HAPPY NEW YEAR...

.....and to all a safe flight...

"The use of traveling is to regulate imagination by reality, and instead of thinking how things may be, to see them as they are."
Samuel Johnson

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No Slack in Air Travel

One thing that became painfully clear in the latest weather disruption in the eastern seaboard is the complete lack of wiggle room and flexibility to counter such events as storms, volcanoes, strikes or other disruptions.

Airlines have continuously cut capacity to the bare bones and that almost all flights are operating at full capacity. So when flights get cancelled or delayed, displaced passengers are for all intents and purposes out of luck. Later flights are already fully booked and those passengers missing their connections or did not make their original flights have nowhere to go.

As this blog is being published, thousands of unlucky passengers are stranded, sometimes for days at airports unable to make flights going from gate to gate, standing by for the next flight and the next, and they are all full.

The tarmac horror continues as thousands of passengers arriving at JFK yesterday were stranded on the tarmac between Monday and Wednesday due to lack of gate facilities. Delays on a British Airways arriving from London was 7 hours. There were more than twenty flights with severe delays.

These situations need to be addressed through a stronger and updated "passenger rights bill" that requires airlines to do more to accommodate stranded passengers, offer them food, lodging and other necessary amenities and get them to their desired destination as soon as possible.

It is time that airlines treat passengers as valued customers, and not like pieces of luggage.

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Post Christmas Travel Mess-Update

December 27, 800AM Update
All three airport in the Washington Metro area are open. However, significant cancellations and delays are abound.
Depending on the origin and destination, flights may be cancelled or delayed.

Travel to/from the northeast is significantly curtailed. LaGuardia is scheduled to re-open at 2:00 pm today, Newark at 4 pm, and JFK at 4pm. Aircraft re-positioning will be a big factor in delays and cancellations. (Open times subject to change)

Amtrak is struggling with trying to resume service and delays are to be expected in the northeast corridor.

Before you head out, please check your flight status at www.premieretravel.com

Mid Atlantic Storm Disrupts Travel

A slow moving snow front is hitting the mid atlantic region, moving north.
Before travelers head to airports, please check your flight status at www.premieretravel.com, or your airline website.

Some airlines have issued waivers for travelers impacted by the weather conditions.
Amtrak has cancelled late train service between Boston and New york.

www.premieretravel.com

White Christmas Visits South

A rare Christmas day snowfall is expected to affect travel in the south. Southern airports such as Nashville and Atlanta may be impacted by conditions that will affect air travel.

Airports in Florida, Georgia and Tennessee are not equipped for de-icing, so any snowfall/icing may cause severe disruptions.

Meanwhile, Europe continues to dig itself out of last week's storm. Under blue skies this morning, Heathrow was trying to unclog the bottleneck of flights that have been delayed or cancelled the past few days, and more travelers will finally make it home for the holidays.

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Connecting in London Heathrow, A Relic from the Past

London Heathrow, known by its acronym LHR, is one of the world's busiest airports. It operates at or near capacity. 2010 has not been a good year for Heathrow.

First there was the painfully protracted "industrial action" by the unions against British Airways, then who can forget the volcanic disruptions that seemed to zero in on Heathrow and all of England. The final straw is the latest snow storm of the past weekend, resulting in tens of thousands of travelers sleeping on the floors of all terminals as hundreds of flights were cancelled.

When an airport like Heathrow is operating at over 90% capacity, the smallest weather event can wreak major havoc and can disrupt travel all over Western Europe and beyond.

Owned and operated by the British Airport Authority (BAA), a privately held Spanish company that went into major debt to acquire Heathrow and other British Airports, facilities to accommodate arriving and departing aircraft and passengers are insufficient by western standards. Aircraft that seemingly should arrive on time are asked to loop around for half an hour or more over London, spewing unnecessary pollution because there are not enough gates, or due to congestion of arriving aircraft. De-icing equipment and other logistical vehicles that can clear snow are also in short supply.

The focus of BAA has been to expand the "Duty Free" shops and other for profit items. Ironically, this is good strategy for making profit as the captive audience of stranded and delayed passengers have to eat, drink and shop to kill time. May be the next thing should be cot rentals so that passengers who miss their flights can nap a little more comfortably...

Avoiding Heathrow for connecting flights might be the wisest choice.

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American Airlines Pulls the Plug on Orbitz

American flights no longer display on Orbitz as the dispute between the travel website and the airline crossed a new threshold.

In a trend that will likely develop further in 2011, some airlines claim that they want to "enhance customer experience" by having a direct connect link to airline inventory bypassing the need for Global Distribution System model.

Airlines already have their own websites to sell seats, but now the squeeze is being applied on service providers such as GDS systems and online agencies.

While airlines are free to sell their products the way they determine, such move would fragment the choices available to the traveler by making comparison shopping difficult or impossible.

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Travel Waivers Issued for Europe

Most major airlines are issuing waivers and relaxing restrictions due the significant weather disruptions wreaking havoc in Western Europe.

United and Lufthansa, among others, have expanded and extended waivers for travel to/from/through the following airports at least through December 24:
Paris, London, Frankfurt, Munich, Brussels and Amsterdam.

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Deep Freeze hits European Travel Again

Premier League soccer games were canceled throughout Northern Europe. Naturally, flights in and out of Germany, Holland, England and other nearby airports were canceled dealing a fresh blow to pre-Christmas travel plans for tens of thousands of passengers.

With flights delayed, diverted and canceled, it will take several days to sort this one out.

Passengers are well advised to check with their airlines before heading to airports about the status of their flights.
Many carriers have issued waivers to deal with the latest disruptions.

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American Airlines Leads a New Round of Fare Hikes

While some carriers announced "New Year's Sale" on limited routes and seats, American Airlines increased fares by an average of $10 per round trip to address "supply and demand" issues and recent increases in fuel costs.

The fare increase was immediately "matched" by other carriers, and will likely stick. Typically, when other carriers fail to match the lead carrier will abandon the fare hike for fear of losing market share.

While airlines may trumpet occasional "fare sales", fare hikes and fuel surcharges are done quietly.

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Ancillary Fees Windfall 2010: $3.4 Billion on Baggage

U.S. Airlines are on track to reap in excess of $3.4 billion in 2010 on baggage fees alone.

With the exception of Southwest, airlines have found the way to nickel and dime their way to profitability by passing on costs to the traveler such as "fuel surcharge", and keep dreaming up a variety of fees to charge. The baggage fee is the biggest money maker for airlines, followed by a sundry of items such as "aisle seats", "exit seats", "extra legroom seats", "economy plus seats", "upgrade fees and co-payments", "snack packs" and "blanket/pillow combo" fees.

The trend is expected to continue in 2011 and beyond as revenue management of most airlines keep "introducing" more fees...

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Fare Discounts by United for The New Year

United has kicked off a fare sale and promotion for January 2011...
The nationwide deals are excellent, but seats will be limited.
Sample Fare: Washington-Chicago $89 * one-way, based on RT plus fees
Valid for travel from January 4- March 9

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Cold Snap in Europe Trips Travel

A snowy cold snap gripped most of Europe causing massive cancellations of flights that rippled through the continent.
The Eiffel Tower in Paris was closed, and roadways were treacherous. Two of London's airports were closed overnight.

Chaos reined all over as trains and other transportation modes were all impacted. Airlines had to scramble to adjust their schedules and most have issued travel waivers for travel to/from the affected airports.

The timing could not be worse as many travelers are beginning to make their way home for the holidays, and even couple of more days may cause big inconveniences to tens of thousands of travelers.

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U.S., Brazil Agree to Ramp Up Flights

The U.S. and Brazil have agreed to end the limits of flights between the two countries. The process will be gradual and will be entirely lifted by 2015.

28 additional flights will be added in 2011 and another 28 in 2012.

Overall, this is very positive news for travelers to/from the U.S. as more services will be introduced between several cities in both countries.

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American Airlines Direct Connect- Another Threat to Travel Distribution

An Illinois court has stepped in to block American Airlines from pulling its listing of flights from Orbitz, an online ticketing website.

