Sabre Hints At Advantage For Early-Adopting CarriersSabre Holdings chairman Sam Gilliland this month during an investor's conference hinted that the first airlines to sign new distribution deals with Sabre Travel Network may enjoy more favorable terms. "Many airlines want to get into a new relationship with us sooner than later," he said. "They can enter specific relationships, and very likely will get a better deal sooner." Major carriers and operators of major global distribution systems are engaged in negotiations that could lead to replacement deals for current content-for-discount programs, the first of which are scheduled to expire this fall.
Southwest Plans To Add New CitySouthwest Airlines "shortly" will announce the newest destination on its route network, CEO Gary Kelly told investors at a recent investor's conference. Noting that the carrier in September would operate 50 daily flights from six gates in Philadelphia, Kelly indicated Southwest is keen to add facilities at the airport, possibly by bidding on US Airways assets. "If we are stymied in Philadelphia, we will grow elsewhere," he said. "There are some interesting choices for next year." Furthermore, Kelly said many more cities could be added to the network via the ATA Airlines codeshare deal
(BTNonline, Dec. 16, 2004), potentially including international destinations.
Agilent To Test ITA Distribution PlatformAgilent Technologies is the first corporate client to sign an agreement with ITA Software to use ITA's new distribution platform as an alternative to traditional global distribution systems, according to global travel sourcing manager Tim Bone. Palo Alto, Calif.-based Agilent plans to begin testing the system next month, which rapidly would handle a majority of the company's North America bookings. Agilent had explored other distribution alternatives before settling on ITA, and is working collaboratively with WorldTravel BTI, United Airlines and online booking system provider Outtask. "We are looking at a complete retooling of the process to ensure we have sound, efficient travel program in North America," Bone said, noting that Agilent's growing use of both nondiscountable fares from network carriers and fares from low-cost carriers helped drive the initiative. "The formula, including GDS incentives, is dated and we really need to make the whole model more efficient. ITA has a perfect engine to facilitate that."
Blackstone Group To Acquire WyndhamWyndham International Inc. last week said it signed an agreement to be acquired by an affiliate of New York-based private equity firm Blackstone Group for $3.24 billion. The Dallas-based hotel company, which owns, leases, manages and franchises more than 160 North American and European primarily upscale and luxury hotels said it expects the deal to close late this year, pending approval of shareholders. Wyndham's board of directors already unanimously approved the transaction.
New Carriers Target Transatlantic Biz TravelersA new startup carrier, stocked with veteran industry executives, announced initial plans to operate twice-daily, all-business class flights between New York JFK and London Stansted, effective next quarter. Eos will use three Boeing 757 aircraft, featuring 48 lie-flat seats and various inflight services and amenities, priced as much as "25 percent below standard business-class fares." Eos president Bonnie Reitz, a former sales and marketing executive with Continental Airlines, said, "We have had lots of discussions with corporate travel managers and travel management companies. Whether or not they can make upfront commitments is up to each customer." The company said it has secured $185 million in financing. Meanwhile, a U.K.-based paper airline announced plans to operate a business class-only service between London and New York. Fly First is seeking $45 million to operate once-daily flights between Luton, 32 miles north of the U.K. capital, and Newark. Its pair of 757-200s would be fitted with 48 seats, each with an 82-inch pitch. Return tickets are priced at $6,000-$7,500. Fly First is led by Hamish Taylor, former CEO of Eurostar and head of British Airways brand management.
Ford To Spin Off HertzFord Motor Co. last week filed with the Securities and Exchange Commission to launch an initial public offering to again spin off its Hertz Rent-A-Car subsidiary. In the past decade, Ford had an on-again, off-again ownership of the rental car firm and in 2001 it acquired all outstanding shares of Hertz. Ford plans to divest any remaining Hertz ownership interest.