Discount Carriers Prep Corp. Portals
America West Airlines has activated beta tests of its new corporate booking portal for a handful of corporate accounts, including Discount Tire in Scottsdale, Ariz. The airline in the coming weeks expects to complete testing and launch the product for any interested accounts. ATA Airlines also is developing corporate and travel agency portals. While ATA said business-to-business sites are a high priority for 2004, it has not yet decided which capabilities to include. JetBlue Airways, meanwhile, was mum on its long-awaited corporate portal, saying only that it would be ready this spring.
European Lawmakers Enact Airline Protections
The European Parliament last week approved a bill that would impose duties on non-European air carriers deemed to be competing unfairly with European Community airlines. The governing body specifically cited "huge subsidies" from the U.S. government to U.S. carriers following the 9/11 attacks that have been "distorting the transatlantic market." The European Commission anticipated activation of the new regulations in the coming weeks. Should complaints by Community carriers result in action, duties imposed "will be calculated on the basis of the amount of aid granted to those airlines." It is unclear how the bill will impact ongoing aviation treaty negotiations between European and U.S. regulators. In a statement following a European Council meeting this week, transport ministers said, "it would not be possible to conclude an agreement with the United States this year that would deliver the full objective of an Open Aviation Area." Though U.S. negotiators have agreed to raise the limit on foreign ownership of U.S. airlines to 49 percent, a principal sticking point remains market access for European carriers within the United States.
Extended Stay Consolidation Continues
On the heels of InterContinental Hotels Group's year-end acquisition of the Candlewood Suites brand, the Blackstone Group investment firm last week agreed to acquire the much-larger Extended Stay America. Blackstone already owns competing extended stay provider Homestead Studio Suites. While Blackstone said it expects to retain ESA as a separate entity, Homestead will manage the brand once the deal closes in the second quarter.
Philadelphia Battle Heating Up
Frontier Airlines on May 23 will join the Philadelphia fracas as it launches service to the city from both its Denver hub and Los Angeles, its new focus city. Frontier's entry will be yet another challenge for Philadelphia incumbent US Airways, which on May 2 will launch additional frequencies from its largest hub to Chicago O'Hare, Las Vegas, Phoenix and Providence. Southwest Airlines in May will launch service from Philadelphia to each of those four markets, as well as Orlando and Tampa.
SEC Extends Sarbanes-Oxley Section Deadline
The Securities and Exchange Commission last month announced that it is postponing the deadline for compliance with section 404 of the Sarbanes-Oxley Act of 2002. Compliance with the section initially was set to be reflected in annual reports ending on or after June 15, but has been pushed to Nov. 15 for "accelerated filers." SEC defined an accelerated filer as companies with "a public float of $75 million or more as of a date within no more than 60 and no less than 30 days before the end of the company's last fiscal year." For "non-accelerated" filers the initial deadline of April 15, 2005, has been pushed to July 15, 2005. Section 404 requires companies "to include in annual reports a report by management on the company's internal control over financial reporting and the accompanying auditor's report," SEC said in a release.
IJET Secures Growth Capital For Global Expansion
IJet Travel Risk Management today announced it has secured $5.4 million to expand its global operations and enhance its Worldcue technology platform, including improving a global mapping interface that allows travel managers to view their overall exposure anywhere in the world in real time, said CEO Bruce McIndoe. This application enables clients to view a graphical representation of the world using a series of parameters: countries where a company has travelers, number of travelers in each country and security assessments. IJet also has hired travel industry veteran Ron Wagner as senior vice president of strategic global partnerships. Wagner previously was West Division president of World Travel BTI and a past president of the Association of Corporate Travel Executives. McIndoe said IJet will expand its services to multinational companies, working on multilingual and multi-currency platforms, as well as provide services directly to travel management companies.