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Business Travel Update
SUMMIT TRAVEL GROUP
MARCH 2010 V. 10 NO. 3 www.summittravelgroup.com (800) 338-1308

Meet Your Summit Team Member

Summit Managing Partner, Don Freeman, took an unusual path into the travel industry. For 23 year, he was a Management Consulting Partner with Managing Partner, Don FreemanErnst & Young. He served a variety of clients, performing financial and marketing feasibility studies, implementing customized accounting package software and assisting companies in evaluating merger and acquisition opportunities. He has an MBA in Finance and Marketing from UCLA and was a CPA. So, what lured Don into the Travel Business? In Don's words: “I saw an industry in transition and, where there is transition, there is opportunity to create a better product to service the customer.”

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JFK’s main runway closed March 1 to allow the strip to be repaved with concrete instead of less-durable asphalt and widened to accommodate today's bigger planes. If the first few days of closure were any indication, it could be a rocky road for travelers flying in and out of the Big Apple. Delays averaged 100 minutes the first day the runway was closed. The delays were exacerbated by high winds of up to 35 mph, forcing the airport to operate on just one runway for some of the day. The Port Authority said airlines "are adjusting schedules and operations to mitigate delays, and the airport's three remaining runways will be utilized to their full capabilities during the closure." The closed runway handles about 33% of all operations at the airport. Repairs on the main runway are expected to take about four months to complete.

U.S. Airline Revenue Up for First Time in More Than a Year

The Air Transport Association reported that passenger revenue rose 1.4% in January, reversing 14 consecutive months of declines. Traffic was down very slightly (4%) and the average price to fly one mile was up very slightly to 6%. James C. May, president and CEO of the ATA, said that the small revenue increase, coupled with a 17% increase in cargo traffic, could be the sign of a recovery. (Source: ATA press release).

New Fines Will Affect Airline Cancellations

Travel Weekly reports that new regulations limiting tarmac delays may lead to more flight cancellations. More than 27,000 flights were cancelled during the February snowstorms, inconveniencing hundreds of thousands of passengers. However, this could be just a preview of what is to come. Because of new Federal regulations limiting tarmac delays, airline officials and analysts predict that in coming months airlines will cancel an increasing number of flights for bad weather. According to the new rules, airlines that hold a plane on the tarmac for more than three hours could be liable for a fine of $27,500 per passenger. Rather than risk fines, airlines may declare flights cancelled due to weather.

Santiago Airport Now Handling About 60% Of Its Flights

Santiago International Airport reopened to regularly scheduled international flights this week. Airport managers stated that although the facility has begun to operate some domestic and international flights, damage at the facility continues to cause some disruptions. As of today, the airport is reportedly handling 60% of the usual number of domestic flights. Airport officials estimate that the facility will reach full operational capability in one week, but stated that repair work on the damaged terminal will take approximately one month to complete. International passengers have reportedly waited in line for hours outside a makeshift terminal at the airport to get word of when they will be able to get a seat on international flights out of Santiago.

British Airways Outlines Plan To Combat Possible Strikes

British Airways said it has prepared a range of measures to combat a possible strike by cabin crew. The airline has been training some 1,000 pilots and ground staff to work as cabin crew and will lease staffed aircraft from other airlines. No strike date has been set as yet and negotiations continue.

 

Continental To Charge For Extra Legroom

Continental announced it would give passengers the opportunity to purchase extra legroom in coach effective March 17. On most planes, this would apply to exit row seats. The cost would depend on the length and popularity of the route. The airline will not reconfigure its planes, but charge extra for seats with seven inches more legroom. Elite members will be able to claim the exit row with no charge.

 


Summit Travel Group is committed to providing you with useful information on the latest developments in the travel industry. The preceding information has been compiled from a variety of sources and is updated monthly.

www.summittravelgroup.com

 

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