<B> InsideTrack</B>
<B>BA, Virgin Duel Over Biz Class</B>
Virgin Atlantic this week will reveal its response to British Airways' announcement of a "lounge in the sky" for its Club World business class, featuring "completely flat beds, a new state of the art multi-channel entertainment system with bigger screens, in-seat power for laptop computers, email, phones and fax." The changes will precede improvements to BA's First, Club Europe and Concorde products as part of a "master plan" to increase the number of business passengers flying with the airline. The carrier has seen bookings by business travelers drop along with increased competition. "BA has long been committed to being on the leading edge on product," said Dan Brewin, executive vice president of sales and marketing, USA (see story, page 1). "Our view is that investments in the product clearly bring benefits in an upturn, but can also stimulate the market."
<a name="2"><B>TWA Restructures Sales</B>
Trans World Airlines has put managing director of sales Gary Ravan in charge of national and corporate accounts and hired three regional corporate sales managers and four national mega agency managers. The carrier will add two corporate salespeople to deal with RFPs and data reporting, but field sales managers handling between 65 and 100 accounts each will continue to be the primary corporate points of contact. As part of its strategy to attract business travelers (<I>BTN,</I> March 22), TWA has targeted smaller accounts in hubs like Atlanta. "If they're not big enough for Delta, they can be big enough for us," Ravan said. He added that TWA is signing longer-term contracts and has a half dozen corporate flat fare city-pair agreements on both international and domestic routes. TWA also has tightened up on what many regarded as a loose policy in signing contracts. "It's now use it or lose it," Ravan said. "We're much more selective. It has to be mutually beneficial."
<a name="3"><B>Navigant Takes On New Brand, Corp. Card, President</B>
In order to differentiate the company from consortia, all 19 Navigant International agencies will switch to the Navigant name by year-end. According to new president and COO Thomas Nulty, "We are not a consortium and we don't want to be perceived that way." Nulty, who last month replaced Doug Knight, said the company plans to maintain its regional structure. Nulty was replaced by David Buskirk as president of super-regional agency Associated Travel. In other news, Navigant now is offering a credit card for travel and entertainment, procurement and fleet purchasing through MasterCard and Paymentech, the Salt Lake City issuer. Navigant CEO Ed Adams noted that "if we get the customer reaction and performance we expect, this program could result in additional revenues of over $10 million annually." As part of the package, Navigant is offering customers access to Paymentech's PaymentNet Web reporting tool and is investigating how and when to offer integrated agency and card data, Nulty said.
<a name="4"><B>ARC Continues On Paperless Trail</B>
The Airlines Reporting Corp. is receiving 33.3 percent of all travel agency transaction volume electronically, through its Interactive Agent Reporting program, and ARC spokesperson Allan Mutén said it would be "very realistic" to expect that number to increase to 60 percent by year-end. ARC also said electronic tickets accounted for 30.43 percent of all April volume.
<a name="5"><B>Delta, United Modify Traveler Policies</B>
United Airlines is modifying the templates it uses to screen carry-on baggage so that garment bags can pass through without being folded. "Corporate travel managers were getting complaints from travelers that their clothes were scrunched and wrinkled after being crammed through the templates," a spokesperson said. Bigger templates were installed at Chicago-O'Hare last month and will arrive in other hubs over the next few weeks; eventually, templates at all 23 airports will be replaced. United said that baggage sizers have reduced delays attributed to cabin-checked bags by 72 percent. Meanwhile, Delta Air Lines last week joined the list of carriers allowing cell phone usage at gates as long as the boarding door is open, and during prolonged ground time at the pilot's discretion. Unlike AirTran, Continental and Northwest, Delta also will allow passengers to use laptops during delays. Delta Connection affiliates and codeshare partners are not included in the change, but Delta said it will work "to pursue consistent policies."
<a name="6"><B>Varig Says It's Doing Okay</B>
Star Alliance member Varig Brazilian Airlines last week countered rumors that it is close to bankruptcy. "There's no bankruptcy, not at all," said Carlos Muzzio, general manager for North America. "We've contacted our lessors and are renegotiating." Sources said the Star Alliance miscalculated in including Varig because its 52 percent Brazilian market share is under assault.