Passageways Business Travel Updates 
| BUSINESS
TRAVEL UPDATE - NOVEMBER 2007 |
|
 TPG
DEAL GIVES NORTHWEST OPTION TO ACQUIRE MIDWEST |
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| Source: travelweekly.com
Northwest's involvement
as a passive investor in TPG Capital's acquisition of Midwest includes the option
for Northwest to acquire Midwest outright within the next few years, TPG Capital
partner Richard Schifter said Aug. 17.
Schifter, however, emphasized an eventual Northwest acquisition is far from a
certainty. "To the
extent that it is contemplated, it is contemplated several years out," Schifter
said. He said the agreement between TPG and Northwest, giving the carrier the
right to acquire Midwest, is of "limited duration," for a time period he did not
specify, and after that TPG could sell Midwest to anybody.
Northwest, in a statement, said only that its agreement with TPG "gives Northwest
the right but not the obligation to acquire TPG's interest in [Midwest] in certain
circumstances."
Although selling Midwest to Northwest a few years from now would be one option
for TPG to cash in on its investment, Schifter said it is not the only one.
He noted TPG's has exited
its investments in other airlines incrementally. Also, Midwest is going private
if TPG's acquisition goes through, so an eventual initial public offering for
a Midwest return to the stock market also is a possible way for TPG to turn a
profit, he said. "At
this stage, we do see various exit options," he said. "One of the possibilities
could be a sale to Northwest, but it's not the exclusive one."
For now, Northwest is a passive minority investor that will have no participation
in Midwest management, no control of the airline and no right to designate any
members of Midwest's board of directors, both airlines and TPG said.
Neither Northwest nor TPG are revealing the size or share of Northwest's stake
as a passive investor.
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| FORMER
NORTHWEST CEO TO TAKE DELTA'S HELM |
| | Source:
travelweekly.com
Delta's board chose Richard Anderson, Northwest's CEO from 2001 to October 2004,
to become the carrier's next CEO Sept. 1.
Anderson, 52, will replace Gerald Grinstein, who took over as CEO in 2004 when
Leo Mullin left, and guided Delta into, through and out of bankruptcy. But Grinstein,
75, let it be known he planned to retire soon after Delta's emergence from Chapter
11. Anderson will
become the eighth CEO in Delta's 78-year history.
Anderson left Northwest in October 2004 to become executive vice president of
UnitedHealth Group. Northwest was not doing well when he left, having lost $458
million through the first three quarters of 2004, and about a year after he left
the airline filed for Chapter 11 bankruptcy protection.
But all of the major network carriers were racking up big losses at the time,
and Delta said it is confident in Anderson's experience and leadership. Anderson
has been serving on Delta's board, and, before going to Northwest, was staff vice
president and deputy general counsel at Continental. "After
a thorough search, the board concluded that Richard Anderson possesses the right
blend of seasoned leadership, strategic skills, international experience and airline
knowledge the company needs to navigate the industry's challenges and capitalize
on its opportunities," board chairman Daniel Carp said. "Well-qualified
with a proven track record in this highly competitive industry, Richard has a
demonstrated ability to master the competitive pressures of today's marketplace
with innovation and an unwavering focus on the customer," he added.
Anderson's appointment is sure to revive speculation about an eventual Northwest-Delta
merger -- talk that previously reached a fever pitch when Northwest and Delta
filed for bankruptcy in the same court on the same day. But that's solely speculation
at this point. In
addition to Anderson's appointment, Delta's board promoted CFO Edward Bastian
to president and CFO. Bastian had been considered a front-runner for the CEO spot.
Grinstein had seemed to
favor Bastian or COO Jim Whitehurst to take over when he left, but he praised
Anderson after the board's selection. "He
is a ferocious competitor, thoroughly knowledgeable about airline operations,
and understands the link between passenger satisfaction and living up to our service
commitments," Grinstein said. "He has an extensive background in the Far East
and Asia, which are among Delta's next growth opportunities."
