Business Travel News - November 19, 2007 - (Page 6)

NEWS Washington Wire BUSH TAPS STURGELL TO LEAD FAA EC Adopts CRS Conduct Code BY JAY BOEHMER said, “At face value, it has everything we’ve been The European Commission last week adopted a asking for for three years.” However, C-FARE, an new computer reservation code of conduct that frees alliance that includes travel companies, buyers, agenPresident George W. Bush late last month tapped Robert airlines and global distribution systems to negoti- cies and Amadeus competitors Galileo and Sabre, Sturgell, a former pilot for United Airlines, to lead the Federal Aviation Administration, succeeding Marion Blakey, who ate content and fee structures. However, some crit- said the revised code’s interpretation would give ics said the commission neglected to adequately ad- Amadeus and its airline owners “a regulatory green left the agency in September after her five-year term ended. dress its “parent carrier” interpretation, and the code light to consolidate existing dominant positions, reSturgell, who was also a U.S. Navy aviator, was Blakey’s deputy would give Amadeus and its since 2003. “Bobby has worked tirelessly to modernize our nastrict access to critical inforairline stakeholders a pretion’s air-traffic control system,’’ White House spokeswoman mation on their services and Dana Perino told reporters upon announcing the nomination ferred position in some Euengage in other unfair comropean markets. petitive practices to the detrilast month. The Senate must confirm the nomination. Sturgell Though the commission ment of consumers and other will take the helm of an agency that’s trying to restructure avimaintained its definition of ation taxes, placate the air traffic controllers union over pay, and market participants.” “parent carrier” to mean airreduce congestion at the nation’s busiest airports, most urgentHowever, commission ofly in New York. lines that “directly or indificials said the revised code rectly, alone or jointly with “maintains safeguards to proFAA is about to spend as much as $22 billion by 2025 on KEVIN MITCHELL, chairman, Business Travel Coalition tect against competitive abuse others, own or effectively equipment upgrades, and Sturgell will continue to press Concontrol a system vendor, as gress to shift aviation taxes from commercial aircraft onto users by airlines that own or conwell as any air carrier or rail-transport operator trol CRSs” and “contains provisions to ensure an unof small planes. “His distinguished and varied background, in both civil and military matters, uniquely equip him to serve as which it owns or effectively controls,” commission biased presentation of travel options in the CRS disFAA administrator,’’ James May, president of the Air Transport officials last week said the definition does not ap- plays and the display of ‘all-inclusive’ airfares.” ply to Amadeus, of which Air France/KLM, Business Travel Coalition chairman Kevin Association trade group, said in a statement. Lufthansa and Iberia own stakes of 23.6 percent, Mitchell last week said the commission “opened a His nomination drew immediate opposition from the Na11.5 percent and 11.7 percent, respectively. tional Air Traffic Controllers Association, which said FAA isgiant loophole in the coverage of these rules.” Cn’t doing enough to retain experienced controllers. “We oppose “We drew the conclusion that even a partial own- FARE said if airlines that have a stake in Amadeus it because America’s aviation system is experiencing record deership of an air carrier on a CRS was not sufficient to “could provide more timely fare and seat availabilestablish that this was a parent carrier in the meaning ity information to Amadeus than to competing syslays and an unprecedented degradation of safety margins, exof the regulation,” said Benoît Le Bret, head of cabi- tems,” while Amadeus could provide those carriacerbated by the largest decline in the number of experienced air net for the European Commissioner for Transport. ers “privileged access to technology for the display traffic controllers since 1981,” NATCA President Patrick Forrey said in a statement. Sturgell used to fly Boeing 757s and 767s The code now moves to the European Parliament for and sale of transportation.” for United and also flew F-18 fighter jets for the Navy. He was final approval, for which there is no timetable. a senior policy adviser for the National Transportation Safety The Coalition for Fair Access Board. to Reservations in Europe execu—Patty Donmoyer tive director Brandon Mitchener Continued from page 1 companies, which include TRX in line with customer demand and Park ’N Fly, he said. and develop further synergies beDrechsel said the Asia/Pacific tween its operating companies. region that current CEO Buckman Drechsel said the melding of will lead is an area of fast growth Continued from page 1 the market is riper now than it was in the past for CEO duties is a long-term stratedouble or triple is just