For Airlines, The Money Is Overseas

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For Airlines, The Money Is Overseas

By Keith L. Alexander
Tuesday, August 3, 2004; Page E01

Even as they struggle mightily at home, airlines that fly to Europe and
Asia are seeing some of their highest passenger loads and revenue in
years. That's good news for the airlines; not so good for business
travelers.

Many airlines saw demand for flights to Asia last year drop off
significantly due in large part to the weakened economy and severe acute
respiratory syndrome. European flights were affected by the Iraq war.

Now U.S. businesses seem to be making up for the drop-off. According to
a recent survey of the 2,500 business travel managers who make up the
Association of Corporate Travel Executives, 69 percent said their
companies are doing more traveling to Europe and Asia this summer than
last.

And since low-fare U.S. carriers aren't yet flying to Asia or Europe,
the carriers that are can charge some premium rates. United Airlines'
revenue per passenger mile to Asia, for example, increased 57 percent
last month from the same period last year. In the travel manager survey,
62 percent of those who responded said they were having trouble finding
low fares.

Marcella Axley, travel manager for Fair Lawn, N.J.-based Lonza Inc.,
said that her company is doing about 25 percent more international
flying this year compared with last and that fares are about 10 percent
higher.

She said her biggest challenge is finding business-class seats,
especially on flights to China, where the chemical manufacturer has a
plant. And because Lonza didn't do much international flying last year,
Axley said, the company doesn't have negotiated rates with the airlines.

Schneider Electric, in Palatine, Ill., is requiring its employees who
fly to Asia and Europe to book as many as 21 days in advance if they
want to fly business class. "There's not always availability if you book
within seven days," said Schneider's travel manager, Amanda Jackson.

Jackson said the company is doing 70 percent more flying to Asia this
year and 30 percent more flying to Europe. To offset its growing
international travel demand, Jackson said, the company is reducing the
amount of domestic travel.

Last month, United saw its highest revenue and passenger loads ever on
flights to Asia. "Over the last two or three months, we've been very
surprised," said Graham Atkinson, senior vice president of United's
worldwide sales and alliances.

Atkinson said most of its flights to Hong Kong and China from the United
States have been more than 80 percent full. In June, due to the
increased demand, the airline launched three new flights to Beijing,
Osaka and Zurich from San Francisco, Chicago and Washington's Dulles
International Airport, respectively.

 "The international routes are definitely offsetting the weakness in
domestic routes," he said.

Bob Cortelyou, vice president of scheduling for Continental Airlines,
said increased demand prompted the carrier to add flights to Paris, Rome
and Amsterdam this summer. The airline also reinstated its Newark-to
Hong Kong service, which it eliminated last summer.

Registered Traveler at National: Last week, American Airlines contacted
more than 2,000 of its Washington area frequent fliers who use Reagan
National Airport at least once a week, looking for people willing to try
the registered traveler program that begins at the airport later this
month.

The registered traveler program allows frequent fliers a quicker pass
through security using a dedicated line and eliminates the chances that
they will be picked for random security searches. American is teaming
with the federal government to find Washington volunteers for the 90-day
trial program, which began last month at Los Angeles International
Airport.

The Transportation Security Administration will determine which
passengers are selected. Travelers who sign up will find out if they're
picked for the program within eight days. Interested travelers will have
to undergo "security assessment" background checks, which include
checking their names against government terrorist lists and looking for
outstanding warrants, said TSA spokeswoman Amy Von Walter. Before they
can enroll, they must submit to fingerprinting and a scan of their
irises, and provide two forms of government-issued identification as
well as their birth date and address.

Some of Washington's most frequent fliers, of course, are members of
Congress, so American spokesman Tim Wagner said there's a good chance
that some lawmakers might be asked to participate in the tryout. Rep.
James L. Oberstar (D-Minn.) has already signed up in Minneapolis, said
his spokesman, Jim Berard.

Many Washington area frequent fliers who have become frustrated with the
long security lines and arriving at the airport 90 minutes before their
flights said they plan to sign up if asked. They say giving the
government their personal information is worth the ease of passing
through security.

Lyndon Richardson flies about three times a month as a compliance
officer for Capital One. Richardson said he had to go through similar
background checks for his job.

"For those of us who have nothing to hide, this is a minor
inconvenience," Richardson said. "Anything that can get us through
security quicker is worth it."

Dennis Thorseth of Crofton said he'd even consider giving "blood samples
or DNA" to have a separate security line.

But Gerald Mann of Alexandria said that before he gives up personal
information, he wants an "ironclad" assurance from the airlines and the
TSA that he would be able to skip the security lines and the X-ray
machines and would no longer have to remove his shoes.

That's not how it's going to work, though. Registered travelers still
have to pass through security, said the TSA's Von Walter. It's just that
they will have a designated line.

While Von Walter insists that the information will be used only for
airline security, some travelers remain skeptical.

"What a lot of people don't realize is that information could be used
for anything the government wants to use it for," said Toni Ballentine,
a marketing director for OAG Worldwide, a global flight schedule
database company in Downers Grove, Ill. "I'd never be willing to give up
what little privacy I have left, least of all to the U.S. government."

http://www.washingtonpost.com/wp-dyn/articles/A35440-2004Aug2.html

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