Travel alerts for the week of December 18

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Last week, we asked if the Transportation Security Administration was going too far by testing a new "backscatter" passenger scanner that can effectively "see" through clothes - although TSA swears it will protect individuals' privacy. Some saw nothing wrong with the procedure, like reader Patkauf53, who replied: "I agree with this new measure. Times have changed, and I would prefer to feel that the U.S. is doing everything possible to detect terrorist methods that endanger airline passengers." Readers Rae & Sandra Young agreed: "This looks good and would be an improvement to security - and less invasive than some current searches." "If it makes my flight safer, I'd be all for it," said reader Peter Eschweiler; "nobody wants to see my tired old body anyway!" "It will not bother me in the least to be scanned," said Tom Varhol. "For those who complain...if modesty is your problem, then grow up or take the train."

Reader Juan Garcia wasn't so sure. "I am all for security, but if the device sees through your clothes, what is going to cover your private parts?" he wrote; "it doesn't sound good." N. Jeanne Johnson said she is "extremely skeptical that our privacy won't be violated. These aren't medical personnel trained to work with patients in various states of undress." Some readers were outraged. Reader David Mack called TSA "a typical government agency gone crazy with power. Just because they have an unlimited budget, they are preying on the fears of the few passengers who fly once or twice a year and vote for this kind of high-priced intrusion. I guess Big Brother will really be watching us from now on." "This TSA nonsense is a way to harass the American public into believing in fear, thereby allowing this group of neo-Nazis to control the public," said reader Mary Scharf. "Are we safer? No...We are becoming a police state ruled by fear so the powers that be can control us. We are forfeiting our rights and freedoms so that the rest of the world can be free."

AIRLINES

United-Continental? AirTran-Midwest? Merger mania multiplies

As US Airways continues its relentless pursuit of a Delta takeover, two more potential merger deals appeared on the scene last week: AirTran Airways confirmed it has offered to acquire the parent company of Midwest Airlines, and media reports said that the CEOs of United and Continental have been discussing a possible combination.

The bigger deal by far would be a United-Continental link-up, since the two have a combined market value of about $9 billion. Spokespersons at both airlines have declined to comment on the talks, which were reported in the New York Times and the Wall Street Journal. The two companies reportedly are watching closely to see if the proposed US Airways-Delta deal runs into any interference from federal regulators and antirust monitors, whose approval would be required. Some analysts like the fit between United's heavy presence in the western U.S. and Asian markets and Continental's strong network to Europe and Latin America. But some things cold complicate a deal, like the fact that Northwest Airlines, as part of a 2000 agreement with Continental, holds the right to block any acquisition of the latter company. Also, Continental and United are members of competing code-share and global alliance partnerships: Continental is in the Skyteam alliance with Delta and Northwest, while United is a partner with US Airways in Star Alliance.

The Business Travel Coalition last week issued a statement opposing a United-Continental deal, saying it should be viewed in the context of the ongoing assignment of new route authorities to China. If the two merge, "the 'new' United/Continental would command 42 weekly U.S.-China frequencies, followed by Northwest Airlines with 21 frequencies and American Airlines with seven," BTC said. "In BTC's view, such an outcome is inconceivable and would have dramatic negative impacts for business travelers in terms of sharply higher air fares and fewer service options."

Meanwhile, AirTran said last week that in late October, it quietly offered $290 million to buy Midwest Airlines. AirTran operates out of hubs at Atlanta and Orlando, while Midwest's operations are focused in Milwaukee and Kansas City. Midwest curtly rejected the AirTran bid, saying it would not be in the company's best interests. Midwest noted that it is doing quite well on its own, with planned capacity growth of 10 percent annually over the next three years, including a regional jet program, and even greater growth in profitability. However, AirTran said it will continue to pursue a merger with Midwest, claiming that the deal could generate $60 million a year in "synergies" by combining the airlines, and $3 billion in revenue in 2007. AirTran said it could save $20 million by replacing Midwest's MD80s with new AirTran 737-700s.

American, United unveil plans for premium cabin upgrades

American Airlines and United Airlines last week both came out with some details for planned upgrades to some of their premium-cabin services.

