Travel Update-Weekly Edition

April 9th, 2007

Airline News

Aer Lingus - Aer Lingus has received Transportation Dept. approval to begin new service from Dublin and Shannon, Ireland, to Washington Dulles International Airport beginning Sept. 3 and to Orlando and San Francisco beginning the week of Oct. 28, providing the first benefit from the U.S.-E.U. open skies agreement even before it is implemented next March. Travelers can thank the U.S.-E.U. deal for the new service because the U.S. and Ireland previously signed a separate agreement to transition U.S.-Ireland service to a fully liberalized aviation market once the U.S. and the E.U. reached an open skies deal. The transition agreement will become retroactively effective as soon as the U.S. and E.U. sign their agreement, which is scheduled for April 30.

American Airlines - American Airlines announced that it filed an application with the Transportation Department to begin daily non-stop service between Chicago O'Hare and Buenos Aires. American's proposed service would start Oct. 28. AA plans to fly the route with 219-seat Boeing 767-300s, configured with 30 business-class seats and 189 in coach. Buenos Aires will be AA's 22nd non-stop international destination from its O'Hare hub.

ATA/Southwest Airlines - ATA and Southwest Airlines have taken their code-share agreement to a new level with a frequent-flier program that allows ATA customers to cash in their ATA Travel Awards points for Southwest Rapid Rewards credits. ATA members can redeem 7,250 points for one Southwest credit. ATA members previously could choose to earn either ATA points or Southwest credits for their ATA travel. While ATA's frequent-flier program offers points for the number of flights and mileage, Southwest's plan is based on credits -- one credit for each one-way flight, regardless of cost and mileage. Southwest has 16 daily departures from Indianapolis International Airport, but ATA has none.

Continental Airlines - Beginning June 9, Continental Airlines will add seasonal service between its Cleveland hub and Quebec City. The carrier will fly from Cleveland to Quebec on Saturdays, with the return flight operating on Sunday mornings. The flights will be operated by Continental's Continental Express partners using 50-seat Embraer ERJ-145 regional jets.

Delta Air Lines - Building on the more than 19 new destinations already announced for summer 2007, Delta Air Lines will add two new cities and four more domestic routes from its U.S. hubs and gateways in Los Angeles, Salt Lake City and New York City. Delta’s newest routes, effective this June, are as follows:

Los Angeles to Portland, OR. (effective June 7)
New York-JFK to St. Louis, MO. (effective June 7)
New York-LaGuardia to Myrtle Beach, SC. (effective June 7)
Salt Lake City to Birmingham, AL. (effective June 7)
Salt Lake City to San Luis Obispo, CA. (effective June 11)
New York-JFK to Nantucket, MA. (effective June 14)

All of Delta’s expanded service as noted directly above will be operated by Delta Connection carriers using regional jet aircraft seating between 50 and 70 passengers with no middle seats. Longer-haul routes, such as Salt Lake City to Birmingham, feature CRJ900 aircraft that add the comfort and convenience of 10 first class seats to the 60-seat Economy class cabin.

Horizon Air - Starting July 22 Horizon Air is adding new nonstop jet flights from Boise and Spokane to San Diego and increasing jet flights from Spokane to Sacramento. The airline is also increasing jet flights from Spokane to Los Angeles, starting July 1. Horizon will offer one daily jet flight nonstop from both Boise and Spokane to San Diego. Horizon is also adding a second nonstop jet flight between Spokane and Sacramento to complement the previously announced nonstop jet service between the two cities (once daily) starting July 1.

Southwest Airlines - Southwest Airlines has raised the price of beer and wine to $4 from $3. Cocktails were already $4. Southwest's most frequent flyers get coupons for free drinks with each free ticket they earn.

United Airlines/Bmi - Bmi and United Airlines are planning a merger of their transatlantic services under new open skies rules. The two airlines have reportedly applied to the US Department of Transportation to forge a transatlantic alliance. Bmi believes an alliance with United will strengthen its position at Heathrow where it holds 12% of the airport's take off and landing slots and wants to start serving the US. Currently Bmi is barred from flying to the US from Heathrow under restrictions that limit only two UK and two US carriers, including United, to the North Atlantic market. The arrangement would allow passengers to deal with one airline when they book tickets although the two carriers would remain indepedent. The new EU-US open skies arrangement comes into force in October and will apply to the London hub next March when more space is freed up with the opening of Terminal 5.

