EXECUTIVE TRAVEL SKYGUIDE E-ALERT 07/31/06 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of July 31, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. United sells NY-London route to Delta, expands Asia service Air fares just keep going up Merger rumors rebound due to US Air's success American enhances web check-in, sells lounge passes at kiosks Milwaukee Airport expands Concourse C Next big hotel trend: No smoking anywhere THIS WEEK'S QUESTION FOR READERS: As noted below, there are new reports of more potential mergers in the industry; the New York Times speculates a Northwest-Delta or United-Delta merger might be among them. Would you like to see either of those mergers - or any others - and if so, which? Explain why (or why not). Send your replies to skyguide@aexp.com. Last week, we asked if readers buy food in-flight on domestic routes, or bring something along. In-flight food sales didn't fare too well among our respondents. "For long flights in coach, we pick up a subway sandwich to have on the plane - never buy airplane food," said reader Tom Varhol. "I normally try to eat something before I board. If I can't, I will buy a sandwich to take on board," said reader Patrick Milligan. "It isn't too expensive, and I get what I want. I never buy food on board." "I like to bring energy bars and bags of tea (on board)," said reader Eileen Keller. "If I buy food at the airport to take on the plane, I prefer something that is not too large...I want bite-sized things that are easily eaten in a way that doesn't bother my seat neighbor or fill up the cabin with a smell that may bother others." AIRLINES United sells NY-London route to Delta, expands Asia service United Airlines said last week it plans to sell its New York-to-London route authority to Delta. Subject to government approvals, Delta said it will start operating one daily JFK-London roundtrip later this year, and a second in the spring - but to Gatwick Airport, not Heathrow. Under the current bilateral U.S.-U.K. agreement, only United and American have rights to Heathrow. Delta already flies to Gatwick from Atlanta and Cincinnati. United reportedly was not making money on the JFK-Heathrow route, perhaps because it has limited feeder traffic into New York's Kennedy Airport. Delta operates domestic service from a number of cities into JFK to feed its growing transatlantic hub, and it is adding more regional feeder flights this year. Delta recently moved its BusinessElite check-in facilities at JFK from Terminal 3 to Terminal 2 as part of a multi-million dollar improvement of its facilities there. Meanwhile, United also said it plans to boost its transpacific service by adding 40 more flights a week to Asia over the next several months. United said it will end its JFK-Tokyo Narita service on October 28, moving it to its Washington Dulles hub. United will offer twice-daily 777 non-stops between Dulles and Tokyo. On April 1, 2007, United will reinstate non-stop flights between San Francisco and Taipei, with two daily departures; and it will add three more flights a week to its existing San Francisco-Hong Kong schedule. In addition, United said that its seasonal service between San Francisco and Seoul will now operate year-round. Air fares just keep going up A move by Delta Air Lines last week to increase most domestic air fares by $5 one-way is just the latest in an ongoing series of fare hikes that have raised the cost of air travel in the U.S. by more than 10 percent in the past year, according to the federal Bureau of Transportation Statistics. BTS said the increase in domestic air fares from the first quarter of 2005 to the same period in 2006 amounted to 10.3 percent. The market taking the biggest hit in air travel costs was Delta-dominated Cincinnati, where the annual price hike came to a staggering 36.6 percent over the past year. Ranking second in the level of increase was Greensboro/High Point, N.C. at 24.8 percent. But the news wasn't all bad at the nation's 85 largest airports covered in the study: At Denver, average fares in the first quarter of 2006 were actually 2.2 percent lower than in the same period a year ago, in spite of the fuel-related increases. Why? It's known as the Southwest Effect. Southwest Airlines started flying out of Denver International early this year, boosting overall traffic and bringing down fares across the board. Merger rumors rebound due to US Air's success The New York Times reports that a new "merger buzz" is circulating among airline and Wall Street executives, with speculation that more combinations of carriers may be in the offing. The times said the source of this speculation is US Air's recent reporting of a $305 million profit in the second quarter - second only to perennially profitable Southwest Airlines. It's been almost a year since a bankrupt US Air merged with America West Airlines. The newspaper said that the process of bankruptcy - where Northwest and Delta currently find themselves - "can help otherwise incompatible partners realign their operations for a merger." It added that Delta might be ripe for a merger, and that "the most likely candidates to pursue Delta include United and Northwest." American