EXECUTIVE TRAVEL SKYGUIDE E-ALERT 03/06/06 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of March 6, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. Northwest pact may end threat of a pilots' strike Southwest enhances ATA presence in Rapid Rewards Midwest, Northwest link frequency programs Spirit Airlines begins a frequent flyer program Security chief: Lines will get longer without higher fees FAA sees rising air traffic, delays in years ahead American will move more DFW flights to Terminal D Westin opens outside Washington; two Ws reopen in New Orleans New technology could cost renters at the return lot THIS WEEK'S QUESTION FOR READERS: As major airlines cut domestic departures and downsize aircraft, flights are often 80+ percent full. Have you had trouble getting frequent flyer award tickets on the routes and dates you want for 2006? Send your reply to skyguide@aexp.com. AIRLINES Northwest pact may end threat of a pilots' strike Negotiators representing pilots at bankrupt Northwest Airlines said on Friday (March 3) that they have reached a tentative agreement with management on a new contract. Talks between the two parties had continued well past the eleventh hour last week, as the bankruptcy judge in the case repeatedly delayed a decision on Northwest's request to void its existing labor agreements and impose new ones unilaterally. If that had happened, the pilots and flight attendants had both threatened to strike, and the airline might have shut down for good. Earlier last week, Northwest also came to terms with flight attendant representatives on a tentative contract with that union. Northwest said the tentative deal with pilots will save the company $358 millin a year. If it is approved, this would be the third time in two years that Northwest's pilots have accepted lower wages. The tentative pacts have yet to be approved by the two unions, both of which have authorized strikes if they don't get an acceptable contract. Meanwhile, trouble is still possible at Northwest Airlink partner Mesaba Airlines, which is also in Chapter 11. Pilots at that carrier voted last week to strike if management is allowed by the court to impose new contract terms unilaterally. At bankrupt Delta Air Lines, meanwhile, pilots and management failed to reach agreement on new contract terms by their March 1 deadline. That means the two sides will now begin a 45-day arbitration proceeding. Two years ago, Delta's pilots swallowed a 33 percent pay cut. In the current talks, there is reportedly a $200 million gap between the pilots' latest offer of wage cuts and management's latest demand. Southwest enhances ATA presence in Rapid Rewards Southwest Airlines has started selling select flights operated by ATA airlines that do not involve a Southwest connection, and also now allows ATA flights to earn credit in its own Rapid Rewards program. The company said travelers can now buy tickets through www.southwest.com or at 800-I-FLY-SWA for ATA flights on the following routes: Washington National-Chicago Midway, DFW-Chicago Midway, Honolulu-Las Vegas, Honolulu-Los Angeles, Honolulu-Oakland, Honolulu-Ontario (Calif.), Honolulu-Phoenix, Houston Hobby-New York LaGuardia, Chicago Midway-LaGuardia, Hilo-Oakland, LAX-Maui, Oakland-Maui and Phoenix-Maui. Rapid Rewards members will earn one credit for each one-way trip on ATA flights, or two for each leg to and from Hawaii. ATA flights booked through online travel agencies aren't eligible for Rapid Rewards credit. Southwest added that in the third quarter of 2006, it will begin to let Rapid Rewards members claim award travel to "select ATA destinations." It warned that Hawaii is a popular destination for ATA, so award seats "will be very limited, and demand from Rapid Rewards members will likely exceed the available supply." ATA emerged from Chapter 11 bankruptcy last week. Midwest, Northwest link frequency programs Midwest Airlines said last week it has added new enhancements to its Midwest Miles frequent flyer program, including a partnership with Northwest/KLM. Starting May 1, members of Midwest Miles will be able to earn miles on any Northwest-operated flight, and can redeem program miles for flights on Northwest and KLM. Members of Northwest's WorldPerks program will also be able to earn and spend miles when they travel on Midwest Airlines. This summer, the company said, Midwest Miles will add an online shopping component, awarding miles to members for every dollar spent in the Midwest Miles Mall, a collection of online retailers including Casio, Frontgate, Hammacher Schlemmer, The Sharper Image and others. Spirit Airlines begins a frequent flyer program Spirit Airlines, the fast-growing low-cost carrier that now offers both business and economy classes in its new Airbus jets, has started up its own frequent flyer program, called Free Spirit (www.spiritair.com/freespirit). The company said award travel will begin at 15,000 miles for domestic flights and 20,000 miles for travel to the Caribbean. The program will offer award seats "on every flight, without blackout dates," Spirit said. It will also offer a Free Spirit MasterCard that pays one mile per dollar spent. All miles earned from any source will count toward elite levels, Spirit said, Elite level memberships start with 12,000 miles flown over the preceding six months. FAA/SECURITY Security chief: Lines will get longer without higher fees Michael Chertoff, the Bush Administration's Homeland Security Secretary, said last week that unless Congress approves the Bush budget request for an increase in passenger security fees, the likely result will be layoffs of airport screeners and longer waiting times for travelers. As we reported earlier, the Bush budget for the fiscal year beginning next October calls for a doubling of passenger security fees for non-stop flights, from the current $2.50 per segment to $5. The $2.50 per segment fee, up to a maximum of $10 per roundtrip, would remain unchanged for connecting passengers. The House committee overseeing the Homeland Security budget said the increase would cost air travelers an extra $1.4 billion annually. But Chertoff told USA Today in an interview that the Transportation Security Administration is facing a $1 billion budget shortfall without the fee increase - something that could lead to layoffs of security screeners, just as it did a year ago when Congress rejected a similar fee hike and TSA cut its screening force from 45,000 to 43,000. FAA sees rising air traffic, delays in years ahead The Federal Aviation Administration reported last week that the U.S. airline industry carried a record 739 million passengers in 2005, up from 690 million a year earlier - and the agency predicted passenger numbers will keep growing, to a total of 1 billion annually by 2017. Domestic passenger numbers are expected to rise 3.2 percent a year and international numbers will grow 5 percent, the FAA predicts. The agency said regional airlines and low-cost carriers continue to increase their share of the market, rising to 45 percent of domestic passengers in 2005 vs. 30 percent in 2000. As the financially strapped legacy carriers continue to show little or no mainline domestic capacity growth, and as more travelers shift to the smaller aircraft of regionals and low-cost carriers, the larger number of aircraft needed to carry the increased traffic will mean crowded flights and increased delays, especially if the FAA does not receive the funds needed to modernize its air traffic control systems, airports and other parts of the infrastructure, officials indicated. The skies will also get more crowded as a new generation of "microjets" starts flying, operating mainly as air-taxi services in markets under 1,000 miles. The FAA predicted that 1,650 of the four- to six-passenger jets will be in the air by 2010. AIRPORTS American will move more DFW flights to Terminal D According to the Fort Worth Star-Telegram, American Airlines has agreed to shift about 40 flights a day by next month from Terminals A and C to five gates on the south end of the new Terminal D. The move is reportedly in response to complaints from retail and food concessionaires in Terminal D that not enough flights are operating out of the south end of the terminal. Currently, the newspaper said, American schedules 114 flights a day out of Terminal D, but only 20 of them are from the south end, which also accommodates foreign carriers with limited daily operations. HOTELS Westin opens outside Washington; two Ws reopen in New Orleans Westin Hotels has cut the ribbon on The Westin Arlington Gateway, a 336-room hotel just outside Washington D.C. in Arlington, Va.; it's located close to the Ballston Metro Station, about four miles from Reagan National Airport ... W Hotels said it has reopened its two properties in the Big Easy - the W New Orleans and the W French Quarter, following restoration work after Hurricane Katrina ... The Wyndham Atlanta has been rebranded as the Atlanta Marriott Downtown Hotel. CAR RENTALS New technology could cost renters at the return lot A technology firm called I.D. Systems said last week that a "large U.S.-based car rental company" has started testing its new wireless fleet management system at an unidentified rental facility. The new system, a first of its kind, could end up saving time for renters when they return their vehicles - but it could also cost them some money. The wireless system will identify each vehicle as it enters the return lot, automatically reporting its ID number, mileage and exact fuel level. You say you topped off the tank right outside the airport? The system will know for sure, even if the gauge appears to be on 'F.' I.D. Systems said the technology can provide rental car companies with "more accurate billing data that can generate higher fuel-related revenue." By automating the rental return data, it will also free up customer service personnel, the company said, "for more productive activities, such as inspecting vehicles for damage." AIR ROUTES NEW YORK KENNEDY (JFK). Air Canada has begun daily non-stops between JFK and Calgary, Alberta, using a 93-seat, two-class Embraer 190. SALT LAKE CITY (SLC). Delta Connection/Shuttle America on March 8 is due to begin new daily regional jet non-stops between Salt Lake City and Mazatlan, Mexico. DEALS AND SPECIALS FOR BUSINESS TRAVELERS Members of Choice Hotels' Choice Privileges program (www.choiceprivileges.com; 888-770-6800) can earn a free night after they stay two times from February 1 through April 15 at any Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion or MainStay Suites property in North America. The free night can be redeemed at any of 1,000 locations in North America. Effective now through May 31, Thrifty Car Rental will offer triple miles (150 per rental day) in the Delta SkyMiles program on rentals of a mid-size or larger car for two to seven days. To qualify, the rental must be booked at www.thrifty.com using the PC code DLT6. If you log on to www.avis.com and enroll in the rental company's Avis Music Giveaway program, you can earn five free song downloads from the iTunes Music Store for every Avis rental of one to four days, as long as it's booked online. Rentals of five days or more earn 10 free downloads. After each qualifying rental, participants will receive an email with music download codes. 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. Are you a baseball fanatic who can't get enough of the game? The April issue of Executive Travel has tips on how and where to watch games on the road, here and overseas - and what it's like to play with the pros at a fantasy camp. By Jim Glab Have a question or comment? Send it to skyguide@aexp.com. To sign up for the e-Alert, click here.