HEADLINE NEWS.

The airports in Pensacola, Fla., and Grand Bahama Island are closed due to damages sustained by the recent hurricanes. AirTran Airways said that it has canceled flights for the weekend to those airports, and expects to resume flights to Pensacola on Monday, Sept. 20. Operations to Grand Bahama Island are indefinite. Airlines that fly to those airports are allowing travelers to rebook without paying a fee. They also may be able to cancel the flights altogether and receive a credit for a future flight. Sep 17, 2004

AirTran Airways has canceled all flights to and from Grand Bahama Island for Friday, Sept. 3 2004. The storm's path is not yet known; however, it is possible that it could hit Florida by this weekend, and some Florida operations could be impaced on Saturday, the airline said. Passengers scheduled to fly into or out of Grand Bahama, as well as a number of Florida destinations, are being offered the opportunity ot offer their itineraries without change or cancellation fees. Sep 1, 2004

Alaska Airlines is offering its popular Kids Fly Free promotion to Walt Disney World Resort in Orlando, Florida for travel now through December 15, 2004. The offer is valid for children ages two to eleven accompanied by an adult with the purchase of an Alaska Airlines Vacations package by September 30, 2004. Sep 14, 2004

Alaska Airlines will save up to $35 million a year by cutting 900 of its 11,000 employees and using more outside contractors for heavy maintenance and fleet service functions. In Spokane, all customer service work will be taken over by regional partner Horizon Air, and in Portland, Alaska will assume all of Horizon's ticket counter duties. It also is closing three city ticket offices in Juneau, Anchorage and Bellevue, Alaska. Since Sept. 11, 2001, Alaska has found $150 million in annual savings by improving its processes, growing in new markets and using technology. It has not until now needed to impact employees to find savings. Sep 10, 2004

America West Airlines announced on Sept. 9 2004 a new payment option at www.americawest.com. Bill Me Later is a credit-based payment alternative for customers who choose the security, flexibility and the convenience of buying without a credit card online and being billed later for purchases. America West is the only airline offering this new option. To introduce it, the airline is also providing the benefit of deferring payment for 90 days, which means customers can buy their tickets for travel now, take the trip and not worry about paying for it until 2005. Sep 9, 2004

America West Airlines and Autolog, a nationwide auto transporter, announced an agreement that will give seasonal commuters the opportunity to enjoy America West's low fares and great service while benefiting from discounted rates for transporting their cars. Autolog now transports vehicles in its Car-Rail, a fully enclosed rail car operation, on routes between the Minneapolis/St. Paul and Chicago metro areas and Arizona, and between the New York and Chicago metro areas and Arizona and California, as well as on its fleet of over-the-road automobile transporters, which operate nationwide. Sep 20, 2004

American Airlines is embarking on a new brand awareness campaign that will feature the tagline, "We know why you fly." It will focus on its employees around the world, its First Class cabins and its AAdvantage program. A special Web site linked from AA.com, WhyYouFly.com, will promote a dialogue between American and its customers encouraging them to explain why they fly. Dan Garton, executive vice president of marketing, said, "For our customers, we know the flight is a means to an end. It's not just a seat on a flight to a place, it's a seat on a flight to an important moment in your life." American will be running television, radio, print and online ads in English and Spanish. Sep 10, 2004

American will be adding 70 new departures from its Dallas/Fort Worth hub between now and next summer. American will operate 35 of the flights, and American Eagle the remainder. The additions will be made to dozens of cities already receiving service. In some cases, American will be putting its mainline jets on routes now served by American Eagle regional jets. American Eagle recently began operating flights to Torreon, Mexico, will begin serving Pensacola, Fla., on Oct. 1 2004, and has applied for permission to serve San Luis Potosi, Mexico. Sep 7, 2004

American reports its traffic for August 2004 rose 4.4 percent to 12.2 billion revenue passenger miles (RPMs), with international still going strong, up 14.5 percent to 4 billion RPMs. Domestic traffic, however, was flat. American enplaned 8.3 million passengers during the month, a drop of 1.2 percent. Meanwhile AirTran reports a 9.2 percent increase in August traffic to 752 million RPMs. It enplaned nearly 1.2 million passengers during the month, an increase of about 7.2 percent. Delta also reported an increase, with traffic up 9 percent to 10.2 billion RPMs. Its international traffic was up 14.1 percent while its domestic traffic jumped 7.4 percent. Sep 3, 2004

