Welcome to the April 2010 Issue of Travology Today

Air travelers must no longer be subjected to lengthy tarmac delays on domestic flights and will enjoy additional consumer protections as a result of a new rule that will take effect April 29, 2010, U.S. Transportation Secretary Ray LaHood said.

Under the new rule, U.S. airlines operating domestic flights may not permit an aircraft to remain on the tarmac at large and medium hub airports for more than three hours without deplaning passengers, with exceptions allowed only for safety or security reasons or if air traffic control advises the pilot in command that returning to the terminal would disrupt airport operations. U.S. carriers operating international flights departing from or arriving in the United States must specify, in advance, their own time limits for deplaning passengers, with the same exceptions applicable. Carriers are required to provide adequate food and potable drinking water for passengers within two hours of the aircraft being delayed on the tarmac and to maintain operable lavatories and, if necessary, provide medical attention.

Secretary LaHood said the new rule should not lead to large increases in the number of canceled flights, as some have predicted. “Everyone knows the rules going in – the passengers and the airlines. We expect carriers to take steps to avoid tarmac delays and cancellations by adjusting their schedules and providing timely information to passengers,” he said. “A little extra planning will minimize disruptions while ensuring that passengers are not trapped aboard airplanes indefinitely.”

The rule limiting tarmac delays was adopted in response to a series of incidents in which passengers were stranded on the ground aboard aircraft for lengthy periods.

The rule also:

• Prohibits the largest U.S. airlines from scheduling chronically delayed flights, subjecting those that do to DOT enforcement action for unfair and deceptive practices;
• Requires U.S. airlines to designate an airline employee to monitor the effects of flight delays and cancellations, respond in a timely and substantive fashion to consumer complaints and provide information to consumers on where to file complaints;
• Requires U.S. airlines to adopt customer service plans and audit their own compliance with their plans; and
• Prohibits U.S. airlines from retroactively applying material changes to their contracts of carriage that could have a negative impact on consumers who already have purchased tickets.

In addition, beginning at the end of July, airlines will be required to display on their website flight delay information for each domestic flight they operate.

The Department plans to issue a notice of proposed rulemaking within the next several months to further strengthen protections for air travelers. Among the areas under consideration are further requirements pertaining to tarmac delays and requirements relating to disclosure of baggage and other fees, and full-fare advertising.

The new consumer rule, which was issued last December, is available on the Internet at www.regulations.gov, docket DOT-OST-2007-0022.

Q. What changes can the traveling public expect? What can passengers traveling on flights to the U.S. from international destinations expect?

A. On any given day, passengers traveling on flights to the U.S. from international destinations may notice enhanced, random security measures throughout the passenger check-in and boarding process. Aviation security is a shared responsibility and countries around the world are working together to increase the safety of air travel. Passengers traveling on flights to the U.S. from international last point of departure destinations are likely to notice enhanced measures including the increased use of the technology and processes such as explosives trace detection, canine teams, advanced imaging technology, and behavior detection among other measures.

For security reasons, the specific details of the directives are not public.

Q. Which countries are affected by the new directives?

A. The security measures apply to all passengers on international flights flying directly to the U.S. worldwide.

Q. Do passengers need to do anything differently to prepare for checkpoint security procedures? Has anything changed in terms of what passengers can bring in their carry-on or checked bags?

A. At this time, security checkpoint requirements for passengers departing U.S. airports remain the same. Passengers do not need to do anything differently but they may notice enhanced security measures at international airports.

Q. Should passengers plan to arrive at airports earlier than normal?

A. Passengers may want to allow additional time to get through security on U.S. bound international flights. These times may vary by airport - check in with your airport or carrier.

Q. What can passengers expect to see at airports?

A. Passengers traveling to the U.S. from international destinations may notice enhanced security and screening measures throughout the passenger check-in and boarding process which could include explosives trace detection, use of advanced imaging technology, canine teams or pat downs, among other security measures to keep air travel safe.

Q. Are you working with the international community to encourage the use of enhanced screening technology?

A. The terrorist threat to global aviation is a shared challenge and ensuring aviation security is a shared responsibility. TSA works closely with international partners to share best practices for security checkpoints, air cargo screening, employee security procedures, checked baggage screening, behavior detection and explosive detection technology. A number of nations, including Australia, Canada, Italy, Netherlands, Nigeria, and the United Kingdom, have followed the U.S. lead to enhance aviation security by accelerating testing and deployment of advanced imaging technologies at their largest airports, and are strengthening behavior detection, explosive detection and information sharing capabilities.

Q. If a passenger does not wish to be screened using advanced imaging technology, do they have options?

A. This technology is optional to passengers in the U.S. Passengers who opt out of imaging technology screening will go through alternative screening, including same-gender pat downs. Passengers flying to the U.S. from international destinations should check with the country from which they are flying regarding that nation’s policies. For more information on use of advanced imaging technology in the U.S., visit www.tsa.gov.

