EXECUTIVE TRAVEL SKYGUIDE E-ALERT 02/06/06 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of February 6, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Report: Bush wants to double fees on non-stop flights Northwest pilots will take strike vote United, two other airlines exit Chapter 11 AirTran, JetBlue adding more routes Helicopter service will link Lower Manhattan to JFK Airport American will put new computers in Admirals Clubs Oneworld carriers consolidate in new Madrid terminal Fairmont sold; Silicon Valley gets a Four Seasons THIS WEEK'S QUESTION FOR READERS: As Northwest and its pilots head for a possible court showdown and perhaps a strike (see below), would you book the airline for a trip a month from now? Send your comments to skyguide@aexp.com. Last week, we asked if cash-strapped U.S. carriers should follow the lead of Europe's Ryanair, which is cutting fares but starting to charge new fees for checking luggage. Most readers didn't like the idea. "This would simply make more people try to carry on," said reader Bill Jones, and would delay more flights as "cabin-checked baggage - due to no room - would greatly increase." "I don't think gate attendants are prepared to collect a fee for luggage should passengers begin showing up at the jetway with oversized bags that need to be checked," wrote reader Dale Tiedemann. FAA/SECURITY Report: Bush wants to double fees on non-stop flights Bloomberg News last week said that the Bush Administration plans to ask Congress to increase security fees for airline passengers who take non-stop flights. According to the report, effective October 1, 2006, the Bush Administration wants to assess a security fee of $5 each way for non-stop flights. This would preserve the current fee cap of $10 per roundtrip itinerary, which is currently paid by persons who have connections and pay fees of $2.50 per segment. Non-stop travelers currently pay $2.50 per segment as well, or $5 roundtrip. The report noted that if such a fee increase is approved, it would impact passengers on low-cost carriers like Southwest and JetBlue more than the large network carriers, since the latter have a much higher percentage of connecting passengers. AIRLINES Northwest pilots will take strike vote As Northwest Airlines continues to hold talks with its pilots and flight attendants over wage and benefit reductions, and as the company continues to argue in bankruptcy court for the right to terminate its existing labor contracts if no deal is reached, leaders of the airline's pilots union decided last week to authorize a strike vote among its members. The pilots have been warning management that if no deal is reached by mutual agreement, and if the court voids their existing contract, pilots might walk off the job - an action that company executives have said could mean the liquidation of the airline. The court hearings on the airline's request are expected to wrap up today (February 6), and a ruling is expected by February 16. The pilots said that negotiations during the past week "produced few results." The main sticking point is the union's objection to Northwest's plan for a new subsidiary that would take over much of the airline's short- to medium-haul operations, using regional jets - and presumably not paying the current union wage scale to the new unit's pilots. United, two other airlines exit Chapter 11 As expected, United Airlines parent UAL Corp. finally emerged from its three-year-old Chapter 11 bankruptcy last week, and judges also approved reorganization plans for ATA Airlines and Aloha Airlines, which should mean both of those companies will likely follow suit this month. United executive VP and CFO Jake Brace said the airline's improving balance sheet demonstrates that "our approach is clearly working." That approach involves a slimmed-down domestic network; a simplified fleet; the shifting of some routes to low-fare, one-class Ted service; and the introduction of "new or expanded services targeted to specific customer groups," like its premium transcontinental "p.s." service and its introduction of regional jets with three-class seating. He noted that United has also benefited from expansion of its profitable international route network. During reorganization, UAL cut $7 billion from its annual costs, much of it through reduced wages and benefits for employees. Meanwhile, analysts said that ATA Airlines' code-sharing deal with Southwest Airlines - which also involved turning over most of its gates at Chicago Midway to Southwest - is probably the key factor in ATA continuing to operate following its Chapter 11 exit. ATA, which recently announced new routes to Hawaii from Oakland and Ontario, Calif. and new Southwest code-share service between Houston Hobby and LaGuardia, has lined up $120 million in debtor-in-possession financing. During bankruptcy, ATA slashed its fleet in half, leaving it with 30 planes; it also shrunk its workforce from 7,000 to 3,000. AirTran, JetBlue adding more routes Fast-growing low-cost carriers AirTran and JetBlue both unveiled plans last week to expand their route networks yet again. AirTran will continue to expand operations at Indianapolis, the former home base for ATA Airlines, by adding a new daily non-stop May 9 between Indianapolis and Los Angeles, a daily non-stop between IND-San Francisco on June 7, and a second daily IND-LAX roundtrip June 20, all using 737s. Meanwhile, AirTran set an April 4 start for its recently announced new service out of New York's Westchester County Airport. The carrier will operate three daily two-class 717 flights between Westchester and Atlanta, one between Westchester and Orlando, and one between Westchester and West Palm Beach. JetBlue, meanwhile, will expand its leisure markets by launching new service May 4 between its base at New York Kennedy and Bermuda, with two daily roundtrips; and on May 3 from Orlando to San Juan, with two daily flights; and from Orlando to Aguadilla, Puerto Rico with one daily roundtrip. AIRPORTS Helicopter service will link Lower Manhattan to JFK Airport According to the New York Times, a new helicopter service could start as early as next month, offering business travelers in the Wall Street area of Manhattan