In the continuous battle between airlines and Global Distribution Systems (GDS) that aggregate travel information to suppliers such as online agencies and travel agents worldwide, American had earlier announced a termination of its display on Orbitz.

The rationale of American for going to "Direct Connect" has continued shifting since the announcement which was made, and travel providers from the U.S., Europe and Australia have logged their strong objections to what they deem is a move to fragment and control travel information.

If other carriers follow American's lead, the traveling public will not have access to comparative information about fares and/or ancillary fees. This is a blatant attempt to fragment travel content in a way that is contrary to the interest of the traveling public.

Kevin Mitchell, Chairman of the Business Travel Coalition added that " (American's) Direct Connect appears to be a solution in search of a problem..."

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Spain Declares "State of Alarm"

Spain moved decisively today to end a strike by air traffic controllers that has effectively shut down civil aviation and left tens of thousands of travelers across the country stranded.

The government threatened striking workers with arrest and prison terms under military laws. Workers started returning to work late Saturday, but the situation remains chaotic.

Deputy Prime Minister Alfredo Perez Rubalcaba said most Spanish airports were still not operating and apologized to irate travelers who spent Friday night sleeping at airports on what was supposed to be the start of a long holiday weekend.
He accused the air traffic controllers of trying to blackmail the country and warned that even if they go back to work soon it will take some time for Spanish airports to return to normal.

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Is TSA Listening to Air Travelers?

TSA insists that it is listening to the wide barrage of criticism regarding the new body scanners and the "enhanced" pat-downs. At the same time TSA said it will not back down from subjecting the vast majority of travelers to the new procedure.

New surveys are showing that the ever changing and intensive procedures are adding to the already existing hassles of air travel and will likely dampen demand in 2011.

In fact, Amtrak has seen a surge in demand in the northeast corridor of Boston-New Yor-Washington, thanks to a combination of factors that include the new TSA requirements. Amtrak took notice and the train fares have been "modified".

While the majority of the traveling public fully supports TSA's mission of securing our air space and preventing terror, most feel that there has to be a better way...

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A380 Super Jumbo Coming to Washington

Air France is the first carrier to announce that it will begin operating A380 service to/from Dulles Airport starting June 6, 2011.

The aircraft configuration includes 9 Premiere Class, 80 Business and 449 main cabin seats.

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Portugal Strike Paralyses Travel

A crippling nationwide strike resulted in the total cancellation of all flights into and out of Portugal. Train and bus service has also come to a complete halt.

The strike has been organised by two of Portugal's biggest unions in protest at the Government's austerity measures.

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Coming Soon: Prepayment of Ancillary Fees

Corporate travelers and managers may finally get their wish of a more streamlined travel service that incorporates the purchase of ancillary fees through their travel management companies.

USAirways is developing options to distribute ancillary services through travel intermediaries' Global Distribution Systems (GDS) bypassing the need to purchase these services separately at the airport.

GDS providers, airlines and IATA will cooperate to offer solutions for corporate travelers and managers who have complained about the ambiguity of these fees and the additional difficulties in accounting for them. A likely outcome will be a "Miscellaneous Charge Order" (MCO) that would enable agents to issue and report these sales through traditional clearing house methods electronically.


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Qantas to Resume A380 Service

Qantas is set to resume it's A380 Airbus services on Saturday November 27, but no flights on the super jumbo will be scheduled from/to the U.S. at least for the foreseeable future. Two flights scheduled this weekend will operate between Australia and London at a reduced thrust setting.

Reduced thrust, limited destinations and a reduced load (150 below capacity) is indicative of on-going issues that continue to dog the Trident Roll-Royce engines.

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Extreme Reactions To TSA Screening Continue

Organizers campaigning through the internet are calling for opt-out protests over thanksgiving holiday, one of the busiest weeks of travel of the year.

Business Travel Coalition (BTC) has called such contemplated actions "irresponsible", while at the same time squarely putting the blame on TSA. BTC urged the groups planning the opt-out event to cancel those campaigns and instead refocus the effort to the "highest levels in Washington" by conducting a complete review of TSA.

“The deployment of full-body scanners without a formal public comment process and sufficient medical and scientific vetting is one of the worst TSA abuses of authority since its creation,” stated BTC Chairman Kevin Mitchell. “The overly aggressive pat downs represent citizen-mistreatment in the extreme, especially if used as “punishment” when passengers opt out of full-body scans.

Passengers have complied with layer upon layer of new and changing airport security measures and protocols since 2001. However, an inflection point would appear to have been reached with the body scanner and offensive pat down issues where increasingly forceful push back from the traveling public should lead to an overall review of U.S. aviation system security. The current security screening process, and the inherent opportunity for abuse, is so over-the-top as to even invite mockery from former President George W. Bush on The Tonight Show with Jay Leno.

While layers of security represent a global best practice, a risk is that all manner of new security measures can be justified and independent scrutiny circumvented simply by hiding behind the “security layers” mantra. Importantly, treating all passengers transiting the aviation system as if they are equal threats to national security represents worst practice because it is ineffective, costly and distractive of better practices. The return on every dollar of investment in intelligence gathering, analysis and sharing within and across borders is orders-of-magnitude greater than dollars spent screening passengers at airports. The intent of Congress should be acted upon by TSA with respect to a true risk and security-based trusted traveler program that streamlines airport security and frees up funds to find the terrorists where they sleep, and before they arrive at our airports.

Premiere Travel supports the BTC mission of empowering corporate travel managers to influence issues of strategic importance to travel related matters.

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Congressman Call To Ditch TSA

The furor over the intrusive full body scanners and the aggressive pat-downs implemented by TSA has grown into a feverish pitch with angry travelers nationwide organizing and campaigning against the security crackdown.

Congressman John Mica (R-Florida 7th) is suggesting getting rid of the TSA altogether. He is calling the nation's top airports to exercise their rights to install private security that would supplant TSA. It's very explicit, it's like doing a nude photo shoot," Congressman Mica said. "I think we could use half the personnel and streamline the system," Mica said Wednesday, calling the TSA a bloated bureaucracy.

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Qantas A380 Fleet Remains Grounded

Qantas is likely to keep its Airbus A380 fleet grounded until at least early December as it works on problems with its Rolls-Royce Trent 900 engines, one of which recently broke apart in flight.

Qantas is scrambling to find replacement airplanes to make up for the loss of the super jumbos that will be out of commission until at least early December.

Should the problem prove to be a design flaw or issue with the Rolls-Royce engines, the grounding might be extended well beyond December.

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Coming To An Airport Near You-Very Intrusive Body Scanners

Ever increasingly annoying, inconsistent, and intrusive procedures continue to be rolled out at U.S. Airports.

The latest is the full body-scan radiation and x-ray technology that TSA has started implementing. Some scientists and two major airline pilots unions contend not enough is known about the effects of the small doses of X-ray radiation emitted by one of the two types of airport scanning machines.

Anything that emits radiation and has x-ray features should be well researched before the traveling public is subjected to it.

Wildly inconsistent procedures from one airport to another also remains an issue and a some of those TSA procedures have become arbitrary and subjective. For instance, a TSA employee insisted on removing "anything metallic" regardless of how small it is. This requirement was not mentioned on the return flight a day later.


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"Spamcation" Nightmare Cruise Finally Ends

November 11, 2010: The Carnival "Splendor", with 4500 on board limped in this morning towards San Diego Bay where passengers broke into applause upon disembarking.

The nightmare cruise finally ended after 3 nights of backed up toilets, dark cabins, limited power and spam food, and no HVAC. An engine room fire knocked out the vital systems of the modern vessel and she was unable to steer or cruise without help from tugboats.

Carnival will issue vouchers to passengers good for a free future "fun" cruise.

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Fuel Surcharges Make a Comeback

Airlines are beginning to assess new fuel surcharges as jet fuel prices surges up to the highest level of the year.
Lufthansa on Monday increased its fuel surcharges, and similar moves by other airlines could be on their way after oil prices on Tuesday hit a two-year high in New York at $87.63 a barrel.

Airlines don't waste any time when fuel prices go up. Despite some hedging, they are quick to implement the surcharges and very slow to remove them when prices decline.

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A Tiff Worth Keeping Track Of...

