February 18, 2005  
NEWS HEADLINES

Independence Air Has Plane Repossessed
The specifics as to the financial position of Independence Air continue to baffle analysts, but the Washington Post reports that warning signs are clear, as one of the Washington Dulles-based carrier's planes is repossessed.

US Airways and GE Agree to Revised Schedule for Filing Plan of Reorganization -- (2/14/05)
US Airways Group, Inc. and GE Capital Aviation Services (GECAS) and GE Engine Services (GEES) have reached agreement on a revised schedule for the airline's filing of a Plan of Reorganization (POR) with the U.S. Bankruptcy Court.

Travelers Report Tighter T&E Policies -- (2/15/05)
Following years of heightened cost-consciousness from managers, business travelers have felt the grip of T&E policies tightening, according to a survey American Express released today.

ALSO IN THE NEWS . . .

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AIR

United Airlines Expands Service to Munich -- (2/15/05) United will launch a daily nonstop flight between Chicago O’Hare and Munich, beginning June 7, 2005. This new service is in addition to United's existing daily Washington Dulles-Munich service. United's new flight, open for sale today, complements the Chicago-Munich code-share flight currently operated by Star Alliance partner Lufthansa, giving customers an additional schedule option on the route and timed to provide convenient connections from both cities on United and Lufthansa.

US Airways Begins Caribbean And Latin American Operations From Fort Lauderdale-Hollywood International Airport -- (2/14/05) -- US Airways today officially launched its new expanded operations at Fort Lauderdale-Hollywood International Airport, bringing a new, convenient and low-fare travel option for travelers in South Florida, nearly a dozen East Coast cities, and nine Caribbean and Latin American destinations.

US Airways To Resume Nonstop Pittsburgh-Houston Service -- (2/14/05) US Airways announced today that it will resume daily nonstop roundtrip service between Pittsburgh and Houston George Bush Intercontinental Airport (IAH), on May 8, 2005, using 72-seat Embraer 170 Regional Jets.

US Airways and GE Agree to Revised Schedule for Filing Plan of Reorganization -- (2/14/05) US Airways Group, Inc. and GE Capital Aviation Services (GECAS) and GE Engine Services (GEES) have reached agreement on a revised schedule for the airline's filing of a Plan of Reorganization (POR) with the U.S. Bankruptcy Court.

SkyTeam Opens New Facility at Mexico City International Airport -- (2/17/05) SkyTeam customers traveling via Mexico City International Airport (MEX) will be accommodated in a brand new alliance facility, which includes more room, an enhanced flight information display system, and an expanded passenger drop-off area.

Lufthansa will begin new daily nonstop from Washington, Dulles to Minich -- Effective May 2, 2005 Lufthansa is pleased to announce new daily nonstop service from Washington Dulles to Munich. Lufthansa flight 415 will depart Washington at 8:15 PM/20:10 and arrive in Munich at 10:25A+1. We are also very pleased to announce that Lufthansa’s new Business Class service will be offered on both our Munich flight 415 as well as LH 417 departing Washington for Frankfurt at 4:40PM/16:50.

Independence Air Has Plane Repossessed-- Independence Air Lender Repossesses a Plane

By Bill Brubaker
Washington Post Staff Writer
Saturday, February 12, 2005; Page E01

The parent of financially troubled Independence Air said late yesterday that a lender had repossessed one of the airline's 73 leased regional jets.

Flyi Inc. said the lender, which it did not identify, filed suit against the low-cost carrier in New York after it failed to make a lease payment due last month, according to a filing with the Securities and Exchange Commission.

The disclosure by Flyi comes at a critical time for the Dulles-based carrier, which has been struggling to avoid filing for protection from its creditors.

Rick DeLisi, Flyi's spokesman, said the repossession of the single jet will not affect the airline's schedule of flights, but he declined to comment further. Flyi serves 39 cities out of Dulles with its 50-seat regional jets and 132-seat Airbus A319s.

Last month, Flyi said it agreed with a major creditor, GE Capital Aviation Services Inc., to return as many as 20 of its regional jets in an effort to avert a bankruptcy filing. Flyi said GE Capital also agreed, subject to "a number of conditions," to restructure lease payments on 27 more regional jets and to give the airline a five-year, $19.5 million loan.

One of the conditions was that Flyi make "similar agreements with the lenders and lessors on other aircraft." John Oliver, a spokesman for GE Capital Aviation Services, declined to comment last night.

Flyi has not indicated whether it was able to renegotiate with various creditors $83 million in aircraft lease payments that were due in January. The airline previously said failure to renegotiate the payments could force it to file for Chapter 11 bankruptcy protection.

On Feb. 1, Flyi eliminated about 150 of its 560 daily flights, mostly in and out of Dulles. The airline announced on Monday it will begin Airbus service to five West Coast cities this spring.