American and American Eagle on Sept. 6 2004 will match Northwest's new ticketing fees for tickets purchased through its U.S. reservations offices and airport ticket counters, but it is not charging up to $7.50 to agents for GDS booking fees as Northwest did. Northwest and American will both be charging $5 for tickets purchased through reservations and $10 at the airport. Meanwhile the Business Travel Coalition and ARTA have gone to the DOJ to seek an investigation into the GDS fees. All four GDSs have now started taking aim by pushing Northwest flights further down the screen, and no airlines have matched them. Sep 2, 2004

The United States Virgin Islands will welcome two additional flights to this fall. ATA Airlines, Inc. and US Airways will provide new direct flights to St. Thomas during the fall season. ATA Airlines, Inc. will provide non-stop service to St. Thomas from Indianapolis beginning Dec. 18. This new service, which will operate on Saturdays, will open a new key market for the USVI by extending non-stop air service from Indiana. US Airways plans to increase its Saturday service on Dec. 11 2004 with a new non-stop flight from Charlotte, NC to St. Thomas. Sep 3, 2004

Basiq Air, part of the Air France-KLM Group, is to disappear after January first 2005 and will be re-branded as Transavia. In fact Basiq Air was always part of the Transavia organization and even operated under the HV two letter code. The only ex-UK route affected is a four times daily service between Stansted and Rotterdam. Basiq Air currently serves 18 destinations, 12 from Amsterdam and another nine from Rotterdam, some of which operate in parallel. http://www.basiqair.com Sep 19, 2004

Bexx Air, Bulgaria's first ever privately owned budget airline, has been closed down by the local police according to the company's official web site. In a very strongly worded statement the airline has attacked authority "The way Bexx Air has been shut down is a signal to all foreign investors that Europe is still far away from Bulgaria and that business and investment is not protected." The move has stranded 900 passengers and sparked accusations from the carrier of unfair government interference. http://www.bexxair.com Sep 19, 2004

British Airways is guaranteeing that its business-class seats offer the best night's sleep in the air. It is embarking on a guarantee to Executive Club members from now through Dec. 31 2004. If those flying in Club World class do not have the best sleep in business class to London, they will receive an upgrade to first class on a future flight from the U.S., Canada or Bermuda after filling out a form. Members who register for the promotion will be given double miles if they purchase and take one transatlantic roundtrip or two one-way trips. Sep 20, 2004

British Airways is to reduce its winter flying by just 2%. The news has gained amazing coverage all over the world, totally out of proportion to what amounts to 966 out of 42,000 flights, in effect of about 12 services a day out of 540 operated by the airline. CEO Rod Eddington explained this as a precautionary measure to help ensure the robustness of the operation. "We recognized some time ago we were short of staff in some areas and our recruitment program is now bringing new staff on line. This is about giving some leeway to our operation as the principle carrier at the world's busiest international airport e an airport which remains crammed to capacity. By slightly reducing our flying program we improve our ability to react effectively to the technical issues that face all airlines every day". Make what you like of the words which came as a reaction to a piece carried by the London Evening Standard. Sep 19, 2004

British Airways is now offering great "off season" specials for travelers who want to spend less and experience more, without waiting in lines or pushing through crowds. British Airways offers travelers a truly authentic British travel experience, with exceptional value. Off season travelers now have the chance to plan a winter getaway to London with airfares starting at just $198 roundtrip from New York and hotel specials for as low as $40 per person per night. From September 14th through September 23rd, customers may book in advance for travel late fall and early winter. Special rates are available from all 19 US gateways, including Philadelphia, Washington DC, Atlanta, Chicago, Denver, Los Angeles and San Francisco. Sep 14, 2004

British and Indian negotiators have agreed on expanding air service between the two countries. Starting winter of 2004-2005, each country is allowed to add seven services. The same number may be added next summer and next winter. Virgin Atlantic Airways, which currently operates only three weekly flights from London to Delhi, said it wants to operate at least daily flights between London and both Delhi and Mumbai. British Airways operates 19 services to and from India, which is all of the rest of the U.K.'s allotment. Virgin said half of all people flying from London to Delhi and Mumbai are forced to do so via third countries. Sep 20, 2004

