EXECUTIVE TRAVEL SKYGUIDE E-ALERT 09/12/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of September 12, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Delta bankruptcy feared; carrier cuts winter schedule at CVG Northwest's talks with union go nowhere; will halt NY-Tokyo flights United files plan to emerge from bankruptcy next year Ft. Myers Airport opens new passenger terminal Gulfport-Biloxi, New Orleans airports to reopen Hotels: Westin taking over Intercontinental Paris AIRLINES Delta bankruptcy feared; carrier cuts winter schedule at CVG Media reports on Monday (September 12)from Reuters and The Wall Street Journal said that Delta Air Lines is feverishly trying to line up $1.6 billion in debtor-in-possession financing for a Chapter 11 bankruptcy filing that could come as soon as this week. Last week, Delta announced that its winter schedule would include deep service cuts at its Cincinnati hub - a move that could result in another 1,000 employees losing their jobs. The airline also said it plans to sell off 11 of its 767-200s to an air freight company, taking them out of its fleet gradually over the next three years. Delta's December 1 schedule changes at Cincinnati - something the airline euphemistically refers to as "right-sizing its operations" - include a total capacity reduction of 26 percent for Delta mainline and Delta Connection flights; part of that involves the termination of non-stop service between Cincinnati and nine destinations: Moline, Ill.; Mobile and Montgomery, Ala.; Baton Rouge, La.; and the Florida cities of Ft. Walton Beach, Pensacola, Tallahassee and Daytona Beach. In addition, "By consolidating flights into fewer flight banks (at Cincinnati) and reducing flights in off-peak hours, we will increase customer choice during preferred travel times," a Delta official said. The company said its winter schedule will also provide new options at its other hubs - Atlanta and Salt Lake City - where it plans to add new non-stop service to 20 destinations, like Salt Lake City-Columbus, Ohio; Atlanta-Bloomington, Ill.; and Atlanta-Moline, Ill. Last week Delta also finalized its planned sale of Atlantic Southeast Airlines to SkyWest, although it will continue to operate as a Delta Connection carrier. Northwest's talks with union go nowhere; will halt NY-Tokyo flights Northwest Airlines last week went back into talks with its mechanics and aircraft cleaners' union, the Aircraft Mechanics Fraternal Association, which has been on strike since August 20. But the talks ended on Sunday (September 11) with no results and no immediate plans for resumption. Northwest has continued regular operations with replacement workers and some outsourcing, and Northwest's demands this time around are reportedly much tougher than before. The airline apparently wants the striking union to accept even bigger pay cuts and more mechanics' layoffs than it previously demanded; it also said it is permanently outsourcing cleaning and custodial jobs and some maintenance work to outside firms. And Northwest reportedly told the mechanics that if it has no deal from them by Tuesday (September 13), it will begin to hire some of its temporary mechanics as permanent, full-time replacements. Northwest said in recent SEC filings that its supply of cash continues to dwindle as ever-rising fuel prices take their toll. Cash on hand dropped from $2.1 billion at the end of June to $1.7 billion at the end of August; its fuel bills are running 50 percent higher than last year, Northwest said. The airline's pilots union, apparently fearing the worst and watching the plight of the mechanics, decided it would reopen talks with management to discuss yet another cut in wages and benefits in a bid to help the struggling airline. Meanwhile, Northwest said last week that the high cost of fuel will force it to discontinue its non-stop 747-400 New York JFK-Tokyo service effective October 2. United files plan to emerge from bankruptcy next year After more than two and a half years operating under Chapter 11 bankruptcy protection, United Airlines parent UAL last week filed a plan for its eventual emergence from that status by February 1 of next year. The company has lined up $2.5 billion in debt financing; under the plan, current holders of the company's common and preferred stock would get no compensation, and unsecured creditors would be given shares in a new issue of UAL stock - although it would cover only a small percentage of their claims. According to the plan filed with the court, United would continue to operate its frequent flyer program normally, with no adverse consequences for members. The plan projects an operating profit exceeding $900 million for 2006; however, it also bases its projections on oil priced at $50 a barrel, a figure many analysts consider extremely optimistic. AIRPORTS Ft. Myers airport opens new passenger terminal Southwest Florida International Airport at Ft. Myers has opened a new passenger terminal, part of a $438 million expansion and improvement project that also included a new taxiway and related roadways as well as a new parking