Passageways Business Travel Updates 
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BUSINESS
TRAVEL UPDATE - SEPTEMBER 2008
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DETROIT METRO'S NORTH TERMINAL |
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| Source: mlive.com/Detroit
Metro Press Release
A quarter of the 24 gates at Detroit Metropolitan Airport's North
Terminal will not be leased when the new facility opens September
17th.
The Detroit News reports a cut in seating capacity by the airline
industry is the reason behind the six gates not being in use.
Experts say the gates could remain closed for some time as flights
are cut and airlines move toward smaller planes to cope with the
high cost of jet fuel.
Capacity reductions by the airlines have ranged from 8 percent
to 13 percent.
When it opens the new North Terminal will be Detroit's home to
Air Canada, American Airlines, AirTran Airways, Frontier Airlines,
Lufthansa German Airlines, Royal Jordanian Airlines, Southwest Airlines,
Spirit Airlines, United Airlines, US Airways, USA 3000, and charter
airlines.
Northwest Airlines and its SkyTeam™ partners AeroMéxico, Air France,
Continental Airlines, Delta Air Lines and KLM Royal Dutch Airlines,
will remain in the McNamara Terminal.
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NORTHWEST/DELTA
MERGER UPDATE |
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| Source: Northwest
Email Extra
August 11th, Northwest and Delta pilot groups ratified the joint
collective bargaining agreement (JCBA). This is a major milestone
in that two separate airline employee groups have never ratified
a post-merger bargaining agreement before a merger has been approved.
"We are pleased with today's vote by both pilot groups in support
of a combined agreement following the closing of our merger with
Delta Air Lines. This is another important step in the process toward
integrating our two airlines and one that has never been achieved
prior to the closing of any other airline merger. This agreement
helps set the stage for what we believe will be the most successful
merger in airline history because it will allow us to quickly capture
a great share of the $2 billion in synergies we are projecting for
the combined carrier," said Doug Steenland.
The pilot groups also have implemented a separate process to establish
a single pilot seniority list by the close of the merger. The pilots'
unions have already selected and agreed upon a three-member arbitration
panel that will help decide how Northwest and Delta pilots will
mutually merge their seniority lists by November 20.
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ALITALIA
FILES FOR BANKRUPTCY PROTECTION |
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| Source: copyright
2008, Travel Weekly
Alitalia has sought bankruptcy protection, taking the first step
in a plan to reshape Italy's financially plagued national carrier.
The company said in a statement that its board had declared insolvency
to a Rome court and requested the government appoint an administrator.
Because the carrier expects to operate normally while going through
the bankruptcy proceeding ARC (Airline Reporting Corporation) said
it will continue processing transactions validated on Alitalia,
including sales, refunds and exchanges, as usual.
Alitalia reportedly has been losing some $3 million a day -- hurt
by labor unrest, competition from budget airlines and high fuel
prices.
The airline said its net debt at the end of July amounted to about
$1.73 billion.
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AMERICAN
AIRLINES FINED $7.1 MILLION FOR SAFETY VIOLATIONS |
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| Source: cnn.com
Federal regulators announced $7.1 million in fines against American
Airlines over maintenance issues and problems with its drug- and
alcohol-testing programs.
American Airlines was fined for allowing aircrafts to fly while
they knew they needed repairs.
"The FAA believes the large total amount of the fine for these
violations is appropriate because American Airlines was aware that
appropriate repairs were needed, and instead deferred maintenance,"
the Federal Aviation Administration said in a statement announcing
the decision. "In intentionally continuing to fly the aircraft,
the carrier did not follow important safety regulations intended
to protect passengers and crew."
American can still appeal the fines, the FAA said.
The FAA also found the airline maintained inadequate drug- and
alcohol-testing programs and failed to inspect safety lighting on
a "timely" basis.
The Fort Worth, Texas-based carrier said that it disagreed with
the findings and called the penalties "excessive."
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UNITED
AIRLINES |
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United
won't charge for food on international flights
Source: suntimes.com
United Airlines on Tuesday, September 2, said it has reversed
its decision last month to start charging for food in economy class
on international flights departing from one of its principal hubs,
Dulles International Airport outside Washington, D.C. The move came
before United had even begun implementing the policy, which could
have been put in place on United international flights from other
hubs, including O'Hare Airport, if the experiment had met with success
at Dulles. International economy passengers now will continue to
get free hot meals.
