Inside Track - 1998-03-02
<B> Inside Track</B>
<B>Airlines Avoid Galileo E-Tix Fee</B>
US Airways as of May 25 will no longer allow Apollo agencies to issue electronic tickets. The move is in response to the CRS' new 50 cent per e-ticket charge (<I>BTN</I>, Feb. 23). The carrier targeted that date because its status as a Galileo owner requires 90-day notice for such a change. US Airways has not created procedures for agents to issue e-tickets other than calling the carrier directly. More than 30 percent of US Airways' tickets are electronic. Five percent of its tickets are electronic tickets issued through Apollo.
Meanwhile, Continental Airlines aggressively is pursuing alternatives to the CRS for e-tickets. "We've dropped a lot of stuff we had been working on to get into this," said staff vice president of distribution planning Steve Cossette. "We're talking weeks, not months." Continental is developing for agencies an automated queue system for e-tickets, desktop applications with an accounting interface and ARC reporting options, Internet and speech recognition software, and direct settlement and electronic funds transfer procedures.
<a name="story2"><B>Caterpillar Snuggles Up to Rosenbluth</B>
Caterpillar Inc., the Peoria, Ill.-based construction and mining equipment manufacturer with $100 million in annual travel, this week will begin consolidating its worldwide travel program with Rosenbluth International.
According to Caterpillar manager of corporate travel services, K. Dean Hudson, the company plans to complete the consolidation some time in 1999, concentrating on the United States first. Caterpillar plans to save at least 10 percent annually on its travel spend, and already has been working with airlines to negotiate some preferred agreements in the United States. Caterpillar had been using approximately 100 agencies globally. According to Hudson, the company chose Rosenbluth because, "Technology is a big issue with us and they're probably the best in that." For now, Caterpillar is not looking for Rosenbluth to install any automated booking system. The company already has its own internal T&E reporting system which it will continue to use.
<a name="story3"><B>MetroJet Counts Out Corp. Discounts</B>
US Airways told BTN last week that its corporate customers will not be allowed to apply negotiated discounts to tickets purchased on its new Baltimore-Washington Airport-based low-fare carrier, MetroJet. However, travel purchased on MetroJet will count toward volume targets involved in such contracts. MetroJet will begin flying June 1, initially to Cleveland, Ft. Lauderdale, Manchester, N.H. and Providence, R.I.. New cities will be added almost monthly. MetroJet will offer a simplified price structure, with walk-up fares as low as $65 each way to Manchester. Only 7- and 14-day advance purchases will be offered. It will not charge for changes to non-refundable tickets.
<a name="story4"><B>Continental Reaches Pilot Accord </B>
After ten months of negotiations, Continental Airlines last week reached an agreement on a new five-year labor contract with representatives of the Independent Association of Continental Pilots. Terms of the agreement will be released in the coming weeks.
The contract, which is "fair to the pilots and fair to the company," will allow Continental to "go forward together to strengthen and solidify our new global strategic alliance with Northwest," Continental executives said in a press release. It reportedly includes job protections that pilots sought in light of the alliance. The contract must be ratified by pilots.
<a name="story5"><B>Pan Am Ceases Flying Again</B>
The new Pan Am may go the way of the old one if its parent company, Pan Am Corp. doesn't find the necessary financing to pull it out of Chapter 11, filed last Thursday. The airline said it was "temporarily ceasing operations as of Feb. 27." Kiwi International announced Friday its intent to accommodate stranded passengers on a standby basis.