American Airlines announced last week that it would end an agreement with Orbitz Worldwide in displaying American's inventory in search results of the online booking company. Orbitz will not be able to display or sell seats on American Airlines.

This move could be the beginning of a long anticipated move by airlines to redefine the diplays of availability and selling that travel companies have through their Global Distribution Systems (GDS).

American Airlines wants travelers and travel providers to book American's seats through a "Direct Connect" system bypassing the general display of showing all flights. If implemented, this opening salvo will have a profound change on the way air travel is distributed. American wants to have more control over its content and wants to cut their distribution costs even further.

But is this practical?

If all carriers adopt the same strategy, it will eliminate the platform of being able to compare availability and pricing throughout the system, and travelers will not be able to receive efficient information that would allow them to make the best decisions.

American is choosing to pick on Orbitz, one of the smaller online players. But nothing precludes American or other airlines to apply the same strategy towards larger or smaller travel management companies.

Clearly, this step would be a setback for the traveling public if adopted widely.

The cost of airline ticket distribution is at an all time low of less than 2 percent of the fare, among the very lowest in any industry.

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Indonesia Volcano forces Flight Cancellations

Several airlines have temporarily suspended flights between Singapore and Jakarta because of volcanic ash spewing from Mount Merapi in central Java, Indonesia.

The Merapi, one of the world's most active volcanoes, began erupting two weeks ago. Carriers affected included Singapore Airlines, Japan Airlines, Lufthansa and Cathay Pacific.

A380 Engine May Have a Design Flaw

The midair incident involving a Qantas Airbus A380 is being investigated.

Qantas said faulty engine design or material failure were the most likely causes of an engine blowout on one of its Airbus A380 superjumbos, and confirmed Friday that pieces from the engine had pierced the plane's wing.

The focus is on Rolls-Royce engines that Qantas A380 fleet is equipped with. Other carriers such as Lufthansa and Emirates that also fly the same aircraft have conducted inspections and have not decided to ground their aircraft.

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Qantas Grounds A380 Fleet After Mid Air Engine Problem

Qantas grounded its new fleet of six Airbus A380 super jumbos after an engine blew out in midair Thursday November 4. The plane, with 459 aboard made a safe landing in Singapore.

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United Airlines Mileage Plus seats on Sale Through November 12!

United Economy Plus seating offers you up to five extra inches of legroom on all domestic and international United flights and explusSM from United Express®.

Economy Plus purchase reserves a seat within the Economy Plus seating area. Specific seat assignments are not guaranteed.

United offers complimentary Economy Plus seating to its premium customers and one companion, including:
Mileage Plus® elite members
United Global Services® members
Member must have elite status at the time of travel to retain complimentary reserved Economy Plus seats. For multiple companions, members can purchase Economy Plus seats for each additional companion when viewing an itinerary via My Itineraries on united.com.

Take advantage of more legroom all year by purchasing an Economy Plus annual option. As a member, you can reserve seats for yourself and a companion in Economy Plus whenever available-for an entire year.

This product is also available to international travelers.
For more information:
Call Premiere Travel at 703-893-2288
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IATA Warns Against Unilateral Actions to Terror Threats

Officials at the International Air Transport Association (IATA) has warned governments around the world not to act unilaterally, as the aviation industry seeks to minimize the fall out from the Yemeni bomb plot.

Both passenger and cargo carriers are concerned governments around the world will tighten security to such an extent that measures will be detrimental to business.

In turn the IATA has called for a measured response.

“Effective solutions are not developed unilaterally or in haste,” said IATA director general Giovanni Bisignani at the opening of AVSEC World in Frankfurt.

“We have seen many cases where these have unintended consequences. It is still early days. Industry is cooperating with government directives on targeted actions for Yemen-origin cargo."

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British Airways Chairman Says U.S. Airport Security "Completely Redundant"

In an interview with the Financial Times, British Airways chairman Martin Broughton has accused Britain of “kowtowing” to the United States in implementing “completely redundant” airport security checks.

Practices such as asking passengers to remove their shoes should be “abandoned” he suggested, while also questioning why laptop computers are scanned separately.

Mr Broughton also noted American airports did not implement some checks on their own internal flights.

“America does not do internally a lot of the things they demand that we do. We shouldn’t stand for that. We should say ‘we’ll only do things which we consider to be essential and that you Americans also consider essential,” Mr Broughton added in the Financial Times.

Lack of consistency is one of Mr. Broughton's main concerns,"Take the iPad, they still haven’t decided if it is a laptop or it isn’t a laptop. So some airports think you should take it out and some think you shouldn’t.”

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U.S. Regional Airline Survey Underscores Travelers’ Concerns

Substantially greater code-share disclosure required

October 26, 2010, WASHINGTON, DC - Business Travel Coalition (BTC) today released results and analysis of a comprehensive survey of travel industry professionals regarding the U.S. regional airline model. The National Transportation Safety Board (NTSB) is conducting a symposium over October 26 and 27 regarding airline code-sharing arrangements and their role in aviation safety. NTSB asked BTC to provide the perspectives and insights of the consumer and corporate travel departments.

The survey is of corporate travel managers and travel management company executives in the U.S. and abroad, where organizations look after passengers traveling to and within the U.S. aviation system. “Perceptions About U.S. Regional Airline Outsourcing” sheds considerable light on a variety of safety, government oversight and marketing issues associated with the U.S. regional airline model.

Full survey results and analysis can be downloaded at http://businesstravelcoalition.com/ntsb_survey.pdf

SUMMARY FINDINGS
A majority of business travelers are concerned over perceived safety differences between regional airlines and major network carriers, and this concern has been consistent over time. To address this concern, in part, a majority of corporations allow travelers to choose an alternative travel option, even if it’s a more expensive one. Indeed, a majority of corporations indicates that they would be willing to pay much higher airfares in return for higher safety standards at the regional airlines.

Most business travelers are confused about what carrier will be operating their flights while a majority of corporate travel managers indicated that they view the painting of regional airplanes, operated by one company but with the logo of its code share major airline partner, as amounting to deceptive marketing. A majority of travel managers say travel management companies and online travel agencies have insufficient information at the point of sale for notifying travelers of code sharing arrangements.

Premiere Travel supports the efforts of Business Travel Coalition as an advocate for the business traveler. Notable efforts have been made on multiple fronts including ancillary fees and airline code share disclosures.

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Lufthansa Increases its Operating Result

Airlines continue to post impressive gains in profitability in 2010. Lufthansa just announced that it generated revenue of EUR 20.2bn (+24.9 per cent) in the first nine months of 2010 and improved its operating result by EUR 386m to EUR 612m compared with the same period last year. Net profit for the period was EUR 524m (previous year: EUR 31m).

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United Mileage Plus adds Continental Benefits

Mileage Plus® elite members now have access to Continental’s preferred seating, extra legroom seating and Elite upgrades. It’s just one of the new ways to travel seamlessly on both United® and Continental.

In addition to the added benefits on Continental, Mileage Plus has also added special reduced awards and shopping alternatives with merchant partners.

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Riots and Protests Block Access to French Airports

French protests have taken a turn to the worse as violent protests and riots continue to break out throughout France.

Rioters are blocking access to Orly and Charles De Gaulle Airports in Paris as well as other major airports like Toulouse and Marseilles.

Fuel depots are also being targeted by protesters in a further effort to disrupt transportation services.

The government has signaled that it would confront the protesters with paramilitary troops if necessary.

The tense showdown continues to escalate and further tensions may stretch beyond France to neighboring countries.

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Major Transportation Disruptions Expected in France

France could face significant disruptions of air, rail, transportation and fuel services due to a general strike being called this week by labor unions. The country faced a similar situation in 1995 which resulted in two weeks of total paralysis and chaos.

Travelers are well advised to avoid traveling to or connecting through French airports, ports and rail services for at least the next few days.

With neither side backing down over pension issues, this may take a while to sort out.

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Southwest Airlines to Attack other Airlines Fee Structure

Known for its funny and clever campaign "Bags Fly Free", Southwest will soon escalate with another media campaign attacking other airlines' fees for changes.

