Continental Airlines president and COO Jeff Smisek will replace Larry Kellner as CEO on Jan. 1, 2010, as Kellner heads to Emerald Creek Group LLC, a new Houston-based private investment firm, the carrier said. Smisek has served as president since December 2004 and as COO since October 2008. "Larry and I will work together to ensure a smooth transition. Our entire team will remain focused on returning our company to profitability, and Continental's great culture will continue to be the driving force of the company's long-term success," Smisek said. Kellner replaced Continental legend Gordon Bethune as CEO in December 2004. During his tenure, Continental avoided bankruptcy and announced plans to leave the SkyTeam airline alliance for a new joint venture with Star Alliance carriers United Airlines, Lufthansa and Air Canada
(BTNonline, June 30, 2008). Kellner told investors, "Jeff is the right choice to successfully lead Continental into the future. He is a strong and effective leader. He has been my partner during my time as CEO and has been a key part of every major decision that has taken place at Continental during his more than 14 years here."
Calif. Hotels Could See Defaults, Seizures DoubleCalifornia is now home to 250 troubled hotels—properties either in default or lender-owned—and with the industry facing its biggest sales slump in decades, that number could double by year-end, according to the 2009 Mid-Year California Hotel Sales Survey published by Atlas Hospitality Group in July. The state now has more than 19 hotels on the market for every one sold and is on track to have the lowest number of hotel sales since Atlas began tracking them 15 years ago. The report said the state's hotels "are now in the middle of a perfect storm." One troubled hotel of note is the St. Regis Monarch Beach—the site of last year's AIG post-bailout luxury retreat that spawned the term "AIG effect"—which was taken over by Citigroup in July.
Carriers Add Airport Surcharge To Bag FeesAmerican Airlines plans to charge passengers an extra $5 to check their first and second pieces of luggage. The charge, assessed on tickets purchased on or after Aug. 14, raises the carrier’s domestic first-bag fee to $20 and second-bag fee to $30, whether those fees are paid online or at the airport. US Airways in April was the first carrier to charge an additional $5 to check a bag, though customers paying bag fees online are exempt from the add-on fee, owing the original $15 for the first bag and $25 for the second. Other carriers, including Continental Airlines, Delta Air Lines and United Airlines, have since matched US Airways’ fee, waiving the extra $5 for passengers paying fees online. Continental on its Web site said the fee is effective for tickets purchased July 21 for travel beginning on Aug. 19. Delta enacted its $5 fee for tickets purchased after July 15 and travel beginning Aug. 15, while United initiated its surcharge on May 14 for travel beginning June 10.
NBTA Study Estimates Global Travel VolumeA new National Business Travel Association report estimated total global business travel spending volume at $929 billion. The Egencia-sponsored and IHS-conducted Global Insight report examined travel in 72 countries and 48 industry sectors. The report projected that the United States, which spent $261.4 billion in 2008 for 28 percent of the world's business travel spending, by 2013 will drop under 25 percent. China has become the second-largest market at $93.8 billion, surpassing Japan.