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| AIRLINES
BODY BIDS FAREWELL TO PAPER TICKETS |
| | Source:
travelweekly.com
The global airlines body IATA said on Monday it had placed its last order for
paper tickets, clearing the way for air travel to be based entirely on electronic
ticketing from June 1 next year. "In
just 278 more days, the paper ticket will become a collector's item," said Giovanni
Bisignani, director general of the International Air Transport Association.
The changeover from paper
would not only cut airlines' costs by $9 for every traveler but would also mean
the industry -- criticized by environmentalists for its part in global warming
-- would save 50,000 mature trees a year, he added.
Bisignani did not say whether the $9 in cost savings would or should be passed
on to passengers.
Based in Geneva, IATA represents more than 240 airlines which operate 94 percent
of scheduled international flights.
Non-IATA airlines, mainly low-cost carriers like the Irish Ryanair and the British
Easyjet, already have a paper-free ticket system where travelers are registered
in computers and present only an identity document at check-in.
IATA launched its drive for so called "e-ticketing" just over three years ago
and now 84 percent of travelers on IATA carriers fly without paper tickets.
The airlines body says
China, one of the fastest-growing markets for air travel and host to next year's
Olympic Games, is heading to be the first country in the world to operate an entirely
paper-free ticketing system by the end of this year.
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| ARE
AIRLINE LOUNGES WORTH THE PRICE OF ADMISSION? |
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| Source: wall street
journal online wsj.com In this season of rampant flight cancellations and long
delays, many travelers have had to spend hours cooling their heels in cramped
-- and grimy -- airport terminal gates. But these days, fliers can buy their way
into the plusher lounges once reserved for first-class passengers and elite frequent
fliers. In the past couple of years, many carriers have begun offering day
passes to their lounges for travelers who want to enjoy a drink at the bar or
do some work before their flight without having to become a member of the club
-- or buying a first-class or business-class ticket. Some airlines see the day
passes as a way to lure potential new members. And, aiming to build customer loyalty,
airlines are in the process of building more of these spaces. AMR Corp.'s American
Airlines has opened three new Admirals Club facilities this year at Tokyo Narita,
Nashville, Tenn., and at John F. Kennedy International Airport in New York. Delta
Air Lines Inc. is adding a new club in Jacksonville, Fla., and is renovating lounges
in Miami and Philadelphia. To see if it is worth spending up to $50 a day for
access to a lounge, we checked out the facilities of four major airlines at four
airports around the country. In theory, the lounges can be great oases for hopping
online, grabbing a snack and relaxing before your flight -- especially if you've
been delayed. But some of the ones we visited were far from lavish -- and we often
went hungry. Indeed, U.S. lounges are often no match for those of foreign carriers
in overseas airports. Lufthansa's first-class lounge in Frankfurt has a cigar
room and passengers are driven to their planes in a Mercedes or Porsche. Virgin
Atlantic's "Clubhouse" at London's Heathrow Airport has a Jacuzzi and its own
movie theater. There's also usually plenty of free food and drink. But many foreign
carriers restrict access to first-class passengers and don't offer day passes.
We tried Continental Airlines Inc.'s lounges -- called the Presidents Club --
at San Francisco International, La Guardia International in New York and Hartsfield-Jackson
Atlanta International Airport. We paid $45 a person, and the pass is good for
24 hours at any Presidents Club. Continental's lounges have perks that are
absent at some other airlines' lounges: Every Presidents Club has free Wi-Fi Internet
access and free alcoholic drinks. The lounges also offer some snacks gratis --
bags of chips, pretzels, peanuts, crackers and cheese. But they don't allow food
from outside. American's Admirals Club Lounges tend to have plush furnishings.
