Delta Pilots Union Ratifies Tentative PactDelta Air Lines last month took a step forward with its pilots union when the Air Line Pilots Association ratified a tentative contract agreement, which will be presented to members for ratification by the end of the month. As part of the deal, the carrier is asking for $280 million in concessions from pilots, reducing its initial figure of $325 million. Delta said, "The tentative agreement's terms and conditions provide the necessary pilot savings through a combination of changes to pay, benefits and work rules." The agreement is subject to bankruptcy court approval and, if accepted by pilots, would be enacted on June 1 and "become amendable on Dec. 31, 2009." Barring any disruptions, the company is on track to achieve approximately 70 percent of its business plan's benefits by year-end, with the goal of successfully emerging from bankruptcy next year.
Cendant Forecasts 2006 Car Rate IncreasesAvis Rent A Car System and Budget Rent A Car will institute year-over-year price increases in rental rates for the rest of 2006, executives from parent company Cendant Corp. said in its first-quarter earnings report last week. Even though revenue was up 13 percent for the brands during the quarter, earnings were down 17 percent because of higher fleet costs and interest costs for newer vehicles, as the fleet grew by 13 percent to keep up with demand. The latest negotiations with manufacturers are just beginning, so it is unknown what sort of further fleet cost hikes the brands will see throughout the year, executives said in a conference call with investors. Although Cendant has been raising leisure rates, increases on the corporate side have been more difficult to come by since they must be reached at the negotiating table.
Cendant's AmeriHost To Fly Baymont FlagCendant Hotel Group announced in late April, soon after it had completed its acquisition of the Baymont Inns & Suites brand, that it would attach the Baymont name to one of its other midprice offerings, AmeriHost Inn. The conversion of the AmeriHost name to Baymont should be completed by August. "The midscale segment is really a strategic priority for us," said Anthony Berger, Cendant Hotel Group's COO. "Our approach is to not have a lot of brands, but to have a few very successful ones. Baymont and AmeriHost are strikingly similar in many regards, so we saw this as focusing our efforts behind one brand that can be larger." The announcement comes before the imminent spin-off of Cendant's hospitality company, which will be called Wyndham Worldwide
(BTNonline, Mar. 17). Currently there are 115 Baymonts and 112 AmeriHosts. Baymont will be positioned alongside Cendant's Wingate International brand in the midprice without food & beverage sector, but Berger said that Baymont's price point would be lower than Wingate. He said the focus would be on domestic, new builds.