Currently $150 for changing a restricted ticket, some airlines are considering increasing the fee. Southwest does not charge for changes, and the timing of the new campaign may be made to coincide with other airlines' plans to increase those fees.

The full disclosure of ancillary fees to passengers prior to purchase has caught the regularos' attention and Congress has recently conducted hearings to deal with the issue.

Hotel Rates on the Rise

2010 is turning out to be a much better year for the hospitality industry.

Hotel rates for corporate and leisure travel are inching up, due to a stronger than expected demand.

According to several benchmarks and surveys, this trend will continue throughout 2011, coupled with increases in user fees and taxes by cash strapped cities and municipalities.

The Dreamliner 787, Still a Dream...

Yet again, Boeing has recently delayed the launch of the much anticipated 787 Dreamliner due to supplier and technical issues.
This time, Boeing is blaming Rolls Royce, the Trent engine manufacturer for the delay.

Customers such as All Nippon Airways are taking the delay in stride. Boeing has approximately over 800 orders for the new aircraft on its books.

Vague Terror Alert confuses Travelers

The vague wording of the terror alert issued for U.S. travelers in Europe was taken in stride by most travelers, while others had more questions and concerns.

There were no specifics in the alert of what to avoid or what to be on the lookout for. Wording of "being vigilant" and "aware of surroundings" didn't do much to alter travelers' behavior.

There was beefed up security in most major European attractions, but no specifics have been provided.

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Travel Advisory Pending for Americans in Europe

The U.S. State Department will likely be issuing a travel advisory for travel in Europe, advising U.S. Citizens to be "vigilant". The advisory will probably be vague but will advise travelers to stay away from popular tourist sites.

Many European governments are on heightened alert due to credible threats.

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United-Continental Complete Merger

United Airlines and Continental Airlines have completed their merger effective today October 1, 2010. The new company will be called United Continental Holdings, Inc. and will be the largest carrier in the world.

By early 2012, travelers will see a combined airline called United Airlines, with Continental's blue and gold colors and globe logo on the tail.

Between now and then, the new company, United Continental Holdings Inc., will run the two as separate operations, with each airline's customers checking in at Continental or United websites and airport counters. Their frequent flier programs will stay separate for now too.

We expect to see the airlines gradually merging their operations and streamlining their processes.

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Can a Bulked up Southwest Airlines slow down Airline Fees?

With the expected acquisition of AirTran by Southwest going through, this combination may give pause to several competing carriers that are planning on increasing their fees in the near future.

Southwest, despite its size, has not been taken seriously by the legacy carriers since they primarily operate point-to-point routes and do not have major presence in key markets, major hubs and airports.

Now with the AirTran addition, the Southwest livery colors will start showing up in LaGuardia, Washington National, Dulles, Boston, Atlanta and other airports.

The Southwest campaign "Bags Fly Free" will carry more weight (no pun) and so would their low change/cancellation fee, especially that rumors are beginning to circulate that major carriers are contemplating increasing the penalties on change fees on domestic travel from $150 to a whopping $300.

www.premieretravel.com

Another Merger: Southwest acquires AirTran

Southwest Airlines announced today that it has entered a definitive agreement to acquire AirTran Holdings, Inc., the parent company of AirTran Airways.

The acquisition will immediately expand Southwest's footprint, especially in Atlanta and the southeast and will allow Southwest, known for it's successful low cost model, to move into the Delta Airlines backyard.

This acquisition is actually good news for the traveler as it creates a more competitive environments in many key markets.

Emerging Markets Low cost Airlines create Pilot shortages

The quick economic recovery in Asia along with cheap sources of financing, and relaxed regulation have created the perfect conditions for the proliferation of several low-cost carriers. India, Malaysia, the Philippines and Singapore are among countries that are seeing many of these low cost carriers come on line.

This development has resulted in many jet orders that should benefit companies such as Boeing and EADS (Airbus). The race to be first means more pilots are being hired resulting in shortages among the more established carriers in the region. Even the "legacy carriers" are throwing their hats in the ring by starting new low cost subsidiaries to protect their market shares.

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Holiday Travel Planning-how to get the lowest rates

As we get closer to thanksgiving, and December holidays, travelers will realize that fares will average about 10% higher than they were a year ago. Due to lower capacity, airlines continue to increase fares and add more fees resulting in higher overall costs to the traveler.

Flexibility is the key for paying less. By avoiding a Wednesday afternoon departure and specially a Sunday return thanksgiving week, passengers can save an average of 25% or more. A Tuesday to Tuesday may work out best but many other factors such as the origin, destination and level of competition among carriers will have an impact.
Christmas day travel might be one of the best relative bargains out there.

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Coming Soon to your (shorthaul) Airplane Cabin

Just as you thought that certain airlines cannot possibly make the flying experience more miserable, here comes the "SkyRider" seat. With a saddleback feel and the weight almost entirely shifted to the legs, this new airline seat is a mere 23 inches away from the passenger in front of you or behind you. The arm rest is a sliver and you will get to know your seatmate even more intimately...

Introduced at the Aircraft Interiors Expo Americas trade show last week, this vertical seat concept is getting attention from discount airlines such as Ryanair.

As few airlines such as Spirit and Ryanair have discontinued reclining seats, they turn their focus to cramming even more passengers into the cabin. Aviointeriors Group, the Italian company behind this "clever" concept claims that the seats are actually more comfortable than regular seats and are pitching them for flights of up to 3 hours.

Ryanair is taking the concept to the highest extreme by floating the idea of standing seats if the regulators would approve the design. Could shrink-wrapping passengers and storing them in the cargo bin be too far away?

General Strikes in Western Europe May Disrupt Travel Plans

General strikes are planned in France and Spain in the upcoming few days that may disrupt or impact travel plans.

A planned strike in France will take place on September 23 and in Spain on September 29. Some airlines are issuing travel waivers for travelers that may be impacted.

Please check with your travel counselor at www.premieretravel.com

Global airline industry rebounding strongly in 2010

The rebound to profit of major global airlines is proceeding nicely. After a tough 2009 and 2009, airlines are on pace to post about $9 billion dollars in profit in 2010 according to The International Air Transport Association (IATA).

Asia will lead growth this year with a $5.2 billion profit while Europe will remain the only region to lose money, the IATA said. North American airlines should earn $3.5 billion this year as U.S. carriers keep capacity limited, according to the group.

www.premieretravel.com

Shareholders approve United-Continental merger

Shareholders in Continental and United Airlines have voted to approve a proposed merger between the rivals – creating the largest airline in the world.

The all-stock merger was announced on May 3, 2010, and has already cleared U.S. Department of Justice and the European Commission.

The new combined airline will be called "United" and will be based in Chicago. Jeff Smisek, the Continental CEO will run the combined carrier.

The merger will close by October 1, 2010 and it will take several months to combine and integrate the airlines operations.

www.premieretravel.com

Are Airlines Ancillary Fees Reaching the Ridiculous Stage?

Airlines continue to concoct and come up with ever more creative ways to charge travelers fees for almost anything they can get away with.

The U.S. Department of Transportation (DOT)accepting industry comments until September 23 on a Notice of Proposed Rule Making (NPRM) regarding enhanced passenger protections. Among DOT’s proposals is a requirement that airlines make ancillary fee information available on their websites for the 50% of travelers who purchase their tickets there. As it relates to the other 50% of travelers who use online travel agencies and travel management companies (TMCs), such as business travelers, DOT is asking for comments on whether airlines should also be required to make fee information available to these distributors via any global distribution system in which a carrier participates.

Please check this funny clip from Youtube: (credit to jdyken):
http://www.youtube.com/watch?v=rYFNNlSS8QY

www.premieretravel.com

STATE DEPARTMENT ISSUES GLOBAL TRAVEL ALERT

The Department of State is issuing this Travel Alert to caution U.S. citizens of the potential for anti-U.S. demonstrations in many countries in response to stated plans by a church in Florida to burn Qurans on the anniversary of the Sept. 11, 2001, terrorist attacks. Demonstrations, some violent, have already taken place in several countries, including Afghanistan and Indonesia, in response to media reports of the church's plans. The potential for further protests and demonstrations, some of which may turn violent, remains high. U.S. citizens are urged to pay attention to local reaction to the situation and to avoid areas where demonstrations may take place. This Travel Alert expires on Sept. 30, 2010.

www.premieretravel.com

SECURE FLIGHT PASSENGER DATA (SFPD)

Airlines and travel management companies are on notice that full compliance with TSA mandates will be applied with no exceptions. Passengers must provide full names as they appear exactly on government issued identification/passports along with the date of birth. Some international travel may require additional documentation such as passport number, date of issue, expiration date and place of issue of the passport.

