<B>InsideTrack</B>
<B>BA Reveals Commissionless Fares</B>
British Airways has delivered on its long-standing promise to cut published fares when it moves to zero commission in the United Kingdom on April 1. The adjustments will take place on all fares except multi-carrier fares and have been calculated by deducting the existing 7 percent commission, then adding on the new booking fees that will replace commission.The lower fares will compensate corporate clients whose agents pass on to them all commissions and other airline payments under their fee arrangement. "No matter what kind of deal corporate clients have with us, it means there will be no net difference. The total cost they pay on March 31 will be the same that they will pay on April 1," said BA head of U.K. & Ireland sales Tiffany Hall. Ian Hall, chairman of the U.K. and Ireland's Institute of Travel Management, was pleased with BA's decision to cut fares across the board rather than on selected routes as many had predicted. "Commission has muddied the water for too long and this opportunity to re-engineer has to be welcomed," he said. "This improved transparency should give us the ability to look at taking costs out of the whole travel process." Assuming base fares are the same on April 1 as today, a London-New York business class roundtrip will be cut to £3,639 (US$5,424), a saving of £231 (US$344). The new full-fare economy World Traveller Plus seat will cost £1,776 (US$2,647), a saving of £91 (US$136). A flexible economy fare will cost £1,189 (US$1,772), saving £470 (US$700). However, fares will rise marginally on cheaper fares where the booking fee is greater than was commission. The lowest London-New York economy fare will rise £2 (US$2.98) to £283 (US$422).<A NAME="2"><B>
IATA Asks ACTE To Investigate Client Code Proposal</B>
The International Air Transport Association has attempted to revitalize its stalled Corporate Client Identification Service proposals by approaching the Association of Corporate Travel Executives to superintend an independent inquiry into the scheme. It wants ACTE to appoint and oversee a consultant for the investigation to ensure that it is regarded as impartial by supporters and opponents alike. CCIS is a system of corporate client ID codes that a company would use each time one of its travelers booked a ticket. Supporters say this will enable corporates to track their air spend with greater accuracy than is currently possible. Critics say it will pose grave risks to data security, give airlines too much knowledge of corporate travel patterns and, although voluntary, carriers will force clients to adopt the codes if they want to secure a negotiated deal. The U.S. Department of Transportation has suspended its approval of CCIS since June 2000. <A NAME="3"><B>
Delta Cuts Schedule As Pilots Ready Strike Ballot</B>
The union representing Delta Air Lines' 9,800 pilots last week authorized a strike ballot that could pave the way toward a work stoppage as early as April 1. The Air Line Pilots Association remains in federally mediated negotiations with carrier management on its contract, which became amendable last May. The National Mediation Board could declare an impasse and start a 30-day cooling-off period on March 1. Results from the strike ballot will be announced Feb. 12. Meanwhile, the carrier trimmed its overall schedule for the remainder of the first quarter by 2.7 percent in a move aimed at minimizing passenger inconvenience stemming from pilot shortages. Delta said pilots have been refusing to work overtime shifts in relation to the contract dispute. Primarily affected is frequent service between Atlanta, Cincinnati and several destinations. Delta's smaller hubs at Dallas/Ft. Worth and Salt Lake City are not expected to see flight reductions.<A NAME="4"><B>
Midprice Hotels Under Pressure</B>
Lodging industry analysts at Bear Stearns expressed concern that midprice hotel chains worldwide increasingly find themselves squeezed between newer, more modern budget chains and refurbished upscale chains. Budget and economy chains Days Inn, Econo Lodge, Holiday Inn Express and LaQuinta have all announced new prototypes in recent weeks, with some about to break ground on the first units. Each of the new looks stresses comfort and amenities more usually associated with midprice lodging.<A NAME="5"><B>
UAL Looks To Internet To Lower Fuel Costs</B>
United Airlines in early February will host a Web-based fuel auction in an effort to buy 140 million gallons of jet fuel at the lowest possible cost. The auction, furnished by the American Petroleum Exchange, will be the first of its kind, according to United. The carrier expects "every jet fuel supplier who values our business" to participate and said it owes its customers to use e-commerce for more efficient purchasing. The American Petroleum Exchange said its neutral e-marketplace--powered by Sun, Oracle and Ariba technology--connects dozens of large fuel buyers and suppliers, but the United auction will be the largest transaction to date.