BA Again To Accept Credit Cards For U.K. Net FaresBritish Airways has advised large corporate clients in the United Kingdom that it again will accept credit cards for corporate net fares, effective Oct. 1, according to sources close to the situation. The airline in June 2002 stopped absorbing the merchant fee on such U.K. fares, leading to frustrations among corporate buyers who viewed the action as a de facto price hike and sparking a legal battle with American Express
(BTN, June 24, 2002). The simmering row cooled last spring when Amex and BA agreed not to pursue litigation, saying they would resolve the issue outside of court
(BTN, April 6, 2004). At that time, BA said it would continue accepting American Express as a form of payment, though it maintained its policy of not paying any credit card merchant fees on corporate net fares booked in the United Kingdom. Details regarding the resolution of the fee dispute were not yet available.
UAL Poised To Migrate Corp. Volumes To G2, ITAUnited Airlines is moving forward with plans to shift volume to alternative distribution systems by working with a large travel management company to process tickets for corporate customers through a new platform marketed by G2 SwitchWorks. "These are not test volumes. They are significant volumes from three corporate customers of this TMC," said United managing director of worldwide sales strategy Scott Brandt. Carlson Wagonlit Travel likely is involved, given its technology arrangement with Accenture subsidiary Navitaire, which also provides technology to G2
(BTN, May 16). A CWT spokesperson declined to comment on any new developments. Brandt also indicated that one of United's "top strategic accounts" is "aggressively" preparing to book United tickets through ITA Software's new distribution system. Agilent Technologies, another United customer, claimed to be the first corporate account to sign up for ITA's platform
(BTN, June 20). Meanwhile, the American Society of Travel Agents this month sent a letter to the U.S. Departments of Justice and Transportation acknowledging that G2 "has imposed limits on the amount of its stock that can be held by airlines." ASTA in May asked federal antitrust regulators to determine if new agreements between G2 and several airlines would have been at odds with government efforts to promote competition following deregulation of airline distribution. ASTA said its concerns were assuaged after receiving assurances from G2 that aggregate airline ownership is capped at 16 percent.
Navigant Falls Off NasdaqNavigant International late last week announced the delisting of its common stock from the Nasdaq National Market as of July 13. The Denver-based U.S. partner of TQ3 Travel Solutions received a delisting notice earlier this year after failing to file both its 2004 10-K Report and its 10-Q Report for the first quarter of 2005 with the Securities and Exchange Commission. Navigant chairman, president and CEO Ed Adams earlier this year said the continuation of value and service remains paramount to the TMC's customers during the company's financial-adjustment process. "We're cautiously optimistic that we'll be able to get something done in the not-so-distant future," he said in May. At the close of business on July 13, Navigant's stock had plummeted 13 percent to $12.50 a share.
DHS Announces Six-Step Security PlanU.S. Department of Homeland Security Secretary Michael Chertoff last week announced a series of long-planned initiatives to improve the ways DHS addresses U.S. security concerns. "Much work has been done. Much remains to do," Chertoff said. Key aspects of the plan—which focuses on risk preparedness, border security and resource allocation—include appointing an undersecretary of policy to maintain "enhanced private sector liaison resources," strengthening the US-Visit program to require 10-digit finger scans of all incoming foreign travelers and repealing the 30-minute rule preventing travelers from leaving seats during takeoff or landing at Ronald Reagan National Airport in Washington, D.C. "It sounds like they're realigning themselves and they're going to put money where it's most appropriate, rather than just throwing it all over the place," said Bill Connors, executive director and COO of the National Business Travel Association. "Generally, we were upbeat about it, but there are three concerns in his remarks that we'll be watching." Connors said the finger-scan initiative may slow down travel and that DHS must consider privacy and corporate limitations when revamping information-sharing practices. "He also talked about a modest increase in user fees and, of course, we don't believe that's appropriate," Connors said. "Users are already getting hit hardest by taxes and fees."