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November 28, 2007

LCC Reaches Out To OTAs For ROI

While many Americans were filling up on turkey and watching football this Thanksgiving weekend, JetBlue Airways was busy hammering out the details of its agreements with online travel agencies.

In what is a sign of the new low-cost carrier presence among OTAs, JetBlue has announced partnerships with Priceline.com, Orbitz Worldwide and Travelocity. All three sites will have full access to the airline's published fares, schedules and inventory.

Friends with benefits: In addition, JetBlue will be added to the OTAs' travel-package options. Orbitz will distribute JetBlue fares through its new Orbitz for Business site as well as its CheapTickets brand, while Travelocity reported that JetBlue will soon become part of available Travelocity vacation packages.

JetBlue's emphasis on passenger extras -- satellite television and radio and name-brand snack selection among them -- may have helped the LCC appear more attractive to the sites. "JetBlue offers great in-flight amenities and additional options for our customers," said Travelocity's VP of flights Simon Bramley.

The terms of the agreements remain undisclosed, although Priceline revealed its deal with JetBlue is a multi-year one. JetBlue bookings will be available on all three sites effective immediately.

-- Scott Walker, Editor in Chief, TDR

November 21, 2007

United-Delta Merger Not Likely -- But Get Ready Anyway

Tongues are wagging about the prospect of a United-Delta merger that emerged from the rumor mill last week. And while there are good reasons not to believe this particular deal will actually move forward, you should expect some merger action among major carriers -- and a significant shift in the marketplace in the near future.

Of course, merger rumors have been rampant for quite a while. “Most pundits have been saying that we have a capacity problem: too many seats,” Eric Smith, co-chair of the aviation practice group at Schnader, Harrison, Segal & Lewis in Pittsburgh, tells TDR. Continental Airlines has been the focus of merger rumors for over a year, Smith points out.

But the United-Delta chatter has been the loudest. So what’s it all mean?

For the LCCs, there's potential for pricing flexibility, if not much new market share. Meanwhile, the GDSs had best prepare to face a negotiation batter, and travel agencies should get ready for some puzzled customers. Want more details on these coming industry changes? Read the cover story in TDR Vol.15 No.25. Not a subscriber? Sign up here.

-- Scott Walker, Editor in Chief, TDR

November 14, 2007

Southwest Bends To Biz Class Will

Southwest Airlines is out to win over suits with some changes to the way it serves them. Announced Nov. 7, a new "Business Select" fare guarantees customers will be first to board the plane, promises a free onboard cocktail and bestows extra Rapid Rewards credit for the flight.

"We know that our true road warriors want to make traveling on Southwest Airlines as quick and easy as possible, and providing the choice to be among the first to board is key," said Kevin Krone, Southwest's VP of of marketing, sales and distribution.

Recent changes to the Rapid Rewards program also cater to travelers looking for special attention. Now members who have flown 32 one-way flights or 16 roundtrips in a year will gain a spot on the airline's "A-List," which offers them automatic check-in in advance of flight departure, thereby giving them a fighting chance to grab an "A" boarding pass. Plus, a new "Freedom Award" promises travelers a chance to book a rewards flight with no blackout date restrictions.

"As promised Southwest has made value added improvements that will differentiate our product without changing our core business," said Gary Kelly, Southwest CEO.

-- Scott Walker, Editor in Chief, TDR