EXECUTIVE TRAVEL SKYGUIDE E-ALERT 03/14/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of March 14, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Delta flirts with Chapter 11 again; drops food sales, pillows Risk of air travel is at its lowest since the 1940s Canada's Jetsgo stops flying, strands thousands Lufthansa eyes purchase of Swiss, creates private jet network Delta consolidates Boston flights in new Terminal A Southwest adds eight gates at Phoenix's new Concourse D DFW adds Starbucks, business centers near new Skylink stations Consumers think airport stores rip them off - even if they don't AIRLINES Delta flirts with Chapter 11 again; drops food sales, pillows Faced with fuel prices inching ever higher, Delta's best efforts to trim its costs with new labor concessions, and to win back business travelers from low-fare competitors with its new SimpliFares, may not be enough, the company hinted in an SEC filing last week. Delta said its cash reserves are continuing to dwindle during 2005, and it can't find any more lenders because virtually all its major assets have already been pledged to secure previous loans. Speculation among industry observers is that Delta may soon have to sell off some subsidiaries -- like its all-regional-jet partner Comair - to halt the flow of red ink, at least temporarily. Delta said in its SEC filing that in view of its current condition, Chapter 11 is still a distinct possibility for the company. In 2004, Delta reported the biggest annual loss in airline history -- $5.2 billion. Meanwhile, Delta announced last week that it is starting to hand out free snacks in economy cabins of domestic mainline flights longer than 90 minutes, replacing other food service, including its meals-for-sale program. The airline will still provide free meal service in coach on longer international flights and Hawaii/Alaska routes. Delta is also raising the cost of alcoholic beverages in coach from $4 to $5 on all flights, domestic and international. And finally, Delta said, pillows will no longer be available on flights within North America, effective in mid-March, "as part of the airline's efforts to provide more room for carry-on luggage in overhead bins while reducing costs. Blankets will continue to be available on those flights." FAA/SECURITY Risk of air travel is at its lowest since the 1940s Even as airlines' finances get worse and worse, their safety record is improving. According to the International Air Transport Association, 2004 was the best year on record since World War II in terms of passenger fatalities based on miles flown. Only 428 of last year's 1.8 billion airline passengers worldwide lost their lives in accidents, IATA said - meaning your chances of dying in a commercial plane accident were just one in 10 million. That's down from three in 10 million during 2002 and seven in 10 million in 1996, IATA said. INTERNATIONAL Canada's Jetsgo stops flying, strands thousands Canadian low-cost carrier Jetsgo, based in Montreal, grounded its fleet last week, then filed for and won court protection from its creditors under Canada's Companies Creditors' Arrangement Act. The airline told the court it has a negative net worth of about $17 million, and that it lost $49 million over the past eight months. WestJet Airlines, a rival low-cost operator, said it would offer special fares to passengers stranded by the Jetsgo grounding - a number that the bankrupt company estimated at some 17,000. Lufthansa eyes purchase of Swiss, creates private jet network Lufthansa is reportedly close to a deal to acquire financially troubled Swiss International Air Lines, the successor to Swissair. The pending deal, said to be valued at close to $500 million, would reportedly maintain Swiss as a separately-branded operation, although the future of its intercontinental routes under an acquisition was uncertain. If the deal is approved by both boards, Swiss would become a member of the Star Alliance, along with United, Lufthansa and others. In addition, Lufthansa last week said it has entered into a new partnership agreement with NetJets, the business jet time-share operator, to create a new entity called Lufthansa Private Jet. Using NetJets equipment, Lufthansa expects to offer private jet service between hundreds of European airports and its Munich hub, where passengers would transfer to first or business class seats on Lufthansa's longer-haul flights. But instead of having to walk through the terminals to or from their mainline aircraft, LH Private Jet customers would be ferried across the tarmac in chauffeur-driven cars. A six-month test of the operation is due to start later this month. AIRPORTS Delta consolidates Boston flights in new Terminal A At Boston Logan, all Delta flights that currently operate out of Terminals B and C will move on March 16 to the new $400 million Terminal A, as Delta consolidates its Boston