EXECUTIVE TRAVEL SKYGUIDE E-ALERT 06/13/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of June 13, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Northwest boosts business fares, keeps talking to mechanics United wins federal approval for in-flight Wi-Fi service United Express adds larger jets with new seating options New venture plans NY-London flights in 48-seat 757s DOT boosts rebooking fee in case of airline failure Travelers air gripes about security screenings SkyTeam adds new membership category; four airlines accepted Eurostar to separate first class business, leisure riders AIRLINES Northwest boosts business fares, keeps talking to mechanics According to a report last week in the Minneapolis Star Tribune, Northwest Airlines has quietly increased a number of one-way business fares by $50, up to a maximum of $549. That exceeds the $499 cap that has been standard since Delta overhauled business fares earlier this year. In addition, the newspaper reported, Northwest has increased the stay requirement on a number of fares from one night to two nights, a move that could drive many business flyers into higher fare categories. It also hiked the lowest discount fares by $5 to $10, the newspaper said. In other news, the prospect of a walkout by Northwest's mechanics receded last week after the National Mediation Board turned down the airline's request to declare negotiations with the union at an impasse. The Aircraft Mechanics Fraternal Association had urged the NMB to keep the talks going. If the board had agreed to Northwest's request, it would have started the clock ticking on a 30-day countdown to a possible strike or lockout. Northwest reportedly wants to lay off more than half its mechanics and secure wage cutbacks from the rest, and has been advertising for replacement workers in the event of a strike. The airline is also in negotiations with its flight attendants' union, and last week it reportedly ran an ad on Monster.com for replacement flight attendants in case that labor group walks out. United wins federal approval for in-flight Wi-Fi service United Airlines said last week that the FAA has approved its request to provide in-flight wireless Internet access in conjunction with Verizon Airfone, the supplier of United's existing in-flight telephone service. "The date that customers may begin using Wi-Fi devices on United ultimately will be determined by the Federal Communications Commission's scheduled 'air-to-ground' spectrum auction to be held in the coming months," a United spokesman said. "Once a service provider is selected by the FCC, Unites is positioned to act quickly to bring this service to customers." The airline said its market research shows that a wireless in-flight Internet connection "is customers' most preferred form of communication to the ground." United said that months of testing with Verizon's wireless technology aboard a 757 convinced the FAA that the new service would not interfere with operation of the aircraft. United Express adds larger jets with new seating options United Airlines last week introduced new 70-seat regional jets, including CRJ-700s and EMB-170s, to its United Express fleets. The new planes, which replace 50-seat aircraft, have more seating options for business travelers, including a first class cabin and United's trademark Economy Plus, with extra legroom, in the main cabin. United Express has started flying the new planes out of its Chicago O'Hare hub to White Plains, N.Y.; Columbia, S.C.; Portland, Me.; and Montreal and Ottawa, Canada; and out of its Washington Dulles hub to Portland, Me.; Rochester, N.Y. and Montreal. The 70-seat jets are also deployed between Chicago and Colorado Springs, Colo. New venture plans NY-London flights in 48-seat 757s A new airline called Eos (named for the goddess of the dawn) plans to launch 757 service between New York and London later this year with specially-configured 757s that have just 48 seats and special services and amenities for business travelers. Company officials said last week they have secured $158 million in financing, have taken possession of the first of three leased 757s, and are moving ahead with regulatory filings to secure FAA and Transportation Department approval for the airline. Eos' founder and CEO is former British Airways senior executive David Spurlock. Its president is Bonnie Reitz, who formerly served as senior vp-marketing, sales and distribution at Continental Airlines. Officials haven't said yet what a flight on Eos will cost. But Reitz said the Eos will be seeking out travelers who want a "return to the Concorde-like experience of exclusivity and community that is missing from today's airline marketplace." FAA/SECURITY DOT boosts rebooking fee in case of airline failure Passengers booked to fly on an airline that suddenly stops operating can still rebook on another carrier at no extra fare, but the fee they'll pay for that privilege is now $50 each way, or $100 roundtrip. The Department of Transportation last week said it would let airline double the fee from its previous level, citing the extra costs that an airline could incur if it is hit with a wave of rebooking at a large airport on the day a competitor shuts down. A federal law guarantees passengers the right to transportation on alternate carriers, and gives stranded flyers 60 days to make