August 2002 Newsletter

Articles of Interest

The miracle of unprofitable flight
By Caroline Daniel
Financial Times; Jul 24, 2002

The best thing anyone could say about the latest results from America's largest airlines was that clearly they had not been embellished by questionable accounting practices. "Nobody in their right minds would make up numbers like these," said Don Carty, chief executive of American Airlines.
Investors are unlikely to be grateful for such small mercies. The largest US airlines lost about $1.4bn (ý890m) in the second quarter, on top of about $2.4bn in the first and more than $12bn last year, excluding a federal bail-out set up to stave off simultaneous bankruptcies after September 11.
Nor is there an end in sight. Losses for this year are expected to hit $5bn and a return to profit is not expected until 2004. Last week Jake Brace, finance director at United Airlines, spoke for many when he said: "The revenue environment simply stinks." Click Here for the complete article.

Biz Fares Up As Carriers Fold In Fuel Surcharges
Business Travel news

Business fares offered by U.S. carriers this week were up 2 percent year over year and 3 percent versus last week, according to the latest information from Deutsche Bank Securities and Harrell Associates. Various sources confirmed the increase resulted from major carriers matching Continental Airlines' move to eliminate separate fuel surcharges and instead include those $10 one-way fees into base fares (BTN, July 29). Though travelers will not see any immediate impact on the overall prices paid, it is unclear how carriers will adjust base fares should fuel prices fluctuate significantly. Incidentally, Deutsche Bank Securities noted jet fuel spot prices last week were down 4.4 percent year over year.

Bills would extend airport security deadline
By Michael Milligan

Some U.S. airports would get a waiver of the Dec. 31 deadline to begin screening all checked bags under two bills introduced in the House and the Senate.
Under current law, the Transportation Security Administration (TSA) is required to work with the airports to start screening all checked bags on commercial airlines for explosives starting Dec. 31.
But Rep. Kay Granger (R-Texas), a member of the House Transportation Committee, said only 75% of the nation's airports are expected to have the necessary screening personnel and explosives-detection devices in place by the deadline -- and most of those airports are relatively small. Click Here for the complete article.

Airline News

Four airlines slash senior discounts
Four major airlines have quietly dropped their 10 percent ticket discounts for senior citizens, and American Airlines said the change would probably be permanent. American, Delta Air Lines and Northwest Airlines all dropped the senior discounts on Friday, following a similar move by US Airways two weeks ago.

Delta Air Lines & United Airlines Announce Interline Ticketing
Delta Air Lines Inc. agreed to an interline arrangement with United Airlines that extends electronic ticketing to customers who travel on Delta and United in the same itinerary.
In a press release Tuesday, Delta said the agreement, which will take effect Aug. 14 , allows passengers to change itineraries between Delta and United without exchanging their electronic ticket for a paper ticket. Click Here for the complete article.

Continental Air Simplifies Fare Structure
Continental Airlines Inc. simplified its fare structure by removing the fuel surcharge from all fares in the U.S. domestic and trans-border Canadian markets and increasing the applicable fares by $40 to reflect the same final round-trip amount. In a press release Thursday, the airline said the cost to travelers isn't affected by this change. Click Here for the complete article.

United Eliminates Paper Tickets
As United Airlines continues to leverage technology to better serve its customers, the company has announced that it will move to full electronic ticketing by the end of next year. United will stop issuing paper tickets within the United States by July 2003; the carrier plans to issue only electronic tickets for all eligible itineraries, at all locations -- domestic and international -- by January 2004. Click Here for the complete article.

United and US Airways Announce Alliance
Revenue-starved United Airlines and US Airways announced a new marketing alliance that will include codesharing, frequent flyer reciprocity, joint airport lounge access and other customer benefits. The agreement, expected for weeks, is a huge step forward for the one-time merger hopefuls and represents a crucial cog in their respective strategic recovery plans. Click Here for the complete article.

US Airways tightens passenger deadlines
US Airways has revised its check-in policies. US Airways passengers must now be at the gate 15 minutes before departure rather than 10 minutes before. Baggage check-in must be completed 30 minutes prior to scheduled departure.

Hotel News

Gas. Food. Lodging. Only from Choice Hotels

This summer you can get a free McDonald's® Extra Value Meal® and a $5 gas card when you stay two nights at any participating Choice hotel. The following are Choice Hotels: Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Mainstay Suites. Call your travel agent for the complete details

Car Rental News

Especially For You

Hit the highway with a little help from Avis and your travel agent! Reserve an Avis Intermediate through Full Size 4-Door car in the U.S. or Canada and you can receive a one-car group upgrade at no extra charge. An Advance reservation with request for upgrade is required. Offer valid on a weekend, weekly or monthly rental. Subject to complete Terms and Conditions on back. Rental must begin on or before October 31, 2002. For information and reservations, contact your A & I travel agent.

This coupon is available only through your travel agent.

Planning ahead means savings nationwide
with Alamo

Book now for nationwide saving beginning 8/18/02. There s no better time to finally go out and visit friends, see the glorious sights, or just take the road less traveled. So keep all your travel maps handy and rent with ease from Alamo.

Nationwide rates
Fullsize car	$39/day	$189/week
SUV	$44/day	$219/week

Travel Tips

Concerned About Flight Delays?
Go to www.fly.faa.gov to check and see how long delays are and what the reasons are.

Changes in Amtrak's Carry-On Baggage Policy
Amtrak has limited carry-on bags to two and has started requiring luggage tags containing name and address, according to wire service reports. The carry-on limit will be gradually enforced and does not apply to purses, briefcases or laptops.

American airlines Drops Most Special Meal Requests
American has discontinued special meal requests, except for dietary and religious meals.

Travel & Leisure