unacceptable. I look at some consolidated buying. We’re also starting to see ho- gy that will enable the streamlinof the rates we had when I first started at Pfizer, and tels more receptive to two-year contracts, which is ing of operations, because BCD put that against a 3 to 4 percent increase a year. For something we worked on for a long time. I’m also Travel will not have to seek BCD the most part, we’re in line. It’s usually the next finding a delay in the response on rates. It’s almost Holdings’ approval for executive round where people get serious, because we’ve giv- like the hotels are looking at each other to see who decisions. “If you replace me up en some very strong feedback to all the chains. does what. Nobody wants to be the bell cow. It’s there with someone else, you will Cynthia Shumate: I’m in the middle of it, and I going to be very interesting when these rates do go back to the old structure for haven’t received all the total start coming in. I’ve been see- BCD Travel. That wouldn’t be our pricing yet. I’m a little ahead ing pretty much the same av- intention,” Drechsel told Business of my schedule from past erage. The best-case scenario Travel News in an exclusive interyears. Our effort is to release is 4 to 7 percent. The worst- view. “My vision for BCD Holdthe preferred list by the end case scenario is double dig- ings will be very close to the viof December so that we can its, in some cases in the 20 sion for BCD Travel.” BCD Travel, he said, “is by far kick off and be on target. It’s percent range. We’ve begun been a growing program for negotiations, but we have our biggest business.” CombinDRECHSEL: BCD visions align. us in the past two years, and backed off just a little bit be- ing the roles “allows me to conwe’ve been late. So, I’m hapcause we’re adding more centrate a large part of my time py to say that I’m here, but I volume, which the hotels un- on this huge business and the big for the company, which is workKEVIN MAGUIRE, president, Nat’l Business Travel Assn. derstand. We’re negotiating, objectives we have for that busi- ing to close gaps in markets indon’t have them nailed down yet. but we will make adjust- ness,” Drechsel said. cluding Australia, China and InBTN: What do you expect percentage-wise? ments as the other companies come online. Immediate priorities, said dia, where BCD Travel last week Shumate: An increase. I don’t really have a hard Cynthia Gillen: This is a really exciting year for Drechsel, are growing the client announced the acquisition of Hynumber. I’ve read to expect 4 to 7 percent, so I’ll be us. We are changing the approach to our hotel pro- base by developing new client re- derabad agency A.V. Tours and keeping that in mind. gram. Previously, we had concentrated on a very lationships and strengthening ex- Travel, which had $7 million in BTN: Kevin, what’s going on with the negotiat- small number of key markets, where we had consis- isting ones. Drechsel plans to con- total travel sales in 2006. ing consortium? tent annual business. As our business had grown tinue to invest in technology, Drechsel said the TMC also Kevin Maguire: We’re actually exp anding to a considerably in the past few years, we now find our- expand the travel management plans to develop further agency degree. We’re finding that more and more compa- selves in the good position of having much more to network, and grow organically partnerships in the region. nies have lost travel managers, and they’re not as play with, so we are going to be doing our first for- and by acquisition. “Asia/Pacific is an area where it comfortable using the services of a travel manage- mal bid structure this year. It’s going out this week, Another focus is developing is sometimes smart to not comContinued on page 8 Continued on page 37 ment company as they thought they would be. Plus, further synergy among operating “This opens a giant loophole in the coverage of these rules.” BCD Travel To Change CEOs Buyers In The Midst Of Hotel Negotiations “The best-case scenario is a 4% to 7% rate increase. The worst is in the 20% range.” Monday, November 19, 2007 www.btnonline.com Business Travel News http://www.btnonline.com

Table of Contents for the Digital Edition of Business Travel News - November 19, 2007

Business Travel News - November 19, 2007
Contents
Avis Ups Its Bet With Carey Investment
Notebook: ACTE Assails Green Taxes
EC Adopts Revised CRS Code Of Conduct
Dynamic Discovery: General Dynamics’ Loper Mines Data
American First: AA Wins BRN's 2007 Air Survey
Perfecting Attendance: CA’s Brust Deploys Event Reg. Tech.
Mtg. Buyers Grapple With Price Hikes
Business Travel News - 2007 Resource Guide
Table of Contents
Airline Benchmarks
Siemens: Global Balance
Hotel Benchmarks
Syngenta: Selective Sourcing
Online Booking Benchmarks
Pfizer: Cross-Border Mtgs. Consolidation
Meetings Benchmarks
Planes, Trains and Striking Good Deals

Business Travel News - November 19, 2007

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