Virgin America - Richard Branson's Virgin Group was cleared by the U.S. Department of Transportation to launch a budget airline that flies between states after restructuring the ownership and management of Virgin America to meet legal standards of foreign ownership of domestic carriers. The Department of Transportation on March 20 announced tentative approval for the venture, saying Virgin America appears to meet citizenship tests. Among other moves, DOT said Virgin America agreed to replace CEO Fred Reid, who the government saw as too close to foreign investors. Virgin also proposed loosening other parent company control, such as the ability to veto certain contracts and spending. Under the Federal Aviation Act, a company can only be certificated as a U.S. airline if it is actually controlled by U.S. citizens, the president and two-thirds of the board of directors are U.S. citizens, and that at least 75 percent of the voting interest is owned or controlled by U.S. citizens. The Department of Transportation still is waiting for Virgin America to meet a few other demands, including providing advance notification before receiving any loans from foreign investors. Virgin said it was still working to meet the unmet demands but that it anticipates winning full approval soon with the intention of beginning service by midsummer.

Zoom Airlines - Zoom Airlines, a low-cost, low-fare transatlantic carrier, received Transportation Dept. approval to begin marketing and selling tickets for its proposed London-New York service -- but for now, only in the U.K. Zoom filed an application with the DOT Jan. 22 asking for permission that would let it start daily service June 7 between London (Gatwick) and New York (Kennedy) using 767 aircraft on the route. Zoom Airlines was established as a Canadian carrier and offers scheduled service from eight Canadian cities to five U.K. destinations, including London (Gatwick), and from four Canadian cities to Paris. But last August the Bank of Scotland acquired a minority stake in Zoom for about $11 million, and at the time the company said it would use the money to establish Zoom U.K. to fly to non-Canadian destinations, such as the U.S. The DOT is waiting for the U.K. ruling on the carrier's fitness and citizenship before making a decision on granting U.S. regulatory approval for the service.

Airport/Destination News

Argentina - The USA and Argentina agreed last week to expand their bilateral aviation agreement. The move will increase the number of weekly passenger flights allowed between the countries, immediately rising from the current 56 to 77. That number will jump to 112 by March 2009. A press release from the U.S. State Department says the agreement also will increase the number of U.S. cities that Argentine airlines can serve, rising to 14 from nine. The agency adds the pact also will "significantly expand the route rights for Argentine carriers on their U.S.-connected service to destinations in Canada, the Caribbean, Central America, Mexico, Europe and Asia" and "allow an unlimited number of charter flights between the two countries." A Department of Transportation press release says the agreement will allow U.S. carriers to serve more destinations beyond Argentina in South America.

Charlotte Douglas International Airport - Charlotte Douglas International Airport is now a smoke-free facility. Passengers and visitors to the airport are no longer allowed to smoke in spaces that are open to the public, which includes all restaurants and bars. This smoke-free policy does not impact airline clubs, which are considered non-public areas. Smokers on the front curb of ther terminal are encouraged to use courtesy areas on each end of the Baggage Claim and Ticketing levels.

Los Angeles International Airport - Los Angeles International has finished installing wireless Internet. Operated by T-Mobile, the service will be available at all public areas of the airports. Cost: $9.99 a day, or $6 for the first hour and 10 cents a minute thereafter.

Rental Car News

Enterprise Car Rental - Enterprise Rent-A-Car has entered into a definitive agreement to buy Vanguard Car Rental Group Inc., parent of Alamo Rent a Car and National Car Rental. Financial terms of the deal were not disclosed. The transaction between the two privately owned companies is expected to close in the third or fourth quarter of 2007, contingent upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other closing conditions. Enterprise said the purchase will join two rental car companies with complementary businesses. St. Louis-based Enterprise's strength lies in the in-town and insurance replacement segments of the industry, although it has increased its on-airport locations in recent years and begun actively marketing through the travel agency distribution channel. Vanguard, based in Tulsa, serves the airport segment of the market though its Alamo and National brands. Enterprise said capitalizing on the companies assets in these different segments will allow for more efficient fleet utilization and enhance the combined companies' ability to offer low prices and quality service to all customers.