a new reservation. Travelers air gripes about security screenings What bothers the business travel community most about airport security operations? The Business Travel Coalition, reporting on a recent survey of 651 frequent corporate travelers and company travel managers, said the number one complaint, cited by 38 percent, was inconsistency in the security procedures from one airport to another. Running a close second, at 37 percent, was a concern about the length of lines at security checkpoints and the time it takes to get through the process. Not surprisingly, 77 percent of the respondents expressed support for a "registered traveler" program for business travelers - the kind of program that the Transportation Security Administration has been trying out at an extremely slow pace at a few airports. Two-thirds of the respondents said that they had been singled out at least once in the past six months for intensive security screening. And a noticeable minority - 10 percent - said their number one gripe about the whole process is having to remove their shoes for screening. INTERNATIONAL SkyTeam adds new member category; four airlines accepted The global SkyTeam alliance, which includes Delta, Continental and Northwest in the U.S., said it has created a new airline membership category and is bringing four more carriers on board. They are Spain's Air Europa; Panama's Copa Airlines; Kenya's Kenya Airways and Romania's Tarom. SkyTeam said the new memberships should take effect sometime next year. As associate members, the carriers are expected to provide frequent flyer program reciprocity, adopting the frequency program of one of the existing member airlines; provide airport lounge access on the day of travel for SkyTeam Elite Plus flyers, as well as persons holding international first or business class tickets on a member airline; and enter into code-share agreements with selected SkyTeam member carriers. RAIL Eurostar to separate first class business, leisure riders Europe's high-speed Eurostar trains -- which run under the English Channel to link London with Paris and Brussels - will offer separate first-class cars for business travelers and for leisure travelers beginning September 1 (www.eurostar.com). Tickets for travel after that date are now on sale, but the term "first class" will no longer apply to them; instead, travelers will have to specify "Business Premier" or "Leisure Select" seating - or Standard Class, which remains unaffected by these changes, and will carry both types of travelers. Business Premier passengers will have access to executive lounges at the rail system's London, Brussels and Paris stations, as well as express check-in counters. AIR ROUTES BOSTON (BOS). From June 13 through September 8, Finnair will operate a Boston-Stockholm-Helsinki flight three times a week. CHICAGO MIDWAY (MDW). On June 17, Southwest Airlines will kick off new service between Chicago Midway and Buffalo, with two daily roundtrips. Southwest also will increase frequencies between Midway and Houston Hobby from four flights a day to six; and between Midway and Islip, Long Island from three a day to four. DALLAS/FT. WORTH (DFW). American Eagle has kicked off a spate of new regional jet services out of DFW, including three daily non-stops to Savannah, Ga.; two a day to both Madison, Wis. and Mobile, Ala.; and one a day to Evansville, Ind.; Green Bay, Wis.; Moline, Ill.; Rochester, Minn.; and Toledo, Ohio. At the same time, American Eagle started daily seasonal flights between DFW and Traverse City, Mich., continuing to October 29. DENVER (DEN). Frontier Airlines set a June 15 start for new non-stop service between Denver and Akron/Canton, Ohio, with two daily roundtrips. DETROIT METRO (DTW). Air France on June 13 will add Detroit as its 13th U.S. gateway, offering one daily non-stop with a two-class A330-200. HOUSTON BUSH INTERCONTINENTAL (IAH). Continental Express plans a June 18 start for twice-weekly regional jet service between Houston and Tikal/Flores, Guatemala. LAS VEGAS (LAS). America West will add a new spoke to its Las Vegas hub June 17, when it kicks off new America West Express flights to Monterey, Calif., with one daily roundtrip using an 86-seat regional jet. NEW YORK KENNEDY (JFK). On June 17, JetBlue will add a second daily roundtrip to both its JFK-Seattle and JFK-San Jose routes. On June 18, Delta's Song affiliate begins service between JFK and San Juan. NEWARK (EWR). Continental Airlines adds a big international spoke from its Newark hub on June 15, when it begins daily non-stop service to Beijing, using a 777-200ER for the 13-hour flight. WASHINGTON REAGAN NATIONAL (DCA). Northwest Airlink/Pinnacle Airlines has started one daily regional jet roundtrip between Washington Reagan National and Madison, Wis.; and another between DCA-Lansing, Mich. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS America West Airlines (www.americawest.com) has added Budget Rent A Car as a partner in its FlightFund frequent flyer program, normally offering 50 miles per rental day. But as an introductory offer, the companies are providing triple miles for Budget rentals through July 1. Use Budget corporate discount number Y145001 when you book the car, either through www.budget.com or www.americawest.com/travelplanning/tp_car.asp. 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.