EXECUTIVE TRAVEL SKYGUIDE E-ALERT 08/14/06

Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of August 14, the weekly e-mail of essential business travel news!

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New security rules relaxed slightly as terror threat eases
Northwest flight attendants delay job actions to August 25
Low-cost airlines grow U.S. capacity as majors cut back
In-flight phone service expected in Europe next year
MAXjet eyes new markets, more charters in 2007
Miami might close Concourse A next year; new retailers coming
Airport tunnel access ramp reopens in Boston


THIS WEEK'S QUESTION FOR READERS: Since you are no longer allowed to have any liquids or gels (with a few exceptions; see below), including cosmetics and common personal care items, in your carry-on bag, how will you change your travel habits to cope? Start checking a bag? Buy new items at your destination? Just stay home? Do you think security officials are overreacting? Send your replies to skyguide@aexp.com.

FAA/SECURITY

New security rules relaxed slightly as terror threat eases
The massive security waiting lines, flight delays and cancellations - especially in the U.K. - that resulted after last week's aborted terror plot were starting to ease by Monday (August 14), as terror threat levels were reduced and the draconian security restrictions in both the U.K. and the U.S. were slightly relaxed.

Unless you were vacationing on Mars last week, you know that authorities in Britain foiled a terror plot aimed at blowing up as many as 10 transatlantic jets, with suicide bombers hoping to create explosive devices in flight from liquid substances they smuggled on board. Even though the main plotters were arrested and nothing happened, officials in the U.K. and the U.S. decided to play it safe by imposing stringent new security rules for all passengers. The result was a tangle of canceled flights, hopelessly long security lines and confused passengers on both sides of the Atlantic. Part of the problem stemmed from confused TV reporters who took a while to realize that the new security rules were not the same in the U.S. as they were in Britain.

In Britain, officials initially barred passengers not only from carrying any type of liquids or fluids on board - they barred all carry-ons, down to and including women's handbags. In the U.S., carry-ons were still allowed, but they couldn't contain any liquid or gel-type substances or products, from bottled water to cosmetics to contact lens solution. Those items have to be stowed in your checked baggage - if you have any. If not, you'll have to leave them behind. Exceptions included prescription medication and infants' formula. Also, random secondary screenings at departure gates were revived; and the removal of shoes for security checks, which previously was recommended, is now mandatory.

By Monday, the rules had changed somewhat. In the U.K., passengers are now allowed to carry on one briefcase-sized bag, and the earlier ban on books, laptops and music players in carry-on bags has been eliminated. In the U.S., most liquids are still banned from carry-ons for the time being (Homeland Security officials say this rule is temporary, but they haven't said when it will end), but passengers can now carry on up to four ounces of non-prescription medicine, including things like contact lens solution and nasal spray, and diabetics are allowed to take on blood sugar medication in gel form. To see what's allowed and what's not, go to the TSA web site at: http://www.tsa.gov/travelers/airtravel/prohibited/new-items.shtm.

AIRLINES

Northwest flight attendants delay job actions to August 25
Angry flight attendants at Northwest Airlines, who had threatened to begin sporadic walkouts on the night of August 15, have decided to delay their plans for 10 days in view of the new security situation facing the industry. Northwest's bankruptcy court judge was expected to rule early this week on whether or not it was legal for the flight attendants to initiate job actions, which they said they might do if Northwest unilaterally imposed new wage levels and work rules - as it did two weeks ago. Northwest acted after two tentative contract agreements worked out between the union leaders and management were voted down by rank-and-file flight attendants. However, in view of the delays and long lines already created by last week's new security regimen, the flight attendants thought it best to put off their sporadic walkouts, since that would only add to the frustrations and confusion that passengers are already faced with. Northwest told the court any job action by the flight attendants could put it out of business for good.

Low-cost airlines grow U.S. capacity as majors cut back
Analyses of airline capacity changes reported last week show a continuing trend by the six largest "legacy" carriers to shift from domestic to international markets, while low-cost carriers keep filling in the slack on intra-U.S. routes. During July, the six largest U.S. network airlines (American, United, Delta, Continental, Northwest, US Airways) operated 6.4 percent less capacity than the same month a year earlier. But their international capacity increased by 6 percent during the same period. The biggest year-over-year domestic capacity cuts came at Delta, down 12.6 percent; Northwest, down 11.8 percent; and US Airways, down 10 percent. The biggest gain in international capacity was at Delta, which expanded its overseas routes by 31.8 percent since last year. Meanwhile, an analysis of airline schedules by USA Today found that continuing strong demand for domestic air travel will finally lead to an overall capacity increase later this year - 2 percent in November and 3 percent in December - but most of that increase will be due to added routes and frequencies by low-cost carriers like Southwest, AirTran and JetBlue. By December, the newspaper found, one out of every four seats within the U.S. will be flown by a low-cost airline.

INTERNATIONAL

In-flight phone service expected in Europe next year
According to the tech web site C/Net, Air France is expected to debut new in-flight mobile phone service in 2007, followed by the British carrier bmi and by TAP of Portugal. They will all reportedly use satellite-based technology developed at a company owned jointly by Airbus and SITA, a high-tech airline communications firm. The service will reportedly become available on short-haul intra-European flights at a rate of about $2.50 a minute. The report also noted that aircraft offering the service will have a new use for the old "No Smoking" lights above passenger seats: They'll be refitted with "No Mobile" signs, which will be lighted during takeoff so that passengers' cell calls don't interfere with aircraft instruments.

