EXECUTIVE TRAVEL SKYGUIDE E-ALERT 10/10/05 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of October 10, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Fast-growing low-cost carriers offer less crowded flights Delta backs off from flight cancellation policy United moves closer to bankruptcy exit Northwest reportedly eyes in-house regional carrier United reverts to manual baggage-handling at Denver International Hertz broadens selection of luxury cars This Week's Specials: United, Delta cut international fares AIRLINES Fast-growing low-cost carriers offer less crowded flights September traffic statistics released last week by a number of airlines reveal that not only are low-cost carriers growing much faster than their larger counterparts - they are still less crowded, offering a greater number of empty seats per flight. The so-called legacy carriers are getting more stuffed than ever: United said that during September, its load factor - or percentage of seats occupied - averaged 80.2 percent, or more than four out of every five seats. United's passenger traffic actually declined year-over-year in September, by 1.5 percent, and its capacity dropped by 4.8 percent. The percentage of seats filled at American in September was 76.2; at Continental, 77.3; and at Northwest, 81 percent. American's September capacity grew by 5 percent, Continental's by 6.3 percent and Northwest by 2.1 percent. The low-cost carriers, by comparison, are growing by leaps and bounds. JetBlue reported September traffic that was 30.7 percent higher than a year ago, along with a 28.9 percent capacity growth. At AirTran, September traffic jumped 55 percent, while capacity rose 30 percent. Southwest turned in traffic growth of 18.9 percent and a capacity increase of 11.5 percent. And yet the low-cost carriers had more empty seats per flight: Southwest's September load factor was 67.4 percent; at AirTran it was 71.2 percent. JetBlue was about as crowded as the legacy carriers in September, at 77.7 percent. Delta backs off from flight cancellation policy Delta Air Lines last week said it was resuming full flight schedules after several days of canceling some lightly-booked departures in order to save fuel. Delta, currently operating under Chapter 11 bankruptcy, said decisions on which specific departures to cancel were made on a day-by-day basis, depending on load factors, although the airline insisted the number of cancellations was minimal. Passengers booked on canceled flights were notified a few days in advance, Delta said, and were accommodated on other departures. No international flights were scrapped, and Delta indicated that less than one percent of its schedule was affected. United moves closer to bankruptcy exit United Airlines said last week it has finalized a $3 billion financing package that should keep it on track to emerge from Chapter 11 bankruptcy protection by the first quarter of 2006 - or more than three years after it filed. Leading the refinancing effort for United are JPMorgan Chase and Citigroup. Some of the new funds will go toward paying off some $1.3 billion that United borrowed at the time it went into bankruptcy. Some observers of United's plan for exiting bankruptcy are concerned that it is based on crude oil prices of $50 a barrel - well short of where prices have been lately, and not taking into account the recent post-hurricane surge in refining costs that have led to a spike in jet fuel prices. Northwest reportedly eyes in-house regional carrier Bankrupt Northwest Airlines, which recently told regional partners Pinnacle and Mesaba that it was taking a number of Northwest Airlink small jets out of service, may be planning to launch its own commuter carrier, according to the Minneapolis Star Tribune. The newspaper said Northwest has been talking to its creditors and its pilots union about creating a new unit in the company that could operate smaller 70- to 100-seat jets on a number of shorter and medium routes currently flown with the airline's aging fleet of DC-9s. According to the newspaper, CEO Doug Steenland reportedly believes that rather than having Mesaba or Pinnacle operate the new planes, it would be easier for Northwest to "start from scratch" with its own division. The main obstacle: Northwest's current contract with the pilots union requires that mainline Northwest pilots fly everything larger than 60 seats; to make the proposal work, the company would need lower pilot wages and less restrictive work rules for the smaller jets. Meanwhile, the parent company of Northwest Airlink partner Mesaba Aviation said in a filing last week that in addition to the 35 Avro Regional Jets that Northwest is pulling from Mesaba's Airlink service, Northwest is also taking down 10 Saab aircraft in January and probably won't deliver 13 new Canadair