Inside Track - 1998-11-02
<B> Inside Track</B>
<B>UAL, Co To Swap Newark/LAX Gates</B>
Continental and United Airlines are planning to trade gates in an effort to strengthen their presence in what is already one of the largest airports for each--Newark and Los Angeles, respectively. "We are looking to swap real estate at LAX that they are interested in for five gates in the A2 concourse at Newark," said Wayne Herndon, Continental's director of corporate real estate. Herndon said the deal still needs approval from authorities at both airports. Continental and United already are the biggest airlines at Newark and LAX, respectively, with 57 and 30 percent of passenger market share through the first half of 1998, according to the U.S. Department of Transportation.
<a name="1"><B>Fares Increase In Some Markets</B>
Over the past two weeks, the major airlines increased business fares in selected markets and reduced them in others, according to airline analyst Susan Donofrio of BT Alex Brown. "The effects of recent fare actions can be seen in the Atlanta routes, all of which are up 3 percent from a year ago and from last week," she said in an Oct. 26 briefing for investors. "Also of note, the Los Angeles to Seattle market declined 6 percent from last week and is up only 3 percent year-over-year." Overall, average fares continue to be relatively flat (<I>BTN,</I> July 20), up just 2 percent from last year.
<a name="2"><B>Diners Club Adds Booking To Website</B>
In a revamp of its Website, which is accessed by 20,000 visitors a week, Diners Club International is offering cardholders the ability to book air, car and hotel using Internet Travel Network's booking engine, as well as search Diners' affiliated LeCard restaurant directory for establishments participating in the meal discount program.
Other site enhancements include access to a payment worksheet to help users of corporate travel systems (ghost accounts) reconcile accounts, along with access to a quarterly corporate travel manager newsletter. "These improvements move www.dinersclubus.com from a product-oriented to a customer-oriented site, giving travelers more control over travel and redemption options," said Walter Sanders, Diners' vice president of corporate affairs.
<a name="3"><B>McCord Sails Synergi Solo</B>
Synergi--the $7 billion New York-based global travel network that until now had McCord Travel Manage-ment and Navigant International as its U.S. members--announced last week that Navigant will drop out on March 31, 1999, leaving McCord as its only domestic affiliate. Navigant chairman and CEO Ed Adams said the decision to separate was fueled partly by conflicts in Europe, where both Navigant and Synergi had representation. Navigant "will be looking at acquisitions in a lot of markets where we've got Synergi international players, so that's really what was driving the bus," he said. Synergi spokesman Tom Stack said there was conflict domestically as well, citing McCord's Los Angeles office and Navigant's Associated Travel operating in Southern California. "In the case of multinational accounts, which office would one of our Synergi affiliates turn to? This eliminates any of that uncertainty," he said.
<a name="4"><B>Air France Denies It Will Choose</B>
An Air France spokesperson last week said that contrary to previous reports (<I>BTN,</I> Oct. 26), the airline has no plans to choose between Continental and Delta for a single long-term U.S. partner, and will continue relations with both.
<a name="5"><B>Amadeus Waits For IPO Rebound</B>
Amadeus is postponing plans to go public until next year, due to the downturn in the market. The board decided last month that "the proper value of Amadeus would not be achievable in the current markets," said a spokesperson in Madrid. "These are the most volatile markets for many years in Spain and worldwide.