EXECUTIVE TRAVEL SKYGUIDE E-ALERT 04/25/05

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of April 25, the weekly e-mail of essential business travel news!

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America West-US Airways merger talks stir debate
New study finds faulty airport inspections aren't improving
Tampa opens new terminal
DFW to debut Skylink transportation system next month
Pittsburgh International travelers get spa services
Amtrak's Acela trains won't be back before summer

AIRLINES

America West, US Airways stir debate with merger talks
Officials of America West Airlines and US Airways last week confirmed industry rumors that they are discussing a possible merger, and that revelation set off a storm of commentary about whether such a combination could be achieved, whether it would work, and just where the industry is headed. US Airways, of course, is still operating under Chapter 11 bankruptcy, and still struggling to find the investment capital it says it needs to emerge. So far, the only new capital forthcoming has been from US Airways' regional partner carriers, which have an obvious interest in seeing the company survive.

Most observers agree that some consolidation among the major U.S. carriers is inevitable, perhaps even overdue. But they note that a US Airways-America West combination wouldn't help the industry's woes unless it led to significant capacity cutbacks - which aren't seen as likely since the two carriers' networks don't overlap much. That same factor, however, could make a merger more likely to win federal approval - as could the bankruptcy status of US Airways, since the government has always tended to look favorably on mergers that might keep a troubled company operating. The last proposed merger to face federal scrutiny, US Airways-United, was blocked due to concerns it would be anticompetitive. Meanwhile, some observers claim a merger won't happen because neither carrier has much cash. Others say it wouldn't really work because both carriers are facing strong competition in both the east and the west from a strong, profitable rival - Southwest Airlines. America West, which posted a first quarter profit while other major carriers are still bleeding, made an effort last year to acquire ATA Airlines, but that carrier ended up cutting a deal with Southwest.

FAA/SECURITY

New study finds faulty airport inspections aren't improving
The Department of Homeland Security's Inspector General last week released its latest study of just how well the Transportation Security Administration is performing, and the results were not promising. Conducted as a follow-up to earlier testing in 2003, the latest study again used fake passengers trying to sneak things through the airport security inspections - and they did. "Despite the fact that the majority of screeners...were diligent in the performance of their duties," the Inspector General said, "the lack of improvement (in detecting banned items) since our last audit indicates that significant improvement in performance may not be possible without greater use of new technology." The report recommended that TSA speed up the testing and possible deployment of new scanning technology like "backscatter x-ray" to improve its ability to detect weapons and explosives. TSA said it would do so, and will also "continue to seek incremental gains in screener performance through training, testing and management practices."

AIRPORTS

Tampa opens new terminal
Tampa International Airport last week opened its newest passenger terminal, called Airside C, which will be used mainly by Southwest Airlines. Southwest will occupy 12 of the terminal's 16 gates, with the others going to Independence Air, Spirit Airlines and Midwest Airlines. It's the largest of Tampa's five "Airside" terminals, and the first to offer free wireless Internet access throughout - although airport officials said that amenity will be extended to other terminals by year's end. Southwest is moving into Airside C from Airside A. Plans call for Airside D to be closed once the new facility is fully operational. The new terminal has an expanded security checkpoint with 10 lanes, as well as a kids' play area and four food and beverage outlets - Starbuck's, Chili's Too, Chili's To Go and the Tampa Bay Home Sports Team Bar & Grill.

DFW to debut Skylink transportation system next month
Officials at Dallas/Ft. Worth International Airport have scheduled a May 4 gala to mark the opening of the airport's long-awaited Skylink automated people-mover. The system won't begin regular passenger operations until later in the month, however. The $880 million system, built by Bombardier Total Transit Systems, will link all of the airport's terminals - including the new International Terminal D, due to open in July - with a fleet of 64 cars moving along two-directional elevated guideways at speeds up to 35 miles an hour. The total system is about five miles long, and the guideways are on average about 50 feet above the ground, offering great views of the airport, officials said. They claim that the new Skylink is "the world's largest airport train system."

Pittsburgh International travelers get spa services
Recently opened on Concourse A at Pittsburgh International Airport is Xpres Spa, and a second one should debut on Concourse B within two months, airport officials said. The Xpres Spa provides a full line of treatments, including massages of the feet, full body or back and shoulders; manicures, pedicures, skin care and waxing. Length of treatments can be customized to fit customers' schedules. The facility also sells a variety of spa products and gift items. It's open from 7 a.m. to 10 p.m. every day (7 p.m. on Saturdays).

RAIL

Amtrak's Acela trains won't be back before summer
Don't get your hopes up for a quick return of Amtrak's high-speed Acela trains in the Northeast Corridor. Officials of the rail company now say the trains probably won't be back until sometime in the summer. They couldn't be more specific than that. Amtrak pulled the trains out of service on April 15 after cracks were discovered in parts of their brakes. One train went back into service a few days later, but was taken out again, as Amtrak decided more sophisticated tests were needed to inspect the brakes. The manufacturer, Bombardier, doesn't have enough spare brake parts on hand to re-equip the fleet, so more will have to be built, which will take some time. Meanwhile, Amtrak is rounding up all the spare equipment it can muster in an effort to put more Metroliner trains into service. The company's 20 Acela trains carried an estimated 9,000 to 10,000 passengers per day - most of them business travelers - between New York-Boston and New York-Washington.

