Orbitz Service Claim Puts It At Odds With WorldspanOrbitz last week said it expects to come to a "mutually agreeable resolution" with Worldspan despite threatening to terminate its relationship with the Atlanta-based global distribution company, from which it derives all of its car and most of its airline content. Worldspan denied Orbitz's claim that it can cancel the relationship over a service level failure.
CWT Reworks Sales And Account Mgmt.Carlson Wagonlit Travel is reshuffling its organizational chart to place sales and account management under three regional vice presidents, reporting to CWT North America president Robin Schleien. A CWT spokesperson said the company is seeking to "align the skills of our account managers with those of strategic sourcing to create deeper value for existing clients. Previously, these two teams had separate reporting lines." The spokesperson said details of changing roles for some U.S. senior managers "are currently being worked out."
Professional Services Cos. Shun Rebates Amid LawsuitA Lawsuit Against PricewaterhouseCoopers, Ernst & Young and KPMG
(BTN, Sept. 22) over their travel billing practices is essentially moot when it comes to lessons for corporate travel management, according to several consultants and travel management executives interviewed last week by BTN. The accounting firms are accused of failing to pass through to clients the benefit of rebates they were paid by travel vendors on purchases funded by those clients. The sources said back-end rebates now are rare, calculating any benefit that should be shared is difficult, if not impossible, and passing them to clients simply would increase the professional services firms' cost of operating a travel department. Nevertheless, two sources said some of their professional services clients now are reexamining their practices and dropping any consideration of back-end rebates.
Galileo CEO Steps DownCendant Travel Distribution Services and Galileo International president and CEO Sam Galeotos last week left his position after about a year, the company announced last week. Sam Katz, chairman and CEO of the TDS and financial services divisions, assumed day-to-day management responsibilities for the TDS business units. Cendant said Galeotos "will continue to serve as a consultant and advisor for a transitional period," following the completed restructuring of the TDS division, including the creation of Travelport
(BTN, Aug. 25). "Following the completion of the Cheap Tickets and Galileo transactions two years ago, Galeotos, who previously served as president and CEO of Cheap Tickets, graciously set aside other personal and business agendas and agreed to commit his time and efforts to assist Cendant with the integration of the company's newly acquired TDS business units," Katz said in a prepared statement. When appointed last August, Galeotos became Galileo's third chief executive in less than a year
(BTN, Aug. 8, 2002).UAL Meets Financing Requirements, Obtains Reorg. PlanUnited Airlines parent UAL Corp., in its latest monthly report to the U.S. Bankruptcy Court, said its net income in August, excluding $114 million in reorganization expenses, was $68 million, and that it had met debtor-in-possession financing requirements for the seventh consecutive month. Passenger unit revenues and passenger yield improved 15 percent and 10 percent, respectively, year over year. The bankrupt company's cash position improved to $2.4 billion. UAL said it expects to meet DIP financing covenants for September, and that bookings are "better than expected" for the fall and winter. The company also received an additional five months—ending on March 6—to file a plan for emerging from bankruptcy protection.
Frontier To Use Navitaire Res SystemFrontier Airlines in the first half of 2004 plans to implement the Open Skies reservation system furnished by Navitaire, a subsidiary of Accenture. Frontier said the multi-year hosting agreement will improve data mining capabilities and transaction efficiencies, while allowing customers to access a travel bank of unused credits, flight history and frequent flyer information. Navitaire counts among its reservation customers AirTran, JetBlue, Ryanair and WestJet. Atlantic Coast Airlines also said it plans to use Open Skies for its new low-fare unit. Navitaire has made inroads with major carriers as well, backing American Airlines' new corporate booking portal
(BTN, Sept. 8) and providing technology to Carlson Wagonlit Travel for direct connections with American, Continental, Delta and United.