HEADLINE NEWS.

The U.S. Department of State is warning U.S. citizens to avoid travel to Haiti because of an unstable political situation. Citizens there are urged to consider departing at this time. Travel can be hazardous within Port-au-Prince, and the downtown area is off limits to U.S. Embassy staff after sundown. There is no effective police force, said State, and there is a potential for looting, intermittent roadblocks by armed gangs or by the police, and random violent crime. State said there has been a noticeable escalation in crime since Sept. 30 2004. The consular section of the embassy can be reached at 509-223-7011. Oct 20, 2004

Three of the nation's largest airlines reported a combined $906 million in third-quarter losses on Wednesday Oct. 20 2004. The largest by far was at Delta Air Lines Inc., where bankruptcy looms unless it can quickly win concessions from its pilots and debt holders. Soaring fuel prices were the main culprit for the red ink at AMR Corp., parent of American Airlines, Northwest Airlines Corp. and Delta, whose situation also has been exacerbated by the cost of servicing its $20.6 billion in debt. All three reported higher revenue.

Air Exel is to sever its links with KLM over the coming months. KLM Royal Dutch Airlines and Air Exel have decided to revise their cooperative ties. The existing KLM Exel franchise will be discontinued effective 6 November 2004. From that date, Air Exel will operate ATR 72 flights between Eindhoven and Heathrow, Paris Charles de Gaulle and Hamburg under its own name and XT flight numbers. Air Exel will continue to operate fly between Maastricht and Schiphol on behalf of KLM until 26 March 2005, after which KLM cityhopper will take over the flights on this route. http://www.exelaviationgroup.com Oct 18, 2004

Air New Zealand will no longer sell First Class seats on 747-400 flights after June 10, 2005. It is refitting its cabins with three new classes - a premium class, super economy class, and refreshed economy. All cabins will have new seats, in-flight entertainment systems and new food and beverage service. Premium Class will have lie-flat seats, Super Economy seats will have 40-inch pitch and be equipped with video screens, and Economy Class will have 34-inches of pitch. Passengers already booked in First Class beyond that date, and agents will be contacted to assist in rebooking. Oct 19, 2004

New Zealand visitors and of course nationals will be pleased to learn that Air New Zealand Link carrier Air Nelson is to replace its current fleet of 17 Saab 340A aircraft with a like number of Bombardier Dash 8 Q300 turboprops. The delivery of the first new aircraft is expected in July 2005 with one joining the fleet every six weeks, completing the delivery process within two years. The new aircraft are much quieter internally, 20 knots quicker in the cruise and offering 50 seats instead of 30. Passengers will find them far more comfortable. Air Nelson links the regional centers of Nelson, Napier, Palmerston North and New Plymouth, with the main city centers of Auckland, Wellington and Christchurch. The airline also operates some of the Air New Zealand Link services to and from Rotorua, Tauranga and Hamilton. In another move Singapore Airlines has sold its shareholding in Air New Zealand at a substantial loss. SIA first acquired a stake in 2000 but after the New Zealand government vetoed plans for a 49% shareholding the airline quickly lost interest. It has now raised its holding in Qantas from 1% to 3%. http://www.airnewzealand.com Oct 18, 2004

AirTran Airways says it will move to quickly allow passengers at Orlando International Airport to receive expedited clearance as part of the Transportation Security Administration's decision to allow a private sector rollout of the Registered Traveler Program there. The program will be voluntary and governed by privacy protection policies. The airline said that as soon as the TSA publishes the formal regulations needed, it is ready to start offering the expedited procedures. The TSA has been testing the program at five other airports in the U.S. Taxpayers will not pay for this process at Orlando. Oct 21, 2004

American Airlines has increased international fare surcharges to either $15 or $25 because of rising fuel costs, it said. The change goes into effect immediately. American is simply joining some other major airlines that have been forced to do the same. Scott Nason, vice president of revenue management, said crude oil prices are now above $50 a barrel. "We estimate the full-year impact of the rise in fuel prices will cost $1.2 billion in added expense compared to last year," he said. Tickets to the Caribbean and Bahamas, Mexico, Central America and the South American nations of Bolivia, Colombia, Ecuador, Peru and Venezuela will have a $15 surcharge each way. The South American nations of Argentina, Brazil, Chile Paraguay and Uruguay, as well as all transatlantic and transpacific flights will be charged $25. Oct 15, 2004

