EXECUTIVE TRAVEL SKYGUIDE E-ALERT 10/30/06 Welcome to EXECUTIVE TRAVEL SKYGUIDE E-ALERT for the week of October 30, the weekly e-mail of essential business travel news! To sign up for the e-Alert, click here. JetBlue plans O'Hare-JFK, O'Hare-Long Beach flights New Ohio-based carrier places huge order with Airbus US Airways cuts walk-up fares in more markets Court blocks strike at Northwest Airlink/Mesaba Airlines Rule changes at US Airways, Delta threaten mileage accounts New low-fare carrier starts Hong Kong-London service US Airways officials pledge to solve baggage problems at PHL THIS WEEK'S QUESTION FOR READERS: Two major airlines have changed their frequent flyer rules (see story below), now requiring some account activity every 18 to 24 months (down from three years) to keep miles from expiring or accounts from being shut down. Do you think this is fair? Do you keep track of activity levels in your own programs, and do you read emails and statements from airlines to keep track of rule changes? Send your replies to skyguide@aexp.com. AIRLINES JetBlue plans O'Hare-JFK, O'Hare-Long Beach flights JetBlue Airways has unveiled its schedule for Chicago O'Hare service, where it recently won operating rights from the Transportation Department. The low-cost carrier said it will start operations at O'Hare on January 4, 2007, with five flights a day to its base at New York JFK, and two daily roundtrips to Long Beach, Calif. The carrier is offering introductory fares (for purchase through November 9) starting at $59 for ORD-JFK flights and $89 for ORD-Long Beach. JetBlue said that tis regular fares will range fro $89-$249 each way for JFK and $129-$349 for Long Beach. It will use A320s on the Long Beach route, and a combination of A320s and Embraer 190 jets on the New York service. In other news, JetBlue also said it will add service beginning December 19 to another new destination - Stewart International Airport in Newburgh, N.Y. The schedule there calls for daily non-stops to Ft. Lauderdale and to Orlando; on January 5, it will add a second daily roundtrip in both markets, and will begin daily service to West Palm Beach as well. Meanwhile, the Financial Times last week quoted JetBlue CEO David Neeleman as saying that the airline is negotiating with "large international carriers" for code-sharing agreements at JFK. New Ohio-based carrier places huge order with Airbus Is there room for another low-cost airline, this one based in Columbus, Ohio? The hopeful carrier is called Skybus Airlines, and last week it placed an order with Airbus for 65 new A319s with all-coach seating; delivery is due to begin in late 2008. The aircraft order is estimated to be worth more than $3 billion. Skybus, which won government operating authority earlier this year, reportedly expects to start flying from Columbus next spring, using leased A319s. It has not yet said where it will fly, although it reportedly has its eye on markets that currently have no non-stop service to or from Columbus. The Columbus Dispatch said Skybus has attracted more than $100 million from investors, including $80 million from Wall Street giants like Morgan Stanley and Fidelity. Skybus CEO Bill Diffenderffer is a travel industry veteran who previously held senior executive positions at IBM and at Continental Airlines. A student of Zen Buddhism, Diffenderffer is the author of a management book titled The Samurai Leader. US Airways cuts walk-up fares in more markets US Airways last week announced an expansion of its walk-up fare reductions to 39 more markets nationwide. The price cuts also apply to advance purchase fares, with reductions in both categories of 23 to 69 percent from previous levels. Examples of the new one-way walk-up/advance purchase prices (the latter require roundtrip purchase) include: Charlotte-Albany, N.Y. $264/$139; Charlotte-Knoxville $264/$139; Charlotte-Roanoke, Va. $224/$99; LaGuardia-Philadelphia $264/$99; Philadelphia-Baltimore $224/$99; Philadelphia-White Plains, N.Y. $224/$99; Philadelphia-Newport News, Va. $264/$139; Pittsburgh-Columbus $224/$99; Washington D.C.-Philadelphia $224/$99; Phoenix-Tucson $205/$80. Court blocks strike at Northwest Airlink/Mesaba Airlines Labor unions at Mesaba Airlines, which operates as Northwest Airlink in the upper Midwest, were told by the company's bankruptcy court judge last week that they cannot go out on strike if management imposes new wage levels and work rules on them and voids their existing contracts. The court had already given Mesaba the authority to do just that effective last Thursday (October 26), but the company held off and continued negotiations with the unions toward a new contract - with some success. Over this past weekend, management reached tentative new contract agreements with both the pilots and the flight attendants unions, subject to ratification by members. Before those deals were reached, both unions said they planned to appeal the bankruptcy judge's no-strike ruling. The national leader of the Air Line Pilots Association joined the fray as well, saying that the court ruling "exposes just why the United States - the home of democracy - is on the Human Rights watch list." Rule changes at US Airways, Delta threaten mileage accounts The New York Times reported last week that US Airways and Delta Air Lines have quietly changed the rules for mileage expiration in their frequent flyer programs, with deadlines coming up soon for inactive member accounts. The newspaper said that effective December 31, Delta SkyMiles in accounts that have been inactive for two years will expire unless the member suddenly shows some activity. Ditto for US Airways Dividend Miles accounts that have been inactive for the 18 months prior to January 31, 2007. Previously, both companies required some activity every three years in a mileage account to keep it open in good standing. What constitutes account "activity" that can save your miles? That depends on the airline, so check the rules. And given the airline industry's penchant for matching, members of other programs might be well advised to keep an eye on program statements and emails in case other airlines decide to do the same. INTERNATIONAL New