Essential Travel News for 6/11/07

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FAA/SECURITY

Passport mess leads to rule changes, and Congress may approve more

The federal government has relaxed its new rules requiring a passport from all air travelers entering the country from Canada, Mexico, the Caribbean and Bermuda. And Congress last week gave signs that it might stall the next phase of the passport crackdown as well. Originally, changes in federal law required all travelers entering the U.S. by air from the above countries and regions to have a passport starting January 23, 2007; previously, other forms of ID were acceptable. But the result of those new rules was a massive increase in passport applications, overwhelming the U.S. Passport Agency and leading to delays of up to three months in getting or renewing a passport. Many consumers’ vacation plans were ruined, or at least thrown into uncertainty, so the government relented. Now it says airline passengers won’t be required to have a passport for arrivals from Canada, Mexico the Caribbean or Bermuda until October, although they will have to demonstrate that they applied for one.

The next phase of stricter passport rules is due to take effect January 1, 2008, when new regulations impose a passport requirement on all persons entering the U.S. by road or by sea from Canada, Mexico, the Caribbean and Bermuda. But last week, the House of Representatives and the Senate appropriations committee both approved measures that would extend that deadline for another 17 months, in order to give the beleaguered Passport Agency –and the traveling public -- time to catch up. The sympathy for the change in both houses indicates it could well become law, assuming the White House doesn’t object.

Newspaper: TSA’s “sniffer” machines at airports are duds

The Seattle Times has been looking into the status of the Transportation Security Administration’s program to deploy “puffer” explosives-detection machines to the nation’s airports – and it found that the devices have major problems. So major, in fact, that the TSA stopped installing them a year ago. According to the newspaper, TSA currently has 95 “puffer” units at 38 airports – less than a quarter of the 434 machines that the program originally called for. The units cost about $160,000 each, and they have been plagued by “performance and maintenance issues,” according to a report from the Government Accountability Office. Although they are supposed to represent the state of the art in detecting trace amounts of explosive materials, the newspaper found that many of the machines are prone to giving false positives, and tend to have problems resetting themselves.

AIRLINES

AirTran gets a foot in the door at Midwest Airlines’ annual meeting

AirTran Airways parent company AirTran Holdings, which has been pursuing a hostile takeover of Midwest Airlines for several months, got a foot in the door at Midwest’s annual meeting last week, when Midwest shareholders approved the election of three new directors nominated by AirTran. That gives AirTran three seats on a nine-member board. In addition, almost 60 percent of Midwest’s shares have thus far been tendered by stockholders under the terms of AirTran’s latest offer, worth about $15 a share. Midwest’s board of directors and management have been urging shareholders not to tender their shares, claiming Midwest will be better off as a standalone company following its own growth plan. AirTran wants to merge the two carriers. In spite of the shares tendered and the board elections, Midwest has noted that Wisconsin law requires any takeover to be approved by a majority of Midwest’s board – and AirTran doesn’t control that many directors. However, Midwest said after the meeting that its board will now allow AirTran to make a presentation on its takeover plan. The election of the new directors “says that our shareholders want us to listen, and that is what we intend to do,” said Midwest CEO Timothy Hoeksema.

United still sees advantages from a merger

United Airlines has been out of Chapter 11 bankruptcy for months now, but the airline reportedly still thinks it might benefit from a merger with another company. According to wire reports, CFO Jack Brace told analysts in Chicago that United might do well to merge with an airline that has a big presence in the northeast and across the Atlantic, and a hub in the south with good routes to the Caribbean and Latin America. But he said United would not seek to initiate a hostile takeover attempt, citing the failure of US Airways’ run at Delta. When United was in bankruptcy, United CEO Glenn Tilton had often made the argument for a merger, but United officials hadn’t mentioned it much lately.

Northwest to enter DFW-LaGuardia market

Here’s an interesting route announcement: Northwest Airlines said it will bypass its major hubs by launching non-stop service September 5 between Dallas/Ft. Worth and New York LaGuardia. That key business route is currently a stronghold of American Airlines, which operates up to 16 flights a day between DFW and LGA. American also has a strong presence from DFW to Newark and JFK as well. Northwest said it will operate three daily roundtrips on business days, using two-class A319s.

Continental, US Helicopter start code-sharing on Manhattan-Newark routes

Continental Airlines and US Helicopter have introduced code-sharing on the latter’s flights between two Manhattan heliports and Continental’s hub at Newark Liberty International. Passengers who connect to one of Continental’s international BusinessFirst flights at Newark will benefit from a single check-in, with baggage checked through to their final destination. They will also earn 500 OnePass miles for each helicopter flight. US Helicopter operates out of the Downtown Manhattan heliport and the Atlantic Metroport at East 34th Street; one-way flights to or from Newark Liberty start at $159.

INTERNATIONAL

All-premium-class airlines look to expand

Two transatlantic airlines that offer all-premium-class seating in specially configured aircraft say they expect to add more routes soon. Eos Airlines, which operates between New York JFK and London Stansted, said it has increased its fleet to four planes, with a fifth due in December and negotiations going on for a sixth. Eos uses 48-passenger 757s. “We’ve gained a loyal following with discerning travelers who love Eos Class service and just want to see more frequency and more destinations,” said CEO Jack Williams. And Silverjet, which started flying an all-business-class 767 between Newark and London Luton six months ago, told Air Transport World that it is looking for new routes to add as more aircraft come online. The company said it expects to get its second 767 in July and a third by the end of the year, followed by two more in 2008. Company officials told the publication that Chicago and Los Angeles are on their list of potential new markets.

Brazilian carriers start ticketing agreement with Delta

Brazilian carriers GOL and VRG have entered into a ticketing and baggage agreement with Delta effective July 1. The Brazilian carriers said the pact would provide “faster and more convenient connections” for Delta passengers connecting with GOL/VRG services at Sao Paulo or Rio de Janeiro to 58 destinations in Brazil, as well as to other cities in South America.

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