Passageways Business Travel Updates 
|
BUSINESS
TRAVEL UPDATE - OCTOBER 2007
|
|
NORTHWEST
NEWS |
|
| Additional
Service in Michigan
- Northwest
Airlines has announced new daily nonstop Northwest
Airlink regional jet service to New York's LaGuardia
International Airport (LGA) from Heartland markets
Des Moines, Iowa; Flint, Mich.; and Madison,
Wis., beginning Nov.4, 2007.
- Northwest
is making it even easier to get to Las Vegas
with nonstop service from twelve cities, including
exclusive nonstop service from Madison, Memphis
and Grand Rapids.
Northwest Airlines Allows Domestic Nonrefundable
to Refundable Ticket Exchanges
As part of its continuing effort to improve the
overall travel experience for our customers, Northwest
will allow a wholly unused domestic nonrefundable
ticket issued on/after October 1, 2007, to be
exchanged for any Northwest or KLM refundable
or nonrefundable ticket.
Currently, Northwest only allows wholly unused
domestic nonrefundable tickets to be exchanged
for any Northwest or KLM nonrefundable ticket.
Northwest does allow the value of a wholly unused
international nonrefundable ticket to be exchanged
for any Northwest or KLM refundable or nonrefundable
ticket of higher value and different rule number.
The new policy will allow a wholly unused domestic
ticket issued with a nonrefundable fare to be
applied toward the purchase of another Northwest
or KLM domestic or international fare of higher,
equal or lower value. The nonrefundable value
of the original ticket remains nonrefundable for
any subsequent ticket exchange and should be documented
as nonrefundable in the endorsement box of the
exchanged ticket.
Skyteam
Strengthens Global Network With Addition of Three
Associate Airlines
SkyTeam has welcomed Air Europa, Copa Airlines
and Kenya Airways as the first official SkyTeam
Associate Airlines. As of September 1, passengers
traveling with Air Europa, Copa Airlines and Kenya
Airways receive the same benefits offered to passengers
traveling with the 10 current SkyTeam member airlines
including frequent flyer programs and improved
access to airport lounges.
SEC
Filing Reveals Northwest Gets Bigger Chunk of
Midwest
As previously reported Northwest is a signigicant
investor in the group that purchased control of
Midwest.
According to a Midwest Air Group filing with the
Securities and Exchange Commission Sept. 13, Northwest
would own 47% of the group under the merger deal
Midwest signed with TPG Capital in August.
The amount of Northwest's investment, $213.3 million,
making it a minority investor, is a lot more than
previously suggested when Midwest announced the
agreement Aug. 17.
TPG's share of the offer is $238.1 million, or
53%. TPG, formerly known as Texas Pacific Group,
is a global private equity group best known in
aviation circles for its investments in Continental,
America West, Hotwire, Sabre and Ryanair.
With the TPG-Northwest combined $451.4 million
offer, they outbid AirTran for Midwest and are
offering Midwest shareholders $17 a share. (copyright
2007, Travel Weekly)
Northwest
Airlines and Midwest Airlines Sign Codeshare Agreement
Northwest Airlines announced that it has signed
a codeshare agreement with Midwest Airlines for
tickets purchased beginning Nov. 3 with travel
starting on Nov. 17, 2007.
The first phase of the codeshare agreement will
include Northwest’s Hawaii-bound flights from
Seattle, San Francisco and Los Angeles with travel
beginning on Midwest Airlines in Milwaukee, Omaha
and Kansas city. The Northwest operated flights
will also be identified in reservations systems
and airport flight displays by the Midwest Airlines
two-letter YX code.
“This
is just the first step in expanding the networks
of both carriers by opening up 250 city pairs
and more than 1,000 new flight options for customers,”
said Nathaniel Pieper, Northwest’s vice president
– alliances. “Codesharing allows Northwest to
offer our customers the expanded reach of two
airlines while enjoying the convenience of a single
ticket and check-in.”
|
|
|
|
|
DOT
AWARDS DELTA, UNITED NEW CHINA ROUTES FOR 2008 |
|
| Source:
Travel Weekly copyright 2007
The Transportation Dept. awarded the carrier a new
Atlanta-Shanghai route. The carrier plans to offer daily
service on 777 aircraft, probably beginning next March.