MAXjet eyes new markets, more charters in 2007
MAXjet, which operates all-business-class 767s to London Stansted from JFK and Washington Dulles, said last week it expects to add at least two more aircraft in 2007, expanding its fleet from three planes to five. The larger fleet will enable MAXjet to "focus on expansion, both in frequency and new routes, to satisfy the growing demand" for its 102-seat wide-bodies with 60-inch pitch, the company said. CEO Gary Rogliano said MAXjet is "seriously looking" at adding London service from Boston and Las Vegas, and is also exploring other U.S. markets including Los Angeles and San Francisco. The airline said its June and July load factors between New York-London exceeded 70 percent, and its new Washington route, which started in April, had a 60 percent load factor in July. The airline also wants to expand its charter business, officials said, which has found "a strong customer base that includes corporations, government entities and professional sports teams." The airline has enhanced its web site (www.maxjet.com) with a functionality that lets customers build their own connections to MAXjet flights via other carriers.

AIRPORTS

Miami might close Concourse A next year; new retailers coming
Miami International Airport officials, frustrated by construction delays at its three-concourse North Terminal, might close down the terminal's 15-gate Concourse A temporarily to speed up the project, according to the Miami Herald. The newspaper said the closure could happen next year, in the hopes of shaving two years off the North Terminal expansion project by giving builders full access without having to work around passenger operations. If the closure happens, it won't come until the airport's South Terminal opens next spring, the report said. The North Terminal's Concourse A currently is used by American (as are Concourses C, D and E), British Airways, Grupo Taca and TAM; the new South Terminal is expected to host Lufthansa, Air France and Ted, all currently in the Central Terminal. The North Terminal project involves building a connection between Concourses A and D; Concourse C will eventually be demolished.

Meanwhile, Miami Airport awarded HMSHost Corp. a contract to develop new retail concessions; the company said new airport tenants coming next year will include an Airport Wireless/Palm One store with tech tools; an Island Styles clothing store; a Starbucks/Miami News Connection shop; a candy store; and several more news and magazine outlets.

Airport tunnel access ramp reopens in Boston
Officials in Boston last week reopened the South Boston ramp to the Ted Williams Tunnel, which had been closed down along with other parts of the so-called Big Dig underground highway system after a ceiling collapse in July that killed a motorist. The reopening of the ramp, after repeated safety inspections, gives travelers from South Boston and I-93 a much quicker way to Logan Airport and should relieve congestion on local streets. The tunnel and ramp link the airport to the neighborhood that contains the Boston Convention & Exhibition Center, the Westin Waterfront Boston Hotel, the World Trade Center and the Seaport Boston Hotel. "This means that South Boston Exit 25 access in both directions to and from Logan Airport is open" for all vehicles, according to the Greater Boston Convention & Visitors Bureau.

AIR ROUTES

BOSTON (BOS). Effective August 15, Spirit Airlines will begin twice-daily A319 service between Boston and Detroit. On the same date, Spirit will also kick off one daily A319 roundtrip between Boston and Myrtle Beach.

DENVER (DEN). Frontier Airlines on August 20 will add a sixth daily roundtrip to its Denver-Chicago Midway schedule. On the same date, Frontier will upgrade its two daily Denver-Tucson flights from regional jets to full-size Airbus equipment.

MIAMI (MIA). LAN Argentina on August 15 will begin daily non-stops between Miami and Buenos Aires, with a 767-300; flights in both directions will be red-eyes.

NEW YORK KENNEDY (JFK). Delta continues to build up domestic feeder service at its JFK transatlantic hub on August 15, when it adds four daily Hartford-JFK flights and four daily Providence-JFK roundtrips, both operated by Delta Connection/Freedom Airlines with 37-seat turboprops.

OAKLAND (OAK). Southwest Airlines set an August 17 start for new non-stop transcontinental service between Oakland and Baltimore/Washington, with one daily roundtrip; on the same date, Southwest will add a second daily flight between Oakland and Boise.

WASHINGTON REAGAN NATIONAL (DCA). August 15 is the start-up date for new daily non-stop service between Washington Reagan National and Florida's Sarasota Bradenton Airport, operated by US Airways Express/Republic Airways using a 72-seat regional jet.

WASHINGTON DULLES (IAD). JetBlue will use its 100-seat Embraer 190s for new service starting August 17 between Washington Dulles and its home base at New York JFK, with six daily roundtrips.

DEALS AND SPECIAL OFFERS FOR BUSINESS TRAVELERS

US Airways (www.usairways.com) has unveiled a new round of domestic price-cutting, this time on routes in and out of Washington Reagan National. Price reductions range from 22 to 63 percent. Examples of the lowest new DCA fares - non-refundable, with a 14-day advance purchase and one-night stay requirement - include $100 roundtrip to LaGuardia, $198 to Boston, $118 to Hartford, $278 to Greensboro, $178 to Raleigh/Durham and $232 to Louisville.

Want to hit the recently-refurbished beaches of Cancun, now that the Mexican resort has recovered after last year's hurricane? Members of American Airlines' AAdvantage program can book award tickets at just 20,000 miles - a savings of up to 10,000 miles - for travel from August 21 through December 13. Go to www.aa.com/offers or call 800-882-8880 to book.

Hyatt Hotels has a new incentive plan for corporate customers who book meetings. Called the Meeting Savings Card (www.meetingcard.hyatt.com), it enables meeting planners to accumulate up to $2,000 in credits for meetings held at Hyatt properties through April 2007. There's a 25 percent bonus credit for booking with an American Express Card. Credits start at $200 for booking 25-20 room nights and reach $2,000-$2,500 for more than 500 room nights; they can be applied toward future meeting costs through April 2008.

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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