<B>InsideTrack</B>
<B>Amadeus, E-Travel Mum On Expected Deal</B>
Every indication is that E-Travel today will announce it has been acquired by Amadeus, but spokespeople from both companies last week would not comment. In lieu of a confirmation, they urged the press to stay tuned to a Monday morning conference at the National Business Travel Association convention. Amadeus North America's new senior vice president of key accounts Tom Blakie said only that, for the North American corporate market, "We will be offering a complete portfolio of products."
<A NAME="2"><B>Deutsche Bank Deal Kicks Off Sabre-SAP</B>
Ft. Worth, Texas-based Sabre today is expected to announce an agreement with Germany's SAP AG, "to help automate and streamline the purchase of business travel for users of SAP solutions across Europe, Asia/Pacific and North and South America," a news release said. The agreement, which integrates Sabre's GDS with the MySAP travel management solution, grew out of work both companies did with Deutsche Bank, their first joint customer (BTN, June 25). Asked how the agreement affects Amadeus' longstanding relationship with SAP (BTN, Oct. 6, 1997), Amadeus' Tom Blakie said, "I'd have been shocked if SAP didn't want to work with other GDSs."
<A NAME="3"><B>UAL-US Airways Decision To Come This Week</B>
The U.S. Department of Justice by Wednesday will decide the fate of United Airlines' proposed $4.3 billion merger with US Airways. Widespread speculation has DOJ rejecting the deal on anticompetitive grounds. United earlier this month announced its intention to abandon the merger but was persuaded by US Airways to continue the process. Should the deal see flat-out rejection, both carriers would reevaluate their market positions. United likely would step back from domestic consolidation to focus on internal improvements and cost-cutting measures, while US Airways could opt to stick it out solo, sell pieces to competitors or seek another domestic or international partnership.
<A NAME="4"><B>Agencies, CTDs Embracing Interactive Reporting</B>
The number of agent locations reporting electronically to the Airlines Reporting Corp. has increased following the July 1 deadline for using IAR InteractivePlus in order to avoid an added fee associated with manual processing. In the sales week ending July 2, 228,529 total locations used IAR InteractivePlus, representing more than 80 percent of travel agent transaction volume reported and settled through ARC. ARC reported that all 95 of the accredited Corporate Travel Departments are using its IAR tool. Meanwhile, in its quest to further remove paper from the process, ARC in 4Q will begin testing an enterprise data warehouse that will be used to host the agent coupon that currently must be kept on the agency premises for two years after ticketing. Following implementation, which is slated for 1Q02, any agency or carrier will be able to store and access ticketed and settled information online.
<A NAME="5"><B>American, Pilots Swap Contract Proposals</B>
American Airlines and the union representing its pilots last week each submitted proposed contracts. The company proposal suggested a fast-track approach that would give pilots on Aug. 31 an immediate 15 percent to 22 percent pay hike. Should the union agree, negotiations on all other contract items would conclude next February. If necessary, arbitrators would hold subsequent "baseball style" arbitration, meaning they would choose one side or the other. American said its "unusual course" demonstrates that negotiations need not be lengthy nor acrimonious, adding that the speedy timeframe is beneficial "in light of the economic uncertainties and large airline losses." The Allied Pilots Association, representing the carrier's 11,000 pilots, focused its proposal on safety, specifically addressing pilot fatigue, scheduling and training improvements. A tentative agreement for AA's flight attendants, already endorsed by union leadership, is under review by the rank and file. Results are expected Sept. 1.
<A NAME="6"><B>Global Hotel Cos. Look Past Current Slowdown</B>
In an effort to position themselves strongly for the eventual rebound in international business travel, global hotel companies announced new alignments and partnerships. Raffles International said it will retain the Swissôtel Hotel & Resorts brand, a step below its own deluxe Raffles brand. Raffles acquired Swissôtel this spring. Marriott's Ramada International, meanwhile, announced it was partnering with U.K.-based Jarvis Hotels, rebranding the midprice properties Ramada Jarvis. Meanwhile, Bass Hotels & Resorts' new name, Six Continents Plc--chosen to reinforce the company's global reach--becomes official today.