EXECUTIVE TRAVEL SKYGUIDE E-ALERT 09/26/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of September 26, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Some SimpliFares fall victim to Delta bankruptcy plan Cuts coming at Northwest Airlink? US Airways/America West offer post-merger travel advice Two new airlines set November 1 launch for JFK-London service Mesa Air plans to start inter-island carrier in Hawaii TSA won't check passenger IDs against commercial databases Internet Access News: AT&T links up with Connexion by Boeing AIRLINES Some SimpliFares fall victim to Delta bankruptcy plan The Cincinnati Enquirer reported last week that as part of its Chapter 11 reorganization plan to cut costs and boost revenues, Delta Air Lines has reinstated some of the ticket purchase restrictions that it had eliminated in January of this year, when it rolled out its so-called "SimpliFares" nationwide. Delta had already exceeded its own $499 one-way SimpliFares price cap several weeks ago. Now, Delta has reportedly reinstated a Saturday-night stay rule and a three-night minimum stay for passengers who want the lowest fare levels in many markets. CEO Gerald Grinstein said last week Delta is seeking an additional $3 billion in annual financial benefits by 2007, through a combination of cost cuts and revenue enhancements. As part of that, he said, Delta expects to cut 7,000 to 9,000 jobs by the end of 2007. Management employees will take pay cuts of nine to 25 percent, and most regular employees will be asked to accept reductions of seven to 10 percent. The company currently has 52,000 employees. He said Delta has already ended its leases on 40 aircraft that it wasn't using, and plans to reduce the mainline Delta fleet by another 80 aircraft by the end of 2006. That will leave the fleet with just seven types of aircraft, instead of the 11 types it currently includes. Grinstein said Delta will cut back its mainline domestic capacity by 15 to 20 percent "to address overcapacity in the U.S. market," and will increase international capacity by 25 percent next year "to pursue routes with greater profit potential." The airline has already revealed plans to cut capacity at its Cincinnati hub by 26 percent in December, and recently announced plans to add service from Atlanta to Copenhagen in May, and from New York JFK to Cancun in December. Cuts coming at Northwest Airlink? What's going on with Northwest Airlines' feeder network, Northwest Airlink? A wire service report on Friday (September 23) said that Northwest plans to remove from service the 35 regional jets operated by Mesaba as Northwest Airlink flights, with nine to stop flying on October 31 and the remaining leases terminated December 20. Then on Monday (September 26), another wire service report said that Pinnacle Airlines, another Northwest Airlink carrier, had been asked by Northwest to take 15 regional jets out of service on October 31. Northwest itself has not yet publicly explained its plans for the feeder operations. Northwest went into Chapter 11 bankruptcy two weeks ago. Meanwhile, Northwest's flight attendants union said the company plans to lay off 1,400 of its members, with 900 coming on October 31 and another 500 in January. US Airways/America West offer post-merger travel advice With the merger of America West and US Airways now imminent, the combined US Airways Group has issued some advice for passengers in the post-merger environment, specifically: • They should continue to book directly with either US Airways or America West, which will continue to operate separate web sites and reservations systems in the short term. • They should check their ticket to see which airline they're flying on. "Check in with that airline, even if you're flying from an airport served by both America West and US Airways," the company said. • E-ticketed customers can make changes online at the web site where they bought the tickets, and can check in online at that web site. • Frequent flyer miles earned in both programs will continue to be honored. "For those customers with a membership in both programs, unused miles will be automatically combined in early 2006 under the new Dividend Miles program," a spokesman said. Starting in October, members of either program will be able to redeem miles on either airline. Two new airlines set November launch for JFK-London service Two newly formed airlines, both with new certification from the FAA, have set November 1 to begin service - and both will start in the same market: New York MAXjet Airways Inc. said it will become the industry's first low-cost business class carrier when it initiates JFK-London service. The initial schedule calls for one daily roundtrip except on Saturdays. "MAXjet will offer an all-business-class service with everyday fares starting at just $779 each way," a spokesman said. The company's 767-200ERs are configured with 102 seats, offering 60-inch pitch and no middle seats. MAXjet will offer a departure lounge with a business center at JFK's Terminal One, and a comparable facility at Stansted. In-flight amenities include "multi-course meals, a chef's pantry, complimentary premium liquor, portable on-demand entertainment, travel amenities and much more," the spokesman said. MAXjet said it plans to add a second daily JFK-London flight "soon," and has plans to begin service from other major U.S, markets, although it hasn't yet said which ones. MAXjet will begin taking reservations September 26 at www.maxjet.com or 888-I-FLY-MAX. Eos (www.eosairlines.com) has also started taking bookings for a November 1 launch, from JFK's Terminal 4. Eos said it will begin with one daily roundtrip, and a second will be added January 3, 2006. Eos' aircraft will be a 757 configured to hold just 48 passengers instead of the usual 210. Eos said its passenger cabin "blends the exclusive feel of a top-tier international first class cabin with the privacy of a corporate jet." Each passenger will have 21 square feet of space, including a seat that fully reclines to a 78-inch flat bed. Eos will charge an unrestricted roundtrip fare of $6,500, although it will have introductory fares of $5,000 roundtrip for tickets bought by October 16, good for travel through April 2006. Mesa Air plans to start inter-island carrier in Hawaii Mesa Air Group, which currently operates regional feeder service for United, America West and US Airways, said last week it plans to establish an independent intra-island carrier Hawaii in the first quarter of 2006. Mesa said the company will offer "high quality, high frequency" service with regional jets between Hilo, Honolulu, Kona, Lihue and Maui. The airline hasn't yet been named, but it's called "Project