Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.travel From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: travel Mon, Mar 2 1992 Date: Mon, 2 Mar 92 05:57:42 EST Message-ID: 03-02 0000 DECISIONLINE: Travel USA TODAY Update March 2, 1992 Source: USA TODAY:Gannett National Information Network CARRIER HAS PROFITABLE STRATEGY: Southwest Airlines was the only major airline to make a profit in a year when the industry lost $2 billion. Southwest's no-frills, low-cost flights to secondary airports is a strategy that's grabbing market share. The Dallas-based airline's specialty is short-haul routes, such as Burbank to Oakland, Calif., on which it lowered the one-way fare from competitors' $149 to $49. (For more, see special Southwest package below.) FAA SAYS TRAFFIC DECLINED: U.S. airlines, cramped by recession and the Persian Gulf War, saw traffic decline last year for the first time ever, the Federal Aviation Administration said Friday. This year so far, "Jet fuel prices are remaining high, air traffic remains soft and profits continue to elude the industry," said the FAA's annual report on air transport. Airlines were hit by sharply rising jet fuel prices. SLOW GROWTH PREDICTED: The Federal Aviation Administration predicted slow growth for the industry this year, followed by a somewhat stronger performance in 1993. In its annual report, it said domestic traffic, down about 1.7% in 1991, should increase about 2.7% this year and average increases of 4.1% a year over the next decade. Fear of terrorist attacks after the USA went to war helped cut air travel. COMPANIES NOTE TRAVEL INCREASE: Business travel may be making a slight comeback. A survey of 300 Fortune 1000 companies by Budget Rent A Car Corp. found that 24.1% predicted a travel increase for the six months ended February 1991. For the period ending in December, the rate was 30.7; for June, the projected rate was 46.7%. And 36.9% saw a travel decrease for the first period vs. 11.7% in the period that ends in June. ATLANTA FARES STILL HIGH: Average airfares from Atlanta to 18 key cities have increased about 10% since Eastern shut down in January, according to Business Travel News. A typical one-way fare from Atlanta to Los Angeles, $412 in January 1991, was $632 in January 1992, according to American Express Airfare Management Unit. Atlanta to Washington, $250 in January '91, was $366 in January '92. GALILEO, COVIA MAY MERGE: Though officials at the two companies are not discussing it, several industry publications have reported the possibility of a merger between Covia Partnership and Galileo Distribution Systems. The two have some shareholders in common. A Galileo spokesman has said only that the companies "have gotten increasingly close in working on Global Fares and Global Access" in joint development. EMPLOYEE CHECKS PROPOSED: The Federal Aviation Administration has proposed regulations that would require airport and airline employees who have access to secured airport areas to have had a background check that includes a criminal record check. The rules are an outgrowth of the Aviation Security Improvement Act of 1990, prompted by the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland. FORD CRITICIZES DOT: Sen. Wendell Ford, D-Ky., chairman of the Senate aviation subcommittee, has warned incoming Secretary of Transportation that he needs to get serious about airline consolidation. Ford criticized former Secretary Samuel Skinner at a recent speech to Washington's Aero Club. Ford said, "I do not buy the theory that four domestic airlines is adequate for competition." RAFTING BILL IN COLORADO SENATE: A bill limiting the liability of the rafting industry has won Colorado House approval and has been sent to the Senate. The $400,000 ceiling on liability is aimed at helping strengthen the tourist industry. Opponents say the limit may not be enough for some injuries. SPECIAL PACKAGE ON SOUTHWEST: SOUTHWEST PICKS UP IN MIDWEST: Southwest Airlines, which saw a profit in a generally dismal year for the industry, has increased its service in the Midwest. It picked up eight additional gates at Chicago's Midway Airport when Midway Airlines shut down. It added daily flights between Midway and Indianapolis and Cleveland to its existing service between Midway and Detroit, Kansas City, Mo., Nashville and St. Louis. AMERICAN CONSIDERS NO-FRILLS: American Airlines Chairman Robert Crandall said recently that American is researching ways to offer supercheap flights, too. But its operating costs are much higher. By using only the Boeing 737, Southwest saves money on maintenance and training costs. It doesn't serve meals. "Hey, peanuts are food!" says chief Herb Kelleher. It costs Southwest 2.1 cents less per flier per mile than American. AIRLINE IGNORES NORTHEAST: Kelleher jokes that he's no threat."The very mention of the name American Airlines makes me cower." Southwest isn't interested in the heavily traveled northeast corridor, which includes Boston, New York and Washington.But he won't rule out that Southwest could one day serve smaller airports in the region. (End of package.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Weather Hot Line. 95 cents a minute. 1-900-555-5555. Travel Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. 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