Re: Travel Agents Cautious About Flying US Airways

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Good news doesnt sell


----- Original Message -----
From: "Travel Pages" <travelpages@xxxxxxxxx>
To: <AIRLINE@xxxxxxxxxxxxxxxxx>
Sent: Monday, January 03, 2005 9:46 PM
Subject: Re: Travel Agents Cautious About Flying 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.>>
>
> 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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