In San Francisco, the lounge had very few seats and the lack of windows gave
the space a claustrophobic feel. At La Guardia, the men's bathroom was dingy --
the tiles on the floor were cracked and the walls were scuffed. In Atlanta, the
Presidents Club was bright and airy upon entry, but there's one big downside:
Guests have to leave the lounge to hit the bathroom, located a few gates down
the terminal concourse. We bought day passes ($50 for one person, $75 for two)
to American Airlines' Admirals Clubs at La Guardia, San Francisco, Atlanta and
Los Angeles. The lounges were spacious and plush -- but only if you didn't look
too closely. Besides Atlanta, all of the Admirals Clubs we visited had serious
cleanliness issues. At La Guardia, crumbs and other unidentifiable detritus were
scattered on the carpet, on tables and on chairs. In the ladies' room, there was
a large puddle on the floor and toilet paper was strewn around. At LAX, several
seat cushions had huge gashes, and the bar area was sullied by crumbs and orange
peels. American spokeswoman September Wade said vacuuming is done after hours
and bathrooms are cleaned every hour. Regarding the damaged chairs, she said,
"We have identified areas that need updating and are in the process of finalizing
refurbishment plans now." The Admirals Clubs do have some nice touches. At
LAX, you could use massage chairs (for a fee). There was also a private shower,
with complimentary shampoo and soap. Lounges also offered Wi-Fi access for a fee.
But don't plan to use the Atlanta club if you have a late connection: It closes
at 8 p.m. And be prepared to pay to eat. There's hardly any free food. At La Guardia
and Atlanta, the only complimentary snack was a large, communal bowl of pretzels.
The clubs did sell food -- including sandwiches and salads -- and booze. But at
La Guardia, about half the menu was unavailable. Delta's Crown Room Club had
the cheapest entrance fee: Only $25 for a one-time visit at La Guardia and its
Atlanta hub. And when we told the hostess at La Guardia we were planning to use
the lounge only for about an hour, she let us in free. In Atlanta, the spread
was pretty lavish for the low price tag: Complimentary drinks flowed freely from
a well-run bar. There was also plentiful snack food (also free) including trays
of olives, celery and carrots, as well as cookies, pretzels and nuts. We scored
a free Corona (with lime) at La Guardia. At La Guardia, the lobby was spacious
and comfortable. There were two big-screen TVs and conference rooms available
for private meetings. The business center was outfitted with a copier, two fax
machines and a half-dozen computers. We visited four of UAL Corp.'s United
Airlines' lounges -- dubbed United Red Carpet Clubs. Our experiences were wildly
variable. The lounge in San Francisco was more charming than most we had visited:
It felt less like a corporate waiting room and more like a lush hotel lounge,
decorated with tugboat models and black-and-white photos of San Francisco. But
the lounge in Atlanta was abysmal: Fluorescent lights and dust-covered ivy gave
it the feel of a motel cafeteria. The one bathroom opened right into the doorway
of the small business center. It also closed at 7 p.m. "We need to make some improvement
to that lounge," said Robin Urbanski, a spokeswoman for United. She said that
Atlanta is one of their smaller lounges and doesn't receive much traffic. Details:
| AIRLINE/CLUB | COST | SERVICES | COMMENT |
American/
Admirals Club | $50
for one person; $75 for two; $100 for three. A day pass can be used at any other
Admirals Club within a 24-hour period after buying it. | Vary
per airport. Free but limited snack selection, alcoholic drinks for a charge,
food for purchase, conference rooms, free use of showers and PCs with Internet
access. | Hit
or miss depending on airport. Some of the lounges we visited were pretty grimy.
