EXECUTIVE TRAVEL SKYGUIDE E-ALERT 02/28/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of February 28, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. JetBlue adds new transcontinental routes Independence gets a financial break from creditors US Airways gives up 11 aircraft, cuts schedules American plays hardball in the DFW/Love Field debate Midwest Airlines beefs up Kansas City schedule Two airlines win rights to new non-stop U.S.-China routes Air New Zealand plans new configuration for long-haul fleet American begins self-service check-in in Canada AIRLINES JetBlue adds new transcontinental routes JetBlue Airways last week announced plans to add two new transcontinental routes to its roster - providing the only non-stop service on both of them. On May 17, JetBlue will begin non-stop service between its New York JFK base and Portland, Ore. The initial schedule calls for one flight a day, operating as a redeye on the eastbound segment. (Meanwhile, JetBlue said it will increase service on its JFK-Seattle route June 17, adding a second daily roundtrip.) And on May 24, JetBlue plans to begin three daily non-stops between JFK and Bob Hope Airport in Burbank, increasing that to four flights a day on July 15. Burbank will be JetBlue's seventh California destination - a list that does not include the state's biggest airport, Los Angeles International. For both new routes, JetBlue offers introductory fares starting at $99 one-way, with a purchase deadline of March 17, good for travel from the starting dates through June 16. Independence gets a financial break from creditors There was some good financial news last week for Washington Dulles-based Independence Air, which has been flirting with the prospect of a Chapter 11 filing. The company said it successfully completed financial restructuring talks with creditors and aircraft lessors, giving it time to grow its low-cost business model - although more of that growth will now come from its new Airbus A319s and less from its fleet of regional jets. As part of the deal, Independence said it is terminating leases on 24 regional jets, leaving it with a fleet of 58. "Many of the operational changes resulting from this fleet reduction are already reflected in the company's February and March service schedule," a spokesman said. But Independence will continue to take delivery of new A319s, from the current six to a total of 12 by the end of May. It will use those planes to introduce new transcontinental routes from Dulles to Las Vegas, Los Angeles, San Diego, San Francisco, Seattle and San Jose this spring. Independence Air's parent, FLYi Inc., last week said it lost $192 million in 2004, compared with net income of $82.8 million in 2003 - before it switched from being a United Express carrier to its current low-fare business model. US Airways gives up 11 aircraft, cuts schedules US Airways said it will return 11 of its 737s to their lessors this spring, resulting in some schedule reductions. Effective with its May schedule, the airline said, it will discontinue its non-stop service between Ft. Lauderdale and Newark, San Juan, San Salvador (El Salvador), and Panama City (Panama). At its Charlotte hub, US Airways will drop one daily roundtrip to Atlanta, Raleigh-Durham, Orlando and West Palm Beach; at Philadelphia, it will cut one flight a day to Hartford, Buffalo, Norfolk, Seattle, Ft. Lauderdale and Orlando, and will terminate three daily PHL-Tampa flights. Meanwhile, US Airways said last week that a subsidiary of Air Wisconsin has agreed to invest $125 million in the company, in exchange for an unspecified equity stake and the chance for Air Wisconsin to begin flying as a US Airways Express partner. There was no immediate word on which routes the regional partner might take on. US Airways had said that it needed $250 million in outside investment as part of its plan to emerge from Chapter 11 by June 30, and the Air Wisconsin stake covers half that amount. American plays hardball in the DFW/Love Field debate The squabbling in North Texas over the Wright Amendment and the future of Love Field and DFW is turning into a real game of hardball. You might recall that it all started when DFW Airport officials went looking for new airline tenants to take over gates abandoned by Delta in January when it pulled down its hub there. In response, feisty Southwest Airlines said it had no intention of operating at DFW, since American had a lock on the facility, and instead was planning to lobby for a change in the Wright Amendment. That's the federal rule that bars airlines at Dallas' close-in Love Field from flying anywhere except into seven states adjacent or close to Texas, or to other cities in Texas. Southwest maintains that the rule unfairly restricts competition in North Texas, and says it's time for a change - specifically, one that would let Southwest greatly expand its flights from Love Field. Now American Airlines has weighed in with its strategy, and it's a bold one. American CEO Gerard Arpey told the Dallas Morning News last week that if Southwest convinces the government to open up Love Field, American will have to open up a second Dallas hub at the close-in airport. American has three gates at Love which it currently doesn't use, and Arpey said it would need a lot more if the change goes through, but he didn't indicate how many flights American would move from DFW to Love. That depends on the competition, he hinted. A big factor in the equation: A large percentage of American's elite AAdvantage members are said to live closer to Love than they do to DFW, and a big Southwest operation at the close-in airport might convert many of them to the low-cost carrier. Midwest Airlines beefs up Kansas City schedule Midwest Airlines said it plans to increase operations at Kansas City starting May 1. The airline plans to add new non-stop service between Kansas City-Boston with one daily roundtrip, and Kansas City-Los Angeles with two. Midwest will also increase frequencies from Kansas City to Milwaukee to six a day; and to New York LaGuardia to three a day; and its seasonal service between Kansas City-Ft. Lauderdale and Kansas City-New Orleans will now operate year-round. Also on May 1, Midwest said it will terminate its existing Kansas City-Orange County, Calif. service. INTERNATIONAL Two airlines win rights to new non-stop U.S.