American Airlines has started to add a fee for paper tickets purchased through a travel agent in some European countries, the Caribbean, Mexico and Latin America when an electronic ticket is available. Effective immediately, tickets purchased through agents in Italy, Spain, Belgium and France will be charged 25 Euros and in the U.K., 25 Pounds. In the Caribbean, including Puerto Rico and the U.S. Virgin Islands, Mexico and Latin America, the fee will be $25 converted to local currencies starting Nov. 8 2004. Oct 19, 2004

American Express says that while it is seeing a steady return of the business traveler, hotel rates and airline fares around the world should mostly see increases, and corporate travel managers should lock in rates now. The increases can vary significantly from region to region. International business class fares are expected to go up 2-5 percent in North America, 4-5 percent in Asia/Pacific, 2-4 percent in Europe and 3- 5 percent in Latin America and the Caribbean. Short-haul and domestic fares, however, in Europe could drop by 1-3 percent where low-fare competition is strong, but could be up 3-4 percent in Asia. In the U.S., the typical business fare is expected to rise by 1-3 percent and hotel corporate rates are forecast to go up as much as 3 percent. The interesting region to watch is Asia/Pacific where more low-cost carriers are gaining ground, and traffic is seeing strong increases, long-haul routes such as Dubai-Sydney and Singapore-New York. A new airport just opened in Guangzhou, China, and next year two more will open in Japan and Bangkok while Beijing will see an upgrade. Oct 18, 2004

Discount airline ATA eliminated 220 positions in a cost-cutting move a day after it said a pay cut accepted by flight attendants would not save enough money to ease its cash flow problems. Indianapolis-based ATA Holdings Corp. did not specify what jobs would be cut, but said the reductions would not include pilots, flight attendants, ramp agents or reservations agents. ATA, which flies to six Florida cities, said its business was hurt by the hurricanes that struck that state in August and September. The ATA job cuts represent about 3 percent of the company's work force. The new job cuts follow an announcement last week that that ATA would lay off 156 employees, including 150 flight attendants, beginning Oct. 31 2004. The airline, the nation's 10th largest, blamed those layoffs on a seasonal business slowdown. Oct 21, 2004

British Airways has taken delivery of the first of seven Airbus A321s that it will operate, adding to the A319s and A320s that it is already flying. The Airbus A321s will operate on European routes offering 183 passengers in a two class layout. BA became an Airbus operator in 1988 when it took over the existing British Caledonian Airbus A320 fleet and added A319s to its fleet in 1999. Its franchise operators British Mediterranean Airways and GB Airways both have all-Airbus fleets that include five A321s. http://www.ba.com Oct 18, 2004

Continental intends on ending interline ticketing and baggage-handling agreements it has with 20 airlines in an effort to move toward paperless travel. The termination with those carriers that are not able to offer electronic tickets will occur on Nov. 15 2004. Continental has already done so with 90 other airlines. The U.S. airline, like many other domestic carriers, have targeted Dec. 31 as the date to be paperless, which is ahead of the IATA deadline. Oct 18, 2004

Cunard Line is unveiling its around-the-world itinerary for 2006 based on brisk sales for its 2005 world cruise. The 109-day "Voyage of the Seven Wonders" on the Queen Elizabeth 2 will visit 42 ports in 27 countries with prices ranging from $33,999 to $399,999 per person double. Departing Jan. 9 2005 from New York, the world cruise will sail from New York via the Panama Canal to Los Angeles, across the South Pacific to New Zealand and Australia, through the Far East to India, Arabia and Europe, before crossing the north Atlantic from the U.K. back to New York. Overnight stays will include one night in Auckland, two nights in Sydney, two nights in Hong Kong, one night in Bangkok, one night in Mumbai (Bombay) and one night in Dubai. New for 2006, the ship will visit Shanghai and overnight there. For those unable to spend nearly four months at sea, five Liner Voyages "segments of 37 to 72 days" are priced from $12,999 per person double. Early booking savings of up to 40 percent are available for the full world cruise as well as the five Liner Voyages. Roundtrip economy air transportation between 102 North American cities and the ship is complimentary on the world cruise and all Liner Voyages. With few exceptions, business class upgrades are offered to guests booked in Caronia cabins and those in Britannia, Princess and Queens grill luxury accommodations will fly in first class. Shipboard gratuities are included for those sailing for 89 days or longer. Oct 21, 2004