operations there. The 18-gate Terminal A will be home to all Delta brands, including the Delta Shuttle and Song as well as regional Delta Connection flights. The terminal provides travelers with a new lineup of retail and dining opportunities, as well as new Crown Rooms. The space vacated by Delta in Terminal C will eventually be taken over by JetBlue. As we reported recently, JetBlue signed a lease for the 11-gate terminal, and will move its growing Boston operation there in May -- starting with five gates and adding more as its fleet and route network out of Logan continues to grow. Southwest adds eight gates at Phoenix's new Concourse D At Phoenix Sky Harbor, Southwest Airlines has expanded its passenger facilities by cutting the ribbon on a new D Concourse with eight gates. Southwest continues to hold 16 gates in the C Concourse, but will no longer operate in the B Concourse. The new D Concourse has a six-lane security checkpoint and new concessions, stores and food outlets like Clubhouse Bar and Grill, Starbucks, CNBC News, Brighton Collectibles and AZ Grillin' packaged foods. Soon to open are El Bravo Mexican Food, Yoshi's Asian Grill and a Wendy's. Meanwhile, Southwest has also expanded its new code-share alliance with ATA Airlines to include connections at Phoenix. Southwest flyers originating in Albuquerque, Austin, Nashville, Houston, Chicago, Oklahoma City, Omaha, Providence, Raleigh/Durham and St. Louis can now book flights to Maui via Phoenix. And new Phoenix-Honolulu connections are now available to Southwest flyers starting out in Albuquerque, Austin, Birmingham, El Paso, Houston, Islip, Raleigh/Durham and Salt Lake City. DFW adds Starbucks, business centers near new Skylink stations As Dallas/Ft. Worth International prepares to cut the ribbon on its new people-mover system this spring, it is also making related infrastructure improvements for passengers - specifically, the airport is opening new business centers and adjacent Starbucks outlets next to the new Skylink stations. The first one just opened in Terminal C. "The Starbucks opening in Terminal C is the first of eight locations in Terminals A, B, C and E that will be located adjacent to a business center and a Skylink people mover station in those terminals," an airport official said. The business centers, which do not impose membership fees, will offer carpeted lounges with leather seats, semi-private workstations, closed-caption TV monitor, electic and phone outlets and high-speed Internet access via WiFi or a dataport. All eight should be open by the end of April. Consumers think airport stores rip them off - even if they don't Are passengers getting a better deal at those airports that have formally imposed "street pricing" policies on their retail and food concessionaires (i.e., policies requiring that their prices be the same as they charge for comparable goods or services at local malls)? Even if passengers are getting a better deal, they don't think they are, according to a survey of 35,000 consumers by Phoenix Marketing International. At airports that have no pricing policy in place, 89 percent of the travelers surveyed said they believed they were paying more at the airport than they would for the same thing elsewhere in the city; at airports that do have a "street pricing" policy, 81.5 percent said they thought they were being overcharged, the survey found. It also determined that travelers generally don't know whether a specific airport has a street pricing policy or not. AIR ROUTES CHICAGO MIDWAY (MDW). Southwest Airlines will implement its latest Midway expansion on March 17, when it launches new non-stop service to Norfolk, Va. And Salt Lake City, with one daily roundtrip in each market; and adds a seventh daily flight to Orlando, a sixth to Phoenix, and a ninth to Baltimore/Washington. HOUSTON BUSH INTERCONTINENTAL (IAH). Continental Express will begin regional service March 17 between Houston and Queretaro, Mexico, with one daily roundtrip. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS New York's Paramount Hotel (212-764-5500; www.paramountnewyork.solmelia.com), on West 46th Street at Times Square, has a special offer for American Express cardholders: A room rate of $199 a night, with a free upgrade to a deluxe category room and breakfast for two. You'll also get 20 percent off dinner at the hotel's Mezzanine Restaurant. It's good from March 15 to May 31; mention the code AMXPRO when you book. Kintetsu International Travel Consultants (800/422-3481; www.japanforyou.com) has a sale on air fares from New York JFK to the new Centrair International Airport near Nagoya, according to the Japan National Tourist Office. The fare is only $399 roundtrip, for travel on American between April 3-May 31 or Northwest March 26-May 31. Booking deadline is March 31 or at least three days in advance. 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.