A United spokesman said the quick reversal came because of vocal
feedback from the carrier's corporate and elite fliers, two groups
that are heavy users of the airline and generate a huge chunk of
United's revenue. Meanwhile, United pilots were quick to label Tuesday's
action a "flip-flop" that demonstrates the airline's CEO Glenn Tilton
and his executives "are out of touch with the needs of passengers."
United pilots want Tilton out
Source: copyright 2008, Travel Weekly
The United Airlines chapter of the Air Line Pilots Association
(ALPA) last month Monday called for the resignation of United CEO
Glenn Tilton.
The pilots said new leadership is required because United "ranks
at the bottom of nearly every performance and customer-satisfaction
category, and its financial performance is steadily deteriorating."
The pilot union has launched www.glenntilton.com, to broadcast
reasons why Tilton should no longer be the CEO.
"Under Glenn Tilton's tenure, United has gone from being the finest
airline in the world, with the best route structure and safety record,
to a shell of its former self," said Steve Wallach, chairman of
the United Master Executive Council. "He has had every opportunity
to turn this company around and tap the abilities of its first-class
employees, but instead he has run it into the ground. We believe
that with the intense challenges facing our industry, United Airlines
will not be able to thrive as long as Glenn Tilton, with his proven
record of incompetence, continues as CEO."
The pilots noted that according to the latest Department of Transportation
data, United ranked next-to-last in on-time arrivals and second-to-last
in customer complaints. In overall reputation, the pilots added
that United was rated "below the rest" and tied for last place on
the latest J.D. Powers satisfaction study.
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ONEWORLD
CARRIERS REQUEST ANTITRUST IMMUNITY FROM DOT |
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| Source: copyright
2008, Travel Weekly
American, British Airways and Iberia -- along with fellow Oneworld
alliance members Finnair and Royal Jordanian -- plan to file for
joint antitrust immunity at the U.S. Department of Transportation.
Under the joint business agreement, the airlines would cooperate
on flights between North America and the European Union, Switzerland
and Norway while continuing to operate as separate companies. The
airlines plan to collaborate on fares scheduling and to share costs
and revenue, while expanding their codeshare arrangements on flights
within and beyond the E.U. and U.S.
The airlines also will file an application with antitrust authorities
in the E.U.
American and British Airways have twice before tried and failed
to secure antitrust immunity because of the carriers' dominance
at London's Heathrow Airport. The airlines said the with the new
U.S.-E.U. open-skies deal, conditions have changed.
"We are applying for E.U.-U.S. antitrust immunity in a changed
regulatory world where London Heathrow is open to any U.S. or E.U.
airline that wants to fly to the United States and where rival alliances
have immunity," said British Airways CEO Willy Walsh.
Rival carrier Virgin Atlantic and its president, Richard Branson,
disagrees. In an open letter written to U.S. presidential candidates
Barack Obama and John McCain earlier this week, Branson called the
open-skies deal "a complete red herring."
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PACT
FREES CARRIERS TO RESUME CODESHARES FOR RUSSIA SERVICE |
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| Source: copyright
2008, Travel Weekly
Five U.S. carriers are seeking to launch or re-establish codeshare
services to Russia in the wake of a U.S.-Russia agreement that permits
the resumption of such services via points in Europe.
Northwest, Delta and American plan to resume their third-country
codeshare services to Russia under their existing authority.
United, meanwhile, proposed launching U.S.-Russia services with
British Midland, and Continental is seeking to start a similar operation
with Swiss International.
The carriers filed notices of their codesharing plans in response
to the Department of Transportation's mid-August invitation to airlines
to file applications.
The invitation follows the July 26 Memorandum of Consultations
between the U.S. and Russia that permits eight codeshare services,
six of which can be for passenger services.
Russia had earlier closed the door on such operations, preventing
alliance partners from listing U.S.-Russia connecting services under
the U.S. carrier's code.
Under the new pact, each such codeshare involving a U.S. airline
and a European partner may serve Russia via no more than one European
intermediate point and is limited to 14 weekly operations.
DOT spokesman Bill Mosley said carriers with existing codeshare
partners for the region, such as Northwest/KLM, Delta/Air France
and American/Finnair, need only to send a letter of their intention
to resurrect those agreements.
Northwest wants to resume its codeshare with KLM immediately,
serving Moscow and St. Petersburg via Amsterdam.
Delta intends to implement its previously authorized codesharing
arrangement with Air France, serving both Russian points by offering
daily codeshare service via Paris.