Passengers lacking this data will be denied security clearance and the airlines and/or travel management companies will be subject to large fines.

This data must be in the passenger record at least 72 hours prior to the first part of the journey.

We appreciate our clients' cooperation in order to avoid cancellations and fines.


www.premieretravel.com
http://www.tsa.gov/what_we_do/layers/secureflight/index.shtm

United-Continental deal clear final hurdle

The Justice Department signed off on the United-Continental merger that would create the world's largest airline.
The final hurdle required Continental to divest some slots and gates at Newark Airport. Continental already has over 70 percent of the flights from/to Newark. Adding United to the mix would have resulted in even more. The Justice Department otherwise found that the carriers had complementary routes.

Southwest Airlines is expected to pick up the slots vacated by Continental. It is expected that some of those routes will be peak and non-peak.

Analysts agreed that giving up these slots was a small price to pay for the merger to clear anti-trust concerns.

FAA Seeks Record Fine from American Airlines Over Maintenance Lapses

Dallas (by Associated Press)--Federal officials are seeking a record penalty of $24.2 million against American Airlines over maintenance lapses that caused thousands of canceled flights in 2008.

American said the civil penalty was unwarranted and it would appeal.

The dispute dates to 2008, when American had to cancel more than 3,000 flights -- inconveniencing 350,000 passengers -- until wiring could be fixed to the satisfaction of the Federal Aviation Administration.

The FAA said Thursday that the improper harnessing of wires on American's McDonnell Douglas MD-80-series jets -- about half its fleet at the time -- could have led to fires and even fuel-tank explosions. It said American flew more than 14,000 flights with planes that didn't meet the wiring requirements.

American has claimed all along that the FAA's concerns were overblown, and that passenger safety was never jeopardized.

Airline M & A...More to Come...

M&A activity is in full swing in many industries. The airlines are at the forefront as new challenges appear on the horizon. Airlines must have the liquidity, capital, and lines of credits to acquire new fleets, equipment, maintain aging aircraft and facilities, pay large overhead costs and stay competitive. That's a tall order that requires excellent management skills and the scale to command concessions from suppliers. Japan Airlines could not turn the corner financially and became the most prominent bankrupt carrier in 2010. United is seeking a merger with Continental, TAM and LAN have announced their plans to merge in Latin America. The battle lines are being drawn with three major world alliances.

In the U.S., American Airlines (AMR) and USAirways have been left out of the big dance, but rumors are now swirling that the two carriers may be flirting with a merger of their own. The two carriers are not compatible and such a potential outcome will not be in the best interest of the traveling public. American is the only carrier that has not filed for bankruptcy protection and is now paying the price since it still retains the expensive leases and legacy costs that other carriers were able to reduce or erase.

Latin Merger on the Way: LAN and TAM

A preliminary deal announced last week could create Latin America's largest airline.
Chile's Lan Airlines and Brazil's TAM announced plans to merge. A new LAN-TAM merger would create the scale and size that would make the merged carrier one of the largest 10 in the world and will likely have a profound impact on routes, competition, and pricing.

Regulators in both countries will likely scrutinize this proposed transaction, and will demand concessions from LAN-TAM to give up slots and routes that will be heavily controlled by the combined carrier.
This may take a while to sort out. The fun part will be the new name of the combined airline if the deal goes through.

United Mileage Plus Makes it Easier to Use Miles

In the past year, Mileage Plus has reinvented the program by making it easier for members to use their miles. New features and benefits introduced over the past year include:
* Hotel and Car Awards
* One-Way Awards
* Miles and Money Awards
* Star Alliance Awards online for Continental and US Airways
* Elimination of last-minute booking fees
* Elimination of the Mileage Upgrade Award Co-pay for elite members
* An improved website
* Any seat for sale on United is available for a standard award. Guaranteed

For booking United, please go to www.premieretravel.com

TSA SECURE FLIGHT CRITICAL INFORMATION TO PASSENGERS

As a result of the Transportation Security Administration (TSA) and Department of Homeland Security (DHS) mandate, beginning November 1, all passengers will be required to have Secure Flight Passenger Data (SFPD) in their reservation at least 72 hours prior to departure. This is the next phase in a program that was initiated by the TSA in 2009.

In compliance with this mandate you will be required to provide Secure Flight Passenger Data:
To purchase any ticket on or after September 15, 2010
To travel November 1, 2010, or later regardless of purchase date
You will be unable to travel without providing the following information.
Full Name (first, middle and last name, as it appears on the non-expired government-issued photo ID that you will use when traveling)
Date of Birth
Gender
Redress Number (if applicable)
You will need to provide Secure Flight Passenger Data:
If it was not provided when you made your reservation
For reservations made prior to adding SFPD to your frequent flyer mileage program.

To insure that your travel plans are not disrupted or cancelled, please update your traveler's profile at www.premieretravel.com

Travel Suppliers Pricing Disconnect

Airlines seem to have regained the pricing advantage specially over business travelers according to many surveys for the first six months of 2010. On an average, fares have increased 8-10% over the same period of last year. With "deals" and "sales" vanishing, and once you add all those dreaded ancillary fees, the airlines are doing a better overall job managing their bottom lines. A closer look however reveals that the main reason is that airlines have "calibrated" their seat capacity (translation: reduced) to insure that planes are full and cutting off unprofitable routes.

So while the airlines pricing power is in the hands of the airlines for now and all things point to a recovery for the travel sector, hotels and car rental companies do not seem to be faring so well. Surveys show that the average hotel rates have decreased slightly for the same comparable period. Aairlines can "calibrate" capacity by reducing frequency and discontinuing routes, hotels cannot do so. They are affected by commercial real estate values and the fact that projects that were started before the recession had to be completed, bringing more and more inventory to market. The same is true to a lesser extent with car rentals. There is a round of consolidation going on and rental companies are able to reduce the size of their fleets of vehicles available for rent, But the fragmented nature of the business means that there are still relative bargains out there.

Blackberry blackout in Saudi Arabia

Not to be outdone by its neighbor to the east, Saudi Arabia followed the U.A.E. in banning the use of Blackberry services in the kingdom effective immediately.
The U.A.E. ban would take effect in October. Subscribers there were hopeful that a compromise could be reached to address the government's security concerns with Blackberry's encryption.

Saudi Arabia however did not wait, and subscribers are now reduced to using the devices to simply make.... phone calls! Many subscribers describe the reception and quality of Blackberry phones as very good.

New York City hotel taxes and fees lead the nation

For travelers to Manhattan, the pain of paying for high rates of hotel rooms does not end there. Once you factor in the discriminatory taxes and fees, the final bill is an eye popping 18-20% above the stated rate.
Here's the typical tax breakdown:

New York State Sales Tax = 4%
New York City Sales Tax = 8.375%
Hotel Room Occupancy Tax = $2 + 5.875%
Additional Fee = $1.50

A stay in a 4-star hotel in New York that would go for $400/ night would result in a total bill of about $475 when you include all taxes, fees and surcharges.

Airline ancillary fees run amok- a real example

To appreciate how problematic ancillary fees have become to business travel managers and passengers, we thought of providing an actual example of a business trip for a client.

