<B> Inside Track</B>
<B>Airlines Line Up Pacific Code Shares</B>
As the burgeoning domestic alliance of Alaska, America West, Continental and Northwest last week announced a code sharing partnership with Air China, to be implemented by fall, the Star Alliance said it will add its own Asia/Pacific-based partners, Air New Zealand and Ansett Australia, in 1999. Meanwhile, the U.S. Department of Transportation approved American's codeshare with China Eastern for service beginning June 1.
<a name="story2"><B>Carlson Wagonlit To Offer E-Travel</B>
Carlson Wagonlit Travel last week finalized a deal with Concord, Mass.-based E-Travel Inc. to provide yet another automated booking solution for its clients. "We're not going for a mono relationship," said senior vice president of sales and marketing worldwide Liliana Frigerio. "Customers have different needs and requirements and we need to serve an array of products." CWT already offers Sabre BTS and a system from Paris-based KDS, and "could sign with others tomorrow," Frigerio said. Meanwhile, E-Travel president John Ackerman said the company also recently signed with Philip Morris Companies Inc. A new version of the E-Travel system, release 3.4, is scheduled for a June/July debut.
<a name="story3"><B>TWA Caps Commissions, Loses Suit</B>
TWA last week capped commissions paid to Canadian and U.S. agencies at $25 for one-way tickets and $50 roundtrip, finally matching every other major U.S. carrier. In other TWA news, the carrier lost its lawsuit against former owner Carl Icahn, allowing Icahn to continue selling deeply discounted, consolidator-type tickets he received as partial payment for his $200 million loan to the airline in 1993.
<a name="story4"><B>C&L, Price Waterhouse Near Card Choice</B>
As soon as their merger is approved in coming weeks, Coopers & Lybrand and Price Waterhouse expect to award a contract for their mammoth $700 million combined global card business to either American Express or Diners Club. The account is believed to be the largest for a corporate card, with more than 100,000 cards and volume that ultimately will exceed $1 billion. Coopers currently uses Amex in the United States, United Kingdom and Canada, while Price Waterhouse contracts with Diners in the United States and Canada, and Amex in the U.K. Both use Diners in Australia. The new accounting firm expects to begin implementation July 1 and finish in August.
<a name="story5"><B>Carey Goes Public, Hits Acquisition Trail </B>
Ground transportation company Carey International Inc. this month offered up a second round of public stock, selling 2 million shares of common stock at $22 per share. Senior vice president and chief development officer Devin Murphy said the money will be used "to fund Carey's acquisition program, repay a small amount of debt and give us some working capital." Carey, with 420 locations, has been on an ambitious acquisition campaign since going public last June. After buying Manhattan International to gain a foothold in the New York market, it purchased companies in London, Boston, Miami, Los Angeles and Indianapolis. The value of Carey's stock, initially offered at $10 a share, has increased 100 percent since its public offering.
<a name="story6"><B>Synergi Merges Operations</B>
Global travel management network Synergi has developed a new fee schedule that will take effect Aug.1, and closed its Frankfurt office to consolidate operations in New York. The fee structure is based partially on air volume rather than total sales, and factors in the size of the country and local market conditions. The result is a reduction in the fees paid by nearly all worldwide affiliates. The organization also is in final talks with potential affiliates in other countries to broaden its international market coverage, which primarily is focused on Asia/Pacific, parts of Europe and Latin America.