Q. Will the majority of passengers still receive enhanced screening?

A. To more effectively mitigate evolving terrorist threats, the new security directive utilizes multiple, random layers of security, both seen and unseen, and all passengers may be subject to enhanced screening.

For more information, click here.

The International Air Transport Association (IATA) announced that March 2010 international scheduled air traffic showed continued strengthening of demand. Compared to March 2009, passenger demand was up 10.3%. This is an improvement from the 9.0% growth for passenger demand recorded in February.

This is a strong gain, but the data is being compared to March 2009, which was the low point for international air travel during the recession. “March results show that the pace of the upturn is strong. But the trauma of the recession is not over. The industry has lost two years of growth, and passenger and freight markets are still 1% below early 2008 highs. Nonetheless, the pace of improvement, based on an improving global economic situation, is much faster than anybody would have expected even six months ago,” said Giovanni Bisignani, IATA’s Director General and CEO.

With a 78.0% load factor recorded in March, passenger load factors remain at record highs. While demand expanded by 10.3% in March, capacity increases stood at 2.0%, boosting the load factor and creating much tighter supply and demand conditions. Global capacity remains 3-4% below pre-crisis levels.

International Passenger Demand

Regional demand patterns continue to reflect the asymmetrical nature of the economic rebound.

• Asia-Pacific carriers posted strong demand growth of 12.6%, against a capacity expansion of 1.3%. The strength of the rebound in the region’s economies is supporting Asia-Pacific’s demand improvement. China’s economy grew by 11.9% in the first quarter while India’s economy is growing by 7.0%. There is also greater optimism for a return to economic growth in Japan.
• European carriers posted traffic growth of 6.0%, considerably weaker than the global improvements, but better than the 4.0% growth in February. This is the result of sluggish home economies and continuing high unemployment rates. European carriers reduced capacity by 0.8% compared to the previous year.
• North American carriers posted a traffic growth of 7.8%, lagging the global average, although considerably improved from the 4.4% recorded in February. North American carriers posted the highest load factor among the regions (81.6%) as a result of continuing careful capacity management.
• Middle Eastern carriers recorded the strongest traffic growth at 25.9%. While economic growth of 5% in the region is supporting some of this increase, a large part is attributed to market share gains on long-haul markets, connecting passengers over Middle Eastern hubs. Load factors of 76.2% were slightly below the global average.
• African carriers are now starting to see improving growth, having suffered market share declines for several years. During March, demand was up 13.6% and load factors grew to 67.4% for the month.
• Latin American carriers posted the weakest growth of any region, increasing only 4.6% in March. This is in sharp contrast to February when the region’s carriers grew by 8.5%. The reduction is largely due to the impact of the earthquake in Chile.

The strong traffic recovery is expected to show a dip in April as a result of the eruption of an Icelandic volcano in April that saw the shutdown of large portions of European airspace over a six-day period.

For more information, click here.

Travel Managers and Travel Management Companies Ensure Stranded Travelers Get Home

A survey by the NBTA Foundation – the research arm of the National Business Travel Association (NBTA) – of corporate travel managers at major corporations across the globe found that the volcanic ash over Iceland and much of Europe negatively impacted travel for 80 percent of companies, at an average cost of nearly $200,000 per affected company, and highlighting the importance of effectively managing corporate travel.

Passengers Stranded

The 234 survey respondents indicated that on average, more than 160 travelers from each company were stranded away from their homes, costing the company more than $197,000 in unexpected travel expenses. Across the roughly 2,000 companies represented in the survey, the data indicates more than 310,000 travelers experienced travel disruptions, costing the surveyed companies more than $367 million collectively.

Michael W. McCormick, NBTA Executive Director & COO, said, “This has been a natural disaster for the record books, and one the travel industry will remember and learn from for years to come. The immediate lesson is the power of travel management at work. Travel managers have been working extended hours over many days -- along with supplier partners at travel management companies, hotels, extended stay properties, airlines, railways, and car rental companies -- to accommodate those who were stranded by the air traffic closures."

Trips Cancelled

The closure of European air space also forced the cancellation of many business trips and meetings before they began. NBTA found that NBTA-affiliated companies cancelled nearly 5,600 scheduled corporate meetings and more than 165,000 total trips that had not yet taken place.

McCormick continued, “The direct financial impact of this incident in terms of additional travel spend is astounding, but just imagine how much more loss companies will experience due to lost opportunities. Meetings were cancelled, clients were not met, hands were not shaken, and deals were not made. Those missed business opportunities will take their toll, and companies will have to get their people back on the road quickly to make up for it.”

