Travelers could see fewer hassles in the new year
USA TODAY, 1/2/2007
The new year won't bring fewer weather delays or less-crowded flights or shorter airport security lines. But many of the anticipated changes in travel this year may ease the burden of road warriors just a bit.
Los Angeles International is opening new, improved lounges in its international terminal. Miami will clear out much of the construction clutter of the past five years with completion of its South Terminal.
IPod users will see built-in in-flight connections on several airlines, and a proliferation of kiosks holds the promise of quicker check-ins at airports, hotels and car rental agencies. Here's what's ahead in 2007:
TECHNOLOGY: Look for cell service, rental car kiosks
Boeing shut down its in-flight broadband service in 2006, but the airline industry is expected this year to roll out new initiatives to keep passengers connected.
Australian carrier Qantas Airways will test new satellite-based technology in the first quarter for e-mail, text messaging and cellphone calls. The test is limited to flights in Australia.
Dubai-based Emirates will also introduce satellite-based cellphone service this year. Only six people can call at the same time, and no calls are allowed at night.
LiveTV, a subsidiary of JetBlue that provides in-flight entertainment for airlines, may introduce e-mail and text-messaging service, says Nate Quigley, CEO of LiveTV. Starting in mid-2007, six airlines will install iPod connections in their in-flight entertainment systems.
It will be available on some flights by United, Delta, Continental, Air France, Emirates and KLM airlines.
JetBlue plans to expand XM Satellite Radio service to more of its Airbus A320 fleet.
Electronic kiosks will be more in evidence. Alamo, which introduced the rental car industry's first kiosks late last year, plans to install more at about 80 locations by this summer. The kiosk prints the rental agreement for customers with reservations so that they can go directly to the car.
JetBlue will begin testing early this year a new function in its kiosks that would allow customers to change their flight and pay the difference. Wyndham Hotels says it will issue tablet PCs to clerks to check in guests as they enter the front door.
Continental Airlines will introduce a new plan to e-mail passengers a bar code prior to their flight. By waving the bar code stored in their PDA (personal digital assistant) or printed on paper under a kiosk's reader, passengers can pull up their records for quicker check-in.
By Roger Yu
AIRLINES: Lots of merging could be on the horizon
One thing seems likely for the U.S. airline industry and its customers this year: Delta and Northwest will be key players.
Both plan this year to emerge from Chapter 11 bankruptcy as independent airlines. If they succeed, consumers can expect to see pretty much the same thing they saw in 2006. Airlines likely will continue to show restraint in adding capacity. That, coupled with steadily growing travel demand, could continue the upward pressure on fares.
But there's no guarantee that Delta and Northwest will emerge as stand-alone airlines. US Airways, which in November submitted an $8 billion proposal to merge with Delta, has a different plan that could set off a new round of airline consolidation. If US Airways succeeds, that merger and the imitators it spawns could have a profound impact on travelers for years to come.
So far, no bidder has emerged for Northwest. But if US Airways or another party acquires Delta, other carriers are likely to rush to find merger partners. And Northwest would be the next-best prize.
Carriers in Chapter 11 are particularly appealing because the law allows carriers such as Delta and Northwest to shed costs on a grand scale before emerging from bankruptcy protection.
Should a consolidation wave take hold, there are plenty of possible couplings in addition to US Airways-Delta: United-Delta, American-Northwest, Continental-Northwest or United-Continental.
Low-cost carriers could get involved, too.
Southwest already has a marketing partnership with ATA that could become something more substantial.
AirTran is seeking to acquire Midwest Airlines. And Frontier just launched a small marketing partnership with AirTran that could evolve.
Much is at stake for consumers.
Consolidation opponents fear higher fares as merged carriers cut their combined flying capacity. But others suggest that any steps by merged carriers to cut back on services and to drive prices up will be seen by low-cost carriers as an opportunity to grow even faster. That could bring discount carrier service to millions of U.S. travelers for whom it is not now an option.
Even in that case, don't look for a huge drop in travel prices. Discount king Southwest led the industry in five general fare increases last year to offset rising costs. Southwest's labor, fuel and other costs, like those of all other airlines, are expected to rise even higher this year.
By Dan Reed
AIRPLANES: Very light jets make convenient arrival
Business aviation will get much attention in 2007 as several manufacturers plan to bring their new "very light jets" to the market.
