World Travel Industry Update

October 1, 2008

Featured Articles This Issue

 

1.	American Airlines Offers Free Companion Tickets
2.	Delta to Introduce New Two-Class Shuttle Service
3.	Alitalia News
4.	Airlines Expand Flight Schedules to Brazil
5.	Airlines Downsizing Means US Holiday Travel Overhaul

1. American Airlines Offers Free Companion Tickets
If a trip to the United Kingdom is in your future, American Airlines has an offer you won’t want to miss.  Two can fly for the price of one on your next getaway.  Customers who book a ticket on American and fly round trip from the United States to the United Kingdom between now and December 31, 2008 in First Class, Business Class or on select Economy Class fares will earn a free companion ticket for future travel to the United Kingdom or to the Caribbean between January 15, 2009 and December 15, 2009.  To participate in this offer register before your trip at http://www.aa.com/offers using promotion code UKCMP and subscribe to at least one of American’s email products by December 31, 2008 to receive your companion ticket. 

 

2. Delta to Introduce New Two-Class Shuttle Service
Delta Airlines will offer its shuttle customers the option of traveling in First or Economy class beginning December 1, 2008 as the airline reconfigures its MD-88 shuttle fleet to offer two classes of service.  In the new configuration, Delta Shuttle will offer 14 seats in First Class and 128 seats in Economy with the airline’s popular open-seating policy remaining in place for each class of service.  SkyMiles Medallion members will be eligible for complimentary upgrades on Delta Shuttle flights.  Customers traveling in the Shuttle’s new First Class cabin will enjoy an expanded selection of snack options, a more expansive offering of complimentary cocktails and wider, more comfortable seats.  Shuttle customers traveling in both First and Economy classes of service will continue to enjoy snack and beverage choices including complimentary wine, beer, coffee, teas, soft drinks and juices onboard.

 

 3. Alitalia News
As of Monday, September 29, 2008, the last of the major Italian labor unions have signed on to the Alitalia restructuring plan presented by the consortium of investors known as CAI.  Much work needs to be done, but this major development puts concerns of Alitalia’s continuity to rest as all parties are now working towards the same goal: to re-launch Alitalia as a more competitive carrier.  Air-France/KLM and Lufthansa are interested in buying a minority stake in Alitalia in a bid to grab a foothold in the lucrative Italian market.  British Airways is not planning to invest, a spokeswoman said, although a source familiar with the company said it may pursue a commercial partnership with the carrier if its rescue proves a success.

 

4. Airlines Expand Flight Schedules to Brazil
Flying to Brazil is now getting easier, particularly for travelers from the United States who want to go beyond Rio de Janeiro or Sao Paulo.  On November 2, 2008 American Airlines will begin daily flights from Miami to Salvador and Recife (on the northeast coast) and on November 4, 2008 it will start flights from Miami to Belo Horizonte (inland and north of Rio de Janeiro) three times a week.  The airline is also offering introductory rates, which start at $425 each way from cities like Boston, New York and Washington for travel before May 28 and concluding by May 31 (tickets must be purchased by December 2, 2008).  Delta Air Lines will offer flights daily into the heart of the Amazon (the city of Manaus) from Atlanta beginning December 19, 2008 and on December 21, 2008, the airline will offer service between Atlanta and Fortaleza (on the northeast coast) via Recife four times a week.

 

5. Airlines Downsizing Means US Holiday Travel Overhaul
Air fares that creep higher, infuriating add-on fees and a skittish economy will keep a lot of thrifty holiday travelers away from air travel this year. Losing some passengers is a sacrifice US carriers are resigned to make as they hack unprofitable routes from their networks.  For the embattled airline industry, cutbacks became necessary to simply survive in an era of tough competition and record-high fuel prices.  The overhaul of the holiday travel season is merely a side-effect of a massive airline downsizing planned for the fourth quarter.  Some travel experts believe demand for holiday air travel will remain strong.  Travelers may complain about high fares and fees, but ultimately they will not let the expenses keep them from seeing family.  And for others distant friends and family become more distant because the cost of a ticket and fewer flights will keep them at home.