Inside Track - 1999-04-12
<B> Inside Track</B>
<B>AA And US Airway To Get Closer?</B>
American Airlines and US Airways are seeking closer ties, either through an expanded alliance or a merger, according to a report in last week's Washington Business Journal. The article quoted Richard LaVoy, president of AA's Allied Pilots' Association, as saying, "There is a better than even chance this could happen, especially if the economy goes south." The speculation by LaVoy comes at a time when the union and American are in mediated negotiations over the Reno Air dispute. An APA spokesman told BTN "it seems tempting" for airlines in the three domestic alliances of Continental-Northwest, Delta-United and AA-US Airways to seek economies of scale through alliances or mergers. US Airways' only alliance, with American, extends no further than integration of the frequent flyer programs.
<a name="2"><B>CO-NW Alliance 'Seams' Cost Passengers, Airlines</B>
Northwest Airlines today recommended that "travel agents remind travelers that they must check in with the operating carrier" on codeshare flights with Continental Airlines. The operating carrier, Northwest said, is defined as "the carrier who operates the first flight of a trip. Subsequent flights of the trip require travelers to check in at the connecting gate." This was clarified further by Northwest vice president of distribution planning Al Lenza. "You don't need to check in with the connecting flight, you just have to go to the gate to board," he said. "We do have through-boarding passes."
This lack of seamlessness will be addressed as part of an 18- to 24-month technology integration plan that has the two carriers spending $13 million on developing common systems for things like e-ticket interlining. As a result of this massive project, Lenza said, travelers will be able to check in with either carrier regardless of which is operating the flight. "You'll always have seams until you have common systems," he added, noting that KLM and Northwest have minimized the seams in their partnership, but only after years of work. Northwest and Continental have increased the number of cities served by their codeshare alliance to more than 500 in nearly 100 countries.
<a name="3"><B>ISP Plans Worldwide Data Standardization</B>
In an attempt to standardize global data fields, an International Software Products user group last month hashed out a plan to ask vendors for lists of the data elements they collect, from which a team of travel managers will identify and prioritize the most essential. The two travel management associations, the Association of Corporate Travel Executives and the National Business Travel Association, have been asked to participate in the endeavor, said ISP director of international marketing and sales Doug Galbraith. He said he hopes the project will be completed in six months.
<a name="4"><B>Fraudulent Meeting Buyer Goes To Court</B>
Jacqueline Varacchi, the travel manager who pleaded guilty to defrauding Ziff Davis of $177,000 before moving to Lehman Brothers (<I>BTN,</I> Jan. 25), was scheduled to appear in court on April 9. According to the FBI, Varacchi and Todd McCormick, who reported to her at Ziff Davis and to whom she was secretly married, arranged with an employee of a shipping company to send phony bills for trade show deliveries, which the couple approved for payment.
<a name="5"><B>Northstar Reporting Tool Gets Globalized</B>
Maritz Travel Co.'s global GTM alliance has been rolling out Maritz's Northstar global reporting tool to partners around the world. Maritz product director of technology marketing Becky March said the company hopes to have between 12 and 16 countries on Northstar by year-end, and is "at least halfway there," with agencies in Canada, France and Germany having finished their implementations. GTM's German partner recently completed an Amadeus interface on behalf of its partners in France and Italy, and Belgium is acting as a data collection point for some smaller European countries. Maritz has about a dozen U.S. clients using Northstar, which is now in its second release.
<a name="6"><B>Amex Gives Corporates A Platinum Incentive</B>
American Express Corporate Services has launched a Corporate Platinum Card, the ultimate incentive to entice senior executives to abide by company policy. Like the personal Platinum card, the corporate version offers cardholders an annual "buy one, get one free" first or business class ticket; room upgrades; continental breakfasts; late checkout; access to Continental, Northwest and TWA club lounges; free enrollment in elite-level preferred rental programs of Avis, Budget, Hertz and National; and free enrollment in American Express's Membership Rewards loyalty program. It also offers $500,000 in accident insurance, instead of the $200,000 included on the green card, and free evacuation from foreign countries in case of medical emergency. The card carries a $300 annual fee.