Overwhelming shareholder approval of the Delta Air Lines and Northwest Airlines merger put the deal on track for finalization by year-end, though it could come as soon as this month. The carriers, already doing some integrating, now await the last barrier to completion: a nod from the U.S. Department of Justice. Delta last month said 99 percent of the votes cast by its stockholders and 98 percent of Northwest's stockholder votes favored the transaction. The carriers in recent months have moved the transaction forward in other ways, gaining "unconditional clearance" from the European Commission in early August, and last month gaining the U.S. Federal Aviation Administration's blessing for a single operating certificate. Delta and Northwest in April announced a $17.7 billion all-stock merger agreement to create the world's largest airline
(BTNonline, April 15).United, CWT Reconcile PartnershipUnited Airlines and Carlson Wagonlit Travel on Sept. 29 reestablished a preferred supplier agreement after United pulled their contract this summer. "Coming to this agreement is in the best interest of CWT, United and the two organization's mutual clients," the companies said in a statement. Neither carrier nor agency disclosed terms of the deal. United this summer said it aimed to trim $80 million in annual agency incentive programs
(BTNonline, Aug. 11). Though CWT was the largest travel management company hit by those cuts, United said it trimmed its portfolio of agency and corporate partners.
HRG To Automate, Integrate Ground ReservationsHRG is testing a fully integrated ground transportation service, with plans to launch it in the United Kingdom later this year. The service allows for taxi, chauffeured car and limousines to be booked at the same time as air and hotel and is fully integrated with global distribution systems. If an airline booking is cancelled or altered, the ground transportation booking is automatically altered as well. Customers either can use HRG's recommended suppliers or their preferred vendors. The travel management company will provide information on ground transportation spending and other metrics.
Delta To Add First Class Cabin On Shuttle FlightsDelta Air Lines shuttle flights, which serve the ultra-short-haul Northeast markets of Boston, New York and Washington, D.C., are moving toward a two-class configuration beginning in December. The carrier beginning in November will retrofit its nine-plane MD-88 shuttle fleet to offer 14 first class seats per plane, leaving 128 seats in coach. Delta said it would fill its first class on shuttle seats through traditional sales or as upgrades to Medallion frequency program members.
Marriott Makes Further Cuts To Revenue ProjectionFollowing a 28 percent drop in third-quarter profit, Marriott International expects domestic revenues to decline and international revenue growth to weaken through 2009. North American revenue per available room was down 1 percent in the third quarter of 2008. Marriott expects it to drop by 3 percent to 5 percent in the fourth quarter and by at least 3 percent in 2009. While RevPAR growth outside of North America was at 13.4 percent for the quarter, Marriott sees growth flattening by next year. It said financial instability might cause the company to delay or cancel some of the 130,000 rooms in its pipeline.