Cathay Pacific has opened its own lounge at Heathrow T3 for first and business class passengers. Modeled on the award winning designs of The Wing and The Pier, Cathay's signature lounges at Hong Kong, Heathrow follows similar introductions at Bangkok, Taipei, Seoul and Paris Charles De Gaulle and combines the latest technological and comfort innovations with the finest materials and workmanship. Located above the Duty Free Shopping area, the result is a spacious and passenger friendly environment, equipped with a premium range of facilities along with high levels of comfort and convenience. Features include work and relaxation areas, state-of-the-art technology, plasma TV screens, business facilities, comfortable seating, shower facilities, premium food and drink areas, and equally important, a team of knowledgeable and helpful staff. As well as European cuisine, a range of Asian dishes such as dim sum or noodles is also on offer. The new lounge offers business travelers state-of-the-art technology enabling them to remain plugged into the office. http://www.cathaypacific.com Sep 19, 2004

Continental is making a few changes to its OnePass frequent flyer program, including a dedicated priority desk to help Elite members. On Oct. 1, it will have the staff on hand seven days a week to process requests by those members. The airline also is making it easier for all members to book reward travel online. Users can search for standard rewards on a calendar that will show seat availability over a two-month period based on the date of the preferred flight. But, due to the decline in international fares, Continental will be raising the cost to upgrade to BusinessFirst on discounted economy tickets, effective Jan. 1. One-way upgrade fees for tickets booked in B or O class will cost $350, up from $300. Those in V or U class will have upgrade fees of $400 instead of $300, and tickets in Q, I, S, W, T, X or L class will cost $450, up from $400. The upgrade fee for K class stays at $200. Sep 14, 2004

Continental Chairman and CEO Gordon Bethune said airlines would like to drive more customers to the Web by offering discounts, rather than charge fees for booking by other methods, such as calling for reservations or using a GDS. "The GDS is a dying business," he said, adding that years ago travel agents were the only ones who could understand how to use them to make a booking. But with the Internet now, he questioned the need for customers and airlines to be forced to pay the fees incurred by using a GDS. Regarding Northwest's failed attempt to pass part of its GDS fees on to agents, Bethune said to make a move like that, an airline had better have a lot more sales already being conducted over the Internet, certainly more than Northwest did when it tried to make the fee stick. Sep 13, 2004

Continental, Northwest and KLM will officially join the current six members of the Sky Team Alliance on Sept. 15 2004, bringing expanded route networks to customers and more cost savings, potentially, to the alliance members. The alliance intends to add Aeroflot and China Southern in the coming year, and will finally gain momentum to compete with the larger Star Alliance. The alliance expect to serve 341 million customers a year. The savings to the airlines comes in the form of joint fuel purchasing and distribution, but only for those alliance members that already enjoy anti-trust immunity. Jean-Cyril Spinetta, chairman and CEO of Air France, said there are no plans to form a specific Sky Team structure for governance. It will continue to use steering committees, he said. Sep 13, 2004

Delta Air Lines customers in the United Kingdom can now easily access information most relevant to them at delta.com/uk, a Web site featuring tailored, localized information. While this site has been created specifically for customers in the United Kingdom, additional country- specific Web sites in local languages will be launched later this year. Sep 10, 2004

Delta CEO Gerald Grinstein shared the airline's new transformation plan with employees yesterday that is targeting $5 billion in annual savings by 2006. One goal is to move half of all of its customer transaction to Delta.com. To do this, it will "introduce capabilities to allow customers to find lower fares and obtain refund and reissues online." By the end of this year it expects to save $2.3 billion through its Profit Improvement Initiatives plan that is already in the works. Grinstein, saying this is a complete overhaul of the company, intends to restructure more than 51 percent of its current network by Jan. 31 2005. One major move will be to de-hub Dallas where American is growing rapidly and move those assets to Atlanta, Cincinnati and Salt Lake City. Over the next 18 months, up to 7,000 jobs will be eliminated. Part of the plan means improved customer service. Cabins will be updated and upgraded, more simplified fares will be used and SkyMiles awards will be easier to redeem. Sep 8, 2004

