Notes from the Runway May 06, 2008 The Biggest Airline in the World
Announced, and Other News
By Alex Palmer and Leo Jakobson
American Express Business Travel has released its annual look at the cost of U.S. corporate travel. Prices rose steeply in most categories, the exception being domestic airfare, which decreased $1 in 2007, compared to 2006. International airfare saw triple-digit growth, while domestic hotel rates and international hotel rates grew by double digits.
The report blames high oil prices for the airfare increases and tight supply with high demand for the high rates in lodging. Domestic airfares' slight decrease was attributed to the growth of low-cost carriers and airlines' inability to increase capacity. The report notes that prices on international carriers rose almost across the board.
• Delta Air Lines and Northwest Airlines have proposed, after months of speculation, merging to create the world's largest airline. The joined airline will maintain the Delta name and be headquartered in Atlanta, unless the U.S. Department of Justice blocks the merger on antitrust grounds.
Speculation is growing that Continental Airlines and UAL, parent of United Airlines, will also announce a merger soon. For more on the effect of this merger on business travel, see www .incentivemag.com/airlines.
• CompanyBlue Meetings, JetBlue's program for convention and association meeting attendees, an-nounced that it is expanding its offerings. Travelers that give a meeting-specific code will now receive a discount off the airline's fares no matter where they are traveling from, and for every 40 tickets purchased to a specific destination, planners will receive a complimentary travel certificate.
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