low-fare carrier starts Hong Kong-London service Now that low-cost airlines have taken over substantial market shares in the U.S., Europe and Asia, will intercontinental routes be their next frontier? One new company called Oasis Hong Kong Airlines started flying last week between Hong Kong and London Gatwick, offering promotional fares as low as $209 one-way in coach and $927 in business class - more than half off the lowest comparable fares available on Cathay Pacific, according to the Wall Street Journal. The company uses leased 747-200s for the four-times-a-week service, which is expected to increase to seven a week in about a month. The newspaper said Oasis reportedly has hopes of flying non-stop from Hong Kong to Oakland and possibly Chicago within a year. AIRPORTS US Airways officials pledge to solve baggage problems at PHL Executives of US Airways pledged last week that they are pulling out all the stops in a bid to solve chronic late delivery of arriving baggage at the airline's Philadelphia International Airport hub, according to the Philadelphia Inquirer. The newspaper quoted company president Scott Kirby as calling the PHL baggage situation "the number one focus of this organization." The airline reportedly plans to hire another 200 baggage handlers at Philadelphia, and to increase the number of managers from 30 to 90. The newspaper said US Airways' lost-luggage rate at PHL has been running four times the average of the airline's overall operations. It quoted Kirby as saying that procedural changes put in place last week at the airport had already started to bring the average waiting time for baggage delivery down to 20 minutes compared with delivery times of up to an hour previously. US Airways officials also said they hope to launch new international service in 2007 from PHL to Athens, Brussels and Zurich if they can get the needed gates from airport officials. HOTELS Marriott eyes big international expansion by 2009 Marriott Rewards members who expect to do a lot of global traveling in the future will have a lot more lodging options: The hotel giant said last week that it expects to increase its total inventory across all brands by 85,000 to 100,000 additional rooms by the end of 2009. The company's recent announcement of plans to add 50 Courtyard properties in Europe over the next few years was only the beginning. Now Marriott says it expects to add 58,000 to 69,000 more rooms in North America through 2009, as well as 12,000-14,000 in its Europe/Middle East/Africa division; 11,000-12,000 in Asia; and 4,000-5,000 new rooms in Latin America. Marriott noted that in its Asia growth plan, Ritz-Carlton properties will account for almost 25 percent of its new rooms. Much of the North American growth will be in lower-priced or limited-service brands; but "up to 60 percent of additions to the company's full-service brands are expected to come from openings outside the U.S. and Canada," Marriott said. AIR ROUTES LAS VEGAS (LAS). All-business-class MAXjet Airways will add a third U.S. city to its route map November 1, when it begins one daily roundtrip between Las Vegas and London Stansted. LOS ANGELES (LAX). Alaska Airlines on October 30 will begin new service between LAX and La Paz, Mexico, initially operating three flights a week. The carrier will also boost frequencies on other routes from LAX to Mexico this week; LAX-Loreto service increases from three flights a week to four, LAX-Manzanillo goes from four a week to six, and LAX-Mazatlan operations grow from seven a week to eight. MILWAUKEE (MKE). Midwest Airlines subsidiary Midwest Connect will reinstate a midday flight from Milwaukee to Columbus on November 1, using a regional jet. NEW YORK KENNEDY (JFK). November 1 is the start-up date for Delta's new non-stop service between JFK and Mumbai, India. The 777-200ER service will replace Delta's existing one-stop (via Paris CDG) flight to Mumbai and Chennai; the airline will continue to serve Chennai via code-share service on Air France from Paris. NEW YORK LAGUARDIA (LGA). Effective November 1, Northwest Airlink/Pinnacle Airlines will inaugurate non-stop service between LaGuardia and Grand Rapids, Mich., with one flight a day using a 50-seat regional jet. PORTLAND (PDX). Alaska Airlines has started non-stop Portland-Los Cabos service, operating four times a week; and Portland-Puerto Vallarta service, with three weekly flights. SAN FRANCISCO (SFO). Alaska Airlines this week will double its service between San Francisco and Ixtapa/Zihuatanejo, from two weekly flights to four. WASHINGTON DULLES (IAD). United Airlines on Sunday (October 29) kicked off its new Washington-Tokyo Narita non-stop service, which replaces United's JFK-Tokyo service. United is using a three-class 777 on the route. Starting October 30, South African Airways will eliminate the stop at Dakar on its Washington-Johannesburg route, cutting two and a half hours from the flight time. The new non-stop flight will take 15 hours and 30 minutes. DEALS AND SPECIAL OFFERS FOR BUSINESS TRAVELERS US Airways' Dividend Miles program is the latest frequent flyer plan to add an online shopping mall where members can earn miles for their dollars. It's at www.usairways.com/shop. The inventory includes 100 selected products from SkyMall as well as things from 70 name-brand web retailers like Lands End, Macys, Office Depot and Home Depot. Purchases on the site earn members three to 10 miles per dollar spent; purchases made before December 31 will count toward Dividend Miles Preferred status in 2007. Virgin Atlantic Airways (800-862-8621; www.virginatlantic.com) is having a sale on Upper Class fares to London, good for departures from the U.S. between November 18-25 and December 16-31. The nonrefundable fares require a 21-day advance purchase and minimum stay of a Saturday night. Roundtrip sale fares are $2,252 from JFK or Newark; $2,888 from Washington D.C.; $2,780 from Miami; $2,866 from LAX; $2,834 from San Francisco. For links to other websites where you can search for bargains, click here: www.executivetravelonline.com/reference/deals.html By Jim Glab Have a question or comment? Send it to skyguide@aexp.com. To sign up for the e-Alert, click here.