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Travel News September 2005

Data-sharing deal challenged by European Parliament. The European Parliament is challenging an agreement between Europe and the U.S. on sharing airline passenger information. The European Commission and EU governments in 2004 reached a deal with the U.S. to share data. The agreement stipulates that European airlines must turn over detailed personal data about passengers who travel to the U.S. The European Court of Justice in Luxembourg will hold hearings on the issue Oct. 18. Some members of European Parliament believe the agreement violates privacy laws. Sep 30, 2005

Airlines ask for relief from fuel tax, cite storm's impact. The airline industry needs relief from soaring fuel prices exacerbated by Hurricane Katrina, said James C. May, president of the Air Transport Association. The ATA is asking Congress to waive a jet fuel tax for one year. The proposal would save the airlines $600 million. Other industries, including manufacturing and oil, say they were damaged by the storm and are lobbying for aid. Sep 28, 2005

Airline travelers say delays have become the norm. Travelers who book late-afternoon flights often face long delays related to weather or problems in an airline's network. Storms this summer caused extensive delays at Atlanta's Hartsfield-Jackson International Airport. Some fliers say they have come to expect extensive delays and are more tolerant of long waits in an airport. Sep 28, 2005

Storms force airlines to cancel thousands of flights. Hurricanes Katrina and Rita forced airlines to cancel thousands of flights. Many passengers have tried to rebook their flights, but planes are flying near capacity. Airlines will lose revenue for passengers that they cannot rebook. Before the two storms struck, the Air Transport Association expected airlines to lose between $8 billion and $10 billion this year because of high fuel costs and low-fare competition. Sep 27, 2005

International carriers add seat-beds to business cabins. Many big international airlines now offer seat-beds that allow travelers to sleep during long flights. Singapore Airlines, Lufthansa and Cathay Pacific are among the airlines offering the beds. Financial problems have prevented most large U.S. carriers from adding seat-beds. Seatmaker B/E Aerospace said business has jumped in the past four years. Sep 27, 2005

Budget carriers expand to international destinations. Several low-fare airlines are adding flights to international destinations with hopes of winning more market share away from bigger rivals. The US Airways-America West merger could create low-cost European service, analysts say. But low-fare carriers face challenges in the international market, including the need to purchase new planes capable of flying longer distances. Sep 26, 2005

New Web site finds seat neighbors for travelers. A new Web business sets out to match solo travelers with compatible people to sit next to during airline flights. A traveler buys a ticket and then goes to the AirTroductions site, creates a profile and writes what sort of person he or she would like to sit next to. The site, which currently has fewer than 800 users, then searches through other profiles for a seat mate. Sep 26, 2005

Evacuees clamor for tickets out of Houston: Residents hoping to flee Houston before Hurricane Rita strikes are facing high airline ticket prices. Airlines designated a certain number of inexpensive seats per flight, and most have already been sold. Many flights are completely booked. Sep 23, 2005

Airlines watch as Hurricane Rita approaches Texas. Airlines prepared to stop service and evacuate workers and planes as Hurricane Rita approached Texas. As of Wednesday, no major airlines had announced flight cancellations in Gulf Coast cities, but all were tracking the storm closely. Sep 21, 2005

Airlines to feel higher fuel prices from hurricane. The aftermath of Hurricane Katrina is expected to push up energy prices in many industries. Some businesses, including airlines, cannot raise prices enough to cover the higher costs. "Although airlines have recently passed through a few price increases, they pale in comparison to the magnitude of the sustained rise in jet fuel prices," said John Heimlich, chief economist of the Air Transport Association. Sep 16, 2005

Passengers contribute to airlines' financial woes. Passengers are partly to blame for airline bankruptcies, writes Detroit Free Press columnist Ellen Creager. Consumers are now willing to buy their tickets based on price alone, a practice that rewards discount carriers and punishes larger legacy carriers. Legacy carriers are then forced to lower their prices to levels that do not cover costs, she writes. One analyst said large carriers must boost prices 15% to return to profitability. Sep 16, 2005

