Amtrak To Enact Fare HikesAmtrak starting this week will phase in a series of price increases, including basic fare hikes—averaging $3 to $4, or 5 percent to 7 percent on most train service nationwide—and reduced discounts on commuter tickets in the Northeast Corridor, and will implement new revenue management strategies. The rail operator said it would revenue-manage "some trains in the Northeast Corridor to better match fares to demand periods," with reduced fares offered during off-peak times. Amtrak last week also fully resumed Acela Express service.
Virgin Atlantic Restructures SalesVirgin Atlantic Airways this month is redesigning its North American sales structure "to provide the simplicity and consistency of a single contact for all areas of a business regardless of location." Though the field salesforce is being reduced as more sales personnel work centrally from headquarters in Norwalk, Conn., the carrier said its account managers each will be handling fewer corporate customers. "Instead of being one of hundreds, a client could be one of as few as 10 customers supported by a sales person," Virgin said.
Amex, AA Retool Midmarket CardAmerican Express and American Airlines last week announced they are retooling their cobranded card for midmarket companies to give clients a 4 percent rebate on any published American Airlines fare. The Business ExtrAA program, launched in the summer of 2003, initially offered rebates of up to 10 percent on fares booked in first, business and full economy class, as well as certain additional refundable coach tickets
(BTN, June 23, 2003). Critics said the program drove clients to higher bucket fares. Amex said rebates are paid quarterly, but are only valid for up to $1 million in annual American Airlines volume. Although the program is intended for companies unable to secure volume discounts with the airline, firms with corporate contracts still can earn a rebate of 1 percent.
Independence Air Retreats From More MarketsFinancially troubled Independence Air on Oct. 30 will cease service between Washington Dulles and Cleveland, Indianapolis, Louisville, Newburgh, N.Y. and New York JFK. A day later, the carrier will launch twice-daily service between Dulles and New York LaGuardia using 132-seat Airbus A319 aircraft, with designs on adding more frequencies at a later date. Independence Air also said it would adjust service levels in other markets, while all West Coast service reportedly will end by December. Independence Air said the decisions "are part of an overall strategic plan to reduce the total number of regional jet departures throughout the Independence Air system, while increasing total Airbus departures by serving more East Coast destinations and fewer cities in the West." Analysts said Independence Air is at high risk for bankruptcy.
European Carriers To Test Inflight Cell Phone UseBMI and TAP Portugal late next year will begin trials of onboard cell phone use allowing travelers flying between London Heathrow and major business destinations to send and receive calls and electronic messages using GSM mobile phones, Blackberry devices and other personal communications equipment. "This trial will guide us on usage patterns and some of the social issues in using mobile phones on aircraft," said BMI CEO Nigel Turner. The concept of inflight cell phone use also has been explored in the United States, but some passengers and airline flight crews have raised objections
(BTN, Aug. 1). BMI and TAP Portugal partnered with Geneva-based OnAir, a joint venture of Airbus and SITA that also involves Tenzing.
Continental To Add Barcelona, CopenhagenContinental Airlines on May 17 will begin daily nonstop service between Newark and Barcelona, subject to government approval. The carrier claimed that it would offer the only year-round nonstop service between the two cities. The carrier said Barcelona is among the 10 largest metropolitan areas in Europe and that last year it hosted more than 1,150 corporate meetings and conventions. A week later, Continental will launch daily nonstop service from Newark to Copenhagen, also pending government approval. The carrier said 41 percent of all Danish companies are headquartered in Copenhagen. With these new destinations, Continental would serve 27 transatlantic routes.