United, meanwhile, was selected to serve a new San
Francisco-Guangzhou routing, also effective in 2008.
At the same time, the DOT rendered tentative rulings
on several other U.S.-China routes to be opened in 2009,
proposing American for Chicago-Beijing, Continental
for Newark-Shanghai, Northwest for Detroit-Shanghai
and US Airways for Philadelphia-Beijing.
These ruling are expected to be finalized after further
proceedings.
Northwest plans to use the Boeing 787 for the new
service. Northwest is the North American service launch
customer for the 787, a fuel-efficient aircraft that
will usher in a new era of customer comfort and convenience.
The 787 will be one of the most environmentally-friendly
commercial planes in the sky.
The route awards were made possible by a new agreement
between the U.S. and China in July to accelerate the
opening of additional air routes between the two countries.
CURRENT CHINA ROUTES
- American
Chicago-Shanghai
- Continental
Newark-Beijing
- United
Chicago-Beijing
San Francisco-Beijing
San Francisco-Shanghai
Washington-Beijing
- Northwest
Detroit/Honolulu/Los Angeles/Minneapolis/Portland/San
Francisco/Seattle-Tokyo-Beijing/Shanghai/Guangzhou
(Non-stop to Tokyo from seven U.S. cities and then
nonstop to three cities in China)
NEW 2008
- Delta
Atlanta-Shanghai
- United
San Francisco-Guangzhou
NEW 2009
- American
Chicago-Beijing
- Continental
Newark-Shanghai
- Northwest
Detroit-Shanghai
- US Airways
Philadelphia-Beijing
|
|
|
|
BRITISH
AIRWAYS TO SUSPEND DETROIT-LONDON FLIGHTS IN 2008 |
|
| Source:
Travel Weekly copyright 2007
British Airways will discontinue its daily flights between
Detroit Wayne County Metropolitan Airport and London
Heathrow Airport, effective March 30.
According to the airline, the service will be discontinued
due to low profits on the route.
BA noted that the aircraft will be utilized "on other
routes where it can make a profitable contribution to
the airline's bottom line."
British Airways plans to start nonstop service to the
U.S. from key European destinations outside of the U.K.
next summer, starting with flights to New York from
two or three European cities.
The service becomes possible under the U.S.-European
Union open skies deal that takes effect March 30. The
agreement lets any E.U. carrier offer nonstop service
to the U.S. from any country in the E.U. instead of
just its home country.
|
|
|
|
SOUTHWEST
KEEPS OPEN-SEATING POLICY, BUT WITH SOME CHANGES |
|
| Source:
Travel Weekly copyright 2007
Southwest Airlines, after months of testing various
alternatives, is changing its boarding procedure while
keeping its open-seating policy in place.
Starting in November, Southwest passengers will be assigned
a letter and a number, such as A32, on their boarding
pass when they check in for a flight. The number/letter
code indicates the passenger's boarding group and their
position in line within that boarding group.
The same would be true for passengers in B and C groups.
Once on board, customers may choose their favorite seat
anywhere on the plane.
Southwest believes the new boarding procedure will "improve
the customer experience and increase customer productivity,"
while eliminating the "cattle call" effect at its gates.
The new procedure stops short of actually assigning
passengers to specific seats, retaining its 36-year
old, signature, open seating policy.
|
|
|
|
OUTGOING
FAA CHIEF WARNS AIRLINES ABOUT POOR SCHEDULING; NORTHWEST
RESPONDS |
|
| Sources:
Travel Weekly copyright 2007/usatoday.com/startribune.com
In a Sept. 11 farewell speech, Marion Blakey, the outgoing
head of the Federal Aviation Administration, warned
the airlines they could face FAA-imposed restrictions
on the number of flights to some congested East Coast
airports if they failed to make the changes on their
own.