Several airlines plan to restart New Orleans operations. Several airlines plan to restart service to New Orleans in the next few days. Continental Airlines will resume flights Monday, and Southwest Airlines said it will announce a startup date soon. American Airlines plans to resume service Nov. 1, but indicated it may move that date up. Delta Air Lines planned to operate flights Wednesday and said it expected to add more later in week. Northwest Airlines on Tuesday operated the first commercial flights since the city was hit by Hurricane Katrina. Sep 15, 2005

For airlines, overcapacity means lack of pricing power. It's difficult for passengers flying in packed jetliners to understand airline executives who say the industry has an overcapacity problem. Airlines, however, say they reach a point of overcapacity when they cannot charge enough to be profitable. It is unclear if reducing the number of seats will help airlines lift airfares. Sep 15, 2005

Layovers in non-hub airports increase. Travelers are connecting through small airports more frequently as smaller planes fly more routes. Smaller airports offer fliers less congestion and cheaper fares. Greater passenger traffic, the use of regional jets and more advanced flight-scheduling software are some of the conditions contributing to the higher number of layovers in non-hub cities. Sep 14, 2005

France's airline tax plan gets limited support. France's proposal for an international tax on airline tickets to aid poor countries did not receive wide support at an EU finance minister meeting. Germany and Spain said they have not formally decided to support the plan, and Austria denounced it. France has said it will raise money with the new tax as early as next year. Sep 13, 2005

On-time punctuality figures for the charter carriers at Gatwick have been published. They are divided into within 15 minutes (which really means more or less on time), and one hour, which makes the flights late. Thomsonfly is best with 82.2% and 95.4%, followed by First Choice 76.5% and 93.8%. MYTravel is 67.6% and 87.8%, Monarch 64.7/86.9%, Thomas Cook 68.4/86.1% and Excel, which seems to have lost the plot in getting aircraft away on time at 58.6% and 84.9% within 60 minutes. At Manchester Thomson are again first 85.4/94.7% and Excel Airways again bringing up the rear but this time 69.5% getting away within 15 minutes of their allotted slot and 85% within the hour. http://www.caa.co.uk Sep 12, 2005

Autumn a great time to travel for less. Travelers who want to save money will find abundant bargains in the fall, especially on last-minute trips, experts say. Airfares dip between September and November as airlines try to fill planes; many hotels offer specials as well. Sep 9, 2005

Web gains larger share of corporate travel bookings. Internet-savvy workers are increasingly comfortable booking corporate travel on the Web, experts say. The growing popularity of corporate travel Web sites is changing how executives book their trips. "It's about empowering the executives to make their own travel plans without the aid of other employees. They're learning to use online booking tools, and it's becoming every man for himself for travel bookings," says PhoCusWright analyst Lorraine Sileo. Sep 9, 2005

Airport Wi-Fi slow to catch on with business travelers. Just 25% of U.S. business travelers take advantage of high-speed, wireless connections at airports and inside jetliners, according to a study by Gartner. The number of hotspots has grown over the past several years. The study found travelers are ignoring Wi-Fi in airports because they don't know what equipment they need to use the technology, how to connect or why they should use it. Sep 8, 2005

Airlines continue free rescue flights out of New Orleans. About 15 airlines operated 140 flights out of New Orleans Friday through Tuesday, evacuating 12,000 people. The airport opened only for relief flights, which were organized by the Air Transport Association. "It's amazing how it all came together," ATA spokesman Jack Evans said, noting the carriers did not charge the travelers. The Federal Emergency Management Agency may reimburse the companies for fuel and insurance. Sep 7, 2005

Katrina complicates business travel plans. More than a week after a massive storm pounded the Gulf Coast, business travelers are reassessing their plans as airports and hotels in the region remain closed. Some travelers are reconsidering previously planned trips to areas prone to hurricanes. "This is the first time in recent memory that a major regional business center has been essentially eliminated for a period of weeks or potentially longer," said Sabre Holdings Corporate Solutions President Ellen Keszler. Sep 7, 2005

