WorldTravel In Bid To Be Second Largest Mega
Sources said WorldTravel BTI officially will agree to merge forces with another large travel management company this week, giving it claim to be second only to American Express in terms of Airlines Reporting Corp. sales. Such a move would leapfrog the Atlanta-based mega agency over Navigant International, which purchased Sato Travel last year to steal second from Carlson Wagonlit Travel. Stay tuned to BTNonline.com for details.
UAL Mechanics Vote Tomorrow On Contract, Strike
United Airlines mechanics, represented by the International Association of Machinists and Aerospace Workers District 141-M, tomorrow will vote on a new contract proposed by a Presidential Emergency Board. At the same time, the rank and file also will vote on strike authorization. Should the union fail to ratify the contract and approve a strike by a two-thirds majority, mechanics could walk off the job on Feb. 20 unless Congress intervenes. Airline management last month accepted the PEB's recommendations, which include forthcoming concessions from the union. "We are talking to the unions about adjusting salary levels because the levels we have out there were set in a different time in a different revenue environment," said UAL Corp. CFO Jake Brace. "I think everyone understands that reality."
U.S.-European Bilateral Aviation Pacts In Danger
Aviation treaties between the United States and seven individual European countries were deemed "incompatible with the unity of the common market and the uniform application of European Community law" by Antonio Tizzano, advocate general of the European Court of Justice, in an opinion delivered late last month. The Court is expected to make a final ruling in the months ahead. If it follows Tizzano's opinion as expected, the court could invalidate agreements between the United States and Austria, Belgium, Denmark, Finland, Germany, Luxembourg and Sweden and authorize the European Commission to negotiate with the United States on behalf of all 15 European Union countries. Rather than numerous bilateral agreements, the EC advocates a transatlantic common aviation area first officially proposed by EC transport commissioner Loyola de Palacio at a U.S. Department of Transportation meeting in late 1999 (BTN, Jan. 10, 2000). Such a development, according to analysts, would precipitate European airline industry consolidation. Deutsche Banc Alex.Brown airline analyst Susan Donofrio added that the advocate general's opinion "suggests that global airlines are likely to be scrambling to make sure they are part of a strong global alliance."
BA To Cut Fees, Report On Reductions
U.K. travel buyers are bracing themselves for an effective price-hike from British Airways in the shape of a cut in agency booking fees. The airline is poised to announce the reductions later this month as part of a package of cost-cutting measures that will include axing short-haul routes and shedding up to 14,000 employees. BA scrapped commission in the United Kingdom last April and moved to a list of flat-fee booking payments for agents, ranging from $8.50 to $28. At the time, BA claimed the payments were based on a rational assessment of the value of the work travel agents perform for them. No other U.K. airline has moved to booking payments. It is believed BA could reduce its payments for short-haul sectors to as low as $3.50. Meanwhile, British Airways is expected this week to release the findings of its Future Size and Shape review. The review could include substantial route and frequency reductions, additional job cuts, aircraft delivery deferrals and other restructuring measures "necessary to deliver an acceptable rate of return in the market environment of the future." BA last week announced a $204 million loss for its fiscal third quarter and a 20 percent decline in passenger revenue. Last month, BA kicked off its biggest ever business travel campaign aimed at boosting demand for premium travel and offering customized incentives for corporate clients in the United Kingdom.
10th Masters Is First With NBTA
The 10th annual Masters Program, to be held next week on Wednesday and Thursday at the Westin Grand in Washington, D.C., will be the first time the educational and networking forum for senior travel supplier company executives meets in partnership with the National Business Travel Association. Last year, the group met in association with the Association of Corporate Travel Executives. Bruce Black, president and CEO of McCord Travel Management, chairs this year's program, which kicks off with forecasts from former WorldTravel BTI CEO Jack Alexander and former Galileo International CEO James Barlett. For more information, call (202) 775-5800.