-China routes The Transportation Department last week gave tentative approval for two U.S. airlines to begin new non-stop service to China, in line with the terms of a new bilateral agreement signed by the two governments last year. The U.S. was entitled to award one airline seven flights a week effective March 25, 2005; and another airline the same frequencies effective a year later. The 2005 award went to Continental, which plans to operate non-stop flights to Beijing from its Newark hub. Continental said a start-up date will be announced once it gets final approval. The airline already flies non-stop between Newark and Hong Kong. The award for new service starting in 2006 went to American, which said it will begin non-stop Chicago-Shanghai service on April 2, 2006, subject to final approval. In other China news, United said last week it will move up from June 7 to May 6 its plan to increase Chicago-Hong Kong frequencies from seven a week to 10, with additional flights on Tuesdays, Fridays and Sundays. And from June 6 through October 29, United said, it will increase capacity on its Chicago-Beijing route by upgrading from a 253-seat 777 to a 347-seat 747. Air New Zealand plans new configuration for long-haul fleet Air New Zealand last week unveiled plans to overhaul its long-haul service this year, replacing the current first class/business class/economy configuration on its 747s and 777s with a new Business Premier front cabin, a Pacific Premium Economy cabin and a regular economy section. It should be available on San Francisco-Auckland flights by August, and on Los Angeles-Auckland and Los Angeles-London service by year's end. Air New Zealand said the new Business Premier cabin, offered at business class fares, will have leather lie-flat seats that are 22 inches wide and more than six feet seven inches long, as well as power ports and high-res, 10.4-inch video screens for its new in-flight entertainment system. Pacific Premium Economy seats will feature 39 to 40-inch pitch, power ports, and individual 8.4-inch video screens for on-demand entertainment. Economy cabins will have 34-inch seat pitch and individual video screens as well. American begins self-service check-in in Canada American Airlines said that passengers returning to the U.S. from Canada can now use self-service check-in devices in the Vancouver and Calgary airports. The devices will be available within the next few months at Toronto's Pearson International and Montreal's Trudeau International airports, American said. It added that a new feature of the machines is that groups of 10 or more persons who are booked on a single reservation can now use them to check in. AIR ROUTES ATLANTA (ATL). Delta set a March 5 start for new non-stop service between Atlanta and St. Croix in the U.S. Virgin Islands, with a 737-800 making the trip twice a week (Wednesdays and Saturdays). CHICAGO O'HARE (ORD). American on March 2 begins daily seasonal non-stops between O'Hare and Rome's Fiumicino Airport. HOUSTON BUSH INTERCONTINENTAL (IAH). On March 3, Continental Connection/SkyWest Airlines will inaugurate new service between Houston and Del Rio, Texas, with two daily roundtrips using 30-seat Embraer 120s. LAS VEGAS (LAS). March 1 is the starting date for Independence Air's new service between Las Vegas and its hub at Washington Dulles, operating twice a day with the carrier's new Airbus A319s. Meanwhile, America West on March 1 is set to launch new daily mainline service between Las Vegas and Albuquerque, with one daily roundtrip. On the same date, America West Express/Mesa Airlines will introduce one daily regional jet roundtrip between Las Vegas and Boise. NEW YORK KENNEDY (JFK). Varig Brazilian Airlines has switched equipment on its daily JFK-Sao Paulo-Rio service, replacing an MD-11 with a 777. PITTSBURGH (PIT). US Airways Express/Air Midwest on March 6 will discontinue its four daily roundtrips between Pittsburgh and Hagerstown (Md.) Regional Airport. SALT LAKE CITY (SLC). Delta Connection/SkyWest on March 1 will add new service from Las Vegas to Oregon, including two daily regional jet roundtrips to Medford and two to Redmond/Bend. WASHINGTON REAGAN NATIONAL (DCA). Effective March 1, Northwest Airlink/Pinnacle Airlines will begin one daily non-stop between Washington Reagan National and Des Moines, Iowa. On the same date, the carrier will add a third daily roundtrip between Washington and Milwaukee. SAN DIEGO (SAN). America West Express/Mesa Air Group will begin the only non-stop service between San Diego and Vancouver starting March 4, with one daily roundtrip. On the same date, America West Express/Mesa will increase frequencies between San Diego-Puerto Vallarta and San Diego-Los Cabos from four days a week to daily service. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS From March 1 through June 1, Marriott rewards members will get 2,500 bonus points in the Marriott Rewards program for every stay, starting with the second stay during the promotional period. The offer applies up to a maximum of 10,000 bonus points. Members must register for the Marriott Rewards MegaBonus offer by calling 888-627-7468 or online at www.MarriottRewards.com. Got business in London this spring? The five-star Draycott Hotel (800-747-4942; www.draycotthotel.com) near Sloane Square has reduced rates for stays from April 1-May 23. The deluxe double rate is reduced from $480 to $408, and a suite goes for $568, down from $668. Rates include breakfast. In Kuala Lumpur, the Pan Pacific Glenmarie (800-327-8585; www.panpacific.com) has a new Business Package starting at $74 per room per night, single or double occupancy. It includes buffet breakfast, late check-out, local newspaper, laundry and dry cleaning discount, free local calls up to three minutes, an hour's use of business center equipment and more. Upgrades to the Pacific Floor are an extra $27, and to an executive suite, $41. 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.