but it predicted this will improve now that the carrier has reduced its capacity by 25 percent. It predicted load factors will hit 60 percent by March. United makes progress on labor issues United Airlines' pilots and flight attendants unions both voted to approve new contracts that will cut their wages and tighten their work rules, saving the bankrupt carrier hundreds of millions of dollars annually. Meanwhile, the bankruptcy court last week approved United's request for a four-month salary reduction of 10 percent for members of its mechanics union. The union's members had voted down a new contracted negotiated by their leadership with United's management, and had also voted to strike if the court imposed a new contract on them. But last week the union said it would try to resolve its differences with management during the four months of temporarily reduced wages and would not resort to a strike during that time. American issues lowest-fare guarantee for its web site American Airlines has come out with a "lowest fare guarantee" for bookings made through its web site at www.aa.com. American guarantees that customers will not find a lower fare on other web sites for travel on American, American Eagle or AmericanConnection -- and if they do, American will give them a refund of the fare difference plus a $50 voucher for future travel. However, one has to wonder if anyone will ever make a claim. The rules specify that to get the refund and voucher, you have to book the trip on American, then file a claim showing that you found the exact same flight, itinerary, date and cabin class offered on another web site for at least $5 less than American's site offered. All your evidence must be submitted via an online form available on American web site, on the same day you buy your aa.com ticket. American also suggests you print out a copy of the fare/flight data from the other web site just in case they ask you to verify your claim. If you really want to bother with all this, you can find details at www.aa.com/guarantee. Sun Country to offer new business travel options for MSP flyers Minneapolis/St. Paul-based Sun Country Airlines, which has been quietly rebuilding under new ownership following a 2001 bankruptcy, plans to expand schedules targeting business travelers this spring, according to local news reports. Company officials said that starting May 20, low-fare Sun Country will operate twice-daily roundtrips from MSP to Denver, Dallas/Ft. Worth, Las Vegas, New York JFK and Seattle, doubling its current frequencies. Flights will be timed to permit same-day departures and returns for local business travelers. On the same date, the airline will increase its schedule to provide daily non-stops between MSP and San Diego, San Francisco, Ft. Myers and Cancun. It already provides daily service to Phoenix and Orlando from Minneapolis/St. Paul. Sun Country is expecting to take delivery in March of two more 737s, giving it a total fleet of seven. FAA/SECURITY Flight delays becoming a problem as traffic revives Remember the days before 9/11 of 2001, when the airline industry's biggest problem wasn't multi-billion dollar losses, but flight delays and related operational problems? Well, those days may be returning as passenger traffic continues to grow and airlines respond with busier flight schedules. According to data from the Bureau of Transportation Statistics, 21.9 percent of U.S. airline flights during 2004 arrived more than 15 minutes late or were cancelled or diverted. That's not as bad as peak years 1999 and 2000, but it's an upward trend after two years when delays were well below 20 percent. The number of airline flights grew by 9.9 percent last year, BTS noted. The worst airport in 2004 for both arrival and departure delays was Chicago O'Hare, where 30 percent of flights didn't get there on time, up from 25 percent in 2003; and 27 percent didn't take off on schedule, vs. 21 percent a year earlier. The best on-time arrival record in 2004 was at Denver International, with 83 percent; the number one airport for on-time departures was Houston Bush Intercontinental at 87 percent. 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." AIRPORTS Delta plans overhaul of terminals at New York JFK At New York's Kennedy International, Delta Air Lines has issued a $220 million construction contract for improvements to its Terminals 2 and 3. Work is expected to begin this spring and continue through 2009, according to the contractor, Turner Construction. The project will include the renovation of more than a million square feet of existing space in the terminals and the addition of 100,000 square feet of new space, the company said. The work will provide the terminals with improved baggage handling, new security and air conditioning systems, among other passenger-related enhancements. "The project will be completed in multiple phases so there will be no major impact to Delta's operations or customers," a Turner spokesman said. CAR RENTALS Hertz expands rentals of specific vehicle models to more airports A new Hertz Corp. program that permits customers to reserve specific models of cars and SUVs instead of just booking a general category is being expanded to many more airports this winter. The program is open only to members of the Hertz #1 Club. Originally rolled out in six Florida and six California airports, the car-specific booking plan was recently expanded to Phoenix and Denver airport locations, and by March 1 it will also be offered at Hertz airport rental locations in Baltimore, Boston, Honolulu, Las Vegas, Maui, Minneapolis, Philadelphia, Raleigh, Seattle, Washington D.C. (Dulles and Reagan National). Car models available for booking include the mid-size Mazda 6; full-size Taurus or Camry; premium Grand Marquis or Buick LeSabre; "special sporty" Mustang Coupe; or in the SUV category, Explorer or Expedition... In other rental car news, Kansas City International Airport unveiled plans to build a consolidated rental car center, due to open in 2007 ... Sister companies Dollar and Thrifty have opened a combined operation at Fort Lauderdale-Hollywood International Airport's new rental car center, replacing their former separate airport locations ... Budget Rent A Car has opened a new location at London's Heathrow Airport. AIR ROUTES CHARLOTTE (CLT). US Airways on February 12 plans to begin weekly Saturday service between Charlotte and Liberia, Costa Rica, as well as weekly Saturday flights between Charlotte and Barbados. ORLANDO (MCO). Low-fare Canadian carrier CanJet is due to begin weekly 737 service between Orlando and Winnipeg on February 9, operating northbound on Tuesday and southbound on Wednesday for 16 weeks. WASHINGTON DULLES (IAD). Independence Air has started new service between its Washington Dulles base and Florida's Palm Beach International Airport. The airline operates three daily non-stops, using new Airbus A319s. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS Got business in New York City? Seven members of The Leading Hotels of the World (www.lhw.com; 800-223-6800) have special Manhattan Winter Sale rates available now through April 15, good for single or double occupancy, representing substantial savings off rack rates. Starting nightly rates are: $250 at the Helmsley Park Lane; $375 at The Lowell; $245 at the New York Palace; $425 at The Peninsula; $329 at the Plaza Athnenee; $289 at The Plaza; and $399 at Trump International Hotel & Towers. Use rate code LOFNYO when you book. Choice Hotels (www.choicehotels.com) is offering triple points in its Choice Privileges program, or triple airline miles or credits, to customers who use the company website to book a stay at any Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion Hotel or Mainstay Suites property. The triple credit offer applies for stays now through April 30. Choice lets guests earn miles with any of 10 airline partners. For car rentals in Europe, early booking savings are available on reservations made by March 31 for travel through the end of 2005 from Auto Europe (800-223-5555; www.autoeurope.com). The offer includes an automatic one-category upgrade in Belgium, Britain, Denmark, France, Greece, Holland, Iceland, Ireland, Israel, Italy, Spain and Switzerland. The offer also provides a 20 percent discount off any prestige, Mercedes Benz or sports car rental in Europe, and up to 15 percent off an European rental service at any of the company's 4,000 locations. For links to other websites where you can search for bargains, click here: www.executivetravelonline.com/reference/deals.html By Jim Glab To sign up for the e-Alert, click here.