Inside Track: Alaska Airlines Plans Onboard Wi-Fi Tests

Alaska Airlines last week joined the inflight Internet fold with plans to test Wi-Fi with technology supplier Row 44 next spring. "We're moving ahead with testing and ultimately plan to bring wireless broadband to our whole fleet," Alaska vice president of sales, marketing and customer experience Steve Jarvis stated. Alaska joins American Airlines, JetBlue, Southwest and Virgin America as domestic carriers in various phases of initiating new inflight connectivity options. American and Virgin America have agreements with AirCell to use its air-to-ground network for onboard Internet access. Also using an air-to-ground model, JetBlue said it plans take advantage of its LiveTV subsidiary to enable customers to send text messages from such handheld devices as cell phones or BlackBerrys (BTN, May 7). Alaska said it is taking a different approach, using Row 44's satellite system, which "is designed to function over land, water and across international borders, enabling service throughout Alaska's route system in Alaska, the lower 48 states, Hawaii, Canada and Mexico." Meanwhile, Southwest in April said it would solicit requests for proposals to offer inflight wireless Internet access with plans to outfit a prototype with such service by early next year (BTN, July 9).

BA To Suspend Detroit-London Flights Next Year
British Airways last week said it will suspend flights between Detroit and London Heathrow on March 30, 2008—the enactment date of the E.U.-U.S. Open Skies agreement. "Unfortunately, despite our best efforts, we have been unable to make a reasonable level of profit on the Detroit-London route,'' said British Airways executive vice president of the Americas Robin Hayes. "Detroit was a route very dependent on the auto industry, and the changing nature of this sector made it a very challenging market to be in." The carrier said it would add more departures to its New York, Washington and Seattle services from Heathrow and switch its Houston and Dallas flights there from Gatwick.

ACTE: Secure Flight Raises Data Concerns
The Association of Corporate Travel Executives last week filed comments with the Department of Homeland Security, claiming the latest Secure Flight passenger prescreening system proposal raises data-handling concerns. "On the surface, the new Secure Flight program no longer relies on commercial databases and appears to have reduced the number of names on the 'No Fly' list," said ACTE executive director Susan Gurley. She said that while taking that responsibility away from the airlines "is a step in the right direction, it prompts the industry to ask what was the origin of this new data, how is it stored, who has access to it, and how can it be corrected. And the public needs to know that it is only the data required to establish identity." The comment period for the program is scheduled to close Oct. 22.

Virgin America CEO Reid To Leave In February
The Department of Transportation last week granted Virgin America CEO Fred Reid permission to remain in his position until February 18, 2008—an additional 90 days from his initial mandated exit. Virgin America requested that DOT extend the deadline from Nov. 18. DOT, in its approval of the carrier's launch in May, said Reid, a U.S. citizen viewed by the government as too close to foreign investors, had to vacate his position within six months. DOT said last week's approval does not alter the initial deadline for the end of Reid's involvement with the carrier, noting he could only serve in a consulting capacity for an additional three months after he leaves the CEO post.

Blackstone's Acquisition Of Hilton Nears Completion
Only one final regulatory hurdle stands between the acquisition of Hilton Hotels Corp. by The Blackstone Group, which the companies said would be complete by the end of October. Last week, more than 98 percent of voting Hilton stockholders approved the $26 billion offer that will roll Hilton and its 2,800 properties into the equity giant. Hilton and Blackstone still need clearance from the European Commission, for which the companies filed earlier this month.

Concord To Use Hotel Sale Cash For Development
Hotel development and management company Concord Hospitality Enterprises this month announced plans to build $500 million in new hotels, part of a plan for the Raleigh-Durham, N.C.-based company to double its portfolio to 100 hotels by 2010. The company recently sold 19 of its Marriott-branded properties for $440 million, and company investors indicated they want to reinvest that money in new development and acquisitions, according to Concord president and CEO Mark Laport. The development will focus on brands from Marriott, Hilton, InterContinental and Starwoods.