Origin: Washington/Dulles
Destination: Reno, Nevada
Fare Description: Supersaver 21-day advance purchase: Total airfare $690
Action: Company approves travel at the $690 fare quoted.
Electronic ticket: issued
Upon check-in, passenger prompted if he would prefer to "upgrade" to a better seat.
Airline offers a range of $25 for an exit row aisle and up to $89 for "Premium Economy" (each way). Passenger opts for the Aisle exit($50). Checked bag: Yes, adding $50. Onboard "amenities": $7 snack box and $10 for a pillow and blanket. WiFi internet purchased $9.95 each way, plus one cocktail at $8. Passenger was offered but declined the "express security lane fee", and the "priority boarding fee".
Actual cost of the ticket after the added fees: $834.90

The undisclosed fees are causing additional burdens and complications on business travel. Reimbursements can be confusing and awkward as most of these amenities were included free of charge in the past.

Spirit Airlines has tacked on a carry-on bag fee which they claim "expedites" the boarding process.

One airline in Europe is even exploring a bathroom fee.

Blackberry blackout in the Middle East

The U.A.E. will restrict access by Blackberry subscribers to network services. Even visitors to the Emirates will be subject to the blackout. Approximately 100,000 travelers transit through Dubai alone on a daily basis. Other governments in the region are contemplating similar action. This restriction will take effect on October 11, 2010 and will impact at least 500,000 local subscribers.

The government of the U.A.E. contends that some Blackberry features operate "outside the country's laws causing judicial, social and national security concerns". Translation: The encrypted data routed through Blackberry servers makes it difficult to monitor traffic on the networks.

So is this the tip of the iceberg? Will other smart phones be next? Will other governments in the region implement their own restrictions?

Such restrictions will be a setback for Dubai and other Emirates that are hoping to draw more business and tourism.

Are some airlines pocketing the taxes on non-refundable tickets?

When the airlines sell and oversell their flights, and some passengers cancel or no-show, what happens to the taxes collected on tickets? Surely, this is a subject some airlines would rather not discuss. Some airlines claim that they pay the taxes to the taxing authorities, while others decline to talk about it, or give incomplete explanations. Some airlines maintain that taxes are paid regardless, but the theory does not hold water. For example if a passenger does not travel, why should the "passenger facility charge" (PFC) be paid to the airports that did not render any "facility" to the passenger? Or why should a "security fee" be collected when the passenger did not go through security?

With hundreds of millions of dollars at stake, the airlines either have to prove payment of these taxes to the appropriate governmental entities, or they should be refunded to the passengers or their companies.

Over-reacting to Travel warnings and travel advisories

Travel Warnings and advisories (TW and TAD for those who love acronyms) are issued when long-term, protracted conditions that make a country dangerous or unstable lead the State Department to recommend that Americans avoid or consider the risk of travel to that country. A Travel Warning is also issued when the U.S. Government's ability to assist American citizens is constrained due to the closure of an embassy or consulate or because of a drawdown of its staff.

So when The U.S. Department of State issues such warnings, it usually covers entire countries, not specific areas. For example by adding "Mexico" in July to the list of "TW", it triggered corporate managers who follow the strict directives of the Department of State (DOS) to curtail travel to such countries. So while the "DOS" warning is relevant for an area such as Durango in the north, it does not necessarily apply to Mexico City or Cancun, a major touristic destination. Fortune 500 companies and most colleges and universities may eliminate travel altogether to countries on the "list". A better system should pinpoint particular areas and zones within countries that these warnings should cover.

In addition to Mexico, added in the month of July were Pakistan and Uzbekistan.

EU clears United-Continental merger

BRUSSELS (Dow Jones)--The European Commission Tuesday cleared the merger of UAL Corporation's (UAUA) U.S. airline United Airlines and U.S. airline Continental Airlines Inc. (CAL)

The $3 billion dollar deal, initially announced in May, will create the world's largest airline by traffic, transporting 21% of U.S. passengers. The resulting company, United Continental Holdings, Inc., will be 8% larger than Delta Air Lines Inc. (DAL) by number of miles flown by paying passengers, including commuter affiliates.

The commission found there to be few competition overlaps between the airlines on their European routes, as they operated from different U.S. hubs. The airlines also had limited cargo business between the U.S. and the EU.

The combined company will use the United name and the Continental logo and operate out of Chicago, United's current headquarters

Lawmakers tell airlines to share ancillary fees data

The House Transportation and Infrastructure Aviation Subcommittee conducted a hearing on July 14 to discuss the impact of U.S. airlines ancillary fees on business travelers. The committee made it clear to the airlines to share and clarify those fees with their distribution channels, or face the consequence of tough new congressional rules and mandates forcing them to do so. The U.S. Government Accountability Office (GAO) investigated the airlines ancillary fees which continue to proliferate unabated. The GAO reported that based on its findings, they determined that the airlines are unlikely to cooperate with the fee information unless they are compelled to do so.
www.premieretravel.com

Frequent Flyer Bulletin

When the full implementation of the TSA requirement of "Secure Flight" goes into mandatory status on November 1, 2010, many passengers may encounter discrepancies and problems with their frequent flyer memberships and status.

As we have stated before in this column, passnegers' names on the travel document must be an exact match with the government issued driver's license or passport. However, if there is a discrepancy between that and what your frequent flyer membership name is, one of two bad things can happen:
A) No mileage credit
B) Denied entry by TSA, flight cancellation or denied boarding.

What to do: Contact your mileage program as soon as possible, and let them know that you are amending your name to conform to the TSA "Secure Flight" that should match with your photo ID. This will insure that you continue getting credit for future travel without losing any benefits.

TSA Secure Flight Update Mandatory Information

TSA will begin strict adherence to Secure Flight requirements for all travelers beginning November 1, 2010. The soft launch of the program has already begun on June 15 and airlines and travel management companies are on notice that full compliance and adherence will be strictly implemented on November 1, 2010.
Premiere Travel will request all passengers' records to be in full compliance.
Specifically, the regulation requires customers to supply the passenger information at the time of reservations. This includes full name, date of birth, gender and optional redress number. Please go to "Traveler Profile" on the left column and update your information as soon as possible in order to avoid problems with bookings/boarding flights.

American, BA, Iberia get EU approval of joint venture

One World alliance led by British Airways and American Airlines received EU approval for their proposed joint venture, along with Iberia, allowing the creation of a routing system between the carriers. The airlines still need the U.S. Department of Transportation's approval before they can start their new services.

The three airlines are aiming to coordinate flights between the United States, Mexico, Canada, the European Union, Switzerland and Norway. All three carriers are members of the Oneworld alliance.

With the expected approval of this deal by the U.S. Department of Transportation, the stage is set for three global powerhouses that will have almost total control of vital traffic and airport slots worldwide. Star Alliance headed by United and Lufthansa, SkyTeam led by Delta, Air France,and the Oneworld alliance.

Industry Survey Results Reveal Significant Concern Over Airline Unbundling Practices

JULY 13, 2010, WASHINGTON, DC - Business Travel Coalition (BTC) today published results of a survey of 188 travel industry professionals from 11 countries, including corporate travel managers and travel agency executives, regarding airline product unbundling and ancillary fees. These survey results are being released ahead of a July 14 U.S. House Transportation Subcommittee on Aviation hearing regarding airline fees at which BTC is providing testimony.

The overriding message from survey participants is that ancillary fees are wreaking havoc on corporate managed travel programs and the U.S. Department of Transportation must, through it Notice of Proposed Rulemaking, require airlines to make add-on fee data easily accessible not only on their websites, but also to the travel agency channel through any GDS in which an airline has agreed to participate.
(From BTC News Release July 13)

When to book air travel...

A question that keeps coming up: is it better to book far in advance or wait?

A very good question, and the answer is simply: "it depends".

Airlines have their yield management methodology that varies widely. Then when you take into account the destination, seasonality, how far in advance and other factors, the answer will carry many "ifs" and "buts".

So here are some tips:

1) Booking too far in advance may not get the lowest rates as airlines are not compelled to discount deeply 4-8 months prior.

2) Many airlines perform their yield management continuously and cheaper fares are sometimes posted briefly Tuesdays and Wednesdays.

3) Cheaper seats are added or deleted based on anticipated demand that may or may not materialize.

4) Certain destinations have a high percentage of no-shows or cancellations, allowing airlines to manipulate fares and number of seats sold. Miscalculations are costly when more "confirmed" passengers show up and not enough seats available.

5) Waiting till the last minute/day will never result in better fares.

