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Airlines..
US Carriers Improve Performance in 2003
According to the Air Travel Consumer Report, consumers filed fewer complaints with the
government about airline service in 2003 since they were first complied in 1970. A total
of 5,980 complaints were filed in 2003 compared with 9,466 in 2002. The carriers, however,
had lower results for on-time performance and mishandled baggage. On-time performance was
slightly lower in 2003 at 82 percent; the record in 2002 was 82.1 percent. U.S. carriers
reporting mishandled baggage posted a rate of 5.69 reports per 1,000 passengers in December,
up slightly from November's 3.54 rate. (Source: USA Today)
Airlines Impacted by Fuel Costs
The high price of jet fuel and its offsetting impact on otherwise effective cost-containment
goals was the hot topic in the latest round of airline quarterly earnings report. Airlines spend
hundreds of millions of dollars for every penny increase in the price of fuel, thus carriers
oftentimes defend themselves by hedging their fuel purchases at lower prices. According to Business
Travel News, many travel managers prefer to see airlines simply raise fares to cover fuel costs
rather than selectively applying fuel surcharges on certain routes and withholding them from other,
more competitive routes. (Source: Business Travel News)
Germany to Use Iris Scan
Travelers at Frankfurt airport can now enter Germany with a three-second scan of their eyes,
providing they sign up for a test project for iris recognition technology. Passengers in the
six-month program still go through regular security controls, but can bypass conventional passport
checks. They can simply put their passport though a scanner, take a quick look at a camera and a
few seconds later enter the country. To qualify, passengers would need background checks by German
border police, a machine-readable passport, be citizens of the European Union or Switzerland,
register at the airport and have an iris scan on file. The test is part of efforts in many countries,
especially the United States in the wake of the September 11 attacks, to extend the use of biometric
technology -- using fingerprint, eye or facial recognition scans -- to track travelers and immigrants,
while also cutting down on time spent in line. (Source: AirWise News)
Southwest Effect Hits Philadelphia
American Airlines intends to comply with the Federal
US Airways and other carriers have dramatically slashed some of their fares from Philadelphia
International Airport to compete with Southwest Airlines'. The reduced fares and the additional
air travel are expected to stimulate the region's first example of what has been called
"the Southwest effect." When Southwest started flying between Baltimore and Providence in 1996, the
sharp drop in prices pushed up traffic on the route by more than 800 percent. Business travelers
are likely to respond favorably to Southwest's fares because the airline does not require a
Saturday-night stay away from home to get a bargain, as most major airlines mandate. (Source: The
Philadelphia Inquirer)
Topaz Shows Business Air Discounts Beat Internet
Topaz International said its latest study found airfares for business travel itineraries available
on various Internet sites, including Orbitz, Expedia and Travelocity, averaged $69 higher during 2003
than airfares for those same itineraries booked through a designated travel agency or the online tool
it supports, using negotiated corporate rates. The company further indicated that the larger the
corporate buyer, the larger the difference, with companies that spend more than $100 million on
air travel enjoying an average savings of $136 compared with the Internet, and those spending under
$20 million seeing a $32 average difference. (Source: Business Travel News)
Car Rentals
Car Rentals Raise Rates
Almost all the major U.S. rental companies have raised prices by about $5 on daily rentals, and
$20 for a full week. If the increase in rates remain, it will be the first broad price jump in two
years. Leisure travelers will be impacted most by the higher rates as corporate business-travel rates
tend to be set by negotiated contracts. But the National Business Travel Association projects that even
corporate rates will start to rise this year, increasing around 2 percent, due to the growing trend of
companies using rental cars for short trips instead of flying. (Source: Wall Street Journal)
Air Travel Security Update
US Plans for Inspectors in Overseas Airports
The United States' Homeland Security Department is planning to station American inspectors in foreign
airports to screen passengers. The initiative, which is still being developed, would aim to identify
and catch possible terrorists before they board a US-bound plane. US customs is considering seven
specific cites but has yet to seek support from host countries. (Source: WSJ)
European Airports Need Security Funds
European airports are pushing for the kind of government funding US airports are receiving to ensure
security for air travelers. Changing security needs are pushing airports to introduce sophisticated
new equipment, such as a system being tested at Sweden's Umea Airport that identifies boarding passengers
by matching their iris with an image of it printed on a smart card carried by the passenger. Airports
association ACI Europe has claimed that the European airport industry has been faced with hundreds of
millions of euro in costs for additional security measures and that most European governments have
refused to fund these measures. (Source: Reuters)
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our Preferred Extras rates are available through all distribution channels.
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