At American, the focus was on its 767-200 transcontinental fleet that operates between New York JFK-Los Angeles and JFK-San Francisco. The airline said it will overhaul the first class and business class cabins of those wide-bodies, with the changes starting to appear by next summer. In both classes, the improvements will start with new audio- and video-on-demand "personal entertainment devices." In first class, American will install new fully motorized seats, and will add a tenth first class seat to the nine each plane has now - or a total increase of 11,000 first class seats annually in those two markets. All of the transcon 767s will get nose-to-tail interior refurbishments with "a lighter and brighter look," a spokesman said.

American will also enhance the airport lounge policy starting next summer for JFK-LAX and JFK-SFO first and business class passengers traveling on three-class aircraft. First class passengers will have access to AA's Flagship Lounges, usually limited to international premium-class flyers; and business class passengers will be able to use Admirals Club lounges, whether they hold a membership or not.

Meanwhile, United said that by the fourth quarter of 2007, passengers should start to see new first class cabin amenities on its international fleet of 97 aircraft, including 767s, 777s and 747s. The cabin's new First Suite will have a seat that's three inches wider than today's, reclining to a fully flat six-foot, six-inch bed. Each "suite" will provide a 15.4-inch widescreen flat panel monitor for a new on-demand digital video and music system that offers scads of movies, TV shows and video games as well as 50 channels of XM Radio, 3,000 songs, and the capability for customized playlists. Each seat also will have a 110-volt outlet; a USB port for charging electronic devices; noise-canceling headphones; and an Apple iPod connector.

United eyes "unbundled" air fares for 2007

Last month, we reported on a new pricing strategy at Air Canada that would let passengers secure lower fares on individual ticket purchases by opting not to earn frequent flyer miles, not to check baggage, not to select a seat in advance, and/or by foregoing the right to change their ticket. Now it appears that a similar concept of "unbundled" pricing is taking hold at Star Alliance partner United Airlines. At an investor conference last week, United senior vp-planning Greg Taylor said United is working on a concept he calls "bare fares," where customers would pay a reduced amount for basic transportation, and then could select add-ons for their service preferences at an added cost, like getting an advance seat assignment, checking bags, and earning frequent flyer miles. Other revenue generators being considered include an add-on fee for ticket flexibility (i.e. the right to change a booking) at a price less than the current $100 change fee; the option of buying the benefits of Mileage Plus premier status (priority check-in, access to the express security line and priority boarding) for one trip at a time; and buying day passes to Red Carpet Clubs. Taylor said passengers could start to see the concept coming onto the market within the next year.

JetBlue will add legroom on A320 fleet

JetBlue Airways said last week it will give passengers more legroom in 2007 on its fleet of Airbus A320s by removing one row of seats from each plane. The reconfiguration will create 36-inch pitch or better in rows 1-11 and 34-inch pitch in rows 12-25. In addition to the A320s, JetBlue also operates a growing number of Embrear 190s, with 32- and 33-inch pitch and no middle seats. CEO David Neeleman said the reconfigured A320s will provide "more inches of legroom than any other U.S. airline's coach cabin." What's the reason for the change? To save money, of course -- $30 million over five years, by JetBlue's estimate. True, having fewer seats per plane will reduce revenue per departure, but JetBlue says it will more than make up for that in fuel savings, lightening the aircraft by 904 pounds; and in labor costs, since the change will enable it to cut flight attendant staffing on the A320s from four to three. The work should be finished by March 2007, JetBlue said.

INTERNATIONAL

Star, Oneworld alliances adding new members

Both the Star Alliance and the Oneworld alliance have revealed plans to increase their airline membership rosters. Star Alliance - which includes United, Lufthansa, US Airways, Air Canada, Thai, Singapore and South African Airways, among others - said last week it voted to accept Turkish Airlines into the family, enabling it to provide passengers with new connections via Istanbul to points in central Asia and the Middle East. Star said Turkish Airlines should be integrated into the alliance within 16 months. Other pending new members in Star include Shanghai Airlines and Air China. Meanwhile, Oneworld is expected to add Hong Kong-based Dragonair to its membership, according to press reports last week. Dragonair, which was recently acquired by Oneworld member Cathay Pacific, will provide access to 15 new destinations for Oneworld, including 12 cities in mainland China.


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