Yesterday, before Flyi disclosed the repossessed aircraft, Robert N. Ashcroft, an analyst for UBS Investment Research, wrote: "While lessors have little incentive to push Flyi into [Chapter] 11, they're not charities either, and it takes only one to lose patience and issue a default notice to start to unravel the situation." He gave Independence Air a 30 percent chance of surviving as a low-cost airline.

Independence Air adding West Coast service (02/09/2005) -- Independence Air will launch nonstop service from its Washington (Dulles) hub to San Diego April 14 and Los Angeles, San Francisco, San Jose and Seattle May 1, hoping the new West Coast service on its A319 aircraft will provide a boost to the struggling airline.

America West says McCarran congestion cause for concern -- (2/18/05) With the number of daily departures of commercial flights at McCarran International Airport closing in on the 500 level, America West Airlines is getting increasingly concerned about the airport's congestion.

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CAR/RAIL

Hertz Last Minute Specials!
Here you can find specials at your favorite destinations in the U.S. and Canada. Rates require a Saturday night keep. They are updated frequently so come back if you don't find what you're looking for on your first visit.

Hertz puts booking fee on ‘indefinite hold' (02/15/2005) -- Hertz reversed course Tuesday and will not introduce a $2.50 reservations processing fee Feb. 16. Hertz puts booking fee on ‘indefinite hold’ -- By Dennis Schaal

Hertz reversed course Tuesday and will not introduce a $2.50 reservations processing fee Feb. 16.

Dollar Thrifty moving full-speed-ahead on conversion plan (02/07/2005) -- The Dollar Thrifty Automotive Group, parent of the Dollar and Thrifty car rental firms, reported it is ahead of schedule in its campaign to convert franchised locations to company-owned sites in major markets.

Amtrak Awarded Three-year Contract Extension to Operate Caltrain Commuter Rail Service (2/11/05) -- The Peninsula Corridor Joint Powers Board unanimously approved a three-year contract extension for Amtrak to continue operating the Caltrain commuter service between San Francisco, San Jose and Gilroy, Calif. through June 2009, with two one-year options. Caltrain will pay Amtrak approximately $180 million during the three years of the contract extension, subject to the fulfillment of performance clauses. Amtrak has been the contract operator of the Caltrain service since 1992.

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HOTELS

Hilton launches five-year ‘Distinctively Homewood’ upgrade plan (02/16/2005) -- Homewood Suites by Hilton initiated a program to enhance the all-suite, extended-stay brand.

Diversity initiatives sit center stage at Hilton, Marriott --Hilton Hotels staged its first annual Diversity Review here, rolling out details of several projects meant to attract more minorities and women as employees, investors and business partners.

New York’s Algonquin Hotel promotes Wi-Fi etiquette (02/16/2005) --With so many hotels offering wireless Internet access in public spaces, one had to come up with a set of rules for using electronic devices -- computers and cellular phones -- in public spaces.

The famed Algonquin Hotel here, long a haven for writers, is asking its guests to observe certain courtesies when taking advantage of the complimentary wireless Internet access in the hotel’s public areas.

“We want to be responsive to the needs of today’s writers, but at the same time do no want the use of modern technologies like Wi-Fi and cell phones to disturb other guests in their enjoyment of our historic lobby,” said Anthony Melchiorri, general manager of the hotel, which recently completed a $4 million renovation.

The hotel is asking guests to:

  • Mute the volume on computers.
  • Refrain from accessing Web sites that “might be generally deemed to be offensive or that might embarrass or offend another guest should they accidentally” see the site.
  • Be sensitive to the fact that other guests might consider what is on their computer screens to be private information.
  • Place cell phones on vibrate rather than ring.
  • Speak softly when making calls via cell phones.

“So far, our guests have been totally welcoming and compliant with these requests,” Melchiorri said.

Located in midtown-Manhattan, the 174-room Algonquin Hotel was a favorite haunt of post-World War I writers such as Dorothy Parker, Robert Benchley, Robert E. Sherwood and Alexander Woollcott, who’s regular gatherings there were referred to as the Algonquin Round Table.

Choice upgrades GDS connections with real-time rates, availability (02/15/2005) -- Choice Hotels International upgraded its connection to the major GDSs -- Amadeus, Galileo, Sabre and Worldspan -- to improve the information accessible to agents via the distribution systems.

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OTHER INDUSTRY RELATED NEWS

Travelers Report Tighter T&E Policies -- (2/15/05) Following years of heightened cost-consciousness from managers, business travelers have felt the grip of T&E policies tightening, according to a survey American Express released today.

Summer Travel Season Promises Extensive Traffic Delays -- While airlines lower their fares to attract more passengers and some analysts yearn for one or more carriers to disappear so that the survivors can benefit from the increased traffic, other analysts assert firmly that 2005 will be the year that massive air traffic delays, last seen in 2000, will reappear across the U.S.

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2005 Top U.S. Hotel Chain Survey (PDF)

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