A survey of corporate travel officials by American Express is creating new worries for executives of the nation’s airlines.
The survey confirmed what airlines have said they suspected has been happening–business travelers are shopping the World Wide Web for the cheapest fares.
Nearly 82 percent of travel managers surveyed by American Express said they’re requesting or are going to request access to Web-only fares, according to Pam Arway, executive vice president and general manager of American Express Corporate Travel.
A companion survey by the Business Travel Coalition, a group representing Fortune 500 companies’ transportation concerns on Capitol Hill, disclosed that more than two-thirds of companies it contacted said they are pushing their employees to book tickets on low-fare carriers.
Officials of United Airlines in recent weeks have noted that business travelers account for 50 percent of the passengers on most of its flights. Prior to the recession, which began in March 2001, business travelers accounted for 52 percent of the Elk Grove Township-based carrier’s passengers.
The only problem, according to Rono Dutta, United’s president, is that business travelers are paying far less than they did in 2000.
For United and other major airlines that are dependent upon the higher fares formerly paid by business travelers to cover their increasing costs of operations, those lower rates are largely responsible for the red ink of the past 15 months.
The Amex poll reveals why. A majority of companies are encouraging or requiring their employees to think ahead and book early. Two-thirds of the companies say they are encouraging employees to book the cheapest non-refundable ticket rather than paying for a full-fare ticket.
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New Red Carpet Club: By the end of the summer, passengers flying United Express commuter flights out of O’Hare International Airport will have their own club where they can rest between flights.
Previously, commuter flights operated out of Terminal 1, but last summer United shifted the commuter operation to the F Concourse of Terminal 2.
The additional Red Carpet Club “will make unnecessary a long journey to a club in Terminal 1,” said Chris Bowers, senior vice president for marketing and sales.
The separate club for United’s commuter passengers matches the Admiral’s Club that American Airlines has been offering customers of its American Eagle commuter flights that operate out of the G Concourse of Terminal 3.
Food coming back: United and American Trans Air have told their employees that food service, which was cut from most flights following the terrorist attacks of Sept. 11, is on its way back.
ATA, the largest operator at Midway Airport, says it will be serving hot snacks on flights of more than three hours and full meal service on its flights to Hawaii.
United says beginning July 8 it will begin offering breakfast on all morning flights longer than one hour. In addition, it said it has kicked off its annual Taste of Chicago promotion. On flights departing to and from O’Hare after 10 a.m., the airline is serving a snack box in coach and a meal in first and business class.
Eagle award: The O’Hare Noise Compatibility Commission, of which many suburbs are members, has named American Eagle the recipient of its first “Fly Quiet” award.
Fly Quiet is a program that was introduced in 1997 by O’Hare and Federal Aviation Administration officials. In 2000, the noise commission added provisions that airlines were asked to follow, including special departure procedures and preferential runway use to reduce noise over populated areas.