The problem, several industry officials told Travel
Weekly in response to her remarks, is that the airlines
are prevented by antitrust laws from collaborating on
flight reductions and by market realities from making
unilateral reductions. Thus, even a couple of airlines
have recently suggested that government intervention
is the most reasonable solution to the snowballing problem
of flight delays.
Even with other measures the FAA is taking to try to
reduce delays, Blakey told the Aero Club of Washington
just two days before her five-year term as administrator
ended, "I predict passengers will continue to be fed
up with delays, and that's got to be taken more seriously
by our airlines. No, you can't control Mother Nature
but airlines can control their own schedules."
Air Transport Association spokesman David Castelveter
added that any discussions about schedule reductions
would have to encompass other delay-reduction methods
as well, such as simultaneous cuts in corporate jet
flights in the same airspace, better use of airport
runways and perhaps use of the satellite-guided flight
approaches that have been successful at the Dallas/Fort
Worth and Atlanta airports.
Northwest Airlines CEO Douglas Steenland recently said
he favors an industry agreement to trim schedules at
the USA's most congested airports, but he warned that
reducing flight delays that way would result in higher
airfares.
"We're
not likely to see a lot more runway space or terminal
space at a lot of these airports, so congestion is going
to be a long-term issue for this country," he said.
For airlines to significantly roll back their schedules
in some of the most popular markets, they need a grant
of antitrust immunity to meet and agree on how many
flights each would cut. That's because airlines would
be loath to unilaterally reduce service in key markets
and risk losing critical market share to competitors
who don't do likewise. Airlines have been given antitrust
immunity to discuss matters several times before. But
none of the parties that would be involved, including
the FAA, have asked for an immunity grant.
Steenland said the "Darwinian forces of competition"
remain at work and Northwest must offer customers a
modern fleet, a broad route network and "dedicated and
committed employees with pride in the airline for which
they work."
He did not estimate how much higher fares could cut
demand. Northwest said that its overall capacity for
this year will grow no more than 1 percent. In an earlier
business plan, the carrier had forecast 4 percent growth.
Northwest reduced its domestic flight capacity in August
in response to a pilot staffing shortage this summer,
which was a major cause of flight cancellations.
On the fuel front, Northwest has hedged about 50 percent
of its price exposure for the September to December
period. "Forty percent of the exposure is hedged using
dollars with a floor of approximately $56 per barrel
and a ceiling of approximately $75 per barrel".
The remaining 10 percent is hedged using swaps priced
at $62 to $65 per barrel.
Julius Maldutis, president of New York-based Aviation
Dynamics, said he was impressed with Steenland's presentation.
He noted that a key problem for the industry -- congestion
in the air traffic control system -- is not as great
a problem for Northwest.
Steenland said Northwest's hub airports in the Twin
Cities and Detroit have fewer delays than many airports
on the East Coast.
|
|
|
|
MARRIOTT
SEES 2008 CORPORATE RATE HIKES AS HIGH AS 8 PERCENT |
|
| Source:
Business Travel News online
Marriott International expects its corporate negotiated
rates will increase in the 6 percent to 8 percent range
after negotiations this year, Marriott CFO Arne Sorenson
said today in a conference call to investors.
The hotel company is now finalizing negotiations with
corporate customers as property-level negotiations are
just beginning, he said. Marriott's expectations are
slightly above the overall expectations for 2008 corporate
rates put out by PricewaterhouseCoopers.
Marriott announced its corporate rate expectations as
it reported performance results for the third quarter
of 2007. Compared with the same period in 2006, Marriott's
net income was down about 15 percent to $122 million,
which Marriott said was a result of higher taxes and
a drop in timeshare profits. Worldwide revenue per available
room increased by 7.7 percent for the quarter. North
American RevPAR was up 7.2 percent, and international
RevPAR was up 12.9 percent, boosted by a 10.8 percent
increase in average daily rate.
Sorenson said group bookings also are strong into 2008.
Marriott expects to open 30,000 rooms this year while
removing 11,000, and it expects to add the same number
in 2008 while removing only 5,000, according to Sorenson.
|
|
|
|
|
|
|
Copyright © 2007 Passageways Travel Services, Inc. |
|