Travel Managed

Despite the financial loss, a crisis of this magnitude proves the value of managed travel. Seventy-six percent of affected companies were able to secure hotel stays for stranded travelers, and 62 percent made alternative travel arrangements, such as a chartered plane or bus. Travel managers also provided emergency funding for displaced travelers (35%) and adjusted policies or caps or expense reimbursement (23%).

One survey respondent noted, “We have a comprehensive disaster recovery plan. We just activated it and our travelers and travel management company knew exactly what to do.”

McCormick commented, “We often forget the human aspect in a crisis like this. People have been stranded for days, many without sufficient funds or even an adequate amount of clean clothing. We’ve heard from travel managers helping single parents who had to make arrangements for their children, mothers who missed their daughters’ weddings, and even a traveler who couldn’t get home for his father’s funeral. Travel managers remained in constant contact with these folks as they personally dealt with this ordeal, working diligently to get them home as soon as possible."

He continued, "The companies that don't have strong travel management programs in place likely did not meet their duty-of-care responsibilities through this crisis. In the coming weeks, I expect they will be examining their policies and deciding to implement travel management best practices, such as centralized booking and people tracking.”

For more information, click here.

Avis Rent A Car has again been named the leading car rental company in customer loyalty by the Brand Keys(R) Customer Loyalty Engagement Index. The annual study examined customers' relationships with 518 brands in 71 categories. This marks the eleventh consecutive year that Avis was recognized as the number one company in the car rental category.

"Avis continues to lead the drive towards excellence in the car rental industry," said Robert Passikoff, founder and president of Brand Keys, Inc. "Our research shows that customers give Avis high marks in areas such as brand reputation, customer service, reliability and safety. We commend Avis for their continued success in engaging these consumers and creating loyal customers."

"We pride ourselves on providing Avis customers with first-class service and products and services that make renting a car a time-saving and enjoyable experience," said Ronald L. Nelson, chairman and chief executive officer of Avis Budget Group, parent company of Avis. "We greatly appreciate that Brand Keys and our customers recognize the efforts made by Avis employees throughout the country."

For more information on the 2010 Brand Keys Customer Loyalty Engagement Index, visit www.brandkeys.com.

American Airlines announced an enhancement to its online flight check-in process that provides online check-in capability for passengers traveling internationally. Through online flight check-in at AA.com, customers traveling both domestically, and now internationally, can check in for their flight and subsequently print or e-mail their boarding pass, from anywhere in the world…China Eastern Airlines announced its intention to join the SkyTeam Airline Alliance. During an official ceremony in Shanghai, China Eastern President and Chief Executive Officer Ma Xulun joined the CEOs of SkyTeam member airlines to sign a Memorandum of Understanding confirming China Eastern's plans to join the SkyTeam Alliance by mid-2011. With China Eastern as a partner, SkyTeam passengers will benefit from improved access to SkyTeam's extensive Chinese domestic network...Continental Airlines, a Star Alliance member, and TAM, Brazil’s leading airline, have signed a reciprocal frequent flyer program agreement. Beginning April 6, members of Continental's OnePass program will be able to earn and redeem miles on TAM flights; similarly, TAM Fidelidade program members will be able to earn and redeem miles on flights operated by Continental Airlines…Delta Air Lines and GOL, a Latin American Airline, announced they filed documentation with the governments of the United States and Brazil requesting authorization to implement a codeshare agreement. The agreement will allow Delta and GOL customers improved connecting flight access beyond the carriers’ respective hubs, including Atlanta, New York-JFK, Rio de Janeiro and Sao Paulo.… Qatar Airways has fulfilled its long-standing ambitions to fly to Japan’s capital city when flight QR802 touched down at Tokyo’s Narita International Airport this month. The addition of Tokyo, following the 13½ hour journey from Doha, marks the airline’s 89th international destination and second in Japan with the carrier already serving Osaka. Tokyo also becomes the airline’s fourth new route launched so far during 2010 in a year of continued aggressive expansion.

In February '10 decreased to 74.6%, down 4.4 points vs. the running 12 month average of 79.0% and down 4.1 points from January’s 78.7%. To view the USDOT's Bureau of Transportation Statistics' (BTS) Air Travel Consumer Report, www.brandkeys.com.

The United States Government has posted recent travel advisories and warnings for Afghanistan, Algeria, Burundi, Central African Republic, Chad, Colombia, Cote d’lvoire, Democratic Republic of the Congo, Eritrea, Guinea, Haiti, Iran, Iraq, Israel, the West Bank and Gaza, Kenya, Lebanon, Mali, Mauritania, Mexico, Nepal, Nigeria, Pakistan, Philippines, Saudi Arabia, Somalia, Sri Lanka, Sudan, and Yemen.