EXECUTIVE TRAVEL SKYGUIDE E-ALERT 08/29/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of August 29, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Northwest says flight operations are normal despite strike United making some progress toward exit from bankruptcy Two new airlines hope to launch JFK-London service American opens new Admirals Club at JFK Southwest's planned Seattle airport move draws opposition Starwood will add Le Meridien to its portfolio AIRLINES Northwest says flight operations are normal despite strike Officials of Northwest Airlines said on Friday (August 26) that the airline is operating its regular schedule with few problems despite the continuing week-old strike by the Aircraft Mechanics Fraternal Association. In fact, the airline claimed that its replacement workers are clearing up a backlog of maintenance problems that started before the strike did, as union mechanics slowed down their normal pace of work. The strike began on August 20. Northwest officials said that on Friday, August 27, the airline completed 98.2 percent of the flights on its schedule, vs. 91 percent a week earlier. On-time arrivals on August 27 were above 70 percent, Northwest said, after dipping to around 50 percent when the strike began. And the number of aircraft out of service, which was at a very high level of 57 before the strike, is now down to 21, officials said. Although the airline has not released information on passenger traffic, anecdotal evidence and news reports indicate that plenty of people are still flying on the carrier, and that consumer concerns are probably abating as the airline continues to operate with no major problems and less media attention. Northwest executives have even spoken in the past few days about taking on their temporary mechanics as permanent staffers, leaving the striking union members out in the cold. The new workers are being paid at a level significantly lower than the striking AMFA mechanics had been getting. Still, striking mechanics - who are picketing at the airline's main hubs - say that Northwest is going to face more and more maintenance issues over time, as replacement workers fail to keep up with the inevitable problems that will develop in a fleet that is the oldest in the industry. United making some progress toward exit from bankruptcy A bankruptcy court judge last week gave United Airlines parent UAL yet another extension - until November 1 - to come up with its own business plan that would allow it to exit bankruptcy, without interference from creditors or other outside parties. The judge indicated that this was likely to be the last such extension of "exclusivity," but UAL officials indicated that they are making good progress toward emerging from Chapter 11, where the company has been for more than two and a half years. UAL reported last week it has secured tentative commitments for up to $3 billion in debt financing from a group of banks, and that could allow it to come out of bankruptcy later this year or early in 2006. United has successfully negotiated new contracts with its main employee groups, reducing its labor costs significantly; it has also shed its pension plans, eliminating another big expense. Two new airlines hope to launch JFK-London service Two nascent airlines - MAXjet and Eos - are planning to launch service this year between New York and London, although they are appealing to different segments of the market. MAXjet Airways, which says it will be the first carrier to "bring the low-cost carrier revolution" to the transatlantic market, finally won certification from the Federal Aviation Administration after a 16-month effort. "MAXjet plans to begin charter operations immediately," a company spokesman said last week. "Scheduled passengers service will begin later this year, with flights initially planned between New York's John F. Kennedy Airport and London's Stansted Airport; other routes from east coast cities to London will follow." The airline also activated its web site at www.maxjet.com, where users can sign up for news and special offers. "The airline will soon announce scheduled routes and fares, and begin accepting passenger bookings," the spokesman added. MAXjet will operate 767 aircraft. Meanwhile, officials of Eos recently attended a business travel convention to show off sample seating that passengers will find on the airline's specially-configured, 48-seat 757s that the company says it will start flying - also between JFK and Stansted - as early as mid-September. With a staggered seating configuration, each of the 48 seats will have aisle access, Eos officials said, and each seat will afford the passenger 21 square feet of personal space. Eos says it will be the first "all-premium service" in the New York-London market. The airline is currently conducting "FAA proving run