| Continental/
Presidents Club | $45
per person. A day pass can be used at any other Presidents Club within a 24-hour
period after buying it | Free
Wi-Fi Internet access, complimentary alcoholic drinks, free light snacks and beverages,
and conference rooms. | The
lounges that we tested tended to be cramped and unglamorous. But free Wi-Fi Internet
access and complimentary bar service make up for their lack of space and ambiance. |
United/
Red Carpet Lounge | $50
per person. | Limited
free snack selection, complimentary non-alcoholic beverage, Wi-Fi Internet access
for a fee, alcoholic drinks for a fee and conference rooms. | Most
of lounges we visited were roomy and pleasant places to spend a couple of hours
in before a flight -- with the exception of the tiny Atlanta lounge. But the lack
of free Internet access, meals and paying for a beer make buying a day pass hard
to justify. | Delta/
Crown Room Club | $25
per person for a one-time visit. | Wi-Fi
Internet access for a fee, free booze, free snacks and non-alcoholic drinks. | Pretty
decent amenities and pleasant service for the price. |
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| FLYING
TO EUROPE? AVOID CHECKING YOUR LUGGAGE |
| | Source:
The Atlanta Journal-Constitution
It's the summer of lost luggage for anyone traveling in Europe.
Such is the magnitude of the problem that travelers were advised last month by
the Association of European Airlines, which includes the major national carriers,
to avoid checking bags altogether if possible and to take carry-on luggage instead.
The association released
figures showing that an average of 10 passengers per flight lost bags between
April and June. British Airways was cited as the worst among Europe's major airlines,
and is on track to lose a record 1.3 million bags this year.
Fans of the syndicated TV talk show "Live With Regis and Kelly" heard co-host
Regis Philbin rant in July about how BA lost two of his wife's bags. When he got
them back, one of her favorite dresses had been ruined by water damage.
After a luggage "mountain"
of some 22,000 lost bags piled up in London, BA was forced to use freighters at
least twice in the past eight months to reunite passengers in the United States
with their belongings, said Laura Goodes, a spokeswoman. "Our
baggage performance has not been as good as we would have liked and we fully apologize
to those customers who have been affected by delayed baggage in the past few months,"
Goodes said. Compounding
the problem is a shortage of baggage handlers at London's Heathrow airport, the
world's third-busiest airport, where dozens of workers are being taken off duty
each day to be trained on a new baggage system at a terminal set to open next
year. The troubles
aren't limited to Britain. Italian travelers faced similar luggage horrors this
month at Rome's main Fiumicino airport. And even in the United States, reports
of lost luggage soared by about 26 percent in June compared with a year earlier.
"It is statistics like
these that should make all airlines look at their current procedures and determine
their own adequacy," said Josh Holm, director of the Coalition for Luggage Security
in New York, a group of business people and companies that study safety issues
surrounding luggage. "All airlines should look for alternate means of luggage
transportation to ease the congestion in airports and the daily loss rate."
Delta Air Lines requires
outside identification on all checked baggage and recommends placing identification
inside bags as well, in case the outside ID gets lost, said spokeswoman Katie
Hulme. "And remember to never lock your luggage," she said.
Robert Mann, an aviation consultant at RW Mann & Co. in Port Washington, N.Y.,
said several factors are contributing to the baggage breakdown.
A spike in delayed flights means there is less time to correctly transfer baggage
to connecting flights. Increased security screening of baggage and restrictions
on carry-on bags also play a part, he said.
Henry Harteveldt, a travel analyst at Forrester Research in San Francisco, warned
that the situation was not likely to improve any time soon. "The
simple fact is that there are more people flying by air," he said. "And the growth
of budget airlines, most of which don't transfer bags between airlines, requires
passengers to check and recheck bags."
Protection, for a price
Chris Truelove of North Yorkshire, England, was so
frustrated after losing his luggage on a trip to Australia in 2000 that he founded
www.globalbagtags.com.
The service sells a pair of metal luggage tags embossed with a unique serial number
for $19. After you register your tags, your travel itinerary and your contact
information online, the company works with airlines to locate your lost bags as
quickly as possible. "The fact is that most lost luggage is not actually lost.
It is just not identifiable," Truelove said.