Hele" within the company. Mesa said it expects to market the airline and sell tickets mainly over the Internet. Officials said they are in talks with other airlines about code-sharing possibilities. FAA/SECURITY TSA won't check passenger IDs against commercial databases Faced with ongoing pressures from consumer and privacy groups and from some members of Congress, Transportation Security Administration officials said last week they no longer intend to use commercial information databases in the government's new "Secure Flight" program. Secure Flight is the new passenger identity verification system that has been in the works for many months - a function that TSA will take over from the airlines when it is completed. Instead of checking passenger names against commercial data, the system will only use information provided by individuals when they buy a ticket, like full name and date of birth; that data will be checked against a government list of possible security threats. If a match is found, TSA will alert the airline. In other security news, the FAA last week said it will seek public comment on a plan to require airlines to install cameras in the passenger cabins of commercial airliners, so that the pilots could watch what's going on. The rule would also require flight attendants to carry wireless devices that could alert the pilots to an emergency. Cockpits are already secured by locked, bulletproof doors that were installed by government order after the 9/11 hijackings. TECHNOLOGY Internet Access News: AT&T links up with Connexion by Boeing • AT&T said last week it has forged an Internet access agreement with Connexion by Boeing that will take effect in the first quarter of 2006. The deal means that AT&T customers will be able to use their existing AT&T accounts when they tap into Boeing's in-flight Internet service, which is now available on select routes of several European and Asian carriers. Meanwhile, AT&T also said it has added more than 2,100 new WiFi hot spots in China, Japan and Greece in partnership with various service providers. • Concourse Communications, which provides WiFi access at several airports, said that on October 1 it will open up WiFi coverage at New York JFK's Terminal 1, used by several foreign airlines. "Previously coverage existed only in Terminals 8 and 9," a spokesman said. "Concourse will continue to expand its WiFi coverage at both JFK and Newark Liberty with additional terminals coming on line in the fourth quarter of this year." • Akron-Canton Airport in Ohio, which has offered WiFi service for the past year at a charge of $1.95 an hour, has dropped that fee, a spokesman said. The airport offers WiFi connectivity throughout its passenger terminal. • In the lodging industry, Doubletree Hotels now provides wired and wireless Internet access in all 40,000 guestrooms of its 150 North American hotels ... Fairmont Hotels & Resorts said that starting January 1, 2006, it will provide free high-speed Internet access to members of its Fairmont President's Club frequent guest plan ... Effective this month, Radisson SAS Hotels now offers free broadband Internet access at all of its properties in Europe, the Middle East and Africa. AIR ROUTES ATLANTA (ATL). On October 1, Delta will begin daily non-stop service between Atlanta and Rio de Janeiro, using a two-class 767-300ER. On the same date, Delta Connection/Atlantic Southeast Airlines will begin regional jet service between Atlanta and Quad City Airport in Moline, Ill., with three daily roundtrips. And Delta will add a seasonal Saturday-only flight to its existing daily schedule between Atlanta and Lima, Peru. FORT MYERS (RSW). Southwest Airlines adds Fort Myers to its system on October 2, when it kicks off new service from Southwest Florida International Airport to Orlando with three flights a day; Baltimore/Washington and Chicago Midway with two apiece; and one flight a day to both Philadelphia and Islip, Long Island. HOUSTON BUSH INTERCONTINENTAL (IAH). Twice-daily service between Houston Bush Intercontinental and Chattanooga, Tenn. will be introduced by Continental Express/ExpressJet Airlines on October 1, using a 37-eat regional jet. LAS VEGAS (LAS). Palm Springs, Calif. will be the newest spoke for America West's Las Vegas hub, with one daily roundtrip beginning October 1. The America West Express/Mesa Airlines service will use a 37-seat Dash 8. MEMPHIS (MEM). Northwest Airlink/Pinnacle Airlines plans an October 2 start for twice-daily regional jet flights between Memphis and Columbia, S.C. MILWAUKEE (MKE). From October 1 through April, Midwest Airlines will operate one daily roundtrip between Milwaukee and Ft. Myers; extra frequencies will be added after December 15. NEW YORK KENNEDY (JFK). Citing rising fuel costs, Northwest Airlines on October 2 will discontinue its daily JFK-Tokyo non-stops. ST. LOUIS (STL). Effective October 1, American will increase frequencies between St. Louis-Des Moines from four a day to five, and between St. Louis-Cedar Rapids, Ia. From three to four, in each case adding an American Eagle roundtrip to the existing AmericanConnection service. SAN JOSE (SJC). Hawaiian Airlines will use a 767 to launch new service October 1 between San Jose and Honolulu, with one daily roundtrip. WASHINGTON DULLES (IAD). October 1 marks the end of Independence Air's daily Airbus flights between Dulles and Los Angeles International Airport. Independence also dropped IAD-San Diego and IAD-San Jose service, ending its transcontinental experiment. THIS WEEK'S DEALS AND SPECIALS FOR BUSINESS TRAVELERS Got business in South America? Delta (www.delta.com) set a purchase deadline of October 3 for sale fares of $429 roundtrip from Atlanta to Lima, Peru and $604 from Atlanta to Santiago, Chile. Good for travel from October 1-December 10 to Lima or December 15-March 29 to Santiago, the fares require a minimum two-night stay. Priority Club, the frequent stay program of the InterContinental Hotels Group (InterContinental, Holiday Inn, Crowne Plaza, Hotel Indigo), has renewed its Double Points/Double Miles promotion, good for stays from now through December 16. The double points/miles begin with your second stay. (Or your first stay with Staybridge or Candlewood Suites properties.) Members have to register at www.priorityclub.com/doublepoints or by calling 888-211-9874. United Airlines has added a new perk for Mileage Plus members who want to cash in some miles for award travel - provided they're flexible: The web site (www.united.com) now has a dedicated page with information on the award destinations that are available from different cities for the upcoming month. 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.