regional jets on schedule. Mesaba's parent, MAIR, said its loss of business from the Northwest partnership could force it into its own bankruptcy filing. AIRPORTS United reverts to manual baggage-handling at Denver International Remember 10 years ago when Denver had to delay the opening of its new Denver International Airport because of problems with the new state-of-the-art automated baggage handling system? Well, according to the Denver Post, United Airlines - which was the only airport tenant using the system - has thrown in the towel and gone back to totally manual handling of checked luggage. The airline apparently determined that not only could it get bags to and from aircraft just as efficiently the old way, but it would save $12 million a year by not having to perform maintenance on the troubled automated system. One problem for United remains, however, the newspaper said: It is still required to pay the airport $60 million a year for the space occupied by the automated system, and the equipment itself. United had only been using the automated system for outbound bags, handling more than 12,000 a day. CAR RENTALS Hertz broadens selection of luxury cars Hertz is expanding its Prestige Collection, a lineup of high-end cars like Jaguars, Volvos, Cadillacs and others that it started renting four years ago; the special vehicles are now available in 50 North American and 25 European markets. The company said it has added nine new car models to the collection, among them the Audi A6 and A8l Quattro and Audi S4 Cabriolet; Cadillac STS; Hummer H2; Infiniti QX56 (a seven-seater) as well as the Infiniti FX35 and Q45; and the seven-seat Land Rover LR3, a four-wheel drive model. Prestige Collection vehicles come with free NeverLost navigational systems, and renters can ask for free delivery and pick-up at suburban hotels within 15 miles of a Prestige Collection location. Through December 31, Hertz is offering special rates, starting as low as $75 a day, on cars in the collection. Go to www.hertz.com, click on Special Offers, and go to Deals of the Day for details. AIR ROUTES CHICAGO O'HARE (ORD). On October 15, United Airlines affiliate Ted will start weekly Saturday service between O'Hare and Cabo San Lucas, Mexico, to be expanded to four times a week on December 15. NEW YORK KENNEDY (JFK). Delta will add new Texas spokes out of its international hub at JFK on October 15, when Delta Connection/Shuttle America begins twice-daily regional jet flights between JFK and Austin, and one flight a day between JFK-San Antonio. NEWARK (EWR). JetBlue has started operations at Newark Liberty International Airport, initially offering five daily roundtrips to Ft. Lauderdale and four to Orlando. ORLANDO (MCO). Delta Connection/Freedom Airlines begins new non-stop service October 10 between Orlando and Northwest Arkansas Regional Airport, with one daily roundtrip. SALT LAKE CITY (SLC). October 15 is the launch date for new Delta Connection/Shuttle America service to the Midwest, with two daily non-stops between Salt Lake City and Columbus, Ohio, and two between SLC-Indianapolis. DEALS AND SPECIALS FOR BUSINESS TRAVELERS United, Delta cut international fares Both United and Delta last week rolled out fare sales on hundreds of international routes, subject to various blackout dates and conditions. The United/Lufthansa sale fares are good for travel through March 31, 2006, and Delta's through April 3, 2006. Purchase deadline is October 18 for United (www.united.com), October 19 for Delta (www.delta.com). Sample roundtrip fares on United: Chicago-Frankfurt, $530; Los Angeles-Cairo, $802; New York-Tel Aviv, $638; San Francisco-London, $408; Washington Dulles-Amsterdam, $412. Sample Delta roundtrips: New York-Mexico City, $370; Los Angeles-Barcelona, $568; Pittsburgh-Buenos Aires, $786. Matching a similar offer from British Airways, American Airlines said members of its AAdvantage program can earn a minimum of 50,000 miles on each roundtrip business or first class trip between the U.S. and London or Manchester, England, valid for travel now through December 31. The offer will give members 42,000 bonus miles in addition to actual miles flown. The resulting total of 50,000 or more miles is enough for two free domestic roundtrips. Register in advance at www.aa.com/offers, using promotion code LON05, or call 800-882-8880. Got business in France? If you're traveling there this winter, you can now get a two-day France Railpass, good for two days of unlimited travel over a one-month period, for $99 second class, $129 first class. Previously, the shortest-duration pass was for four days. The two-day pass is good now through January 31, but must be purchased by December 5 from Rail Europe (www.raileurope.com/franceontrack; 888-382-7245). 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.