America West, US Airways merger imminent

America West, US Airways merger imminent — US Airways Group Inc. and America West Holdings Corp., which are in merger negotiations, are trying to raise up to $400 million in funding and secure a loan from Airbus in exchange for ordering new airplanes, according to The Wall Street Journal. The two airlines are expected to announce their merger within the next week, an industry source previously told Reuters. (Reuters)

Commentary from Addison Schonland — US Airways is in Chapter 11 and gets to buy new airplanes? This pending merger is turning out to be quite a big deal. They want a very long-range airplane that only is delivered after 2010. Currently, US Airways has a long haul fleet of 762s and 330s. AWA has nothing like this, having burned their fingers badly when they tried this before with Japan service using second-hand 747s from KLM. As these airlines merge it is generally accepted the combined company will become an Airbus fleet. Clearly Airbus is buying this 350 order — if it happens. How can anyone see it any other way? Boeing no doubt will have a field day with this news. It is certainly an odd story.

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Broken toilets force cruise cancellation — About 1,000 cruise passengers have had to abandon their holiday because the ship’s toilets are failing to flush. The Thomson Celebration set sail from Southampton on its 14-day cruise of the Mediterranean seven days ago. Engineers failed to mend the plumbing, and 600 of the passengers have been flown home from Portugal to Bournemouth and Gatwick airports. (BBC)

San Jose rental firms want to raise surcharges — Mineta San Jose airport’s 10 car rental companies want customers to pay a bigger share of their airport obligations but they’ll need help from the city and the state Legislature to make that happen. The consortium of car rental companies is seeking city support to amend a state law that limits the customer facilities charge levied at Mineta San Jose, now currently $5. Most California airports allow a $10 per vehicle surcharge. (Business Journal)

Travel agent slow to repay victims — Travel agent Ronni Spoll owes her clients more than $800,000 in restitution, but in the last four months only $175 of her wages have gone toward paying them back, according to a prosecutor. The 56-year-old former owner of The Travel Agency in Palmer Township, Pa., collected thousands of dollars from more than 200 customers to book trips from January 2003 to January 2004, but she never booked the vacations. (Express Times)

For hotels, timeshare properties are hot — Timeshares, once the murky backwater of the lodging industry, are pumping out billions of dollars for hotel operators as they rebound from the lull following the 9-11 terrorist attacks. In a bright first quarter for big hotel companies, no holding shone brighter than their time-share investments. (Florida Today)

A travel agent for your pet? Why not! — The questioners were often incredulous: “You’re taking your cats with you?” they would ask first, raising an eyebrow or two. Then: “You’re hiring a what?!” It seemed logical to us. We were preparing to move with our two pampered kitties from the East Coast of the United States to South Africa, and we were frazzled. (Christian Science Monitor)

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United stewardesses ’stripped’ of pension — Some United Airlines employees at risk of losing their shirt are taking it all off instead. A group of five flight attendants who are at risk of having their pension plans terminated decided to show some skin in a 2006 calendar titled “Stewardesses Stripped (Of Their Pension?)” to publicize their plight. (CNN/Money)

Commentary from Mary Staley — Kudos to the United attendants for fighting back in their own way. It takes guts and a sense of humor to fight for what you believe in nowadays. Shame on United for trying to strip them (excuse the pun) of their pensions.

Plane misses runway, lands in bay — Four people sustained minor injuries when the jet ended up in the water. There was no word on what may have caused the crash. Several people witnessed the aircraft hitting the bay, including Carolyn Grey. “There was a huge splash of water,” she said. “There were two private boats out there getting people off the plane.” (NBC)

For HoJo restaurants, things can only get better — he orange roof is long gone and the Simple Simon plaque is history. The famous “28 flavors” of ice cream have dwindled to 16 varieties. But at least the familiar name sits atop the building, which is a lot more than hundreds of onetime Howard Johnson’s eateries can say. The venerable chain once had more than 800 restaurants from coast to coast, but these days you can count them on two hands. (AP)

US Airways’ customers scramble to cash in miles — Struggling US Airways’ frequent fliers last year flooded it with free-trip claims, a signal that its best customers view the No. 7 carrier’s future dimly. Free reward trips jumped 25% from 2003. It’s by far the biggest rise among big U.S. airlines with well-established loyalty programs. The free trips accounted for about 8% of total mileage flown by US Airways’ passengers. (USA Today)

Correspondents: Leslie Friedman, Addison Schonland, Mary Staley.

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