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The number of U.S. air travelers will top one billion by 2015,
but the aviation system’s ability to handle those numbers
will depend on finding a better way to pay for airport construction
and safety, U.S. Transportation Secretary Norman Y. Mineta said
during the Federal Aviation Administration’s annual forecast
hearing. Mineta said that the number of travelers flying has steadily
increased over the past three years, surpassing record levels recorded
before 9/11. While he called the forecast “sunny,” he
also warned the picture could turn bleak without reform of the federal
Aviation Trust Fund. Currently, trust fund revenues are collected
based on a percentage of the cost of airline tickets, and have dropped
in recent years due to cheaper airfares. The solution, he said,
is expanding capacity to handle traffic. (Source: DOT press release).
American Airlines announced that it would remove the rear galleys
from its MD-80s and replace them with four seats in September, giving
the airline about 1,300 extra seats to sell each day, a move that
the airline estimated will be worth $34 million a year. It said
it had not plans to remove the kitchens in the front of the plane.
Delta Air Lines said that it is reviewing its seating layouts and
considering removing galleys as well (Source: Washington Post).
JetBlue is adding four non-stop daily flights between New York
and Portland, Maine, starting May 23. It’s starting two daily
non-stops between New York’s JFK and Bermuda starting May
4. And the carrier is introducing new service, effective May 3,
between: Washington, DC/Dulles and Las Vegas; Boston and Phoenix;
and New York City/La Guardia and Orlando. Additionally, during the
busier summer travel months, JetBlue will increase flights to and
from several other JetBlue destinations. (Source: Jet Blue press
release).
The Department of Transportation’s is asking for comments
on a proposal to change the One Price Policy established in 1984,
which require all components of a ticket price, including fuel charges
but not including taxes, to be published in its advertisements.
Big airlines are lobbing to loosen advertising regulations, meaning
they could advertise a ticket fare without including fuel surcharges.
The American Society of Travel Agents is opposing any relaxation
of the rule and suggests that now is a golden opportunity to produce
a one-price policy that everyone –consumers, travel agents
and airlines—can understand. (Source: ASTA press release).
The on-time performance of the nation's largest airlines improved
in January, according to the Department of Transportation’s
Air Travel Consumer Report. The 19 carriers reporting on-time performance
recorded an overall on-time arrival rate of 78.8 percent in January,
an improvement over both January 2005's 71.4 percent and December
2005's 71.0 percent. (Source: DOT press release)
United Chairman and President Glenn Tilton told JP Morgan analysts
to expect consolidation in the airline industry. The airline, which
has just emerged from bankruptcy, will look at all of its options,
he said, including acquisitions that could help its bottom line.
He was not specific, but did say that analysts should not expect
UAL Corp. to sit by quietly and watch. One region of the world it
will look toward to strengthen its revenues is Asia/Pacific, he
said, especially Japan and China. (Source: UA press release)
Nine new InterContinental Hotels will be opening around the world
this year in the U.S., Europe, China and the Middle East. The InterContinental
Boston, which will also have private residences, is scheduled to
open in October. The InterContinental Harbor Court Baltimore, Md.,
and the InterContinental Kansas City at the Plaza both opened in
January. Two InterContinentals are opening in China, one in Chongqing,
the other in Shenzhen. (Source, InterContinental press release).
For the first time in the industry’s history, the non-airport
car rental market passed airport rentals in yearly revenue, according
to Auto Rental News. Both Enterprise and Hertz have confirmed this
shift. Fifteen years ago, airport rentals dominated the car rental
market. The car rental industry has grown by 65 percent over the
past 13 years and off-airport rentals have driven much of that growth,
tripling in size, while on-airport rentals have stayed relatively
flat. (Source: Auto Rental News).
The Federal Aviation Administration is optimistic about the future
of the airline industry. In its just-released forecast for 2006
through 2017, the FAA noted that since 2000, the industry has been
battered by 9/11, the spread of the Severe Acute Respiratory Syndrome
(SARS), and record high fuel prices. An important yardstick, though,
remains the number of passengers that traveled. Last year, that
number was a record 739 million, up from 690 million the previous
year. U.S. commercial aviation remains on track to carry one billion
passengers by 2015. The one hurdle: oil prices. However, the FAA
believes that in the long run, inexpensive tickets, a strong national
economy, and increasing demand for seats aboard aircraft bodes well
for the industry and consumers. Other trends the forecast noted:
Planes will get smaller as legacy carriers continue to replace their
wide-body and larger aircraft with smaller, narrow-body planes.
And, relatively inexpensive twin-engine microjets, are redefining
“on-demand” air taxi service. Next year, 100 microjets
will join the fleet, growing to 400-500 per year through h 2017.
(Source: FAA Aerospace Forecast Fiscal Years 2006-2017).
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
www.ethanallen.net
www.meridianworldtravel.com
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