<B>InsideTrack</B>
<B>American Express Practices What It Preaches...</B>
American Express is converting all internal travel to Corporate Travel Online, its online booking tool. In conjunction with mandating CTO with certain caveats, American Express more strictly will enforce use of preferred suppliers. The company by mid-year also will implement an online expense reporting tool. "We've been talking about enlightened expense management and telling our clients to take advantage of the Internet. Now we are doing it internally," said Ed Gilligan, group president of global corporate services.
<B><A NAME="2">...Anticipates Earnings Decline</B>
Meanwhile, American Express expects its travel related services unit, which includes its charge card and travelers check services, to grow by 13 percent to 15 percent this year, despite last week's warning that its first-quarter earnings would fall by 18 percent. Still, the company noted a slowdown in its corporate credit card business, particularly as the economy and corporate spending weakened toward the end of the quarter. Worldwide billed business is expected to increase 8 percent to 10 percent from last year's first quarter.
<B><A NAME="3">SAirGroup Deep In the Red</B>
Swissair parent SAirGroup said 2000 was the worst year in its history, dropping $1.7 billion. Much of the loss was attributed to poor performance by several smaller European airlines in which SAirGroup holds stakes. Sabena, for example, lost $284 million despite an 11 percent gain in traffic volume, and expects to announce a new business plan later this month. SAirGroup currently owns 49.5 percent of Sabena, though it may shed that holding later this year as the company refocuses on Swissair's core strengths. Swissair itself finished the year $112 million in the red.
<B><A NAME="4">One Hotel Chain Sold, Another On the Block</B>
As part of its deep financial troubles, SAirGroup last week put its Swissôtel Hotels & Resorts unit up for sale. Swissôtel operates 23 hotels primarily in North America, Europe and Asia. A sale also was announced in the long-running divestiture of the hotel assets of U.K.-based Compass Group PLC. Compass sold its 79 midprice Posthouse Hotels to Bass Hotels & Resorts. Bass indicated that it plans to rebrand the Posthouse portfolio as Holiday Inns to build that brand's presence throughout Europe. The last of the Compass hotel assets, the Le Meridien chain, reportedly will be sold to Marriott International, though an announcement has not been made.
<B><A NAME="5">Out Of Beta, BTLogic Brings Buyers to Sellers</B>
BTLogic, a company that is attempting to bring suppliers and midsize buyers together via the Web, last week facilitated contractual offers for the first time out of beta testing. The offers, from Air New Zealand, Japan Airlines, Kimpton Hotels and National Car Rental, were made to buyers who are among BTLogic's database of 10,000. "We will include several chains of hotels by mid-April, another car rental and two new airlines," said president Fernando Avila. The company this week plans to reveal research on how travel buyers at midsize companies are dealing with the economic downturn.
<B><A NAME="6">Blue Fox Airlines To Introduce Stansted-JFK</B>
Paper airline Blue Fox Airlines has announced plans to launch a business-class-only service from London Stansted to New York JFK. A roundtrip ticket on the 138-seat Boeing 767-300s flying twice daily will cost $1,750. Blue Fox also announced its CEO: Derek Jewson, a stalwart moderator at Association of Corporate Travel Executives events and a former head of corporate travel purchasing for Unilever. Although a launch date of March 2001 is penciled in, Blue Fox does not yet have the funding to fly. It is seeking $90 million of backing.
<B><A NAME="7">ACTE Sets Stage For Spring Conference</B>
The Association of Corporate Travel Executives conference, April 22-24 in Tampa, will be highlighted by a panel discussion on the issues surrounding data privacy and supplier contracts. BTN editor-in-chief David Meyer will moderate a panel composed of Bob Brunner, director of business marketing development for British Airways; John Caldwell, president of Caldwell Associates; Dave Hilfman, vice president of multinational sales and revenue programs for Continental Airlines; Susan Hopley, general manager of data services for TRX; Jack O'Neill, president of TQ3 Maritz Travel Solutions; Mark Williams, director of travel for the Americas for PricewaterhouseCoopers; and Michael Whitesage, president of Prism. Keynote speakers for the event will be Gordon Bethune, chairman and CEO of Continental; Catherine Bessant, president of Bank of America-Florida; Ed Gilligan, group president of global corporate services for American Express; and John Dancy, consultant to the U.S. Department of Defense.