Delta Air Lines, Alaska and Alaska's regional partner Horizon Air have signed a marketing partnership that involves codesharing, sharing of frequent flyer benefits and airport lounges. If approved by the DOT, Delta will gain 42 new cities through codesharing. Alaska gets access to Delta's 245 worldwide destinations. Delta said the carriers also are discussing cooperating in other areas, such as air logistics and expanded cooperation with airport facilities and passenger handling programs. The start date for accruing and redeeming miles and sharing lounges will be announced later. Sep 16, 2004

Delta and Delta Connection carriers will be adding 12 new destinations from Salt Lake City as part of Delta's transformation plan. On Jan. 31 2005, Delta will begin flying to Fort Lauderdale, Tampa and New Orleans. On Feb. 5, it will add seasonal flights to Cabo San Lucas, Mexico, subject to government approval. The eight new cities to be served by Delta Connection beginning Jan. 31 are Austin, El Paso and San Antonio, Texas; Wichita, Kan.; Little Rock and Fayetteville, Ark.; Lewiston, Idaho; and Burbank, Calif. All of those flights will be flown with regional jets. To promote the new service, Delta will offer one-way fares of $84 for a limited time, excluding Cabo San Lucas. Austin, El Paso, San Antonio, Burbank and Wichita will have three daily roundtrips, Fort Lauderdale, Lewiston and Little Rock two daily roundtrips, and Cabo San Lucas one daily flight. Sep 20, 2004

The FAA plans to establish a Center of Excellence for Airliner Cabin Environment Research, to be headed by Auburn University to not only study cabin air quality, but also to study chemical and biological threats to an aircraft. Several other universities are taking part in the study. The FAA is spending $1 million in the first year, and $500,000 in the second and third years, which will have matching funds from the private sector. FAA Administrator Marion Blakey said, "We've brought together some of the brightest minds science has to offer to focus on cabin air quality and chemical and biological threats to protect passengers and crew members." Sep 10, 2004

Frontier Airlines has pared its flight schedule by about 13 percent and made other adjustments to trim costs as rising fuel prices continue to batter its bottom line. The low-cost carrier expects additional savings when it completes its shift to an all-Airbus fleet and implements a new reservations system next year, Frontier CEO Jeff Potter said Thursday at the carrier's annual shareholders meeting. Sep 9, 2004

Iraqi Airways is back flying international routes after a 14-year (sanction imposed) break according to reports from news media based in Baghdad. The airline has joined Royal Jordanian in offering scheduled flights to and from Amman. Currently the airline has a single operational Boeing 737. Dubai is said to be the next planned destination. Sep 19, 2004

Lan Peru has announced a 60 percent increase in its services from Miami International Airport beginning this week. This will add four weekly flights to its current seven. The new flights are expected to generate about $136,000 annually in landing fees and increase the number of passengers at Miami International Airport. Lan Peru's new services offer direct flights to Lima and continuing service to Buenos Aires, Argentina. Sep 2, 2004

Midwest Airlines is offering reduced fares for travel September 17, 2004 through January 31, 2005. Fares are available Friday, September 10 through midnight Central time Tuesday, September 14, 2004, and must be purchased at least 7 days in advance of departure. Included in the fare sale is travel on Midwest Airlines and Midwest Connect. Midwest Airlines Signature Service features seating altered from standard coach to a roomier two-by-two configuration. Midwest Airlines Saver Service provides low-fare flights between Milwaukee and popular leisure destinations. Midwest Connect provides connections throughout the Midwest Airlines and Midwest Connect route system, and point-to-point service between select markets. Sep 9, 2004

Northwest Airlines announced new nonstop jet service between its hub at Minneapolis/St. Paul and Asheville, N.C. One daily flight will be offered beginning Dec. 15 2004. Northwest inaugurated service at Asheville in June with two daily flights to its WorldGateway hub at Detroit. Sep 20, 2004

The Star Alliance has approved the addition of two regional members, Adria Airways, based in Ljubljana, Slovenia, and Croatia Airlines, based in Zagreb. Wolfgang Mayrhuber, chairman of the executive board of Lufthansa, said, "When TAP Air Portugal joins next year, in addition to the Iberian peninsula, south-eastern Europe will also be more closely linked with Star Alliance's global route network which is good news for travelers in these expanding markets." Croatia Airlines operates a fleet of 11 airplanes that serve 26 destinations in Europe. Adria Airways flies to 20 destinations, mostly in Europe. Sep 9, 2004

