<B> Inside Track</B>
<B>Delta-UA, AA-US Airways Partner</B>
Delta Air Lines confirmed Friday that it is in "extensive talks with United concerning a possible global strategic alliance, including code-sharing and other cooperative commercial activity. However, discussions between the two companies have not reached a conclusion and "may or may not reach a conclusion in the future," the two said.
Delta did not expect further statements late Friday, but did indicate that CEO Leo Mullin was awake until 4:30 that morning attempting to hammer out a deal in time for a Friday press conference, which in the end was canceled.
American Airlines and US Airways Thursday evening announced a marketing alliance and limited code-share partnership of their own, which by late summer will allow members of the carriers' frequent flyer programs to combine miles for rewards on either carrier.
For either of these airline combinations to pursue domestic code-sharing, pilot approval is required. "We've been keeping unions aware of what's happening about a potential domestic alliance," AA president Don Carty said on Wednesday. "Our employees certainly don't want to see other carriers get together to American's detriment." American's Airline Pilots Association, meanwhile, said it is creating a "multi-disciplined committee" to assess the US Airways pact and the potential competitive impact of other alliances on AA.
Both agreements had been anticipated by airline industry observers in light of the earlier agreement signed by Continental and Northwest (<I>BTN</I>, April 13).
Under the AA-US pact, AA's AAdvantage members will be allowed to earn AAdvantage or US Airways' Dividend miles "on certain US Airways Shuttle flights between Washington, D.C., New York and Boston," the carriers said. Also, airport club members will be given reciprocal access to each other's lounges. The carriers said they will explore joint purchasing and, if pilots approve it, code sharing. Code sharing on American Eagle and US Airways Express, meanwhile, will begin "shortly."
<a name="story2"><B>Airlines Tighten Corp. Deals</B>
A U.S. source claimed to have been informed by one large carrier--which he would not name nor associate with any national affiliation--that the airline is "drastically" cutting back on corporate discounting because it figures it will get the business anyway.
Separately, Don McWilliam, director of corporate business programs for Canadian Airlines International, noted that "all carriers in North America" are tightening up on corporate accounts that do not perform. Meanwhile, he said, "I'm seeing movement in Canada with net fares, mainly for accounts with budgets in excess of C$1 million a year. Net nets now represent about 2 percent of our overall deals."
<a name="story3"><B>AA-BA Making Money Despite Delay</B>
American Airlines' incoming chairman, president and CEO, Don Carty, said last week that AA and British Airways already are enjoying financial benefits of their frequent flyer partnership that are "well into the seven digits a month." His optimistic guess on when the full alliance will be implemented is "well into the fall" after the European Union, the United States and the United Kingdom complete their reviews and a U.S.-U.K open skies pact is signed.
<a name="story4"><B>AH&MA Seeks Tech Standards</B>
The Hospitality Industry Technology Integration Standard committee of the American Hotel & Motel Association has formed six technical committees charged with developing 12 industry standards by November. The goal is to spare hotel companies from having to revamp their systems each time a new technology is introduced. The 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.