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This Issue: 12 May 2010
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5Q - The Transnational Interview
5Q - Jeff Smisek
Jeff Smisek
 
Continental Airlines CEO discusses plans for proposed merger with United Airlines. Read
 
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Radius has expanded across borders and improved its corporate travel focus with new partnerships in Argentina, Brunei, China, Japan and Mexico, officials ...
 
 
 
 
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American Express Business Travel and Carlson Wagonlit Travel joined BCD Travel in the race to bring managed travel elements to the use of mobile applications ...
 
 
 
 
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Global hotel companies reported higher than expected first-quarter worldwide occupancies, partly due to increasing corporate demand, especially in the luxury ...
 
 
 
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News Briefs
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Hogg Robinson Group partnered with Viajes El Corte Ingles in Spain and Portugal, "replacing Empresas Marsans" whose parent company recently has faced "financial difficulties," according to HRG. HRG chief executive David Radcliffe said the switch to El Corte Ingles was made because "the provision of a quality service to our clients is paramount to HRG."
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Italy's Seneca Business Travel signed an "exclusive" partnership agreement with GlobalStar Travel Management.
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US Airways is adding about 20 corporate sales people around the world as part of a "largely international but also an expanded effort domestically to sign up more corporate accounts," according to president Scott Kirby. "We feel more comfortable now with analytical tools to sign corporate accounts and measure performance."
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Egencia gross bookings dollar volume rose 47 percent to $471 million in the March quarter compared with a year earlier, nearly doubling the pace of leisure growth for parent Expedia.
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In Numbers
 
Average Corporate Airfares
 
 
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DOT proposed to award new U.S.-Tokyo route authority to American, Delta and Hawaiian airlines. The carriers would be permitted to operate to Tokyo Haneda Airport once a fourth runway opens later this year. The proposed routes are AA's from New York, Delta's from Detroit and and Los Angeles, and Hawaiian's from Honolulu.
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Avis Budget Group "would like to make a substantially higher offer to acquire Dollar Thrifty" than Hertz's $1.17 billion proposal, which it suggested was not the "best possible deal" in a letter sent to Dollar Thrifty Automotive Group's board by Avis Budget CEO Ronald Nelson. Nelson wrote that he was "very surprised" by the offer since there were "several occasions" on which Avis Budget expressed interest in buying Dollar Thrifty but was denied meetings to engage in such discussions.
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Several travel management companies, travel distributors and airlines announced they have "agreed to support common technology approaches for the merchandising of airline ancillary services." Those listed on a joint press release included corporate TMCs American Express Business Travel, BCD Travel, Carlson Wagonlit Travel, Egencia, HRG, Orbitz for Business and Travelocity Business, and global distribution system operators Amadeus, Sabre Travel Network and Travelport. They each expressed support for both the Airline Tariff Publishing Company's optional services fare filing capabilities and the industry standard Electronic Miscellaneous Document. According to the joint statement, "the GDSs plan to provide corporations and travel agencies the ability to shop, book and fulfill airline ancillary services to travelers by late 2010." Air New Zealand, British Airways, Delta Air Lines, Lan and WestJet also were listed in the announcement as supporting these developments as "an option" for distributing products and services. American Airlines previously told The Beat that for its unbundling plans and direct connect initiative, it plans to implement EMDs but does not need ATPCo specifications. An AirTran Airways executive recently said that implementing EMDs is "something we don't want to do" because for the carrier's business model, some standards "don't make sense."
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News Brief
JetBlue Airways and South African Airways signed an interline deal enabling customers to travel on a single e-ticket and check bags for itineraries that include both carriers.
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In Quotes
In Quotes
Internationally, U.S. negotiators and DOT policy have positioned the major U.S. carriers at the center of the developing global networks. European, Chinese and other Pacific governments and their carriers seem content for the moment to let the U.S. and its carriers take the lead. Therefore, the big U.S. policy question is whether the DOJ will focus its competition concerns on a few narrow domestic markets (as it has in the past) or consider the national interest by encouraging a strong, dynamic global aviation network.
 
Airline analysts Paul Mifsud, Carlos Bonilla and Vaughn Cordle in a white paper issued 3 May regarding the proposed United-Continental merger
 
 
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