EveryFare Will Pay TMCs Using AA's SiteAmerican Airlines last week said travel agencies in its new EveryFare program "would receive a credit in excess" of the cost of bookings made on aa.com after agents are allowed to apply Airlines Reporting Corp. numbers later this year. "We still haven't determined exact pricing," said vice president of passenger sales Craig Kreeger, but AA will be "charging levels below even the last piece of the term." The EveryFare program offers agencies a per-booking allowance, which offsets the fee agencies pay AA for distribution, which drops over the five-year term of participation. While using a GDS would mean agencies lose money, Kreeger said the aa.com option would charge them no more money than EveryFare's minimum allowance of $2.48, which takes effect after July 2006. The allowance currently is more than $4. Adding ARC capability to the Web site "sounds easier" than it is, said Kreeger. A similar initiative recently launched by Northwest Airlines
(BTN, Oct. 7) does not pay agents. Kreeger said aa.com is probably not an avenue for most corporate agencies since "we don't expect to offer other GDS functionality there." Not surprised that EveryFare received a mixed reaction
(BTN, Oct. 7), Kreeger said, "This was voluntary from the get-go." AA said two small agencies have joined TQ3 Maritz Travel Solutions and Corporate Travel Management Group as EveryFare participants.
Broad 3Q Air Losses Expected As UAL Bankruptcy LoomsUnited Airlines parent UAL Corp. will be forced to file for bankruptcy "in the next few weeks" if it fails to finalize cost-reduction agreements, Deutsche Bank Securities analyst Susan Donofrio wrote in a research note last week to investors. She does not expect United to reach such agreements in time to meet debt payments due Nov. 17 and Dec. 2 and said the carrier will report "the worst earnings per share performance" of the third quarter among major U.S. carriers. Meanwhile, United last week began bilateral negotiations with the International Association of Machinists but continued evaluating a union coalition proposal earmarked for Air Transportation Stabilization Board review. "We are encouraged by the shared sense of urgency and focus that all members of the coalition are putting toward an out-of-court solution to our financial crisis," the carrier said in a statement. United and the rest of the nine major U.S. carriers likely will post a combined third-quarter loss near $1.5 billion. They begin reporting earnings this week, while Congress debates a new relief package amid intense lobbying from industry leaders. Donofrio said legislation "likely will fall short of our hopes with respect to relief from the majority of taxes and fees paid by the airlines, which now represent roughly 26 percent of the price of a $200 fare."
UA, US Airways Detail Loyalty Program IntegrationMeanwhile, United Airlines and new partner US Airways, itself bankrupt, on Nov. 1 will begin reciprocal frequent flyer mileage accrual, the first step in integrating their loyalty programs. Effective Jan. 1, members in each program can begin to apply the miles they earn toward elite status. Reciprocal reward redemption and other benefits, as well as the first phase of code sharing are slated for early 2003. Reciprocal airport club access begins today.
Buyers See New Nonrefundable ToolsAgency franchiser Uniglobe Travel is the latest in a flurry of suppliers that recently have come to market with tools that track nonrefundable tickets and remind travelers just prior to departure that they must make changes to their itineraries or lose the value of their tickets. Uniglobe, which generates $1.9 billion in annual Airlines Reporting Corp. sales through 900 international locations, is working with TRX Inc. to offer a nonrefundable tracking and notification service to be rolled out early next month. TQ3 Maritz Travel Solutions, Travel Incorporated and the third-party tech firm Trondent Development Corp. also have followed Rosenbluth International and WorldTravel BTI
(BTN, Sept. 23) to market with similar nonrefundable tools in recent weeks.
Air Canada Checkin Kiosk Supports Multiple CarriersAir Canada is the first airline at Vancouver International Airport to use a new airline checkin kiosk that can support checkin for multiple airlines. Built on Common User Self Service industry standard software developed and touted by the International Air Transport Association as a solution to constricted airport checkin lobbies, the application was developed by IBM and Annapolis, Md.-based ARINC. Vancouver introduced 80 of the kiosks by the end of last week, and expects to add several other airlines to the system during the next few years. The airport suggested possible future installations in hotel lobbies.