Amadeus' Airline Owners Choose Potential Buyer
The continuing saga of whether Amadeus will be separated from its long-term airline owners looked far from being resolved late last week, following the announcement of "exclusive negotiations" with two venture capital companies. Air France, Iberia and Lufthansa said the pair, BC Partners and Cinven, wish to form a new private parent company for Amadeus that would see the global distribution system's public shares being delisted as soon as possible. However, whereas BC Partners and Cinven wish to own the new parent company in its entirety, the airlines want to retain a measure of equity. Negotiations will center on which of these outcomes is reached. An Air France spokesperson told BTN: "Amadeus is too important for us to sell. We need to have an eye on it." A Lufthansa spokeswoman confirmed: "All the airlines want to remain shareholders." The continuing uncertainty over Amadeus is likely to delay still further a long-awaited verdict from the European Commission on whether to deregulate GDSs in Europe. As the dominant GDS in Europe and the last remaining one with airline owners, the commission needs to know whether some regulation must be retained to prevent potential bias in favor of owner-airlines.
Delta's Exit Stirs Competition In Dallas Market
Southwest Airlines is more actively lobbying against federal flight limitations at Dallas Love Field in an attempt to capitalize on Delta Air Lines' imminent exodus from DFW International Airport. "We found an openness from members of Congress and overwhelming support from consumers in the Dallas area in favor of change," said Southwest CEO Gary Kelly in a BTN interview. Southwest since 1979 has been prevented from operating long-haul flights from Love Field under terms of the Wright Amendment, a law passed when DFW Airport was built. Kelly said "we are ready to exert ourselves" and expand beyond 123 daily flights should the airline succeed in its quest for new legislation. Meanwhile, DFW International Airport publicly announced an incentive program for any U.S. carriers "which initiate or expand service at the airport." The airport is dealing 24 gates recovered this month from Delta, which on Jan. 31 will downgrade hub operations at DFW to a spoke station with only 21 daily departures. Delta retains four gates in DFW terminal E. Dominant DFW operator American Airlines this year plans to add at least 70 flights, increasing daily jet departures at the airport to 540.
Marriott and American Express In Fee Dispute
Marriott International has refused to pay a transaction fee that American Express this month began requiring to book travelers into any Marriott branded hotel where the client has a negotiated rate. American Express has continued to make the bookings, while Marriott appeals to its corporate accounts to apply pressure on American Express. "Typically, this business is net and non-commissionable, so adding additional fees is inappropriate," said Marriott senior vice president David Townshend. American Express declined to comment, citing confidential negotiations.
New Source Of Airline Flight Info Available This Week
Travel managers beginning this week can take advantage of new reports detailing past, present and predictive airline flight performance in the United States and Europe, according to Conducive Technology. The Portland, Ore.-based company said its new FlightStats product would be available Jan. 20. The company said its "minute-by-minute" reports can detail comparative statistics on airline operations, including flight delays by airport and city pair, and may help buyers negotiate and manage contracts, conduct audits and establish benchmarks. The firm claims unprecedented timeliness and integration of various data sources, including the Federal Aviation Administration, the Bureau of Transportation Statistics, global distribution systems, travel content company Innovata and other sources.
Connecticut Supreme Court Hears Car Case
Connecticut's Supreme Court this month is hearing a case on the legality of car companies using global positioning systems to track speeding violations. The state's highest court is exploring whether American Car Rental was within its rights to monitor drivers and charge them $150 when they exceeded 79 miles per hour for two minutes or more. Lesser courts in Connecticut already have decided against the car rental company, ruling such practices violated the Connecticut Unfair Trade Practices Act. The suit follows a similar case in California, in which Payless Car Rental franchisee Acceleron Corp. in November settled a lawsuit for using GPS technology to monitor renters who traveled out of state, then levied a $1-per-mile surcharge.