ATA Expects To Follow UNited Out Of BankruptcyATA Holdings Corp., parent of ATA Airlines, said it expects to emerge from bankruptcy by the end of the month after a U.S. Bankruptcy Court for the Southern District of Indiana confirmed the company's amended plan of reorganization. ATA would be the second carrier this month to emerge from bankruptcy, following United Airlines' three-year stint under Chapter 11. While 2005 was another year in the red for United, the carrier improved financially from previous years, its parent UAL Corp. said upon releasing earnings last month. The carrier for the full year reported a net loss of $21 billion—$17 billion alone in the fourth quarter—but barring reorganization expenses, the carrier would have neared a break-even year. UAL said it "outperformed the industry in revenue improvement."
ITA Software Secures $100M In Equity FundingAirline information technology company ITA Software last month said it had secured $100 million in equity funding to "fuel expansion" of its reservation platform for airlines and "accelerate partnerships with airlines and travel distributors." "I don't know how they intend to spend the money," said Continental Airlines managing director distribution and electronic commerce John Slater. "We've had a very long and successful relationship with ITA and they've been providing our availability and low-fare search on Continental.com for a few years. when they get focused on something they do a very good job. Having access to this capital enables them to get some additional resources to focus on another business line. They don't want to jeopardize the one they have now because it works for us and a number of other suppliers and it's core to the financials of their company."
Worldspan Scores AirTran ContentWorldspan last month began providing AirTran Airways' schedules and fares as part of a multi-year full content agreement. Worldspan joins Sabre and Cendant, both of which recently announced new content deals with AirTran. The carrier last November exited the Worldspan system
(BTN, Nov. 14, 2005). The companies also said they are jointly building new tools for AirTran customers.
European Commission Doesn't Deliver GDS DeregulationThe European Commission again appears to be rethinking deregulating global distribution systems. In October 2005, it surprised the travel industry by indicating a desire for total deregulation as part of an initiative to streamline European bureaucracy. The Commission planned to confirm full deregulation by the end of January, but no decision has materialized. Sources said the Commission was surprised by the intensity of opposition not only from travel agents and buyers, but also from airlines and sources within the Commission itself. There is no indication as to when there will be a decision.
Raffles' Owner Partners To Buy FairmontFairmont Hotels & Resorts last month announced it had entered into an acquisition agreement with Kingdom Hotels International and Colony Capital to sell all of its outstanding common shares, almost three months after rebuffing a bid by U.S. financier Carl Icahn. The value of the transaction, including debt and the cost of combining the chain with Colony Capital's Raffles Hotels & Resorts brand, will be approximately $5.5 billion. The parties plan to close the deal in the second quarter. "The luxury segment is doing extremely well where the average room rate is at $250," said Jan Freitag, vice president of Smith Travel Research. "It especially shows, at the high rates, the segment is very attractive to investors and that a lot of capital is out there looking to move into the hotel industry."
NBTA Foundation DebutsThe National Business Travel Association late last month announced seven new board trustees, along with a new name and Web site for its educational foundation, formerly the Institute of Business Travel Management. Now known as the NBTA Foundation, the nine-year-old organization welcomed new leaders Sabre Corporate Solutions president Ellen Keszler as chair and Richard Wooten, director of corporate travel services at Lockheed Martin, as vice chair. New members include buyers Sheri Carlsen of EMC Corp. and Deloitte Services' Katrina Tryforos as well as Delta Air Lines' Pam Elledge, American Express' Andrew McGraw and Seaside Consulting's Peter Turso. The foundation's mission remains the same, but Keszler said the rebranding more clearly communicates the relationship between NBTA and its foundation.