American intends to use its existing rights for service to Russia
via Helsinki on flights operated by Finnair.
American also is applying for U.S.-Russia codeshare rights via
London Heathrow with British Airways and via Madrid with Iberia.
United, which previously operated such service with Lufthansa
via Frankfurt, applied for a linkup via London with BMI.
Continental and Swiss International plan to offer codeshare service
in which Continental will place its CO code on Swiss flights between
Zurich and both Moscow and St. Petersburg.
In addition to providing Russia service on connections with Continental's
New York/Newark-Zurich flights, Continental will offer codeshare
service on Swiss International's flights serving the Boston, Chicago,
Los Angeles, Miami and New York Kennedy gateways.
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FLIERS
MAY FIND LESS IS MORE
Delays, other hassles could be reduced as the number of domestic flights
decreases Oct. 1 |
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| Source: detnews.com
With the summer travel season in its final throes, travelers such
as Barbara Benson of Novi hope troubling flight delays will ease.
Benson, an independent marketing consultant, travels round-trip
between Detroit and cities such as New York; Memphis, Tenn.; and
Houston to meet with clients about once a week.
"And almost every flight has been a complete hassle," she said.
"One-hour delay here, two hours there, cancellations ... I've seen
it all: weather, mechanical problems, flight crews not showing up."
Vexed voyagers have a few things happening in their favor. Chief
among them: Major airlines are planning to do less domestic flying
beginning Oct. 1.
Northwest Airlines Corp., Michigan's largest carrier, plans to
carry about 9.5 percent fewer seats beginning next month. Delta
Air Lines Inc., which plans to merge with Northwest by year's end,
is cutting its domestic flying about 13 percent over last fall.
Other major carriers also have announced capacity cuts.
That means fewer planes in the air, which could help ease traffic
into particularly crowded airports like Chicago's O'Hare International,
and those in New York, Boston and Washington, D.C.
For fliers leaving Metro Detroit, delays won't be notably worse
than anywhere else, according to a report issued by Delaycast. com,
a site that tracks historical flight delay information by airport.
About 17 percent of flights departing Detroit are delayed, on
par with the national average.
Arriving flights are late about 19 percent of the time, compared
with a 21 percent national average.
Passageways is monitoring the impact of the fall schedule
pulldown closely. We know the intention of the pulldown is to support
modest price rises and limit discount seat availability in an effort
by the carriers to increase overall yields in the face of continued
huge losses due to the spike in fuel prices. As fuel prices moderate
slightly, we'll have to see if they seek to widen margins by keeping
prices firm or adjust slightly.
For business travelers, keep trying to book in advance, adhere to
those schedules without change (those change fees keep increasing),
and support all negotiated preferred agreements.
For leisure travelers, demand does not seem to have declined along
with the decline in capacity, fewer discount seats and higher year
over years fares. Try to be flexible with your vacations dates,
book early, and check alternative destinations and options with
a Passageways professional. Seat availability to leisure destinations-
generally with lower yields to the carriers- have been reduced the
most.
Planning and prompt action are in your interest this year… Every
indicator is that "waiting for a sale" is a false hope for this
winter.
Call Passageways…We're With You All The Way.
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CLIENTS
PAID SIGNIFICANTLY MORE FOR AIR TRAVEL IN Q2 |
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| Source: copyright
2008, Travel Weekly
The average one-way, domestic airfare paid by American Express
Business Travel clients in the second quarter rose 10% year over
year, to $260, according to the company's Business Travel Monitor.
The $260 average fare paid was a seven-year high for the second-quarter,
said American Express.
High fuel prices, which led many airlines to make capacity reductions
and tighten ticketing restrictions, increased the average fare,
said American Express. The fare increase spurred clients to buy
more tickets in advance.
"During times when economic conditions are volatile, companies
step up efforts to stress the importance of purchasing tickets in
advance in order to use discount tickets in a negotiated travel
program," said Hervé Sedky, vice president and general manager of
American Express Business Travel's Global Advisory Services. "Our
data shows that during the second quarter of 2008, 89% of tickets
purchased were domestic discount coach fares; this shows that more
travelers purchased tickets in advance.
"These subtle changes can translate into significant savings -
17% or more in some cases. Looking at the first six months of 2008,
the companies that had travelers purchase 8 to 14 days in advance
rather than zero to seven days in advance saved an average of $49
per segment."
The average international fare paid for the second quarter of
2008 reached $1,980, a record for the Business Travel Monitor since
its inception in 1999. The average international fare rose 11% over
the same period in 2007.