garage. Flight operations were shifted from the old 17-gate terminal last week to the new 28-gate facility. The new parking garage, located across the roadway from the terminal, includes rental car facilities on its ground floor, ending the need for shuttle service. The old terminal building is closed, and will eventually be torn down. The new terminal "is one of the first in the U.S. to incorporate current security equipment and procedures into its design, resulting in a seamless baggage check-in experience," a spokesman said. Gulfport-Biloxi, New Orleans airports reopen Delta Connection/Atlantic Southeast and AirTran were both expected to resume service between Atlanta and the hurricane-stricken Gulfport-Biloxi Airport in Mississippi this week. Continental is due to resume flights from Houston to Gulfport-Biloxi on September 19. Meanwhile, officials coordinating disaster relief in New Orleans said late last week that the city's airport, which has been serving as a medical triage station and evacuation point, will reopen to regular commercial flights on September 13, although no airlines have yet announced plans to resume service. HOTELS Westin taking over Intercontinental Paris In the latest hotel openings and re-brandings: • Starwood Hotels said it will take over management of the landmark Intercontinental Paris, converting it to The Westin Paris on October 1. • The Hilton Sydney in Australia recently re-opened after a 30-month, $200 million refurbishment. • September 8 marked the soft opening of the new Shangri-La Hotel New Delhi, located about a mile from India's Parliament House. • Le Meridien Hotels - which is being taken over by Starwood - this week will reopen the historic Hotel Des Indes in The Hague, Netherlands, after a major renovation; and recently opened its second Malaysian property, Le Meridien Kota Kinabulu in the capital of Malaysian Borneo. • In the U.S., Marriott recently cut the ribbon on the Marriott Hartford Downtown; the Terrace Hotel in Washington D.C., six blocks from the White House, has become the Doubletree Hotel Washington D.C.; Chicago's West Loop neighborhood is home to a new Crowne Plaza, called the Chicago Crowne Plaza Metro Hotel; and New York's Essex House, now a Starwood property, will be taken over in January by Dubai-based Jumeirah Hospitality, which operates the Carlton Tower in London and several Middle Eastern hotels. AIR ROUTES ATLANTA (ATL). Delta Connection/Atlantic Southeast Airlines has initiated one daily regional jet roundtrip between Atlanta and Kalamazoo, Mich. BOSTON (BOS). In the latest expansion of its low-cost Song unit, Delta has kicked off twice-daily Song service between Boston-San Francisco and Boston-Los Angeles. DALLAS/FT. WORTH (DFW). Alaska Airlines on September 12 adds DFW to its network, operating twice-daily roundtrips to Seattle; one of them continues on to Anchorage. HARTFORD (BDL). Delta's Song has launched twice-daily non-stops between Hartford/Springfield and Los Angeles International. LAS VEGAS (LAS). Virgin Atlantic Airways has increased its Las Vegas-London schedule from five flights a week to six, with the addition of a Friday departure. LONG ISLAND ISLIP (ISP). Southwest Airlines has added a third daily flight from Islip to Tampa Bay, a fifth to Orlando, and a third to West Palm Beach. MIAMI (MIA). United's Ted affiliate has launched twice-daily non-stops between Miami-Denver and Miami-Washington Dulles. RALEIGH-DURHAM (RDU). Southwest Airlines has increased its schedule between RDU and Orlando from two flights a day to three. SAN FRANCISCO (SFO). There's new Ted service (United's low-cost affiliate) between San Francisco and Ontario, Calif., operating twice daily. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS To mark its entry last week into three new transcontinental markets (Boston-San Francisco, Boston-LAX and Hartford-LAX), Delta's low-cost affiliate, Song (www.flysong.com), is having a transcontinental fare sale priced at $119 each way. It's available for purchase through September 29, for travel through January 31. Besides those three new routes, the sale fare also applies for Song's service between New York JFK and LAX, San Francisco and Seattle. AirTran (www.airtran.com) last week inaugurated a fare sale that's good for purchases through September 20 and travel until February 1, 2006. Fares require a seven-day advance purchase, and are not good for travel on Sundays. There's no roundtrip purchase or Saturday stay requirement. Sample one-way fares are $74-$79 for Atlanta-Indianapolis; $74-$89 for Atlanta-New York LaGuardia; $79-$99 between Baltimore/Washington and Dallas/Ft. Worth; $89-$99 between Memphis-Raleigh/Durham. Through December, United Mileage Plus members can get a free Palm Treo 650 Smartphone when they activate a two-year Cingular Wireless service plan and purchase a flight for $500 or more on United, United Express or Ted. Members can register for the offer at United.com/Treo. The Treo 650 is a phone, organizer, camera and MP3 player that can handle email, messaging and Internet access. 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.