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EXECUTIVE TRAVEL SKYGUIDE E-ALERT 10/24/05
Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of October 24, the weekly e-mail of essential business travel news!
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Southwest, buoyed by profits, returns to Denver next year
Delta unveils plans for new transatlantic routes in 2006
At Chicago Midway, AirTran grows as ATA shrinks
US Airways puts back some passenger benefits
American sells Admirals Club day passes online
Royal Jordanian joining Oneworld
Two new routes to Buenos Aires opening up
Thrifty, Dollar debut in-car navigation systems
AIRLINES
Southwest, buoyed by profits, returns to Denver next year
Southwest Airlines will add a major market to its network early in 2006 when it resumes service to Denver after a 20-year hiatus. The company said it will announce fares and schedules for the new Denver service sometime this week. Company officials said they expect that Denver will provide the latest example of the "Southwest Effect" when the airline starts flying there - i.e., a general increase in traffic and lowering of fares among all carriers serving the airport. They noted that after Southwest entered the Philadelphia market last year, traffic jumped and fares dropped in both the PHL-Chicago Midway market, which Southwest serves, and the PHL-O'Hare market, which it does not. Announcement of its Denver plans came on the same day that Southwest reported third quarter net income of $227 million, up from $119 million a year earlier. Why is Southwest rolling in dough when half the industry is bankrupt? A big factor is its ability to lock in low oil prices well in advance. "We are more than 70 percent hedged for 2006 with average crude prices capped in the $36 per barrel range," said CEO Gary Kelly. "We are over 55 percent hedged in 2007 at approximately $37 per barrel." He said Southwest will take delivery of 33 new Boeing 737-700s next year, giving it an overall capacity growth of eight percent.
Shortly after Southwest announced its Denver plans, American Airlines said it will award AAdvantage members up to 36,000 bonus miles based on the number of Denver trips they take through February 15. Members have to register, using promotion code AADEN, at 800-433-7300 or at www.aa.com/offers.
Delta unveils plans for new transatlantic routes in 2006
Delta Air Lines, which is pinning its hopes on expanded international service as a key to its eventual emergence from Chapter 11 bankruptcy, announced several more new routes last week, this time across the Atlantic. Subject to foreign government approvals, Delta said it plans to begin service from Atlanta to Edinburgh on May 4; to Nice on May 9; to Athens May 29; and to Venice June 6. From its New York JFK hub, Delta is planning new non-stops to Budapest starting May 8; to Dublin/Shannon and to Manchester on May 15; and to Kiev in the Ukraine at a date not yet specified. Delta had previously announced its intentions to begin Atlanta-Tel Aviv non-stops on March 27, Atlanta-Dusseldorf service on April 3 and Atlanta-Copenhagen flights on May 1, 2006. This year, Delta already kicked off new routes from JFK to Chennai, India via Paris; from JFK to Berlin; and from Atlanta to Moscow.
At Chicago Midway, AirTran grows as ATA shrinks
ATA Airlines, still operating under Chapter 11 bankruptcy protection, will reduce its operations at Chicago Midway over the next several weeks, ending service in three key business markets. But low-cost carrier AirTran said it plans to fill the gap in two of those markets. ATA will terminate its Chicago-Boston service on October 28, Chicago-Newark flights on October 29, and Chicago-Minneapolis/St. Paul non-stops on December 1. ATA has also cancelled previously announced plans to begin new service from Chicago Midway to Miami and Sarasota. The cutbacks will cost about 100 ATA employees their jobs. Meanwhile, AirTran said it has set December 6 as the date for its new non-stop service from Midway to Boston and Minneapolis/St. Paul. The airline will operate three flights a day between Midway-Boston and four between Midway-MSP, using Boeing 717s. Southwest Airlines, a growing presence at Midway where it code-shares with ATA, said its code-share activity will decline as a result of the latter's service cutbacks, but claimed it is happy with the third quarter results of the code-sharing, which it said produced $19 million in revenues for Southwest.
US Airways puts back some passenger benefits
The Washington Post reported last week that the "new" US Airways - merged with America West, and now being run by America West executives - is reviving some passenger perks that the former management had ended in a bid to save money. Example: US Airways passengers once again will get free pretzels or similar snacks. The paper said US Airways will also reopen an airport lounge at Los Angeles International that it had closed in April; hire 30 new reservations agents at its Winston-Salem call center; simplify policies for last-minute upgrades and standby passengers; and reduce fees and restrictions on excess baggage. Still undecided, the newspaper said, is whether to restore armrest power outlets in some of US Airways' Airbus jets.