a nine-minute ride to New York's JFK Airport. The report said the service planned by U.S. Helicopter Corp. will take passengers directly to their aircraft gates, where their checked baggage will be loaded directly on the plane. Passengers will go through security at the Downtown Manhattan Heliport, where the ride begins. The company is working with the Transportation Security Agency to set up the nation's first off-airport screenings, the newspaper said. The service will reportedly start in mid-March, with 12-passenger Sikorsky helicopters operating once every hour, 12 times a day, between the heliport and the American Airlines terminal at JFK. The company is reportedly seeking agreements with other airlines at JFK to deliver passengers to their terminals. The fare for the new service will start at $139 each way, the newspaper said. The company is at www.flyush.com; it plans to add service from the East 34th Street heliport this spring, and eventually to serve LaGuardia as well as JFK. American will put new computers in Admirals Clubs American Airlines said last week it plans to install new Lenovo computer equipment in its 43 Admirals Clubs worldwide as part of a wide-ranging agreement with the Chinese technology firm that took over IBM's personal computer business last year. The deal will put new Lenovo ThinkCentre desktop computers with flat-panel displays in all of American's airport clubs later this year. "In addition, Lenovo ThinkPad Z60 notebooks and ThinkPad X41 Tablet PCs will be available in Admirals Club lounges worldwide," American said. Installations will begin in the first quarter of 2006. INTERNATIONAL Oneworld carriers consolidate in new Madrid terminal Airlines belonging to the oneworld global alliance have moved their operations into the newly opened Terminal 4 (T4) and its satellite terminal (T4S) at Madrid's Barajas Airport. The new terminals will be the home base for oneworld member Iberia Airlines, which will operate flights from both T4 and T4S. The former facility will handle domestic and most intra-European flights, while T4S will host long-haul international and some other European services. Oneworld members Aer Lingus and Finnair will also fly out of the main Terminal 4, while alliance members American Airlines, British Airways, LAN and pending members Malev and Royal Jordanian will be based at the satellite terminal. However, all passenger and baggage check-in will take place at the main Terminal 4. It will be linked to the satellite by an underground people-mover that will run every two to three minutes. The new airport facilities will also include three new lounges for Iberia premium passengers and for Emerald or Sapphire level cardholders in any oneworld member airline's frequent flyer program. HOTELS Fairmont sold; Silicon Valley gets a Four Seasons Shunting aside a bid by former TWA owner Carl Icahn, Toronto-based Fairmont Hotels has agreed to be acquired by a group of investors led by Saudi Prince Alwaleed bin Talal. The $3.9 billion deal ($45 a share) covers 87 hotels, mostly in North America. The new owners also control the Singapore-based Raffles Hotels, but they said Fairmont and Raffles will continue to be branded separately. Icahn isn't unhappy - he reportedly bought up 10 percent of Fairmont's shares late last year at around $32, and should walk away from the company with a profit of $320 million ... Four Seasons Hotels has opened a new hotel in California - the Four Seasons Hotel Silicon Valley in East Palo Alto, about 20 minutes from San Francisco International Airport or 16 minutes from San Jose Airport ... Hilton HHonors members have more vacation options for spending their points. Hilton is taking over management of three classic resorts: the Arizona Biltmore in Phoenix, Grand Wailea Resort in Maui, and La Quinta Resort & Club and PGA West in La Quinta, Calif. ... The former Holiday Inn in Dearborn, Mich., located across from Ford Motor Company's headquarters, is now a Doubletree ... The Wyndham City Center Hotel in Washington D.C. will be re-branded as a Renaissance hotel this fall. AIR ROUTES FT. LAUDERDALE (FLL). On February 9, Spirit Airlines will kick off new daily service between Ft. Lauderdale and Grand Cayman. MILWAUKEE (MKE). Midwest Airlines on February 12 will increase frequencies on its Milwaukee-Boston route to five each weekday, and between Milwaukee-Kansas City to six a day. ORLANDO (MCO). Starting February 12, Midwest Airlines will add a second Orlando-Kansas City roundtrip each weekday. SAN FRANCISCO (SFO). United Express on February 8 will begin twice-daily regional jet non-stops between San Francisco and Palm Springs; three flights a day between SFO and Albuquerque; and one daily roundtrip between San Francisco and Edmonton, Alberta. The Edmonton flight will be on a 70-seat regional jet with "explus" service, offering first class, Economy Plus and economy seating. DEALS AND SPECIALS FOR BUSINESS TRAVELERS Going to Shanghai this month? Le Meridien Hotels (800-543-4300; www.lemeridien.com) has opened Le Meridien She Shan Shanghai, its first property in mainland China. Through February 28, the hotel has introductory rates starting at just $88 a night. Concorde Hotels (www.concorde-hotels.com; 800-888-4747) claims "the largest guestrooms in the city" for its newly-opened Hotel Concorde Berlin, centrally located on the Kurfurstendamm near Kaiser Wilhelm Memorial Church. Through February, the hotel is offering steep discounts of up to 50 percent - e.g., from $134 a night for a superior room; from $219 for a junior suite. Rates include tax and service charge. The former Holiday Inn Select near Chicago's Midway Airport is now the Marriott Chicago Midway Airport, and it's offering introductory rates starting at $169 a night through June 2, along with triple Marriott Rewards points. Call 708-594-5500 or 888-643-4667 or visit www.marriott.com/chima. 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. Is it time to toss that tattered briefcase and buy a replacement? To review the latest in product options, check out the March issue of Executive Travel magazine, coming soon. By Jim Glab Have a question or comment? Send it to skyguide@aexp.com. To sign up for the e-Alert, click here.