LUGGAGE TIPS - Don't
put valuables, critical items such as medicine or keys, irreplaceable items, or
fragile items in checked bags.
- Don't
put pressure on latches by overpacking checked bags.
- Don't
check in at the last minute. Even if you make your flight, your bags may not.
- Verify
that the attendant checking in your bags has put a destination tag on each one.
Throw away old tags to avoid confusion.
- Hang
onto your claim check.
- Checked
bags may need to be open for security checks. If you wish to lock your bags, go
to www.tsa.gov for information on locks that personnel can open and relock.
- Choose
nonstop flights whenever possible.
As fall approaches and loads dip a bit, Passageways observes it's time for each
carrier to review their staffing and their baggage procedures. Also, check with
your Passageways Travel professional on options for sending your vital baggage
in advance of your travels.
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| NW
NEWS |
| | Northwest
Airlink Carrier Compass Airlines Completes First Revenue Flight with New Embraer
175 Aircraft
Compass Airlines, a wholly-owned subsidiary of Northwest Airlines operating under
the Northwest Airlink banner, today completed its first revenue flight with the
new dual-class 76-seat Embraer E-175 regional jet aircraft.
The E-175 offers dual-class service with 12 seats in first class and 64 seats
in coach class. The first class seats, arranged in a one seat-aisle-two seat configuration,
offer 36 inches of pitch, or space between rows. Coach class, arranged in a two
seat-aisle-two seat configuration, provides pitch comparable to other aircraft
in Northwest’s current mainline fleet.
The E-175 is designed to provide customers with best-in-class comfort, including
leather seating with adjustable headrests, and more room throughout the cabin
than traditional regional jets. The aircraft features 6’ 7” of headroom in the
aisle and increased shoulder room when seated. Sidewall-mounted seats are designed
to maximize under-seat space, improving passenger comfort and stowage capacity,
and overhead compartments offer more storage compared to traditional regional
jets and can accommodate 24” x 16” x 10” roll-on bags.
Compass introduced its first two E-175 aircraft into revenue service between Minneapolis/St.
Paul International Airport (MSP) and Omaha’s Eppley Airfield (OMA). In addition
to serving the MSP-OMA route, the first two aircraft will serve Dallas-Ft. Worth
(DFW), Missoula, Mont. (MSO) and Nashville, Tenn. (BNA) from Minneapolis/St. Paul.
Compass anticipates operating a fleet of 10 E-175 aircraft by the end of 2007
and a fleet of 36 by the end of 2008. Northwest
Adds New York - Heartland Service
Northwest Airlines 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.
The new year-round services
will be served by 50-seat Bombardier CRJ200 regional jets operated by Northwest’s
Airlink partner Pinnacle Airlines. NW
Enhances On-Time Performance In August
Northwest pilots have a new Agreement with the airline. Northwest instituted a
new recruitment program and focused on avoiding a repeat of significant cancellations
that plagued them and their customers in late June and late July. They succeeded.
August went quite well for Northwest in terms of cancellations.
The new pilot agreement ratified August 4th implements contractual changes on
work rules pertaining to international flying, as well as the settlement of an
outstanding grievance, in exchange for the reinstatement of premium pay of 50
percent for all pilots flying more than 80 hours a month, effective Aug. 1, 2007.
The agreement is economically neutral per Northwest, with the cost to Northwest
of the premium-pay element offset by the value of the work-rule changes and grievance
settlement. The recruitment of new pilots also produced results with more than
1400 applications to the 24JUL posting for pilot hiring. Northwest also recalled
nearly 400 furloughed pilots with at least 230 of those accepting the call and
more expected in September. Complete completion percentages on scheduled flights
for August are not available as we post this, but Northwest delivered at least
two days of 100% completion (not a single cancellation systemwide) on both August
14th and 15th. A 1-3 percent cancellation factor is usual.
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Copyright
© 2007 Passageways Travel Services, Inc. |
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