According to a forecast by Honeywell Aerospace, an average of 250 so-called VLJs will be delivered annually over the next decade. The federal government projects higher numbers.
Typically, VLJs have one pilot, weigh less than 10,000 pounds, and are powered by two engines, each about the size of a washing machine. They'll seat two to six passengers, and feature highly automated cockpits. They'll cost $1.5 million to $4 million — less than corporate jets now on the market.
While some companies and wealthy individuals are likely to use them for convenience not available in commercial aviation, the big use of VLJs could be as air taxis. Several companies are developing plans to provide on-demand flying between non-commercial airports.
The first VLJ, a Cessna Citation Mustang will go into service this year. Eclipse Aviation, a start-up with historical ties to Microsoft and Symantec, also expects to deliver its first Eclipse 500 this year.
The expected boom in business aviation goes beyond VLJs. The Teal Group, a consulting firm in Fairfax, Va., projects that 1,087 corporate jets will be built in 2007, up 34% from 2006. Honeywell expects deliveries of business jets in 2007 to top 1,000 for the first time.
At the other end of the spectrum, Singapore Airlines expects to be the first to fly the massive Airbus A380 in 2007. The superjumbo can accommodate more than 500 passengers.
By Dan Reed
CHINA: One U.S. carrier to get new, lucrative route
A pending decision by U.S. Transportation Secretary Mary Peters could make life easier for U.S. travelers going to Beijing or Shanghai.
Within the next few weeks, Peters is expected to award new route authority to one of four U.S. air carriers. The U.S. and China agreed in 2004 to gradual expansion of air service between the nations, and the airline that wins this new route can be expected to gain more than $100 million in annual revenue. Service could begin in March.
Under consideration at DOT:
•Newark-Shanghai, Continental Airlines.
•Washington Dulles-Beijing, United Airlines.
•Detroit-Shanghai, Northwest Airlines.
•Dallas/Fort Worth-Beijing, American Airlines.
DOT gets to choose a route that it thinks will best serve the public interest. But that hasn't stopped the airlines from waging intense public lobbying campaigns to try to influence the decision.
AIRPORTS: Many new, improved facilities on their way
Travelers should see plenty of improvements as major airports open new terminals, concourses and rental car facilities.
Some significant airport projects slated for completion this year:
•Miami. In March, Miami International will complete its $914 million South Terminal. Under construction since 2001, the terminal will house the newly built Concourse J, which will have 15 gates. It will also be the new home for Concourse H, a 14-gate facility that has been around for decades but has been recently renovated. Concourse H continued to operate during construction.
More than 20 airlines will occupy the terminal. They include United and its partners in the Star Alliance, as well as Delta and its partners in the SkyTeam Alliance. In all, the terminal will have 1.5 million square feet of new space, including extended curbs, a new federal inspection facility, concession areas and a bus station for cruise ship lines.
•Las Vegas. After construction delays, Las Vegas McCarran will open its new car rental facility in the first quarter of 2007, says spokesman Chris Jones. The $123 million facility will be one of the largest car rental garages in the country. Forty shuttle buses will transport car renters between the facility and the airport. Customers will have to pay a $3-a-day fee on each rental to help pay for it.
•Los Angeles. In May, LAX will open new airline lounges at the Tom Bradley International Terminal. In a project that began last year, the airport demolished the existing 16 airline lounges to consolidate them into four new lounges.
The new lounges, at 47,000 square feet combined, will be 72% larger than the space used for the closed lounges.
The three major airline marketing alliances — OneWorld, Star Alliance and SkyTeam — will have one each, while the fourth will be for customers of the airlines that don't belong to any of the three alliances.
•Atlanta. Delta, the largest tenant in Hartsfield-Jackson Atlanta, is scheduled to complete the makeover of its lobby by summer. The $26 million project calls for knocking down walls and back offices to create more open space. It will make the 50,000-square-foot lobby more open and "more intuitive" for getting around, says Betsy Talton, a Delta spokeswoman. Delta occupies nearly all the south side of the main terminal.
Once completed, the lobby will have 18 more check-in kiosks for a total of 98, and the number of check-in stations will nearly double to 112 from the current 60. As part of an earlier phase, Delta added last year one Crown Room Club, its elite member lounge, for a total of seven at the airport.
•Toronto. Toronto Pearson will open its new $519 million concourse in Terminal 1 on Jan. 30. Its 25 gates will be used for flights to the USA and other international destinations.
By Roger Yu
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