<B> Inside Track</B>
<B>EU Threatens To Sue Members Over U.S. Bilaterals</B>
The European Commission is threatening to take legal action against its members that have struck bilateral aviation agreements with the United States. Frederik Sorensen, head of the European Commission's Air Transport Policy division, told the FAA Aviation Forecast Conference in Washington late last week that, "Our own member states are trying to destroy what they have created in the single European market. We are pretty certain we could make progress with the U.S., but we need to get our own member states in line. If it goes all the way through to the European Court of Justice, it could nullify the existing bilaterals. It would be extremely difficult to unscramble everything. But no one said it would go all that way." In response, Charles Hunnicutt, the U.S. Department of Transportation's assistant secretary of aviation and international affairs, said, "If there is a renunciation of the agreements and termination of U.S. carriers' rights, we will have a serious dispute with the EU. We are prepared to negotiate with whoever has the authority."
<a name="story2"><B>United and Lufthansa Announce Tie With ANA </B>
United Airlines and All Nippon Airways expect their new code-sharing deal to begin in October, pending government approvals. The deal, like one announced by American and Japan Air Lines, takes advantage of new code-sharing authority under the U.S.-Japan bilateral. Japan Air System is in negotiations with Northwest and KLM. Initially, UA and ANA will share seats on transpacific and U.S. and Japan flights. The deal will later expand to beyond-Japan routes. ANA said it will terminate its frequent flyer partnership with Delta. United Star Alliance partner Lufthansa also announced code-sharing with ANA between Frankfurt and Tokyo. Meanwhile, ANA has enterred similar discussions with Star ally Scandinavian Airlines System.
<a name="story3"><B>USOP To Make Stock Offerings, Name Change</B>
U.S. Office Products still plans to spin off four separate companies on April 24, but now the travel services division, soon to be renamed, plans a secondary offering of 20 percent. Ed Adams, president of the corporate travel division, said Smith Barney is the lead underwriter of the secondary offering. Adams said the secondary offering was done to "raise cash and set a value for the stock." Adams said the company has four names in legal review.
<a name="story4"><B>AH&MA Seeks Tech Standards</B>
The Hospitality Industry Technology Integration Standard committee of the American Hotel & Motel Association, based in Washington, D.C., last week said it will form six technical committees to develop 12 industry standards by November. HITIS is charged with creating industry standards to prevent hotel companies from having to revamp existing systems each time a new technology is introduced. The new committees will create standards for posting devices, central reservations and yield management systems, remote devices, payment processing and accounting systems, food, beverage and retail management systems, and casino management systems.
A new AH&MA Website will be launched prior to the first technical committee meeting on March 20. This site will feature HITIS' committee work, project updates, committee rosters and minutes and white papers discussing industry topics, such as the year 2000 computer problem. To assure the committees work from a basic set of data descriptions, the site also will include a dictionary of current and updated terms.
<a name="story5"><B>Choice Words</B>
Choice Hotels is shopping around for an upscale brand to add to its solidified portfolio within the next few months. Owning numerous brands ranging from economy to upscale, Choice CEO William Floyd earlier this month acknowledged that such a move was the company's next logical step.
He also introduced the Choice Hotels minority council, comprised of franchise members, that is charged with the task of "making sure we understand the views and unique needs of franchises and guests." Some members said privately that they were concerned the new council would only be window dressing, but they hope new entity will help foster training programs and corporate managerial appointments of minorities.
<a name="story6"><B>Dinovo Finds Fulfilling Job</B>
WorldTravel Partners of Atlanta has named Frank Dinovo Jr., former president and CEO of Travel and Transport, as executive vice president of its Online Fulfillment Services unit. According to WTP CEO Jack Alexander, the company is tapping Dinovo's expertise to oversee management hiring and training for the booming operation. Alexander said OFS, which counts Microsoft's Expedia as a client, will handle 1 million transactions this year and 3,000 tickets a day by June.