FAA Annual Traffic Forecast and U.S. Transportation at Historic High

U.S. Airlines 1st Quarter Outlook
The U.S. Airline industry suffered through another difficult first quarter, plagued by mounting fuel costs, debt obligations and the severely depressed revenue environment. Meanwhile, major carriers are restoring capacity at a brisk pace to defend markets from one another from rapidly expanding low-cost competition. The result was more red ink for the legacy carriers and small profits for discount airlines. (Source: Business Travel News)

American Airlines and British Airways Launch Interline E-Ticketing
American Airlines and British Airways have launched interline electronic ticketing. Customers can use a single electronic ticket when their itineraries include travel on American Airlines and British Airways. Passengers with e-tickets also have the ability to rebook between American Airlines and British Airways without having to obtain a paper ticket first. Interline e-tickets can be issued by AA and BA through their respective reservation centers, and at airport locations, ticket offices, and travel agencies. In addition to British Airways, American has interline e-ticketing with four other One World partner carriers - Cathay Pacific, Finnair, LanChile and Qantas. Within a few weeks, American plans to implement interline e-ticketing with OneWorld partners Iberia and Aer Lingus. (Source: American Airlines)

Airports Brace for Delays as Travel Rebounds
Many travelers are likely to face maddening waits in airport security lines this summer, as traffic returns to levels not seen since the gridlocked summer of 2000. Starting in June, airlines expect to ferry about 65 million passengers a month, a healthy 12% jump from last year. While that's good news for airlines, which are struggling with labor woes and high jet-fuel prices, it's a potential nightmare for passengers. That's because -- with Congress pushing the over-budget Transportation Security Administration to cut costs this summer -- there will be at least 5,000 fewer screeners staffing security-checkpoint sites, a 10% drop from last year. Airlines, with the help of the TSA, recently compiled a private list of airports most at risk for lengthy summer security-screening delays. In the last week alone, that list has grown from 15 airports to 25. They include some of the busiest airports in the country: Atlanta, Las Vegas, Houston, Los Angeles, New York-Kennedy, and Chicago O'Hare. (Source: Wall St. Journal)

Airlines against Extra Security Charges
The government wants $435 million more from the airline industry for passenger screening, but the airlines don't think they should have to pay. Air Transport Association President James May said the carriers already give the government about $2 billion every year to prevent terrorist attacks. May said financially struggling airlines can't pass new taxes onto passengers because of intense competition. The $435 million could mean the difference between the industry's breaking even and losing money this year, he said. A Homeland Security Department spokesman said the Bush administration simply wants the airlines to pay their fair share for national security. The Bush administration asked for more than $5 billion for commercial aviation security next year. (Source: The Associated Press)

U.S. Orders Further Cuts in Air Traffic at O'Hare
The Federal Aviation Administration will order deeper cuts to reduce traffic at O'Hare Airport in Chicago as delays became worse there in March. The FAA had won agreement from the two biggest carriers at O'Hare, United Airlines and American Airlines, to reduce flights 5 percent from 1 p.m. to 8 p.m. in January. Transportation secretary, Norman Y. Mineta, said the two airlines would cut flights by 2.5 percent more during that period and reduce flights from noon to 1 p.m. as well. The restrictions take effect June 10 and will continue until the end of October, when the thunderstorm season officially ends. (Source: Washington Post)

Air Travel Security Update

Biometric Passport Deadline Delayed
U.S. Secretary of State Colin Powell has confirmed that the deadline by which visitors to the United States from visa-waiver countries must possess biometric passports will be pushed back from October 2004 to November 2006. Addressing the House Judiciary Committee, Powell urged Congress to endorse the postponement after admitting no country in the world, including the United States, is likely to have introduced workable biometric passports by the original deadline. Powell also confirmed that visitors from the 27 countries that have visa-waiver arrangements--which include most E. U. nations, Japan and Australia--will have to have their photograph and fingerprints taken on arrival starting October 26. This is the same process that was introduced for visitors with visas in January of this year. (Source: Business Travel News)

Traveler Behavior Study Results ...

The Traveler Behavior Study, recently published by Northstar Travel Media, includes many findings that are of interest to travel managers. Northstar surveyed a random sample of 300 business travelers throughout the US on their travel habits and preferences.

Northstar found that 47% of travelers believe that their companies have a formal travel policy, while 13 percent admit that they don't know if a policy exists. Furthermore 42% of respondents say that they are expected to use a designated travel agency and of those only 67 % always do so when booking business travel. What are the reasons that 33 % choose to book outside the designated agency?

Many companies are not taking full advantage of negotiated supplier discounts because travelers don't know about these deals or are unsure of their company's preferred suppliers:

Some respondents do know about their preferred companies suppliers, but chose not to use them. Here's why:

Airlines..

Air Travel Security Update

Traveler Behavior Study Results ...