flights," a spokesman said. AIRPORTS American opens new Admirals Club at JFK As part of the first phase of its massive terminal overhaul at New York Kennedy, American Airlines last week opened a new Admirals Club in the facility, located in Concourse C across from Gate 42. The new club can accommodate up to 183 members. Its business center provides personal computers with free high-speed Internet access, telephones, fax service and PC data ports. The club also has showers, flat-panel TVs with DIRECTV service, and a special room for children. Members can get free snacks, juice, tea, coffee and soft drinks. Southwest's planned Seattle airport move draws opposition Several weeks ago, we reported on Southwest Airlines' desire to move its Seattle operations from Seattle-Tacoma International Airport to close-in King County Airport, also known as Boeing Field. Southwest says the fees at Sea-Tac are just too high, and it's willing to spend millions to upgrade the smaller general aviation airport so it can handle commercial passenger operations. But now a local opposition group has formed to block the low-cost carrier's plans. Led by the Greater Seattle Chamber of Commerce, the newly organized Sound Air Alliance claims that there is "no wisdom in having two busy commercial airports located a few miles apart and sharing the same airspace." The group notes that Alaska and Horizon Air have said they would switch as many as 100 flights a day to Boeing Field if Southwest moves there, and the transfer of all this flight activity would require spending millions of taxpayer dollars on road expansion, new bus routes, and other related airport services. They also note that regional planning bodies never contemplated using Boeing Field for commercial service, but instead have expected to add more capacity at Sea-Tac. Neighborhood associations around Boeing Field have joined the alliance in an effort to protect themselves from aircraft noise, the group noted. HOTELS Starwood will add Le Meridien to its portfolio Starwood Hotels last week said it has signed definitive agreements to acquire Le Meridien Hotels, the luxury chain with 130 properties worldwide. Starwood said it expects the deal will close sometime late in the third quarter. Once the deal goes through, the Meridien properties presumably would be folded into Starwood's Preferred Guest frequent-stay program, which currently includes the St. Regis, Luxury Collection, Westin, Sheraton, W and Four Points by Sheraton brands. Le Meridien has especially strong presences in Europe, Africa, the Middle East and Asia. AIR ROUTES ATLANTA (ATL). Delta Connection/Atlantic Southeast Airlines set a Sept. 1 start for new service between Atlanta and Lansing, Mich., with two daily regional jet roundtrips. DENVER (DEN). On August 31, Frontier JetExpress/Horizon Air will add new service from Denver to Dayton, Ohio and Fresno, Calif., with two daily roundtrips in each market, using 70-seat regional jets. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS Choice Hotels (www.choicehotels.com) is repeating its fall promotion called "Stay Two Times, Earn a Free Night." Available to members of the group's Choice Privileges guest rewards program, the promotion awards 6,000 bonus program points to persons who complete two paid stays from September 1-November 30 at any of the group's mid-scale brands, including Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion or Mainstay Suites. The bonus points combined with the regular points per stay will be enough for a free night, Choice said. Singapore Airlines (800-742-3333; www.singaporeair.com/usa) has a special Executive Economy Class fare of $1,350 roundtrip from Los Angeles or Newark to Singapore, valid for trips departing the U.S. between September 5 and November 20, with all travel completed by November 30. Add-ons are available beyond Singapore to Saigon or Hanoi for $184; to Siem Reap or Phnom Penh for $234; or to Yangon for $234. Got business in South Africa? South African Airways is offering roundtrip fares starting as low as $1,000 (plus all the usual international fees, airport and security taxes and such) from New York JFK, Washington Dulles and Atlanta, for travel between October 1 and November 30. Travelers can choose from six destination cities: Johannesburg, Cape Town, Durban, East London, George or Port Elizabeth. The fares are available for booking online at www.flysaa.com or by calling 800-722-9675. For links to other websites where you can search for bargains, click here: www.executivetravelonline.com/reference/deals.html For in-depth analysis, news, features and opinions about the current business travel scene, check out Joe Sent Me (www.joesentme.com), produced by veteran traveler advocate/journalist Joe Brancatelli and a team of contributors. By Jim Glab To sign up for the e-Alert, click here.