Delta Air Lines is to become the first carrier to provide non stop services between Berlin and New York. The airline will introduce daily flights between Tegel and Kennedy on 2 May 2005 operating 204-seat two class Boeing 767-300ER aircraft. The carrier already serves Germany with six daily nonstop flights from the US. From JFK the airline offers daily service to Frankfurt, whilst from Atlanta the carrier has one daily flight to Stuttgart and Munich, and two daily flights to Frankfurt. From Cincinnati, Delta is daily to Frankfurt. http://www.delta.com Oct 18, 2004

Emirates has announced plans to launch a second daily service between Dubai and Perth next October operating the advanced A340-500 aircraft. The airline will also increase its nonstop Dubai-Melbourne service from six a week, to daily from December 6, 2004. This service extends onward to Christchurch in New Zealand. With the move, Emirates will operate 28 weekly flights into New Zealand - daily into Christchurch, and thrice daily into Auckland. By October 2005, the airline will offer double daily services to Sydney, Perth and Melbourne, and daily to Brisbane. Oct 18, 2004

Emirates has revealed that it will add a third Indian Ocean destination to its rapidly-expanding network in January 2005 with the start of services to the Seychelles. The Dubai-based airline will commence services on 2 January 2005, initially operating three nonstop flights per week on Tuesdays, Saturdays and Sundays between Dubai and the Seychelles capital of Mahe. The new service, which departs from Dubai at the early hour of 0210 (arriving 0645 local), is designed to offer convenient connections with inbound flights from Emirates' five UK gateways: Birmingham, Gatwick, Glasgow, Heathrow and Manchester. Return flights depart Mahe at 0800 arriving in Dubai 1230 enabling passengers to connect quickly to a number of onward services to the UK or to take the increasingly popular option of a twin center holiday, enjoying a break in one of Dubai's luxury hotels. The 4 hour 35 minute flights will be operated by an Airbus A330-200 aircraft configured with 54 business class and 183 economy class seats. http://www.emirates.com Oct 18, 2004

Eurail Passes reported a worldwide increase of 21 percent in the first seven months of 2004. According to figures released today, January through July Eurail Pass purchases totaled 213,296. Total revenue for the period was $93.8 million, up 24 percent. According to Eurail, the pass is now benefiting from "the rebound in travel that began last year with the end of military combat in the Iraq war." The U.S. travel market has recovered strongly in the last year and is expected to approach 13 million in 2004, which was the record set for U.S. visitors to Europe in 2000. Oct 21, 2004

Eurostar will commemorate its 10th anniversary of service through the Channel Tunnel with an upgrade to first class for those who purchase a $90 one-way standard class ticket. The offer is limited to travel Mondays through Thursdays between 11 a.m. and 3 p.m. and is valid for bookings through Nov. 30 with travel through Dec. 15. The tickets are nonrefundable and non-exchangeable. Traveling at speeds of 186 mph, Eurostar has captured 66 percent of the market share on the London-Paris route. Oct 20, 2004

Holland America Line plans to introduce "Explorations Cafe - powered by The New York Times." The onboard ship cafe will be a living room-style environment where guests can sip a cup of coffee, browse through a selection of more than 2,000 books, enjoy a wide selection of music and surf the Internet. Guests can take advantage of these new resources, including a wealth of content provided by The New York Times, to get an in-depth look at the history, culture and traditions of Holland America Line's worldwide destinations. The Ryndam will be the first ship to showcase the cafe this month, with the broader Explorations program in place across the fleet in 2006. Oct 21, 2004

Horizon Air will offer nonstop jet service from Santa Barbara to Portland starting Oct. 31, 2004. Currently, Horizon operates two nonstops to Seattle. Under the new service, one of those flights will now fly nonstop to Portland and then continue to Seattle. Horizon Air is the first and only airline to offer nonstop service from Santa Barbara to Portland and Seattle. From Horizon's Seattle and Portland hubs, passengers can make easy connections to Horizon and sister carrier Alaska Airlines' nonstop flights to cities in Alaska, Washington, Oregon, Idaho, Montana, British Columbia and Alberta. Horizon operates 70-seat Bombardier CRJ-700 aircraft from Santa Barbara. The CRJ-700 is among the quietest commercially operated jet aircraft, with far less noise and fuel emissions than the limits enforced by even the most environmentally sensitive airports. Horizon is currently offering sale fares to Portland and Seattle as low as $218 roundtrip (plus additional government-imposed taxes and fees of $20.20) for tickets purchased by Oct. 28 and travel completed by Feb. 16. Some holiday travel periods are excluded. Tickets are available on the Web at www.horizonair.com, by calling Horizon Air at 1-800-547-9308, or through travel agents. Oct 22, 2004