"Ancillary Fees" by U.S. Airlines....on track to $10 Billion in 2010

U.S. airlines collected more than $7.8 billion in ancillary fees in 2009, according to the U.S. Department of Transportation (DOT), and that number is up more than 40% over the previous year. Ancillary fees now comprise 6.5% of all airline revenue. With such compelling numbers, it is certain those pesky ancillary fees are here to stay and will go higher still as airlines concoct new ways to extract additional funds from travelers. This is on track to be $10 billion in 2010.
These fees include baggage, upgrades, seat assignments, lounge passes, purchase of pillows/blankets, boarding priority and ever more creative things are being rolled out.

These fees and the difficulty that companies are encountering in paying for such services is getting the attention of the the House Committee on Transportation and Infrastructure, Subcommittee on Aviation which will hold hearings on July 14. The focus of the hearings is the disclosure and clarity of these fees when airline tickets are purchased, as these fees have become a larger percentage of the overall cost of transportation.

U.S. Passport fees set to increase July 13

Just in time for summer travel, the State Department has hiked the passport service fees.
Even adding pages to your existing passport will incur a fee now.
Adult passport: New fee: $135. Old fee: $100
Adult passport renewal: New fee: $110. Old fee: $75
Minor passport (under age 16): New fee: $105. Old fee; $85
Adult passport card (allows border crossings by land): New fee: $55. Old fee: $45
Minor passport card: New fee: $40. Old fee: $35
Extra visa pages: New fee: $82. Old fee: It was free of charge

To save money, apply before July 13.

New Secure Flight Data (SFPD) Beginning July 1

The TSA has recently notified airlines about information regarding Secure Flight Passenger Data (SFPD). Beginning November 1, 2010, all reservations without full SFPD will be rejected by the TSA's Secure Flight rule and will not be processed. Operating airlines that do not comply will be subject to penalties. TSA requires the full name, date of birth and gender, as it appears on non-expired government issued photo ID that travelers plan to use for travel identification, for all passengers flying to/from/within/over the United States, and for all U.S. Operating Carriers.
Although this mandate for airlines is effective November 1, 2010, some airlines have announced they will begin enforcing the SFPD requirements as early as July 1, 2010, to ensure compliance with the TSA.

Tropical Storm Alex soaks the Yucatan Peninsula

The first named storm arrived in the Yucatan Sunday with heavy rain and 35 miles per hour wind, which should increase to 60 mph as it makes its way to the Gulf of Mexico.

The storm may become a hurricane with up to 85 mph winds. Cancun and Cozumel were soaked with 2-4 inches of rain over the weekend, a glancing blow compared to

Nicaragua, Guatemala and Belize where up to 15 inches of rain created mudslides and floods in many areas. Some air traffic and cruise itineraries may be impacted as Alex makes its way north.

"Workmanship issues" halt Boeing 787 test flights

SEATTLE (AP) -- Boeing Co. is halting flight tests on its new 787 jet after finding that some of the planes have improperly installed parts in the tail.

"This is not a design issue or a flight testing finding. It's a workmanship issue," said the head of the 787 program, Scott Fancher, in a news conference on Friday.

Delivery of the first 787 scheduled by the end of the year to Japan's All Nippon Airways Co. will not be impacted by the inspections and repairs.

Extreme Airfares

Airlines are continuously upgrading and refining the travel experience for their first class passengers, an almost non-existent number of travelers that are actually willing to pay for those seats in the current economic environment. While companies and organizations tighten their travel restrictions for their top travelers allowing no more than business class, that does not stop the airlines from introducing more exotic offerings of massage full size beds with luxury linen, gourmet meal and wines, etc... but is anyone really paying those "suggested retail" prices?
Here's a sample of fares:
Washington-Beijing Round-trip First Class $29443
Washington-London $17531
New York-Sydney $26312
Washington-Paris $16737
Taking London and Paris as examples, these are 6-7 hours flights (eastbound), and 7-8 hours (westbound) with fares of $16737-$17531.
Passengers usually use upgrades to sit in first and pay as little as $1800 for a round-trip business class seats.

Leveraging your frequent flyer status

Many savvy travelers are learning how to leverage their elite status on one airline to other airlines. Many carriers offer a matching status if they see the potential of winning over new elite travelers. Elite status holders may choose that approach if they accumulated excessive miles that they cannot use, or to simply diversify their free travel options. Such status will also open up upgrade possiblities and the use of VIP lounges at airports that may not be served by their preferred carrier. For more information, or to see if you may qualify, please send us an inquiry to info@premieretravel.com

U.S., Europe Ink Pact To Standardize Air Traffic Systems

U.S., Europe Ink Pact To Standardize Air Traffic Systems

By Amon Cohen BTN

JUNE 21, 2010 -- Journey times and fuel consumption between the United States and Europe could be reduced after the U.S. Federal Aviation Administration and European Commission signed a memorandum of cooperation last Friday to harmonize air traffic services across the two.

The agreement commits the two to standardizing their air traffic modernization programs, which have until now been developed separately. FAA's NextGen and Commission's SESAR projects both seek to introduce satellite-based navigation that would enable commercial aircraft to fly more direct routes and shorten the separation between aircraft, thus improving air traffic control safety and reducing greenhouse gas emissions. Airlines had expressed fears that the U.S. and European Union might develop incompatible systems, requiring them to fit two sets of satellite navigation equipment.

"Harmonization is the key to the future of air travel over the North Atlantic," said FAA chief operating officer Hank Krakowski, who signed the memorandum with European Commission director for air transport Daniel Calleja in Madrid last week. "This agreement allows us to work together to give the airlines a seamless transition between our airspaces."

The agreement details 22 specific areas of cooperation, which also include research into alternative fuels and better ways to coordinate on safety issues, such as responding to volcanic ash clouds. The Commission hopes to obtain approval from member states and the European Parliament to allow the agreement to take effect early in 2011.

Bargain Europe?

With airfares in line with summer of 2009 and business class discounts on certain airlines, Europe looks like a relative bargain this summer thanks to the decline in the value of the euro versus the dollar. Last summer, the average exchange rate was 1 euro= $1.54. This year, the euro's rate has tumbled to around $1.23. The recession and belt tightening in Europe is creating additional opportunities for Americans to stretch their dollars further particularly in countries like Spain and Greece...

Spirit Airlines and Pilots Union Agree...

June 16 (Bloomberg) -- Spirit Airlines Inc. and its pilots reached a tentative contract agreement that may end the first strike at a U.S. passenger airline since 2005, the union for the employees said.
Flight operations, which have been suspended since June 12, will resume June 18, the carrier said on its website.

The wisdom of travel insurance

Travel insurance can provide you with the best coverage for medical expenses, trip cancellation/interruption, baggage damage, medical evacuation, and much more. Plus, with every Travel Guard insurance plan you will also receive 24-hour travel assistance. To demonstrate the importance of purchasing travel insurance, here are some common examples of what could go wrong:
It's 10 p.m. and you and your immediate family arrive at the airport for a connecting flight, only to find that your flight has been cancelled. Who can assist you with finding new flights in order to arrive at your destination on time?
You arrive at your destination but your luggage doesn't. If it's lost, who will help you find it? If it's delayed, who will pay for your necessities? If your luggage stolen, who will pay to replace it?
You're driving your rental car and are involved in an accident. Who can help you find a physician?
Other recent examples include the volcanic ash disruption, strikes, and bad weather that have grounded passengers around the world and caused hardships on many travelers.

Airline strikes- the beginning?

As British Airways and its UNITE union go into the third week of "industrial" action a.k.a. strike, Spirit Airlines pilots across the pond to the west walked out last Saturday over pay and benefits. Spirit Airlines strike resulted so far in hundreds of canceled flights and losses estimated at over $2 million per day for Spirit.

While the results of these actions are mixed and the final outcome is unknown, one thing is becoming clear. The unions representing airline workers in the U.S. as well as Europe are agitated after years of cuts in pay and benefits, and as the air travel demand has seen a healthy rebound, the unions are getting vocal about restoring some of the wages and benefits. This trend will likely continue while the airlines are trying to recover from the worldwide recession of 2008 and 2009.