American sells Admirals Club day passes online
Non-members of American Airlines' Admirals Clubs who want to use those airport lounges one day at a time can now do so by buying passes on the airline's web site, at www.aa.com/daypass. The price of a one-day pass is $50, good at any of the 40 Admirals Clubs worldwide - including more than one in a day. Buyers can bring up to two guests along for $25 each. Buyers can print out a confirmation that they'll need to present at the door. Previously, day passes had to be purchased in person.
INTERNATIONAL
Royal Jordanian joining Oneworld
Royal Jordanian will become the first Middle Eastern airline to join the global Oneworld alliance, which includes American Airlines, British Airways, Qantas, Iberia, Cathay Pacific, LAN, Finnair and Aer Lingus. Once the Jordanian carrier brings its internal systems and employee training up to the alliance's requirements, it should be a full-fledged member "around the turn of 2006-07," a spokesman said. Royal Jordanian flies to New York JFK and Chicago O'Hare.
Two new routes to Buenos Aires opening up
Two carriers - LAN Argentina and Continental Airlines - plan to launch new service to Buenos Aires in December. Continental, which last week won U.S. approval for its service, said it will kick off its Newark-Houston-B.A. flights on December 14, assuming Argentina's government gives it the green light. Continental will use a 767-200ER on the route. LAN Argentina, meanwhile, set a December 1 start for a new daily non-stop between Miami and Buenos Aires. It will be the first international service for LAN Argentina.
CAR RENTALS
Thrifty, Dollar debut in-car navigation systems
Thrifty Car Rental and Dollar Rent A Car, subsidiaries of Dollar Thrifty Automotive Group, have both started to offer GPS-based in-car navigation systems. For $9.95 a day, they'll provide renters with a Gamin StreetPilot c330 that comes with a color touch-screen and detailed street data including points of interest like hotels, restaurants, ATMs and gas stations. The device provides turn-by-turn, voice-prompted directions and lets users choose between a 3-D or a bird's-eye view. The StreetPilot can display text directions in 17 languages or spoken directions in 11 - including English, of course.
AIR ROUTES
DALLAS/FT. WORTH (DFW). American Airlines set October 29 for the move of its international flight operations at DFW into the new Terminal D. On October 30, American Eagle starts three daily regional jet roundtrips between DFW and Columbia, S.C.
LAS VEGAS (LAS). Northwest Airlines on October 30 will kick off some new non-hub routes, introducing non-stop service linking Las Vegas with four cities in the upper Midwest. The new routes, all using Airbus A319s, are Las Vegas-Des Moines, Las Vegas-Grand Rapids and Las Vegas-Madison, all operating four days a week; and Las Vegas-Sioux Falls, with two flights a week.
LOS ANGELES (LAX). Effective October 30, American Airlines plans to launch service between Los Angeles and San Antonio, with one daily roundtrip.
ORLANDO (MCO). Delta Connection/Freedom Airlines on October 24 begins twice-daily non-stops between Orlando and Austin, and one daily roundtrip between Orlando and Chattanooga.
PHILADELPHIA (PHL). On October 30, Southwest Airlines will add a third daily roundtrip between Philadelphia and Tampa Bay.
PITTSBURGH (PIT). Southwest Airlines on October 30 is due to begin one daily roundtrip between Pittsburgh and Tampa Bay.
WASHINGTON DULLES (IAD). British airline bmi will end its service between Dulles and Manchester on October 30. On the same date, Independence Air is slated to drop its regional jet service from Dulles to Cleveland, Louisville, Indianapolis, New York JFK and Stewart Airport in Newburgh, N.Y. On October 31, Independence will begin two daily A319 roundtrips between Dulles and New York LaGuardia.
DEALS AND SPECIALS FOR BUSINESS TRAVELERS
MAXjet Airways (888-435-9629; www.maxjet.com), the new all-business-class airline planning to launch service November 1 between New York JFK and London Stansted daily except Saturday, has reduced its start-up fare from $779 each way to $679. That doesn't include taxes and fees of about $135. The airline will operate a 102-seat 767 with 60 inches of pitch.
Marriott Rewards (800-249-0800; www.marriottrewards.com) has added new redemption options for members by taking on Orient-Express Hotels as a partner. Members can now redeem program points for stays at Oreint-Express' exclusive properties, like the Cipriani in Venice, Mount Nelson Hotel in Cape Town, or the Bora Bora Lagoon Resort & Spa in French Polynesia.
Homewood Suites by Hilton (www.homewoodsuites.com; 800-225-5466) is offering sale rates of $79 to $129 a night, depending on location, for stays from November 1 through January 29, 2006. Use promotion/offer code HWH.
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
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