Peru bound travelers should be wary if they are intending to fly to the South American state. Lan Peru, part of Oneworld airline Lan Chile, was grounded for some hours following a court ruling that it contravened foreign ownership rules. The government then stepped in to allow flights. Controversy seems to be the name of the game regarding services out of Lima. Fierce competitor Nuevo Continente was also grounded in July. With an aggressive expansion program the Chilean owned airline has overtaken Nuevo Continente as Peru's largest airline. http://www.nuevocontinente.com.pe http://www.lanperu.com Oct 18, 2004

Monarch Airlines has reconfigured two of its A300 aircraft, allowing it to offer the spacious upgraded cabin on a wider range of medium haul routes as well as long haul. Premium Cabin was previously only available on the airline's A330 aircraft. Operating from Nov. 1 2004, the newly reconfigured A300s will offer 50 upgraded seats in addition to 297 economy. Passengers traveling in this cabin will also benefit from the introduction of the new DigEplayer, a handheld in-flight entertainment system, as an alternative to the individual seat back video system, thus offering customers true play-on-demand entertainment. Monarch says that there is a high demand for area, passengers gaining a 34 inch seat pitch, increased seat recline with adjustable headrests and a wider configuration of 2-4-2 instead of 3-3-3. There is a free bar service with upgraded catering offering a choice of entree and a superior wine. Premium Cabin clients can use the Fast-track/Fastlane service at peak times at Gatwick and Manchester. http://www.flymonarch.com Oct 18, 2004

GetThere, the corporate travel arm of Sabre, has signed an agreement with French rail company SNCF to offer travelers rail bookings. GetThere currently offers online bookings on Amtrak and on British rail company Trainline. Online bookers in Europe or the U.S. also can now select the language they would like to use while booking. Bev Heinritz, general manager of GetThere, said, "With the increased buzz around online travel options for corporations, many people are neglecting to look at how well these services serve the needs of international offices and companies abroad." Oct 18, 2004

US Airways will be making changes in key markets that will allow it to operate 230 more daily flights through better fleet utilization. The main changes include considerable increases from its Philadelphia hub to European, Caribbean and Latin American destinations, as well as other cities in the Northeast. It is replacing arrival and departure banks with "a steady flow of flights throughout the day." It also intends to significantly grow capacity at Charlotte, N.C., by adding 100 daily flights over last February's schedule. It also will beef up service from Fort Lauderdale to the Caribbean and Latin America. It says it is turning Washington-Reagan into one that focuses on important business destinations, such as four daily flights to Atlanta, Cleveland, Detroit and Chicago, and three daily flights to Dallas-Fort Worth and Houston. Pittsburgh will continue to be an important element in its system, as will the US Airways Shuttle. Transatlantic service will remain the same. Oct 18, 2004

US Airways and bmi will begin code sharing Oct. 27 2004. Initially, US Airways will place its code on bmi's flights to Edinburgh and Glasgow from Manchester. US Airways operates its own seasonal nonstops from Philadelphia to Glasgow. Both airlines are members of the Star Alliance. Dividend Miles members can earn actual miles or the minimum 500-mile credit when flying on qualifying bmi flights. In addition, a 50 percent Class-of-Service bonus will be given when flying in business class. All miles count toward achieving preferred status. Oct 19, 2004

Virgin Atlantic has been very active in Australia promoting its new Hong Kong/London route due to commence on Dec. 8 2004. Some Oz wag wanted to know if the "Atlantic" tag was going to be dropped, which did set some minds thinking. After all the Atlantic Ocean is hardly known down under. Flight details include a daily 1615 departure from Sydney, 90 minutes on the ground at Hong Kong arriving at 0450 the next day (The other way it is Heathrow 2130 with the final arrival at Kingsford Smith two days later at 0710). Virgin is keen to highlight the benefits of Upper Class over its competitors and is offering chauffeur driven journeys at each end. Airbus A340s will be used on the route with 45 Upper Class suites, 28 Premium Economy and 233 economy. http://www.virginatlantic.com Oct 18, 2004