Forty-nine percent of international purchases in the second quarter
were business-class tickets. American Express said that's the lowest
percentage since the third quarter of 2004.
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NEW
U.S. PASSPORT CARDS OFFER TRAVLERS A CHOICE |
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| Source: chron.com
Travelers crossing U.S. land and sea borders can now replace their
passport book with a new passport card.
Federal passport officials started issuing the wallet-sized cards
on July 14.
More than 450,000 people have applied for the card, said Brenda
Sprague, deputy assistant secretary of state for passport service.
"The U.S. passport card is a less expensive and more affordable
alternative to the U.S. passport book, "Sprague said.
The brand new document - which looks similar to a drivers license
- can be used for people returning to the United States from Mexico,
Canada, the Caribbean and Bermuda.
The pros: It's cheaper ($45 for the first-time applicant, $20
if the applicant already has a passport and $35 for children), it's
valid for the same period as a passport book, and it's faster for
border officials to check.
Its technology - a radio frequency identity chip -allows it to
be read from up to 30 feet away. "It will make a difference as far
as processing times," said Chief Jose Castellano, spokesman with
U.S. customs and Border Protection.
The cons: U.S. travelers cannot use the card to travel by air.
And no passport stamps.
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BBB
WARNS OF TRAVEL SCAMS |
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| Source: coloradoan.com
With travel prices on the rise and consumers looking for the best
deals, the Better Business Bureau of Northern Colorado and Wyoming
is warning people that if a travel deal seems too good to be true,
it probably is.
The BBB has issued a warning to consumers regarding Elite Escapes
International, a travel club operating under numerous names, which
is enticing Larimer County residents to spend from $1,000 to $7,000
on memberships with the promise of great travel deals.
But consumers are quickly finding they can't redeem those deals
on air travel, gas cards or show tickets, and deals are misrepresented.
The BBB of Northern Colorado and Wyoming began receiving an average
of three to five calls a day over the past two weeks regarding South
Carolina-based Elite Escapes International, said Barbara Read, communications
director for the BBB.
Elite Escapes International, which also operates under the names
of Elite Professional Services LLC and VIP Travel, could not be
reached for comment.
According to complaints filed with the BBB, Larimer County residents
have received fliers in the mail telling them about the program.
After calling the phone number on the mailer, consumers are invited
to a small seminar and asked for a "fair amount" of personal information,
such as income level, Read said.
"The people who have attended the seminars say (the company) uses
high-pressure sales techniques," she added.
According to the Myrtle Beach, S.C., BBB, which is compiling all
of the complaint information, it reported 142 filed complaints on
the three companies.
Promotions for travel companies or buyers clubs are not uncommon,
Read said.
"Some are more legitimate than others. It's just always wise,
especially if you're being high pressured, to take a step back,"
she said. "If it's only good for the next two hours, it's a red
flag. If it's really a good deal, it'll be available 24 hours from
now."
Read added that some consumers who have filed complaints through
the BBB have been issued refunds from the company.
But the problem isn't limited to Larimer County.
At the end of July, the Kansas attorney general banned the company
from doing business in the state, citing "deceptive business practices."
Yes, it happens here in Michigan also!
"You've won a free vacation"- you just need to fund the taxes
and fees. "We'd like to offer you a free condo stay"- just sign
here…with a commitment to four add'l stays at a set price. "A group
has cancelled and we are calling to offer you their space at a huge
discount"…just need your credit card today to guarantee the rate…
Yes, if it sounds too good to be true…that is probably the case.
Know who you're dealing with…
With over a quarter century in the travel business, offices across
Michigan, and a constant commitment to our customers that you can
verify with your neighbors…make your call to Passageways. We'll
deliver on the trust you place in us.
We're With You All The Way.
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EXOTIC
WESTERN CARIBBEAN CRUISE |
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Join Passageways' Travel expert Bonnie Pintozzi to The Exotic Caribbean!
January 16-24, 2009
Travel on board Carnival's Miracle for this 8-day adventure.
Ports of calls include Colon, Panama; Limon, Costa Rica; and Belize.
Your cruise starts and ends in Ft. Lauderdale and includes 4 days
of Fun Days at Sea.
Prices start at $818.00 per person this includes port fees and fuel
taxes.
Call or stop
by your local Passageways Travel office or go to www.PassagewaysTravel.com
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| Copyright
© 2008 Passageways Travel Services, Inc. |
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