U.S. business air travel on rise again

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U.S. business air travel on rise again

CHICAGO (Reuters) =97 U.S. business air travel has shown signs of recovering=
=20
from a steep drop-off because of the war in Iraq, but cost-conscious=20
managers are still hesitant to approve trips because of heightened security=
=20
alerts and SARS.
"We are now definitely seeing a swing toward more travel," said Pieter=20
Rieder, vice president of international development at business travel=20
manager Rosenbluth International. "I would not characterize it as being=20
dramatic at this point, but steady and definitely a significant=20
improvement." Many large U.S. corporations curbed travel even within the=20
United States during the war and most banned all but essential travel to=20
areas affected by the war or by the pneumonia-like virus SARS, or severe=20
acute respiratory syndrome. The war and SARS were just the latest blows to=
=20
U.S. airlines, which have reported billions of dollars of losses in the=20
downturn since the Sept. 11, 2001, hijack attacks.

Two airlines, UAL Corp. unit United Airlines and US Airways Group Inc.,=20
filed for bankruptcy and American Airlines parent AMR Corp. narrowly=20
avoided a filing just weeks ago. US Airways exited protection in March.=20
Corporate transactions on travel within and from the United States have=20
risen in recent weeks to about 4 percent below what would have been=20
expected had there been no war or SARS, Rieder said. However, ticket prices=
=20
appear to be holding steady and possibly dropping slightly, he said. The=20
slight rise in demand still leaves business travel below last year,=20
American Express Corporate Travel spokeswoman Melissa Abernathy said. "The=
=20
good news is that travel appears to be picking up, the bad news is that it=
=20
is picking back up to prewar levels, which were horrible," Kevin Mitchell,=
=20
chairman of the Business Travel Coalition, said. "There is still a lot of=20
anxiety." The war punished trans-Atlantic travel from the United States,=20
and SARS continues to crush traffic to and within Asia.

Some companies, however, have managed to save money by using=20
videoconferencing and computers to make international connections because=20
of travel bans. Other companies have lifted travel bans, but remain=20
cautious because SARS reports have varied so much, and have decided to=20
allow only essential travel, Mitchell said. The tightening of travel=20
policies may become permanent, as may a growing move toward business=20
customers acting more like leisure travelers and using cheaper restricted=20
fares to make lean budgets last longer, experts said. In 2000, about 25=20
percent of the tickets American Express corporate customers bought were=20
cheaper nonrefundable fares, Abernathy said. By March 2003, 54 percent of=20
the tickets were nonrefundable, she said.


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