Hertz Rent A Car - Last year, The Ford Motor Co. and Hertz teamed up to bring back an updated version of the Shelby GT350H, a limited edition, modified Ford Mustang based on the Shelby GT, a legendary, 1960s-era muscle car. The two companies have teamed up again to bring the popular car back -- only this year, the teaming has produced a convertible. Only 1,000 of the original GT muscle cars were ever produced. This time around, only 500 Shelby GT-H convertibles are being made available, exclusively for rent through Hertz. The GT-H is part of Hertz’s “Fun Collection” of automobiles, which include the Mazda Miata, the Toyota Solara, the PT Cruiser, the Chrysler Sebring, the Chevy HHR, the Nissan 350Z, the Ford Escape XLT Sport, the Jeep Wrangler, the Nissan Murano and the Hummer H3. The GTs are available at select airport locations in Denver; Las Vegas; Phoenix; Los Angeles, Orange County, San Diego and San Francisco, CA.; and Maui and Honolulu, Hawaii.

Miscellaneous

State Dept Travel Warnings and Public announcements - For the full announcements or further detail on Travel Warnings and Public Announcements, please see http://travel.state.gov/travel

Dominican Republic - On April 2, the U.S. Embassy in Santo Domingo issued the following Warden Message: "The Dominican Ministry of Health has announced a new outbreak of dengue fever. There are currently at least 400 cases being reported every month and officials have indicated that the number of reported cases may surpass last years numbers. The Dengue outbreak serves as a reminder that Malaria is also endemic to the Dominican Republic and that you should take preventative measures."

Uruguay - On April 4 the U.S. Embassy in Montevideo issued the following Warden Message: "The United States Embassy is releasing this Warden Message to alert American Citizens residing in and traveling to Uruguay of the potential for a demonstration called by Pit-CNT Monday, 9 April at 11:00a.m. at the Embassy. We wish to remind American citizens that even demonstrations intended to be peaceful can turn confrontational and possibly escalate into violence. American citizens are therefore urged to avoid the areas of demonstrations if possible, and to exercise caution if within the vicinity of any demonstrations. Since the timing and routes of marches and demonstrations are always subject to change, American citizens should monitor local media sources for new developments. "Although the Consulate will be open during regular business hours, American citizens who need consular services are encouraged to delay coming to the Embassy until the afternoon ACS hours, 2:00pm to 4:00pm. The Embassy also recommends avoiding unnecessary driving near the Embassy Monday morning. American citizens should monitor the media for the latest information, avoid any large gatherings, and take common-sense precautions to ensure their well-being."

Zimbabwe - On April 3, the U.S. Embassy in Harare issued the following Warden Message: "This weekend the Zimbabwean Republic Police (ZRP) raided Glow, an upscale nightclub in Borrowdale, detaining more than 80 people and beating several. The ZRP is increasingly using excessive force including in enforcing a widespread closure of bars and beer halls in the southern high-density suburbs. Given the rising tension across Harare and the behavior of the ZRP, the Embassy reminds American Citizens to avoid any large gathering, including political rallies, and to be circumspect on the bars and nightclubs they visit, particularly in the high-density suburbs. American citizens should always carry photo identification, such as a Zimbabwean government-issued I.D. or a photocopy of their passport, and carry a mobile phone or other means of communication at all times. "In an effort to reflect better the current distribution of Americans who are resident in or frequent visitors to Zimbabwe, the US Embassy has re-drawn our consular warden zones and updated our consular warden registration system."

The Federal Aviation Administration claims a new plan to reconfigure airspace in the congested Northeast for the first time since the 1960s will cut airport delays in New York, Newark, N.J., and Philadelphia by 12 million minutes. The plan would combine high-altitude and low-altitude routes to more efficiently create arrival and departure patterns, the agency said. FAA designated the proposal its "preferred plan" after public hearings in five states. Three other plans also are under consideration. "This new concept in airspace design will help us handle the rapidly growing number of flights in the Northeast in a much more efficient way," said FAA administrator Marion Blakey. "This airspace has been unchanged since the 1960s, and we need to look at creative new ways to avoid delays."
The plan has drawn some criticism in some Connecticut and Pennsylvania communities that the new flight paths will create noise problems. FAA will publish a final decision this summer after holding more public hearings on noise mitigation in May.

