CO, NW, KLM To Join SkyTeam in SeptemberContinental, Northwest and KLM Royal Dutch Airlines in September officially will join the SkyTeam alliance, advancing the partnership's competitive positioning against Oneworld and the Star Alliance. SkyTeam specifically will benefit from a deeper Asian presence thanks to Northwest's Tokyo operations, Continental's Micronesia network and KLM's links from Europe. Overall, the three carriers bring to SkyTeam 120 new destinations, 110 airport lounges and 5,500 daily departures.
'Virgin America' Picks SFO For First U.S. BaseNewly named Virgin America announced San Francisco as its principal base for operations, challenging struggling United Airlines, which operates a hub at the airport. The newest Virgin-branded airline is being fashioned as a low-fare carrier and prepared for a 2005 launch. The airline also announced agreements to lease and purchase as many as 105 Airbus A320 aircraft, which can fly transcontinental routes. "Virgin will use these flights to connect to its international long-haul flights," said analyst Helane Becker of The Benchmark Co. "None of the other low-cost carriers in the U.S. have international alliances." Other details about Virgin America remain unclear, including the intended route network and other product details. To skirt foreign ownership limitations, the carrier plans to be majority-owned by U.S. investors.
Marriott, Starwood On Fastest Growth TrackWhile each of the large multi-brand hotel companies is pushing aggressive expansion plans, Marriott International and Starwood Hotels & Resorts Worldwide are leading the pack. Marriott's room inventory grew 5.7 percent last year, followed by Starwood's 4.8 percent jump, according to Paris-based hotels MKG Consulting. InterContinental Hotels Group placed third, with 4 percent growth in rooms. Worldwide, industry consolidation continues: Of the approximately 4.6 million branded hotel rooms, the top 10 largest hotel companies control more than 3.5 million.
Deutsche Bank To Market Amex Card In GermanyDeutsche Bank, which this year consolidated its global card program with American Express, next month will begin marketing a co-branded Amex card to customers in Germany. Jean-Luc Durant, American Express vice president and head of network development commercial card Europe, said the product "is exactly the same as the American Express proprietary product," apart from the co-brand aspect, and will be issued by American Express and distributed by Deutsche Bank. The deal matches a similar arrangement Amex struck with TQ3 in February, also in Germany, through which TQ3 is marketing a co-branded card to its European client base.
TSA Announces Registered Traveler Pilot DetailsThe pilot test of the Transportation Security Administration's registered traveler initiative
(BTN, April 26) will begin early next month in Minneapolis in partnership with Unisys Corp. and Northwest Airlines, TSA announced last week. Unisys also will launch such tests in Los Angeles with United Airlines in late July and in Houston with Continental Airlines the following month. By the end of August, TSA said, it intends to activate the program at Boston Logan and Washington National airports with the help of EDS and American Airlines. Six-month contracts were signed with EDS and Unisys for "initial" values of $1.31 million and $2.47 million, respectively. According to TSA, airlines will seek volunteers who fly at least weekly to provide information including name, address, phone number and date of birth and a biometric finger or iris scan in exchange for a potentially expedited airport screening process
(BTN, April 26). As part of qualification, TSA also will analyze law enforcement and intelligence data and check of outstanding criminal warrants. There is no charge for participation in the pilot.
TSA Screening Bags At D.C. Rail StationAmtrak is stepping up security on its trains at the orders of the U.S. Department of Homeland Security. The Transportation Security Administration began screening bags checked on Amtrak trains departing Washington's Union Station for explosives earlier this month. The pilot project, which runs through June 30, is intended to test new technologies, the agency said. It announced plans to step up baggage screening on Amtrak in May. "This is another step in the process of improving security for the millions of Americans who travel by rail everyday," said DHS undersecretary for border and transportation security Asa Hutchinson.