The #1 domestic carrier in on-time arrivals.....

United was the #1 carrier in on-time performance for domestic scheduled flights among the major U.S. Carriers in 2009 and the first quarter of 2010*

*According to recently published arrival data in the U.S. Department of Transportation’s Air Travel Consumer Report, United ranked highest in on-time performance for domestic scheduled flights as measured by the U.S. DOT (flights arriving within 14 minutes of scheduled arrival time) between January 1, 2009 and March 31, 2010, when compared to the largest U.S. global carriers based on available seat miles, enplaned passengers or passenger revenue, which includes Delta (including its Northwest subsidiary), American, Continental and US Airways.

Spirit Air strike disruptions...

FORT LAUDERDALE, Fla. (AP) -- Spirit Airlines is canceling all of its flights through Tuesday, stranding thousands more passengers as a pilot's strike continues into its second day.

The discount carrier said on its website Sunday that all Spirit Airlines flights have been cancelled through June 15. Spirit pilots walked off the job Saturday amid an ongoing contract dispute with the airline that has lasted for more than three years. Spirit pilots have said their pay lags behind competitors such as AirTran Airways and JetBlue.

Florida Panhandle takes a hit

With no relief in sight from the Gulf of Mexico oil spill, the Florida panhandle is beginning to feel the impact of the spill on its tourism industry. Billing itself "the whitest beaches in the world", the Gulf Islands National Seashore is starting to see tar balls land on its beaches.

Pensacola and the neighboring resort towns are getting cancelations at an increasing rate. Restaurants, hotels and condo rentals are feeling the impact. The continuous coverage of the oil gushing out and the effect on wild life is taking a toll. Florida stands to lose the most in tourism as it is the top destination for vacationers and relies on tax revenue from hotels, lodging, restaurants and entertainment for their budget.

Baggage Confusion

The International Air Transport Association (IATA) announced Automated Carrier Baggage Rules (ACBR), the latest project in IATA's Simplifying the Business program. ACBR will provide a central database for interline baggage rules, enabling airlines, travel agents, and passengers to know what baggage rules will apply for any given itinerary.

“Airlines have a variety of different rules and fees depending on the number of bags checked, class of travel, frequent flyer status and routings. ACBR will put all of that information in one place so passengers can have a complete understanding of baggage fees before they buy their tickets—even for complicated journeys.”

Travel Management companies and airlines will have the database to disclose clearly and accurately to the passengers the baggage policy as it pertains to specific itineraries and class of service.

Car Rental Fees (a new low!)...

Creativity in inventing fees is not an airline monopoly. Car rental companies have set a new standard in charging their customers more fees in addition to the nickeling and diming that renters have come to expect.

Examples include charging higher rates if you return the car earlier than expected. A fee if you do not drive the car enough (in the form of a "re-fueling fee"), a premium for younger drivers, extra drivers, child safety seat surcharge and the punitive refueling fee, heaven forbid, if the vehicle is returned 100% re-fueled.

There is also a semantic issue growing as car rental companies re-define the size of the vehicle. What used to be small/compact is now defined as intermediate, and the new large is the old intermediate.

What to do: Check your insurance policy coverage. Chances are you are covered for auto rental as well with minor exceptions. Do not fall for the hard sell pitch and go for the $24.99/day coverage. Inquire about the rate if you return the car early or late, as some companies charge a full additional day for a mere one hour overage. Return the car fully fueled and avoid the exhorbitant re-fueling fee that can go as high as $6/gallon. Finally, make sure that you get a confirmation for the actual vehicle size or the "equivalent" that you desire...

Business Class Bargain to Paris? Openskies

So what is Openskies?

It is the new subsidiary of British Airways that started flying May 3, 2010 between Washington Dulles Airport and Paris/Orly. The 70-seater flight features a single aisle 757 with two types of business class: sleeper and regular business seat. The best kept secret about this high end service is the price...starting at $835 (one way, based on round-trip plus taxes and fees),

it is the best value in the air at the moment. Boarding takes a mere 10 minutes, even for a full flight, with the added benefit of getting into and out of Orly airport....

DOT Proposes Additional Consumer Protections for Air Travelers

6/2/2010

Washington, DC – U.S. Transportation Secretary Ray LaHood today proposed new consumer protections for air travelers, building on the Department of Transportation’s recent rule banning carriers from subjecting passengers to long tarmac delays and other deceptive practices.

Specifically, the new proposed rule would:

• increase compensation for passengers involuntarily bumped from flights

• allow passengers to make and cancel reservations within 24 hours without penalty

• require full and prominently displayed disclosure of baggage fees as well as refunds and expense reimbursement when bags are not delivered on time

• require fair price advertising

• prohibit price increases after a ticket is purchased

• mandate timely notice of flight status changes

“Airline passengers have rights and should be able to expect fair and reasonable treatment when they fly,” U.S. Transportation Secretary Ray LaHood said. “With this rulemaking, we’re proposing to strengthen the consumer protections enacted last month and raise the bar for airlines when it comes to treating passengers fairly.”

The rule published last December, which adopted a three-hour limit for airline tarmac delays for domestic flights, also required U.S. carriers to adopt contingency plans for lengthy tarmac delays at large-hub and medium-hub airports and to publish those plans on their websites. Today’s proposed rule would expand the requirement for having contingency plans to include foreign airlines’ operations at U.S. airports and would require carriers to adopt contingency plans for small- and non-hub airports.

The rule also would require the reporting of additional tarmac delay data to DOT. The Department would collect this data from all U.S. and foreign airlines operating aircraft of 30 or more seats on flights to and from the United States and charter flights. Currently, the Department collects this data only for the domestic scheduled flights of the 18 largest U.S. airlines.

The proposed rule also would increase the potential compensation for being involuntarily bumped from oversold flights. Currently, airlines may limit compensation for involuntary bumping on flights to $400 if the carrier arranges substitute transportation scheduled to arrive at the passenger’s destination one to two hours after the passenger’s original scheduled arrival for domestic flights, or one to four hours for international flights, and to $800 if the substitute transportation is scheduled to arrive more than two hours later for domestic flights, or more than four hours later for international flights. The proposed rule would quickly increase these limits to $650 and $1,300, respectively, and thereafter adjust the amounts for inflation every two years.

The Department also proposed a number of measures to make it easier for consumers to know how much they will have to pay for air transportation. Carriers would be required to provide special notice any time baggage fees are increased, and to notify passengers buying tickets whether they must pay to check up to two bags. It also asked for comment on several alternatives under consideration to provide greater access to air transportation to persons with severe peanut allergies.

To support President Obama’s open government initiative, the Department has partnered with the Cornell eRulemaking Initiative in a pilot project, Regulation Room, designed to improve the public’s ability to understand and participate in this rulemaking through a web-based discussion format. Information on the Regulation Room can be found at www.regulationroom.org.

Travel Tip- Baggage

Shhh......(keep it to yourself...)
Even if your bag exceeds the overhead bin size, you may want to "gate check" it...
Most airlines are not equipped to charge passengers at the gate, so they will be happy
to speed up the boarding process by checking your oversized bag at the gate for free.

Previewing June travel

As we are now past memorial day weekend, airlines continue to "calibrate" fees and surcharges based on stronger than expected demand. This means more fees, higher fares and additional surcharges. It appears that an across the board fare hike of $10-$30 is sticking as airlines matched each other. Another trend seems to be taking shape: more tickets, including full fares, are being subjected to cancelation and change fees. We expect this trend to continue...
Posted by travelguru at 2:30 PM

Travel advisories.....

Most airlines extend waivers for travel to/through Bangkok as civil unrest continues.....

British Airways cabin crew started "Phase 2" of their work stoppage Sunday May 30 with no end in sight....in an unrelated matter, British Airways increased their fuel surcharges...

Welcome to our new website!

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British Airways Strike continues...

As the British Airways work stoppage enters its 4th day, the matter is turning into a test of will between UNITE, the labor union representing 12,000 BA crew employees and BA management led by Willie Walsh.

The union might elect to extend the strike beyond the periods announced earlier. No resolution appears within reach at this time, and flight disruptions and cancellations will likely continue.