European Union transportation officials last month unanimously approved an Open Skies agreement that sets the course to liberalize transatlantic air travel. Aviation experts expect U.S. approval of the agreement to send ripples through the industry for years, prodding European airline consolidation, lowering transatlantic fares, expanding antitrust immunity among airline alliances and opening more routes and frequencies between Europe and the United States. The agreement, to be signed later this month and go into effect in March 2008, gives carriers greater access to foreign money and markets, and promises to increase competition. However, the treaty could crumble yet as some of the most contentious issues between the United States and the European Union remain up in the air until later-stage negotiations. Other terms of the agreement remove "restrictions on pricing on all routes between the EU and U.S., but with a derogation to maintain the prohibition on price leadership by U.S. airlines on intra-EU." The deal provides unlimited codesharing "between EU, U.S. and third-country airlines," while also setting forth allowances to harmonize air security policies and safety procedures, among others. The agreement only resolves some of the issues between the parties. The second stage must begin within 60 days of enactment, and EU transport officials could suspend the deal if the U.S. declines further concessions. Foreign ownership rules—the sticking point that caused prior negotiations to collapse—remain largely unresolved. The first-stage agreement allows foreign ownership stakes in U.S. airlines to exceed 50 percent, while European countries would have "the right to limit U.S. investments in EU airlines reciprocally to 25 percent voting equity."

Registered Traveler program provider FLO Alliance today detailed its business model, outlining its focus on joint marketing programs and additional traveler benefits beyond the core expedited airport security lane offering. The provider, which includes Saflink, Microsoft and Johnson Controls, plans to implement its program upon the launch of lanes at Huntsville, Ala., International Airport, which last week became the first airport to sign a deal with the provider. The alliance today also officially announced the appointment of Fred Fischer, formerly with competitor Verified Identity Pass, as senior vice president, as well as Business Travel Coalition chairman Kevin Mitchell, who will serve as an ombudsman and liaison to corporate travelers and managers. Fischer today during the National Business Travel Association Financial Forum in New York said FLO would offer three tiers of membership, the most basic of which would start at $99 and include access to Registered Traveler lanes as well as parking benefits at airports with which FLO Alliance signs deals. Platinum and Global tiers would offer travelers more benefits and higher pricing options. Fischer said FLO would determine specific pricing and benefits prior to its launch at Huntsville, the timing of which remains undisclosed. He said plans include such options as airport lounge access, priority airline seating, airline status upgrades and discounts with travel providers and airport concession vendors. Fischer said the alliance is seeking partnerships with travel suppliers. Fischer said one key difference between the FLO model and those of its competitors is that the bulk of FLO revenue would come from co-marketing initiatives, not from the sale of Registered Traveler cards. Fischer said that with less reliance on selling cards, FLO would be able to give deeper discounts to travel buyers who purchase memberships in bulk. Meanwhile, Verified Identity Pass is the only Registered Traveler provider operating lanes. The company now has Clear Registered Traveler checkpoints operating at airports in Orlando, New York, San Jose, Cincinnati and Indianapolis. The provider this month signed an agreement to operate lanes at Albany International Airport and added Virgin Atlantic to its roster of airlines that sponsor lanes at one of three terminals at New York's JFK International. Unisys, meanwhile, said it plans to open its first lane in Reno early next month

It's official: no cell phones on planes. Striking a blow for cell phone haters everywhere, a government agency, on Tuesday, said it will keep a rule in place that requires the divisive devices to be turned off during airline flights. The reasoning behind the decision was technical. But the avalanche of comments the FCC has logged from airline travelers have been nothing short of visceral. The agency has been considering lifting its ban on cell phone usage on airplanes since 2004. Unlike the FAA, which bans the use of cell phones and other portable electronic devices for fear they will interfere with navigational and communications system, the FCC's concern is interference with other cell phone signals on the ground. Airphones installed in cabins use a special FCC frequency that operates outside of regular cellular phones.

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