enhances web check-in, sells lounge passes at kiosks In the latest enhancement to its web site, American Airlines said last week that roundtrip passengers whose return flight is scheduled within 24 hours of their initial departure can now check in for both segments at the same time at www.aa.com/checkin. The feature is available only to passengers with domestic e-tickets. At the airport, meanwhile, American said passengers can now use its self-check-in kiosks to purchase one-day passes to its Admirals Clubs. Up to three passes can be purchased on a single reservation; the first one costs $50, and the other two are $25 each. AIRPORTS Milwaukee Airport expands Concourse C At Milwaukee's General Mitchell International, work has been completed on an expansion of Concourse C, increasing its size by almost 50 percent, to 96,000 square feet. The work included an expansion of the security checkpoint to three lanes, a widening of the corridor between gates, additional seating space at the passenger gates, installation of larger windows, and remodeling of the food and beverage concessions. The expansion was the first step in building an eight-gate addition to Concourse C, which should be finished next summer. HOTELS Next big hotel trend: No smoking anywhere The latest consumer study by opinion-testers J.D. Power and Associates indicates that Marriott was right on the money with its announcement earlier this month that it will ban smoking in every area of all its North American hotel brands - as Westin did previously. The J.D. Power survey found that 79 percent of hotel guests want a completely smoke-free environment - not just a non-smoking guest room. "What was once a differentiator is now expected by consumers," said J.D. Powers executive Linda Hirneise. "We saw this in the case of branded premium beds and online check-in/check-out, where one hotel introduced the concept and others followed suit. We could see the same kind of trend with the issue of smoking." The survey also measured guest satisfaction with various hotel brands, as it does every year. Ranking first in the luxury category for 2006 was Four Seasons Hotels & Resorts. First-place rankings went to Omni Hotels in the upscale category, Hilton Garden Inn in the mid-scale full service category, Drury Inn & Suites in the mid-scale limited service category, Microtel Inns & Suites in the economy/budget category, and Residence Inn in the extended stay category. AIR ROUTES ATLANTA (ATL). Delta Connection/Atlantic Southeast Airlines will begin new service August 7 between Atlanta and Sioux Falls, S.D., with one daily regional jet roundtrip. DENVER (DEN). Southwest Airlines' latest expansion at Denver will take place August 4, when it introduces four daily non-stops between Denver and Kansas City, one between Denver-Orlando, and one between Denver-Nashville. On the same date, Southwest will add a seventh daily Denver-Las Vegas flight and a second between Denver and Houston Hobby. Meanwhile, Frontier Airlines on July 31 will increase frequencies in the Denver-Dallas/Ft. Worth market to seven daily roundtrips. LOS ANGELES (LAX). Horizon Air will introduce new service August 1 between LAX and Redmond/Bend in central Oregon, operating two flights a day with 74-seat Q400s. NEW YORK KENNEDY (JFK). On August 1, Delta will start new Delta Connection service between JFK-Syracuse and JFK-Albany, with four daily roundtrips in each market. On the same date Korean Air will offer upgraded service on its two daily JFK-Seoul flights, with sleeper suites in first class, new business class seats that recline to an almost-flat position, and the availability of entertainment-on-demand and in-flight Internet in all three classes. DEALS AND SPECIAL OFFERS FOR BUSINESS TRAVELERS Midwest Airlines is now giving members of its frequent flyer program, Midwest Miles, the chance to accumulate miles through online purchases. Through a partnership with SkyMall, the airline has created a retail buying site at www.midwestmilesmall.com. There, program members will be able to earn miles on purchases from 32 participating merchants, including Land's End, Office Depot, Old Navy, Overstock.com, Hickory Farms, Gap, drugstore.com and others. American Airlines AAdvantage members can earn up to 5,000 bonus miles on transatlantic flights this fall from the U.S. to London, Frankfurt or Zurich. The 5,000 bonus miles are available for economy seats in Y, B or H fare classes; the offer pays 2,500 bonus miles for K, L or M fare classes. Trips must take place between September 5 and November 15, and members must register at www.aa.com/offers, using promotion code USEU5, or by calling 800-882-8880. Got business in the northwest suburbs of Chicago? The 500-room Renaissance Schaumburg Hotel & Convention (847-303-4115; www.renaissanceschaumburg.com), which opened its doors this month, is offering an introductory rate of $169 a night through September 30. 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. If your business will take you to Japan in the coming months, be sure to update yourself on what's new, different and exciting in Tokyo. It's in the September 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.