Closing The Door On Terrorists
Several major airlines last week announced they immediately will begin adding reinforcements to cockpit doors, pending individual Federal Aviation Administration approval. American Airlines, United Airlines, Northwest Airlines, Continental Airlines, Alaska Airlines and US Airways all said last week they already were in the process of installing some form of security enhancement, most commonly a type of reinforcing steel bar. Most promise a completed installation in only about 30 days.
President Bush recommended the enhancements in his proposed air security bill, and U.S. senators have been pushing an aviation security package that included stronger cockpit doors. Airlines call the door enhancements a temporary measure while FAA explores more long-term safety adjustments to the cockpit area that could better reconcile the concerns by pilots and flight attendants about the ability to evacuate or access the cockpit in case of emergency or pilot incapacitation.
Cendant Shuffles Leaders As Galileo Deal Closes
A number of changes are in store for Galileo International as it is absorbed by Cendant Corp. (BTN, June 25), which finalized the $1.8 billion acquisition last week. Cendant also took on $550 million in debt, but that still does not total the originally expected price of $2.9 billion, thanks to sharp stock declines.
Galileo CEO Jim Barlett will leave the business, as will CFO Cheryl Ballinger, David Near and Babetta Gray. Customer contacts John Hach and Karen Hannon will remain. Mark Miller, formerly president and COO of Cendant's travel division, will become CEO. Dan Neuburger will become EVP and general manager of Galileo in the Americas. Samuel Katz, chairman and CEO of Cendant's travel distribution division and now also chairman of Galileo, said, "The near-term impact of the events of Sept. 11 on Galileo's earnings does not make its acquisition any less strategic, and we remain excited by the prospects that the addition of Galileo creates for Cendant."
Carlson Wagonlit To Revamp U.S. Pricing
According to a report from a senior executive in Europe, Carlson Wagonlit Travel soon will unveil a new pricing structure for its North American clients. Details of the U.S. approach were unavailable as of press time, but the new model, which focuses on management instead of transaction-based pricing, already is in use in Europe.
ACTE Global Conference Canceled
Citing financial and political concerns, director of membership and marketing Megan Costello said the Association of Corporate Travel Executives canceled its 2001 Global Conference, which was to be held later this month in Munich, Germany. In lieu of the Munich event, ACTE will hold a series of summits on the state of the travel industry in eight U.S. cities, which began Oct. 4 and will run through Oct. 16. Also this month, ACTE will present five Webcasts on issues related to developing conditions in the industry on its Web site, www.acte.org.
Canada To Provide Relief Funding To Carriers
The Canadian government will inject C$160 million (US$102 million) into the country's airline industry to compensate for losses sustained during the closure of air space following the Sept. 11 attacks. Similar to a relief plan crafted in the United States, compensation for each carrier will be proportional to its level of activity within the industry before Sept. 11. Air Canada, the country's dominant carrier, said it is in search of "a longer-term solution" to stabilize the industry and also supported a proposal that would lift restrictions on individual and foreign ownership of Air Canada.