New Swiss International lounges offer greater customer comfort. Coinciding ideally with the inauguration of the new Airside Center, SWISS's refurbished lounges in Zurich Airport's Terminal 1 have reopened for business. The new-look lounges offer customers even more comfort, calm and practical working facilities than before. They also boast, as something of a centrepiece, probably the longest lounge bar in the airline world, with a length of 28.6 metres, which offers customers a fabulous view out over the airport and its bustling operations. The new SWISS lounges were opened by company CEO Dr. Christoph Franz on the morning of Wednesday, September 15, as part of the general inauguration of Terminal 1's new Airside Center. The refurbishment of the SWISS lounges, which took two months, has seen all the company's lounge facilities placed under a single roof. The lounges' integration into the new Airside Center offers numerous benefits for SWISS passengers: - shorter journeys and transfer times, with Passport Control nearby and direct access to the Skymetro - a separate quiet area with three relaxation rooms - new business areas with various workstations - an informal bar with bartender service. The lounges can be used by any SWISS passenger holding a Swiss First or Swiss Business ticket, any Swiss TravelClub member with Circle, Gold or Silver status or any VIP passengers. SWISS expects some 1 800 customers a day to make use of the newly-refurbished facilities, which offer an excellent means of resting and relaxing before the departure of their flight. Sep 14, 2004

Tiger Airways 49% owned by Singapore Airlines, has taken off. The new south east Asia, Changi Airport, Singapore-based, budget carrier's maiden flight was to Bankok, a three times daily service. Phuket follows on Wednesday 22 September and Hat Yai from 29 September. The airline currently has two Airbus A320 with another pair expected by the year end. http://www.tigerairways.com Sep 19, 2004

Travelocity beats or matches airfares found on Orbitz and Expedia more than 85 percent of the time, according to a study by FareChase's MarketView software. The five-month study analyzed 171 of the top 250 domestic routes. FareChase found that Travelocity finds fares that are on average $30 cheaper than its two competitors. Sep 20, 2004

United Airlines CEO Glenn Tilton said the airline must lose a significant number of personnel as part of its restructuring plan, but he did not say how many, Reuters reports from an industry meeting in Brussels. Tilton also said he hopes that US Airways will survive its restructuring under bankruptcy so that the two may continue to benefit from their codehsaring arrangement. United has been operating in bankruptcy since December 2002. Sep 16, 2004

US Airways Group desperately trying to slash costs in bankruptcy to ensure survival, may not be able to find much relief through a potential sale of its assets, analysts said on Sept. 14 2004. US Airways Group, Inc. securities will cease trading on The Nasdaq Stock Market effective with the opening of business on Sept. 22, 2004. US Airways received written notification on Sept. 13, 2004, from Nasdaq that its securities will be delisted in accordance with Marketplace Rules 4300 and 4450(f). As a result of the notification, the fifth character "Q" will be appended to the company's trading symbol, which will change from UAIR to UAIRQ at the opening of business on Sept. 15, 2004. Once delisted, shares could still be traded in the "Over-The-Counter" market, which the company does not control. Sep 14, 2004

US Airways has hired a former employee, James Schear to serve in a new role, effective immediately: vice president of restructuring. He will handle the airline's organizational re-engineering responsibilities and priorities that have been identified by senior management. He also will be working with employee task forces, advisors and management. Schear worked several years ago in a variety of roles at US Airways, including manager of flight operations and director of business planning. He joins the airline from FAA's Air Traffic Organization where he was vice president of safety. Sep 2, 2004

US Airways and Continental are the latest to join American in matching Northwest's new $5 fee for making a booking through their own reservationists, and $10 to buy a ticket at the airport. Continental's fee became effective on Sept. 8, and US Airways' on Sept. 9 2004. The non-refundable fees apply to each domestic or international one-way or roundtrip ticket, and for OnePass reward tickets on Continental. US Airways said the fee applies to domestic and international travel, and will not be charged to Dividend Miles Chairman's Preferred members. (Northwest initially only applied the service fee to domestic tickets. But once it dropped its $7.50 GDS fee to agents, it added international flights to the service fees). Sep 8, 2004