Airline Alliances Await Approvals, Prep For '03 GrowthAs the global airline industry continues to anticipate consolidation, the three major alliances continue to jockey for position. SkyTeam, led by Delta Air Lines and Air France, may grow significantly if Continental, Northwest and KLM Royal Dutch airlines opt to join. That development hinges on the U.S. Department of Transportation's decision on a Continental-Delta-Northwest domestic codeshare pact expected by Dec. 21. Rival Star Alliance next year plans to accept Asiana, LOT Polish and Spanair into its fraternity. Thanks to a codeshare pact with Star anchor United Airlines, US Airways also may join the alliance in late 2003. Meanwhile, United and Star partner Lufthansa are set to begin revenue sharing on North Atlantic flights, align pricing and sales strategies and deepen other areas of cooperation. Though Oneworld alliance founders American Airlines and British Airways have been unable to secure acceptable terms for antitrust immunity, the two airlines last month proposed an extensive codesharing deal on routes beyond their respective hubs. They await DOT approval. Meanwhile, Swiss International Air Lines and American—recently approved by DOT approval for antitrust immunity—are working to "iron out" the joint corporate contracting process. "For now, addenda will be added to each other's contracts where it makes sense," said a Swiss spokesperson. Still, Swiss' intended participation in the larger Oneworld pact is far from certain as alliance executives recently indicated the partnership will not grow in the short term. Also in question is Oneworld's presence Down Under. Alliance member Qantas, Australia's dominant carrier, recently announced an agreement to take a 22.5 percent stake in Air New Zealand as part of a far-reaching partnership. Air New Zealand currently participates in the Star Alliance.
ARC Targets Agency Void 'Fraud'The Airlines Reporting Corp. is talking with travel agencies about plans next year to send data to carriers five days a week to help reduce "abuses of the voiding function in the ARC system." Agents use the function to hold a nearly expired fare on an itinerary they are less than sure of, circumventing ticketing and time limit rules by buying the ticket while knowing they have time to void it. Calling the practice widespread and fraudulent, ARC president and CEO David Collins said, "We will not be talking about daily remittance, although we will be looking at the current disparity between the billing of credit transactions daily and the settlement of cash transactions 10 to 17 days later." The current system, ARC said, allows up to two weeks to pass before data are transmitted to the carriers. Rosenbluth International and TQ3 Maritz Travel Solutions minimized the impact, but a Carlson Wagonlit Travel spokesperson said, "While the biggest impact will be on the smaller agencies, some large corporate customers have relied on their agencies to be able to maneuver their way through the system and ultimately save them money. In some cases, it will have a substantial impact—anywhere from 5 percent to 10 percent of average weekly tickets are voided."
Top-Tier Hotel Sector To Suffer In 2003Based on a survey of 133 travel managers, investment banking firm UBS Warburg this month projected that U.S. deluxe hotels will lose a significant share of transient business travel next year. Midprice hotels, meanwhile, will gain share, while upscale brands remain essentially unchanged. Similarly, the gateway cities—where the majority of deluxe properties are located—are expected to underperform the market overall.
Bush Signs Ground Transportation BillPresident Bush late last month signed into law the Real Interstate Driver Equity Act, which effectively allows ground transportation companies to carry out pre-arranged services without states or localities requiring extra licenses or fees, provided the company is properly licensed in its home state and under contracted booking. According to car services suppliers and industry lobbyists, Las Vegas and New York City regulations particularly were problematic for drivers in the past, prohibiting out-of-state drivers from picking up passengers to complete a roundtrip.
Rosenbluth Offers Security Tool FreeRosenbluth International starting next week will give existing clients an option for six free months on its TrackPoint traveler tracking system; non-clients can get it for two months. That seems most advantageous for existing multinational clients who do not use Rosenbluth worldwide. TrackPoint is part of the mega's Global Security Suite
(BTN, Feb. 11).