ATA To Announce New Business ClassLow-cost carrier ATA Airlines, the nation's 10th-largest commercial airline, tomorrow plans to announce a new business class for its scheduled service fleet. Beginning in August, ATA will roll out the new product across its entire network. A premium product is a departure from the traditional low-cost strategy, but a spokesperson said it will be a cornerstone of the airline's corporate sales efforts. Walk-up business class fares will be capped at $399, just $100 more than the cap on walk-up coach fares. "We researched our customers and they told us they wanted a business class," said the spokesperson. The new premium cabin particularly will help attract business on ATA's new transcontinental services
(BTN, Oct. 20, 2003).Air France Awaits Ruling On KLM Merger…After a two-week extension, the European Commission on Feb. 11 is scheduled to decide on the proposed merger between Air France and KLM Royal Dutch Airlines
(BTN, Oct. 6, 2003). Regulators either will approve the deal, which would create Europe's largest airline group and a much stronger SkyTeam alliance, or launch an in-depth inquiry. Various European press reports have speculated that concessions offered by the airlines—namely surrendering slots on routes that would lose competition—will be sufficient for regulatory approval. In other SkyTeam news, the alliance's steering committee approved Russian carrier Aeroflot's bid for membership. Aeroflot flies to 108 destinations in 54 countries.
…And Targets Corps. For New Niche ServicesAir France last month introduced Dedicate, a new product offering direct, scheduled service to remote destinations in the Middle East and Central Asia, tailored for companies primarily in the energy industry. The services will use a dedicated fleet of reconfigured Airbus A319 narrowbody jets and "make life easier for professionals traveling to construction projects, production sites and other major areas of economic activity."
TQ3 Marketing Amex Card To ClientsTQ3 Travel Solutions this month began offering the American Express corporate card to large and midmarket clients and the business card to small business clients throughout Europe. TQ3 said this year it will market Amex products in 20 countries, including the United States. TQ3 this quarter will offer co-branded Amex cards to clients in Germany. Amex said this is the first such co-branded partnership with a travel management company, but said there are no plans to produce such an offering outside of Germany. Calling American Express the "world's market leader in corporate expense management solutions," TQ3 CEO Marc Hildebrand said in a statement, "only American Express can provide our customers with a top quality card solution on a global basis."
Star Alliance Carriers To Add Intercontinental RoutesUnited Airlines on June 10 will launch nonstop service between Chicago and Osaka, and between Washington Dulles and Zurich. In October, it will add nonstop flights between Chicago and Buenos Aires. The carrier, however, on May 1 will cease nonstop service from Miami to both Buenes Aires and São Paulo. To fill the void, Delta Air Lines said it intends to resume nonstop service from Atlanta to Buenos Aires, effective Dec. 1. United's Star Alliance partner Air New Zealand, meanwhile, on June 30 will begin nonstop flights between Auckland and San Francisco, the carrier's first new U.S. gateway since 1995. Another Star carrier, Singapore Airlines, last week began nonstop service between Los Angeles and Singapore, a route it called "the world's longest scheduled nonstop flight."
Hilton, Starwood 2003 Results Show Strong FinishEarnings reports from the first of the large multi-brand hotel companies to announce 2003 results, Hilton Hotels Corp. and Starwood Hotels & Resorts Worldwide, indicate the lodging industry is still short of a credible rebound, following a severe two-and-a-half-year downturn. Revenue per available room, a key indicator of profitability, fell from 2002 at each Hilton brand except for Hilton Garden Inn, its midprice with food and beverage chain. RevPAR for Starwood hotels worldwide rose 1.3 percent over 2002, yet was flat for hotels in the critical North America market. Performance for both companies improved as 2003 progressed, with fourth-quarter numbers surprisingly strong, fueling management hopes for 2004. Strongest in the fourth quarter were downtown hotels, as opposed to the suburban midprice hotels that previously had been outperforming other sectors.