AIR ROUTES

ATLANTA (ATL). Delta Connection/Atlantic Southeast Airlines plans a May 1 start for three daily regional jet roundtrips between Atlanta and Hickory, N.C.

BOSTON (BOS). Effective May 1, American Airlines will operate a non-stop Boston-Shannon 757 flight, with service every day through the summer and five times a week after that.

CHARLOTTE (CLT). American Eagle on May 1 launches five regional jet flights a day between Charlotte and New York LaGuardia. Meanwhile, as part of a reduction of its 737 fleet, US Airways on May 1 will eliminate one daily frequency between Charlotte and Atlanta, Raleigh-Durham, Orlando and West Palm Beach.

CHICAGO O'HARE (ORD). American Airlines set a May 1 start for new non-stop 767-300 service between Chicago and Dublin, Ireland, operating daily through the summer and five times a week thereafter. American Eagle on May 1 will launch twice-daily regional jet flights between O'Hare and Lexington, Ky.

DALLAS/FT. WORTH (DFW). May 1 is the starting date for new American Eagle service between DFW and Lexington, Ky., with three daily regional jet roundtrips. On the same date, Eagle kicks off one daily roundtrip between DFW and Chihuahua, Mexico.

FT. LAUDERDALE (FLL). US Airways' May schedule changes call for the elimination of service between Ft. Lauderdale and Newark, San Juan, Panama City (Fla.) and San Salvador, El Salvador.

KANSAS CITY (MCI). Midwest Airlines will beef up its Kansas City presence on May 1, adding a new daily non-stop to Boston and two a day to Los Angeles. The airline will also boost frequencies between Kansas City and Milwaukee to six a day, and between Kansas City and New York LaGuardia to three a day. On the same date, Midwest will end its service between Kansas City and Orange County, Calif.

LAS VEGAS (LAS). America West Express/Mesa Airlines on April 29 will begin twice-daily regional jet roundtrips between Las Vegas and Long Beach, Calif. And on May 1, America West itself kicks off one daily roundtrip between Las Vegas and Anchorage, using an A319.

LOS ANGELES (LAX). Effective April 25, Horizon Air will operate two daily roundtrips from Arcata/Eureka and Redding, Calif., to Los Angeles International, using 70-seat Q400 turboprops.

NEW YORK KENNEDY (JFK). Thai Airways International will launch one of the world's longest non-stops May 1 when it begins a daily transpolar flight between JFK and Bangkok, using an Airbus A340-500 for the 17-hour flight. Delta on May 1 will start new daily service from JFK to Santiago, Dominican Republic, supplementing its daily flight from JFK to Santo Domingo.

PHILADELPHIA (PHL). US Airways on May 1 will drop three daily PHL-Tampa flights, and will trim one daily roundtrip off its schedules from Philadelphia to Hartford, Buffalo, Norfolk, Seattle, Ft. Lauderdale and Orlando.

PORTLAND, ORE. (PDX). From April 25 through October 28, Horizon Air will add a fourth daily turboprop roundtrip between Portland and North Bend/Coos Bay, Ore.

ST. LOUIS (STL). On May 1, AmericanConnection/Trans States Airlines adds two daily regional jet roundtrips between St. Louis and Little Rock. Effective May 4, American Eagle begins twice-daily regional jet non-stops between St. Louis and New York JFK.

SALT LAKE CITY (SLC). Delta will use a 767-400 for its new daily flight from Salt Lake City to Maui, which starts May 1.

WASHINGTON DULLES (IAD). Independence Air on May 1 is scheduled to kick off the next big phase of its transcontinental expansion, using Airbus jets to launch twice-daily Dulles-San Francisco roundtrips, as well as one daily roundtrip each in the IAD-Los Angeles, IAD-San Jose and IAD-Seattle markets.

WASHINGTON REAGAN NATIONAL (DCA). American Eagle on May 1 begins regional jet service between Reagan National and Nashville, with three daily roundtrips.

THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS

Hilton Hotels and American Express last week unveiled a new Hilton HHonors Platinum Credit Card from American Express, offering additional benefits for cardholders in the hotel company's frequency program. In addition to the program's core benefits, using the new platinum card will earn 500 bonus points for each qualifying stay at a Hilton group property when you book online; and five HHonors bonus points for every dollar spent at U.S. restaurants, supermarkets, gas stations and drugstores, as well as using the card at the U.S. Post Office and to pay wireless phone bills. For details, visit www.americanexpress.com/hilton.

Got business in Jakarta? Ritz-Carlton Hotels (www.ritzcarlton.com; 800-241-3333) plans a May 1 opening for its newest property, located in the Indonesian capital's Mega Kuningan district, a new commercial area. The Ritz-Carlton, Jakarta will offer special introductory rates starting at $158 a night for weekday stays, $138 on weekends, valid through August.

Concerned about the euro's ever-rising value against U.S. currency, French-based chain Concorde Hotels (800-888-4747; rates not available on the web site, www.concorde-hotels.com) has introduced special guaranteed-dollar rates that are around 30 percent lower than rack rates and even lower than most promotional rates, the company said. They're valid through the end of the year. Sample nightly dollar rates include $220-$260 at the Ambasciatori Palace in Rome, $190-$245 at Casa Marcello in Prague, $220 at the Princesa Sofia in Barcelona, and $260 at the Cerulean Tower in Tokyo.

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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