EXECUTIVE TRAVEL SKYGUIDE E-ALERT 03/27/06

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of March 27, the weekly e-mail of essential business travel news!

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Delta and its pilots approach a day of reckoning
U.S. travelers have new options for China trips
Hawaii gets new inter-island airline, new code-share deal
United adds more wireless content for customers
Talks this week could forestall Venezuela's U.S. airline ban
Alaska Airlines finds no pressurization problems
Cincinnati may close Terminal 1 to passengers


THIS WEEK'S QUESTION FOR READERS: Do you think airline passengers should be allowed to make cell phone calls in flight, and if so, should any restrictions apply? Send your reply to skyguide@aexp.com.

We got our biggest response yet to last week's question - we asked if readers would pay $15 to Northwest Airlines for guaranteed short-notice access to aisle or exit row seats - and most of it was negative. "If I have to pay extra for an exit row seat, I will start flying someone else," said WorldPerks Platinum member M.D. Baldwin. Dr. Vic Strasburger said Northwest's plan "is foolish and should be against the law...Next thing you know, airlines will be dividing their cabins into orchestra, loge, balcony, dress balcony and upper balcony seats and charging different rates for each." Northwest "has always been behind the others in innovation - except when it comes to new ideas about gouging their customers," said reader Jonathan Meigs.

AIRLINES

Delta and its pilots approach a day of reckoning
A member of the arbitration panel mediating the conflict between bankrupt Delta Air Lines and its pilots union blasted both parties last week, and told them to solve their own problems rather than forcing the arbitrators to impose a decision. Delta and the pilots agreed to binding arbitration after they failed to reach agreement on new wage concessions by their previous deadline of March 1. The arbitration panel is due to rule by April 15 on how much the pilots should give up, or if Delta should be allowed to terminate the existing contract and impose new terms unilaterally. If that happens, pilots have threatened to strike - and that could ground the airline permanently.

After the panel's hearings concluded last week, arbitrator Richard Bloch called the impasse "a shameful exercise" and told both sides, "This is your mess; you fix it." Management and the pilots have stopped bilateral negotiations while the arbitration panel considers their fate. The pilots have reportedly offered to give back about $140 million in wages and work rule changes, while management says it needs more than twice that much in order to emerge from bankruptcy. Delta's chief financial officer told the arbitrators that the company is "tapped out" and is no longer able to borrow more money.

U.S. travelers have new options for China trips
In the latest expansion of air service options between the U.S. and China, American Airlines will begin its first route to that country later this week, and United will enhance its competing service with new code-share opportunities. American on April 2 will begin its new daily non-stops between Chicago O'Hare and Shanghai, China's financial and commercial capital; the three-class 777-200 service will depart O'Hare at 11:05 a.m. At Shanghai's PuDong International, passengers can connect to other Chinese cities on American's partner carrier, China Eastern Airlines.

Meanwhile, United Airlines - which already flies from O'Hare and San Francisco to Shanghai - said it has signed a code-share deal with Shanghai Airlines. Subject to government approval, the agreement is expected to begin May 15. When it does, United's code will go on Shanghai Airlines flights between Shanghai and four Chinese cities: Shenyang, Chengdu, Dalian and Qingdao. Mileage Plus members will be able to earn and redeem miles on Shanghai Airlines, and use its airport lounges.

Hawaii gets new inter-island airline, new code-share deal
Mesa Air Group has set a June 9 start-up for its previously announced subsidiary in Hawaii that will offer inter-island flights. The airline will be called go! (with a lower-case G and an exclamation point), with a web site that is already open at www.iflygo.com and a phone number of 888-IFLYGO2. The carrier will operate 26-seat regional jets from a base at Honolulu. Its summer schedule includes 11 daily roundtrips between Honolulu and Kahului, Maui; eight a day between Honolulu-Kona on the Big Island and Honolulu-Lihue, Maui; and four daily roundtrips between Honolulu and Hilo, also on the Big Island. Fares will start as low as $39 one-way.

Meanwhile, Hawaiian Airlines is offering a new incentive to inter-island travelers in Hawaii: The chance to earn miles in Northwest Airlines' WorldPerks program. Hawaiian and Northwest have expanded their existing marketing partnership, which previously offered code-sharing on transpacific flights to and from Hawaii, by extending code-shares to all of Hawaiian's inter-island flights and its South Pacific routes between Honolulu and Sydney, Pago Pago and Papeete. WorldPerks members will earn 500 miles for each Hawaiian inter-island flight, and will be able to book those flights as award trips.

United adds more wireless content for customers
United Airlines customers can already use their wireless-equipped PDAs and smart phones to access information on schedules, Mileage Plus accounts and changes in flight status. Now United has teamed up with iAnywhere to give passengers access to the latter's AvantGo Travel Guide, with maps, city guides and weather reports. The information is free, but users must become AvantGo subscribers by signing on at www.avantgo.com.

