NYTimes.com Article: War and Security Take Toll on Airlines

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War and Security Take Toll on Airlines

April 1, 2003
By JOE SHARKEY






The airline industry is "beginning to buckle" from the
effect of the war in Iraq and the continuing high-level
security alert, said James C. May, the president of the Air
Transport Association.

Compared with a year ago, domestic advance bookings are
down 20 percent. Bookings for trans-Atlantic travel are off
40 percent, and have fallen 30 percent for trans-Pacific
trips. On some days, cancellations have exceeded bookings
on some airlines, the trade group said.

According to estimates from the Travel Industry Association
of America, this spring, Americans will take 52.6 million
business-travel trips over all, down 2.5 percent from last
spring and down 13 percent from spring 2001.

As they lay off employees and cut back flights, airlines
continue to plead for significant federal relief from
security costs. In a conference call with reporters two
weeks ago, Gordon Bethune, the chief executive of
Continental Airlines, said the airlines were picking up
more than their fair share of security costs.

"This is national security," he said. "This is not about
protecting an airplane from being blown up. This is about
protecting an airplane from being used as a guided
missile." Airline passengers, he said, "should not have to
pay for the protection of people in buildings in the
Washington-New York area."

Airlines' Online Service
Gets a High Grade

Who does online booking better, travel
booking companies or the airlines themselves? Over all, the
airlines do, according to a survey released yesterday by
the Customer Respect Group, a Bellevue, Wash., consulting
firm that studies online customer service issues.

The company rated 500 travel-booking Web sites for
attributes including customer privacy, usability,
responsiveness, and openness and transparency in prices.
Among airlines, the Alaska Airlines site scored highest.
Among travel companies, Travelocity came in first with the
same rating as Alaska Airlines. But as a sector, travel
agencies did not do as well as the airlines.

United Offers Bonus
For Kiosk Check-Ins

Members of the
United Airlines Mileage Plus frequent-flier program get a
bonus of 500 miles the first time they use the EasyCheck-in
kiosks that the airline is rapidly rolling out at its hubs.
The bonus for second- and third-time use is 250 miles each,
for a total of 1,000 miles, through the end of the
year.  JOE SHARKEY


http://www.nytimes.com/2003/04/01/business/01MEMO.html?ex=1050210160&ei=1&en=621184c863c054f7



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