<B>InsideTrack</B>
<B>Northwest/Continental Vs. DOJ Delayed</B>
The start of the antitrust trial pitting the U.S. government against Northwest Airlines and its ownership stake in Continental Airlines was pushed back until Wednesday at the request of Northwest. The airline reportedly is ready to propose a settlement to the U.S. Department of Justice and Continental two years after DOJ filed its initial complaint. Scheduled to go to trial last week, the case will decide if Northwest's majority voting interest and 14 percent ownership stake in partner Continental hinders competition and violates antitrust regulations. Initially in favor of the deal to avoid a takeover bid by Delta Air Lines, Continental CEO Gordon Bethune in recent months has stated publicly his interest in reacquiring the Northwest-owned shares while maintaining the alliance between the two airlines.
<B><A NAME="2">UAL Develops New Business Unit</B>
United Airlines this week announced the immediate start-up of United NewVentures, a new subsidiary focusing in part on e-commerce opportunities. Scott Praven, who heads up the United NetWorks division of the new company, said corporate travel enhancements on www.united.com will be targeted toward small and medium-sized businesses. "For large corporations, we see our role as influencing the functionality of online booking systems, such as GetThere," Praven said. Doug Hacker, United's executive vice president, CFO and president of the new subsidiary, added, "GetThere is an early example of the types of things we can do more of and make happen in the NewVentures arena." The division also will advance United's wireless initiatives, including bookings on wireless devices, a development expected "very shortly later this year," and direct the carrier's non-airline frequent flyer partnerships. The other division within NewVentures, dubbed NetVentures, focuses on business sponsorships, including United's role in Orbitz, Hotwire and airport wireless access provider Aerozone. United already has funneled $500 million from frequent flyer mileage sales and Internet marketing revenue streams into the new company and expects to earmark an additional $100 million next year. The carrier first announced plans to create a new e-commerce company in January (BTN, Jan. 24).
<B><A NAME="3">Marriott Births A Brand</B>
Marriott International, which has made a science of market segmentation, this month announced it is giving full brand status to JW Marriott Hotels. The occasion for the announcement was the opening of the12th hotel in the brand in Miami. While JW Marriott is considered an upscale brand, a spokesman said the hotels offer more services and amenities than properties in that tier traditionally offer, but yet not as many as the deluxe tier.
<B><A NAME="4">Accor Backs Away From Forte Deal</B>
After considerable speculation that a deal was imminent, Accor this month announced it would not acquire Granada Compass' Forte hotel division. London-based Granada had wanted to complete a deal, so it could concentrate on its booming catering business. Ironically, other European-based companies have been trying to divest their non-hotel assets to invest the proceeds in hotels. For example, Whitbread, which franchises Marriott hotels in the United Kingdom, this month announced it was putting its 3,000 pubs on the block for this purpose. Bass Hotels & Resorts, which sold off its brewery business earlier this year for $3.4 billion, did so with the stated intention of investing in a hotel acquisition. So far, no deal here either.
<B><A NAME="5">Carlson, Japan Travel Bureau Talk Corp. Joint Venture</B>
Carlson Wagonlit Travel and Japan Travel Bureau are in advanced negotiations about forming a corporate travel joint venture. The companies hope to finalize an agreement by year-end. Carlson Wagonlit would take a 30 percent stake in the joint venture with JTB, which owns the largest market share in Japan and generates $14 billion in annual global sales. The partnership would target foreign subsidiaries and Japanese multinational companies, and focus on enhanced services, including data consolidation.