Glum predictions for fall travel thanks to Katrina, labor woes. Prices were already rising before Hurricane Katrina struck a devastating blow to the travel industry, and fall 2005 may make 2001 seem tame to business travelers, The New York Times reports. Most road warriors will have to adhere to their schedules amid delays, potential airline bankruptcies, labor disputes and surging costs. Sep 7, 2005

Airlines send rescue flights to New Orleans. Airlines have been flying supplies into New Orleans and transporting evacuees out of the hurricane-stricken city. More than a dozen carriers participated in the effort, which was organized by the Air Transport Association. "This extraordinary civilian airlift is unprecedented in U.S. history and is a shining example of how America can come together to help those in need," said James C. May, president and CEO of the trade group. Sep 6, 2005

Travelers turn to text-only Web sites. Text-only Web sites are making it easier for travelers to manage their plans with a cell phone or smart phone. Some airlines, including Delta Air Lines and American Airlines, have maintained text-only wireless sites for years, but other companies have recently added the sites. Some travel companies are adding limited graphics to their text-only sites. Sep 6, 2005

Hurricane casts doubt on disaster response system. Hurricane Katrina revealed flaws in the government's ability to respond to a national disaster, government officials and experts said. The government has spent billions retooling its federal disaster response system since the terrorist attacks in September 2001. The Department of Homeland Security had no model for coping with the flooding in New Orleans after Katrina's floodwater breached the city's levees. Experts say the response to Katrina indicates the nation could not handle a large-scale terrorist attack. Sep 6, 2005

France has confirmed its plan to introduce a levy on airline tickets from next year, to fund aid for Africa. A pet project of president Jacques Chirac, the "tax" is bound to be resisted by the airlines, even possibly by Air France. Chirac claims to have the support of Algeria, Brazil, Chile, Germany and Spain and says he will raise the matter at the United Nations later this month. A tax of US$1 per ticket could raise US$10bn a year, to fund campaigns against diseases in Africa. The idea has found no support in the United States and in Europe both Greece and Ireland are said to be luke-warm. http://www.airfrance.com Sep 2, 2005

Communication vital in closing airports in foul weather. The airlines' reaction in New Orleans to Hurricane Katrina demonstrates that authorities, airlines and airports must agree upon a closing time for an airport struck by inclement weather, writes The Wall Street Journal's Scott McCartney. A fixed closing time would make the carriers' schedule more predictable, he writes. In New Orleans, several carriers continued operating Sunday, while others canceled all flights, leaving travelers stranded. Sep 2, 2005

Federal government sticks to new passport rules. The federal government is sticking with plans to require travelers from allied nations to present a passport or other secure document before entering the U.S. The State Department and Department of Homeland Security plan to adopt the new rule by the end of the year. However, the requirements will not affect travelers from Canada, Mexico, the Caribbean, Bermuda and South and Central America until Dec. 31, 2006. Sep 2, 2005

Airlines cancel flights to New Orleans, Gulfport, Miss.: Several airlines have canceled fights to New Orleans and Gulfport, Miss., until next week. Delta Air Lines and American Airlines are among the companies canceling flights to New Orleans. American does not expect to resume scheduled service to New Orleans until Tuesday at the earliest, a spokesman said. Continental Airlines has also canceled some New Orleans flights. Sep 1, 2005

Airlines brace for spike in fuel prices caused by storm. A spike in fuel prices caused by Hurricane Katrina will put an additional strain on the ailing airline industry. John Heimlich, chief economist for the Air Transport Association, said some airports could run out of fuel in two weeks. "By then, we'd better have this problem rectified or we'll have a serious problem," Heimlich says. Refineries that account for 13% of the daily production of jet fuel are out of service. Rising fuel costs could hurt airlines trying to emerge from or stay out of bankruptcy protection. Sep 1, 2005

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