<B>InsideTrack</B>
<B>ARC Broadens CTD Definition</B>
The Airlines Reporting Corp.'s board of directors last week at its semiannual meeting approved two amendments to the terms governing the accreditation of Corporate Travel Departments. The first amendment allows entities to process transactions through a unique ARC identifier but be physically located on the premises of an ARC accredited travel agency. "It is the best of both worlds. It gives them the ability to have a direct contract for more control of funds and data, but they do not have to be involved in the daily processes," said Barry Lemley, ARC director of accreditation and database management. The board also approved a CTD pilot program for such entities as U.S. and international government organizations that enjoy sovereign immunity and have legal restrictions on liability. The ruling will allow such quasi-government entities as the Washington, D.C.-based International Monetary Fund, which has been investigating the CTD option, to take advantage of the program.
<B>Cendant, Galileo Confirm Talks</B>
Cendant Corp. last week confirmed that it was in talks with Galileo International Inc. about a possible acquisition of the global distribution system company. According to a news release, "Terms of the possible transaction were not disclosed and there can be no assurance that a transaction will be consummated." If completed, Cendant said, the acquisition "could materially add to Cendant's earnings per share in 2002." The companies were responding to published reports indicating that Galileo would sell for $3 billion, or $34 per share. Speculating on the talks, travel technology vendor and pundit Richard Eastman said, "Galileo may be the 'binding' link that would bring all the disparate parts of the Cendant IT structures together, but that would be a wrenchingly difficult political process. It would surprise me that Cendant could get the much needed consensus internally to enable that to happen." Eastman said that having lacked "any kind of realistic strategic direction," Galileo is down to "short strokes" and Cendant "has done little better," as it too is tied to "legacy architectures, legacy cultures and had seemingly implemented start-and-stop IT initiatives for the past five to seven years."
<B>Deloitte & Touche Seconds Highwire Booking Motion</B>
Wilton, Conn.-based Deloitte & Touche, the nation's seventh-largest corporate travel account as of 1999 (BTN, Oct. 2, 2000), last week revealed it had selected Highwire to make its Travelport corporate booking tool available to its 30,000 employees. The selection represents the second large account victory for Seattle-based Highwire in as many months, following the signing of Microsoft (BTN, April 9). Travel managers at Deloitte & Touche, which last fall signed a five-year GDS deal with Galileo, were unable to comment before presstime. According to Highwire president and CEO Marka Jenkins, a short pilot program will precede full implementation by the end of August. She said other corporate customers will be announced shortly.
<B>AA-BA Take Another Flyer At Atlantic Alliance</B>
American Airlines and British Airways in the coming months again will try to deepen their alliance, while aviation liberalization talks between the United States and the United Kingdom enter the next phase. Don Carty and Rod Eddington, the carriers' respective CEOs, are scheduled today to meet with U.S. Department of Transportation secretary Norman Mineta to begin formulating a second antitrust immunity request that, if approved, would establish a powerhouse on the North Atlantic. The first request was rejected two years ago (BTN, Aug. 2, 1999). Last week at the Merrill Lynch Transportation Leaders conference, Carty said, "As we move through the back half of 2001, I'm hopeful that we will see some meaningful progress in our effort to develop our global alliance in a way that brings us up to speed, relative to our major rivals." Those rivals include Delta/Air France, United/Lufthansa and Northwest/KLM. BA, however, will find itself between a familiar rock and hard place: It wants desperately to maintain its level of presence at London Heathrow, but likely would be forced to surrender some number of slots as a precursor to both an immunized alliance with American, as well as a new aviation deal between the two countries.
<B>ProAir Gets Backing To Return To The Air</B>
Detroit-based ProAir reportedly has lined up financing to return to the skies by late August. On its Web site, the carrier said, "We have just had our operating certificate returned to us and are getting our operation ready for flight." Las Vegas-based National Airlines, in bankruptcy proceedings since December but still operating, reportedly is reviewing a takeover bid by former TWA chief Carl Icahn. Icahn said he would spend $400 million to build or buy an airline. Another grounded carrier, Dallas-based Legend Airlines, won't be resurrected. The airline was liquidated earlier this spring.