Travelogue
January 17, 2008
AMR posts $504 million 2007 profit despite fourth-quarter loss ATW
American Airlines parent AMR Corp. reported full-year 2007 net income of $504 million, more than double the $231 million earned in the prior year, despite a fourth-quarter net loss of $69 million that it attributed largely to "record fuel prices." The quarterly loss was reversed from a profit of $17 million in the year-ago period and ended the carrier's streak of six straight quarters in the black. But Chairman and CEO Gerard Arpey noted that AMR posted back-to-back profitable years for the first time since 1999-2000 despite "enormous challenges from unprecedented weather disruptions, air traffic control problems and record fuel prices."
Air France-KLM could back Delta's merger bid Reuters
Air France-KLM could provide strategic or financial help in Delta Air Lines' pursuit of a merger with another airline, a newspaper reported on Thursday. A US congressman on Wednesday said Delta has begun merger talks with Northwest Airlines, and media reports have said it was also talking to United Airlines parent UAL. The Wall Street Journal report, quoting people familiar with negotiations, said Northwest was more likely to emerge as Delta's "preferred partner" and that Air France-KLM may back up that bid.
In the math of mergers, airlines fail NYT
Airline stocks rallied last week on news that Delta Air Lines was mulling a takeover of either United Airlines or Northwest Airlines, suggesting that many investors think airline mergers are a brilliant idea. Airline Merger Match-Up The rally was an especially strong endorsement of mergers because it was broad — all the big carriers’ shares rose, on the assumption that one merger would lead to another. But close scrutiny of the business rationale for airline mergers suggests that any improved profits from consolidation will likely be short-lived, at best.
D.C. airport pass speeds travelers clear to the gate WP
Washington area travelers will soon be able to speed more quickly through airport security if they are willing to pay a fee, provide personal information to the government and allow their fingerprints and eyes to be scanned at checkpoints. The Metropolitan Washington Airports Authority, which operates Reagan National and Dulles International airports, awarded a contract yesterday to a company that operates the federal government's security program, which is known as Registered Traveler.
EC GDS proposals "bizarre" BTE
The EC's proposals to de-regulate GDSs in Europe without naming Air France, Lufthansa and Iberia as parent carriers were "bizarre." The charge was made by Bryan Conway, head of EMEA for Travelport. He told 110 delegates at the Focus Partnership Meeting (the group representing independent UK agents) that the EC had drawn up a new code of conduct with safeguards which required all airlines and GDSs to participate equally. But he added: "There appears to be some confusion as to the take up of parent carriers. It suggests that the code regarding parent carriers might not apply to Air France, Lufthansa and Iberia which own nearly 47% of Amadeus."
GTMC hits out at easyJet charges BTE
easyJet was accused of ripping off agents by charging €12 for return bookings made through the Amadeus and Travelport GDSs. The accusation came from the UK Guild of Travel Management companies (GTMC). It said one suggestion from its member was to boycott bookings of the low cost carrier on the GDS and "screen scrape" instead. "That will mean extra work, and there will be a cost to our clients, but it won't be anything like the €12 rip-off that is currently being proposed," Philip Carlisle, the Guild's ceo, said.
Feds seek comments on air consumer protections Management.travel
Air passenger rights is a hot topic in the travel industry, especially as airport and air traffic congestion trigger lengthy delays, but a federal government request for public comment on customer service rules thus far has not drawn a commensurate response. A seven-point proposal from the U.S. Department of Transportation published in the Federal Register on Nov. 20, 2007 at press time had garnered about 170 public filings, most of them a form letter coordinated by the Coalition for an Airline Passengers' Bill of Rights. Interested parties have until Jan. 22 to provide feedback.