Re: Travel Agents Cautious About Flying US Airways

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<<"Up here in Philadelphia, the people I talk to, the agents are being very
conservative. Where an alternative exists, they're recommending it, even if it may
be more inconvenient," said Kevin Mitchell, founder of the Business Travel
Coalition advocacy group.>>

Well, Mitchell's BTC isn't exactly on any legislative radar so I'll weigh in:

Travel management companies fear passenger customer service issues.  They are costly.

They are also alleged expert purveyors of travel information, and are queried on a daily basis by uninformed and uninspired customers on a variety of "wild" topics, ranging from aircraft safety to "what ifs" of a deranged nature.  Smooth and forgetful rides are what everyone is looking for -- so when polled, agents tend to project an exacerbation of industry concerns.

Many years ago I was witness to contact and coverage with television media over the DC-10 grounding.  All they wanted to hear was that people were afraid.  Practical information wasn't what they were looking for :)

lafrance@xxxxxxxxxxx wrote:
Funny, my local paper (which serves the central Jersey Area near PHL) tried to spin the USAir thing. The artical talked about even if US went belly-up the other airlines have to honor the tickets. So go ahead and book on US with no fear of missing that trip to AUA. And we should support flying out of PHL due if we loose it, people will have to trek to EWR.

I wrote them a email telling them that they left out that other airlines have to except US tickets BUT at Standby, and will flts near full it most likly won't happen.




Travel Agents Cautious About Flying US Airways



Monday January 3, 7:00 PM EST


NEW YORK (Dow Jones)--US Airways Group Inc.'s (UAIRQ) problems during the holidays with mishandled baggage are prompting travel agents and customers to book trips with other airlines.

Travel agents said they're concerned that operations disruptions or even liquidation will lead to more canceled trips as the bankrupt airline continues contract negotiations with the baggage-handlers union and faces $260 million in airplane payments in the next two months.

"Their future rests in the hands of thousands of travel agents," said William Rochelle, an airline bankruptcy expert with Fulbright.

Rochelle and other travel experts said the trouble during the holiday weekend prompted a greater degree of concern among customers than either of the bankruptcy filings of the past few years. US Airways continues to operate under Chapter 11 protection.



"I think that what's going on now is very dangerous for US Airways," said Standard & Poor's analyst Jim Corridore. "I frankly have been surprised that they've been able to survive this long." Corridore doesn't own any airline shares.

The airline mishandled thousands of suitcases in Philadelphia and canceled hundreds of flights during the holiday weekend. Company officials have said bad weather and the higher-than-usual number of employees calling in sick caused the trouble. Union officials said poor management was to blame, and the sick calls weren't part of a concerted job action. Still, the sick calls came despite US Airways' offer of incentives to employees who worked all of their scheduled shifts during the holidays.

US Airways officials weren't available to comment Monday, but the airline has said employees and managers volunteered to sort out baggage and help customers during the holidays.

Travel agents said they're cautioning customers not to buy US Airways tickets for extremely time-sensitive travel, like a relative's wedding or graduation. And some travel agents said customers are instructing agents not to book US Airways.

"Up here in Philadelphia, the people I talk to, the agents are being very conservative. Where an alternative exists, they're recommending it, even if it may be more inconvenient," said Kevin Mitchell, founder of the Business Travel Coalition advocacy group.

Further, Mitchell said, loyalty among people in Philadelphia, where US Airways has long operated a hub, is waning. "Normally you'd say, 'These people will forget this once they get to St. Thomas,' but I've never heard the level of frustration and resignation," Mitchell said.

Kathryn Sudeikis, president of the American Society of Travel Agents, said she recognizes that booking away from US Airways would hurt the airline, and in turn limit the choices passengers have.

"We're really anxious that all the carriers will be healthy," she said. "We're not booking away (from US Airways), but we're being prudent about the kind of trip people are taking."

Sudeikis said she advises customers with date-sensitive travel to consider booking with airlines that aren't in bankruptcy, even if the fares are higher or the routes are less convenient.

If US Airways - or any other airline - should liquidate or cancel some flight, customers have some protections. Credit-card companies may refund the cost of the ticket.

And legislation passed after Sept. 11, 2001, calls on rival airlines to handle passengers in the case of a liquidation for no more than $25 each way, if space is available.

Meanwhile, US Airways managers continue to negotiate with the International Association of Machinists and Aerospace Workers union, which represents baggage handlers and other workers. US Airways has signed cheaper contracts with nearly every work group except the machinists.

Union officials said Monday they don't anticipate reaching a deal before Thursday, when the bankruptcy judge could allow the airline to abrogate the contract.

-By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com


Roger
EWROPS

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