FAA/SAFETY/SECURITY

Talks this week could forestall Venezuela's U.S. airline ban
Representatives of the U.S. Federal Aviation Administration were due to be in Caracas today for talks with Venezuelan officials about that country's threat to ban all flights by Delta and Continental, and to sharply curtail service into Venezuela by American Airlines. On Friday (March 24), Venezuelan officials indicated that the FAA's willingness to discuss the matter could mean that the fight restrictions will not be imposed on March 30 as originally announced, according to wire reports. Venezuela, which has been increasingly confrontational toward the Bush Administration, had said that the proposed ban on U.S. flights was in retaliation for the FAA's ruling a decade ago to restrict flights by Venezuelan carriers for safety reasons.

Alaska Airlines finds no pressurization problems
A few weeks ago, Alaska Airlines started a fleet-wide inspection of its MD-80 and 737 aircraft following a series of several incidents that involved indications of cabin depressurization. According to the Seattle Times, the company completed those inspections last week and found no problems with pressurization systems. The newspaper said Alaska determined that the incidents were unrelated. One, for instance, was apparently caused by a door that wasn't properly latched, and another was simply an electrical malfunction that showed low cabin pressure on a cockpit monitor when in fact the pressure was OK.

AIRPORTS

Cincinnati may close Terminal 1 to passengers
At Cincinnati/Northern Kentucky International, the airport's board has approved a $1.3 million renovation project for Terminal 2, a project that could mean US Airways will move there from Terminal 1 by year's end, according to the Cincinnati Enquirer. The newspaper said the plan calls for an improved baggage conveyor system, replacement of two jetways and the addition of a new jetway in Terminal 2. If US Airways moves out of Terminal 1, it would allow the airport to close that facility to passengers. Terminal 1 was built almost 60 years ago as part of the original airport.

AIR ROUTES

ATLANTA (ATL). Effective March 27, Delta will begin daily non-stop Atlanta-Tel Aviv flights. The two-class 777 service will be operated as a code-share with El Al.

CHICAGO O'HARE (ORD). American Airlines on April 2 will inaugurate its newest international route, offering daily non-stop service between Chicago and China's Shanghai Pudong International Airport. American will use a three-class 777-200 for the route.

LOS ANGELES (LAX). Qantas will add a new Friday night non-stop departure from LAX to Sydney effective March 31. The new QF 150 will depart LAX at 11:55 p.m.

MILWAUKEE (MKE). On April 2, Midwest Airlines will increase frequencies to three daily roundtrips between Milwaukee and Atlanta; five a day between MKE-New York LaGuardia; and four a day between MKE and Philadelphia. Midwest will use 717s with its Signature Service for all the new flights.

NEW YORK KENNEDY (JFK). JetBlue Airways set a March 31 start-up date for new service between its JFK base and Richmond, Va., with four daily roundtrips.

NEW YORK LAGUARDIA (LGA). April 2 is the starting date for ATA's new twice-daily service between Houston Hobby and LaGuardia. The service will be code-shared with Southwest Airlines.

SAN FRANCISCO (SFO). On March 29, Qantas will begin non-stop San Francisco-Sydney service, operating three 747-400 flights a week, on Wednesdays, Fridays and Sundays.

DEALS AND SPECIALS FOR BUSINESS TRAVELERS

In Mexico City, the Marquis Reforma Hotel (800-235-2387; www.marquisreforma.com)- a member of The Leading Hotels of the World - has a new VIP Executive Stay package at $330 a night, a 50 percent savings. Good all year, it provides accommodations in an Executive Suite, daily pressing of two items of clothing, a bottle of wine and a cheese plate, Internet access, local phone calls, a 15-minute neck and shoulder massage, a daily shoeshine, coffee and juice in the morning, a newspaper and 500 AAdvantage miles.

Shangri-La Hotels (www.shangri-la.com) has enhanced the perks offered to guests who pay the non-discounted "Value Rate" at its properties - e.g., from $252 a night at the Singapore Shangri-La. At Shangri-La's city hotels, the Value Rates now include roundtrip airport transportation by limo; buffet breakfast; unlimited laundry and dry-cleaning; broadband Internet access; local phone calls; fax and IDD calls at cost; and guaranteed late check-out.

Got business in Tokyo? Through June 30, the Mandarin Oriental (866-526-6567; www.mandarinoriental.com) has a Business Package at $425 a night, single occupancy, that provides a 50-square meter deluxe room, breakfast, and your choice of either express dry cleaning of a suit and shirt, or use of the hydrotherapy area in the hotel's spa.

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

Have a question or comment? Send it to skyguide@aexp.com.

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